Carrier Refrigeration

SeaCube's refrigerated and dry containers offer 1.5 million TEU in capacity to the global shipping industry. Approximately 750,000 SeaCube containers and generator sets are in service, most of them on long-term leases. SeaCube is a top-five container lessor, and a key growth factor is its continued investment in refrigerated containers to meet the demand of shipping lines. Global refrigerated trade is growing annually at a "very consistent four-plus percent," Sappio explained. Meanwhile, shipping lines have increased their reliance on leased equipment to conserve capital investment. "If you go back 10 years, the ocean carriers owned 72 percent of the global container fleet, and the lessor community accounted for just 28 percent," Sappio said. "Fast forward to 2017 and that number is just about 50-50." Among container leasing companies, SeaCube currently ranks third in terms of its refrigerated capacity, and it ranks first in generator set leasing. "Even though we're not the largest lessor, what's unique about SeaCube is our asset mix," Sappio said, explaining that fully 58 percent of SeaCube's equipment is a combination of refrigeration units and generator sets, making its refrigerated offerings a significantly larger portion of its inventory compared with others. SeaCube has a global presence that includes its headquarters in New Jersey, major offices in the San Francisco Bay area, the Netherlands, Hong Kong and four other offices around the world, with agency representatives in four more locations and container availability in 192 container depots worldwide. Sappio noted that Carrier Transicold's global service and parts footprint complements SeaCube's operations and is "a key factor that is attractive to our customer base." "We have a total quality management process, where we're always looking at improvements," said Sappio. "Every employee promotes SeaCube's desire to be the customer's first choice when it comes to refrigerated equipment in the maritime sector. We live that every day." w What's Driving Growth in Refrigerated Trade? Several key factors are driving the steady growth in refrigerated trade, according to SeaCube's Robert Sappio. It begins with population growth and affluence that have created new demands in the cold chain. "We're seeing an increase in prosperity that is driving a demand for chilled and fresh produce," Sappio said. "People are looking for more green credentials, if you will: nutritious options that include more fresh produce and fresh food as the middle class grows around the world and in developing countries." A mode shift from air to sea freight is also a contributor. "Previously, pharmaceuticals and confectionery products would move by air because of their high value," Sappio explained. "We're seeing a growing confidence in the predictability and quality of sea refrigerated transportation, in particular, containerized refrigerated transportation. "Lastly, there's a growing demand for containerized reefer trade because of the conversion from bulk reefer ships. More and more cargo is moving by containers." This results in opportunities for the key links in the cold chain: refrigeration unit and container manufacturers, leasing companies that provide refrigerated containers and the shipping lines that move them around the world. SeaCube | ContainerLINE June 2018 As global trade grows, shipping lines have increased their reliance on leased equipment. – Robert Sappio, SeaCube CEO 5

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