This week, CHS Container Group USA’s Bill Franzke hosted a panel with Curt Bourne (SeaCube) and Jeff Neuss (ConGlobal) to share practical guidance for buying—and selling—refrigerated containers.
In this article, we’ll explore some of the session’s top takeaways, from trade-line trends to non-negotiable placement guidelines.
What Are Refrigerated Containers?
Refrigerated (reefer) containers are insulated cargo containers with specialized temperature-control equipment attached. They’re a vital link in the supply chain, transporting temperature-sensitive goods such as fresh produce, medicines, and chemicals around the world.
Just like your refrigerator at home, reefers can be set to a certain temperature—or “set point”—to keep cargo stable. While blast freezer equipment is available, the goal of a standard reefer is to maintain the temperature at which the cargo was loaded, rather than cooling it down further or allowing it to warm up.
Where Do Reefers Come From?
An estimated 150,000 new reefers enter circulation each year, with a roughly even distribution between leasing companies and shipping lines. The typical lifecycle of a reefer container looks like this:
Manufacturing
Nearly all reefer container boxes are manufactured in China, where large-scale production supports global demand. The refrigeration units that attach to these boxes are produced separately, with most production concentrated in China or Singapore.
Leasing
Leasing is the most common way to acquire reefers, particularly for shipping lines and logistics providers. While the length of lease varies by lessor, our panel noted that a standard lease period for a steamship line is about seven years, which aligns with most manufacturer warranties. Some customers prefer shorter leases, while others with robust maintenance programs may enter cradle-to-grave agreements covering the container’s full useful life.
Retirement
Many reefers are retired from primary trade routes after 10–12 years of service, though the exact length of a reefer’s first life depends on its usage and handling. Containers on intensive trade lanes—such as Caribbean fruit shipments with up to 16–18 turns per year—wear out faster than those averaging only two to five turns annually. Once retired, reefer equipment is often resold or re-leased into secondary markets, with particularly strong demand in both North America and Asia.
Resale
In their second life, reefers may be sold to wholesalers, resellers, or end users for domestic storage or regional transport.
How Are Reefers Powered?
Reefers require a stable power source to maintain their set temperature. Most are designed to operate on 460V, three-phase power, which is widely available on cargo ships and at industrial facilities. They are compatible with both 50Hz and 60Hz power grids, making them suitable for use worldwide.
For small businesses using reefers as cold rooms or industrial refrigerator alternatives, securing three-phase power can be challenging. Some reefers can run with dual-voltage transformers on 230V, and analog or phase converters are also available. A few newer models are designed to run on single-phase power at a lower upfront cost, though our panel noted they are less proven for long-term use and may be better suited for the storage of non-critical products.
Reefers can also be powered with diesel clip-on generators, known as “gen-sets.” While this eliminates concerns around three-phase power, diesel is costly. What’s more, electric operation has about one-fifth the carbon footprint of diesel, making it both more sustainable and economical over time.
No matter how you plan to power your reefer, proper setup is critical. As emphasized in our webinar, “dirty power” is the number one cause of reduced component lifespan and equipment failure. If voltage levels don’t meet minimum requirements, or if a faulty gen-set is used, electrical components will fail prematurely. The panel strongly recommended investing in a qualified electrician upfront to ensure the correct setup—an expense far less costly than thousands of dollars in dirty power–related repairs.
How Much Power Does a Reefer Container Use?
A refrigerated container’s power consumption depends on several factors, including:
- Climate: heat and humidity of the location.
- Placement: whether the unit is indoors or outdoors.
- Cargo: the type of product being stored.
- Set point: the target operating temperature.
- Loading: how efficiently the container is packed.
- Year of manufacture: the unit’s age and efficiency.
For budgeting purposes, our panel suggested that U.S. customers can expect to spend about $300–$500 per month to keep a reefer running.
Where Can You Place a Reefer Container?
Successful setup depends on a few practical factors:
- Power access: confirm adequate supply.
- Space for delivery: trucks require clear access; reefer power cords typically reach only 50–60 feet, though extension cords are available.
- Level placement: ensures proper door seals and efficient cooling.
