b'DECEMBER 19, 2022 - JANUARY 22, 2023ANALYSIS & PERSPECTIVE 19(TRIPLEcontinued from(OPTIMISTICcontinuedregulations coming into effectMPVsectorwithwind,oiltwonewmetricsintroduced page 17) from page 18) in 2023 will cull out older ton- and gas segments all expectedrequiring owners to measure Asoceancarrierscon- backintocontainers.How- nage that is unable to complyto perform well in the comingavesselsoverallenergy tinuetoworktowardreduc- ever, the poor performance ofwith the new regulations. It isyear. This, along with the tightefficiency and actual carbon ingtheenvironmentalimpactcontainerlinesoverthepastforecast that the MPV sectorsupply of tonnage should keepdioxide emissions. This will oftheirshippingoperations,18 months may have changedwillexperienceashortagerate levels in a profitable range.result in some vessel owners refrigeratedcontainerfleetshowshippersapproachoceanof tonnage to support freightOneenergysourcewedontneedingtomakemodifica-are being reviewed as one areatransportinthefuture. Thosedemand in the next few years.hear much about in the main- tions to their vessels in order wheresustainablesolutionswhothoughtoutsidetheboxThis scenario is not likely tostream news is nuclear power.to meet the new standards. In can make a difference.Withmay have been convinced thatchange anytime soon as new- According to the World Nuclearalllikelihood,someowners most ocean carriers espousingmultipurpose shipping can playbuildingactivityisexpectedAssociation there are currentlywillfinditmoreprudentto commitmentstostakeholdersa role in their supply chain. toremainatmodestlevels100 new plants scheduled forscrap the vessel than to bring andcustomersindoingtheirTheMPV/HLsectorhasthrough 2023. construction globally over thethe vessel into compliance. part to make the world a betterrecentlybegunacorrectionnextfiveyears.ThemajorityThefinancingcommu-place,sustainablerefrigeratedof its own albeit much milderImoandmpv s eCtor of these plants will be locatednityisalreadyfocusedon container fleet investments willthanthecontainersectorhasC Hallenges in China and Eastern Europe.carbon emissions of a vessel make a big impact on reducingexperienced. Based on Toep- Manyownersandopera- The U.S. only has 2 plants cur- being financed. As the EEXI global warming effects of theirfers Multipurpose Index (TMI)torsinthesectorstillhaverently under construction, Vogtl(EnergyEfficiencyExisting reefer fleet operations. Carbonfor November 2022 has fallenconcernsaboutinflationary#3 and #4 which were sched- ShippingIndex)andtheCII Dioxide(CO2)asarefriger- belowthe$20,000markforpressures, rising interest rates,uled to start operating in 2016(CarbonIntensityIndicator) antisgainingmorepopular- thefirsttimein10months.thewarinUkraineandChi- and are now only scheduled torequirements come into effect, itysincethisrefrigeranthasThis correction was not unex- nascontinuedstruggleswithopen next year at a cost overrunthere will be a renewed focus zerodepletingcharacteristicspected and in fact could pro- COVID and its zero toleranceof double the original construc- by lenders on how financing with a global warming poten- videincentiveforownerstopolicy. These all could result intion estimate.is structured moving forward. tial (GWP) of one. CO2 as aconsideradditionalnewbuildsome form of global recessionWhattheMPV/HLisThetrueimpacttothecur-natural refrigerant, is the mostinvestments and fleet replace- nextyear.However,freightunable to forecast is the truerentMPV/HLfleetwillnot environmentallysustainablement. TheglobalMPVfleetdemandintheprojectsectorimpactthatfurtherregula- beknownuntilweseehow alternativeforrefrigeratedhascontinuedtoageandisis forecast to be strong in thetory actions on the part of themany vessels are willing and/marine transport. now in dire need of replace- coming year. The energy sectorIMO will have on the sector.or able to comply with these Whilesustainableandmenttonnage.NewIMOremains the foundation of theStarting in 2023 there will benew standards. lower impact refrigerants are an important strategic initia-tive for meeting environmen-talgoals,advancementsin engineeringarealsotaking a front row seat with carri-erslookingatfuturedecar-bonizationconsiderations. For example, variable speed drivesforcompressorsand two-speedevaporatorfans offerenergydemandeffi-ciency,andadvancedoper-atingsoftwarecanelevate even the most optimal opera- CLOSERtionlinkedtoagreenand efficient fleet. Othertechnologiesare alsointheworks,which willresultinmoresustain-ablereeferoperationswhile notsacrificingrefrigerated containertransportefficacy. MagneticrefrigerationforON THE COLUMBIA RIVER IN WASHINGTON STATEexample, while not ready forFASTERreefercontainerapplications, has advanced; this is another option that offers significantly low power consumption rating and has zero dependence on a refrigerant gas.g reenr efrIgeratIonW Illb ev eryC ool In tHef uture DIRECT CONNECTIONS TO MAINLINE RAIL & INTERSTATE HIGHWAYSinWith the heightened aware- SMARTERness of climate tipping points thatarerelatedtotheParis ClimateAgreement,more attentionwillbefocusedon greenrefrigerationsolutions the future. The refrigerated containermarketswillcon-tinuetodevelopdue,inpart,STORAGE OPTIONS & FOREIGN TRADE ZONE SPACEto the continued expansion ofBETTERoutsourcing,whichisneces-sary to ensure there is a world food supply balance. This pri-ority tethered to investments in refrigerated container technol-ogy to offer low environmen-talimpactsolutionshavethe blendedpositiveoutcomeof continuous market growth andON-DOCK RAIL & DUAL-SERVED BY BNSF & UPsustainability. Whilebaseballseason is still several months away, keep an eye out for the ocean carrierreefertripleplay whichwillbemoreubiqui- CONTACT US AT [email protected] | PORTOFLONGVIEW.COMtous in the future.'