- Airflow: avoid placing containers against walls; condenser coils require free circulation.
- Surface stability: asphalt or concrete is preferred for long-term placement.
With correct setup, reefers can be used both indoors and outdoors.
How Long Do Reefers Last?
The longevity of reefer equipment largely depends on its usage, handling, and trade routes. Every move, lift, and transfer puts wear on both the container and its refrigeration unit. The more a reefer is moved around in its first life, the shorter its useful second life will be.
Panelists shared that the number of “turns” a reefer container takes varies widely depending on the operator, with the following averages as a rule of thumb:
- Major shipping lines: 2–4 turns per year
- Mid-sized companies: 5–7 turns per year
- Regional shippers: up to 16–18 turns per year
This variation matters. A reefer that’s seen heavy movement in its early years is more likely to suffer from structural wear and mechanical strain in its second life. Conversely, a reefer with lighter first-life usage will retain more long-term value for its second-life owner. Even seemingly minor factors, such as how high a container sits above the waterline during ocean transport, can influence its condition years later.
While many reefers today carry telematics devices to record handling history, that data remains with the original lessor or operator and is not shared with secondary buyers. As a result, end users can’t verify how a particular box was used in its first life.
Because of this, buyers must rely heavily on their supplier’s procurement strategy. The difference between a supplier that selectively sources well-maintained equipment and one that buys any available box can mean years of usable life. Choosing a reefer supplier with strong ties to major steamship lines and leasing companies is essential to protecting your investment.
How Do You Repair a Reefer?
As with any equipment, prevention is better than repair. Reefers are engineered to be operated with relatively low ongoing maintenance. Their core components—compressors, evaporators, condenser motors, and refrigerants—are similar to those in household refrigerators but built for industrial use.
Routine maintenance includes:
- Pre-trip inspections before deployment.
- Cleaning condenser coils to maintain efficiency (especially in heavy saltwater environments).
- Checking refrigerant levels and seals.
Most maintenance is predictable and can be scheduled. However, handling—such as loading, unloading, and moving containers between trucks, ships, and depots—often causes the most wear.
Repairs
Reefer repairs are usually performed at container depots. Some depots are certified to work on all major OEMs, while others specialize in specific brands. Overall, there is a strong global depot network capable of servicing reefer equipment.
Reefers are specialty equipment that require specialist skills. An HVAC technician, for example, would not typically be qualified to conduct a reefer repair. Access to trained mechanics varies, with coastal depots generally offering greater access than inland ones.
In the event of an emergency, most major container suppliers and OEMs provide 24-hour hotlines to support troubleshooting. As our panel noted, this remote support often involves guiding someone on-site to read alarm codes or monitor the display. In many cases, the hotline can walk them through a plan to get the unit running again or to move it to a location where it can be properly repaired.
How Do You Track a Reefer?
Telematics devices give operators valuable insights into a their equipment’s history and performance. For import/export, they support the tracking of usage, repairs, and movements. For domestic storage, they can monitor set-point alarms, door openings, and access times.
Despite their capabilities, telematics devices are a relatively modest investment. The device itself can be purchased for a few hundred dollars upfront, then accessed and maintained with a monthly subscription of $7–$20, depending on the features needed. As panelist Curt Bourne noted, monitoring $200,000 worth of critical inventory can be done for roughly the same cost as a Netflix subscription—an easy way to protect high-value assets.
Many newer reefer models now come with telematics pre-installed, providing this visibility right out of the box—pun intended—and simplifying both management and maintenance.
What Upgrades Are Being Applied to Reefers?
Beyond telematics, OEMs are continually working to improve the reliability of their equipment. Recent updates by some of the major manufacturers include redesigned compressors, upgraded evaporator and condenser motors, and other refinements based on real-world telematics data to identify common failure points.
As most manufacturers work closely with major steamship lines, product development is now largely shaped by IMO regulations on refrigerants and energy efficiency, with the goal of making reefers as energy-efficient and ozone-friendly as possible.
CHS Container Group USA is a leading supplier of refrigerated containers across North America. Contact us to learn more about upcoming webinars and to receive weekly updates on our refrigerated and dry van inventory.
