26 TANKS & LOGISTICS
IT’S COLD OUT THERE EQUIPMENT • THE SURGE IN NEW TANK CONTAINER CONSTRUCTION LAST YEAR WAS A BOON TO SUPPLIERS OF EQUIPMENT, WITH KLINGE CORPORATION REPORTING ITS BEST YEAR EVER KLINGE CORPORATION, A leading manufacturer and supplier of temperature control equipment for containers and tank containers, reports it enjoyed its best year ever in 2021. “It’s been a challenging time,” says company president Allan Klinge, “but we have grown. We have used these challenges to force ourselves to grow and to increase efficiency.” Those challenges are no secret and have been faced by all those companies supplying the freight and tank container business since the pandemic arrived two years ago. There was, Allan Klinge says, a “significant slowdown” in business in the first three to six months of the pandemic, with a lot of companies seeking to conserve cash in an uncertain time. But by August 2020 Klinge was back to “full steam ahead” and was “busier than ever,” Allan Klinge says. “We never shut down.”
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He acknowledges that supply chains have been an issue and also that the company has had to adapt to make itself more attractive in order to retain its staff and attract new employees. One of those adaptations was to move to a three-day weekend, with staff doing four 10-hour days – an initiative that came from the workforce itself. BUILD BACK BETTER Klinge Corporation has also taken the opportunity to look at its product portfolio in response to changes in demand. In particular, Allan Klinge says, there has been a lot of demand for redundant equipment from the pharmaceutical sector. “This is the main focus of new market growth at present,” he notes, adding that this market is looking for equipment that can keep goods colder than standard refrigeration units can handle.
On the chemicals side, there is a lot of interest from the lithium battery sector, as well as for equipment to meet the needs of larger tanks. Elsewhere, there is still strong interest from the foodgrade sector and also more demand for Ex-proof equipment for both tank containers and for reefer boxes. This has meant a lot of work on achieving certifications, Allan Klinge adds. Still, as he says, “Necessity is the mother of invention.” Alongside all this activity, Klinge Corporation has had to deal with many of the same stresses as its customers. Port congestion has been delaying exports from the US, while higher import freight costs need to be passed along the chain, along with higher fuel costs. “We are aware that our customers have to pass those costs onto their customers,” Allan Klinge says. “We have to be fair along the chain – but everyone sees the same thing.” These issues have generated a lot of stress in the logistics field, with all players along the chain being affected and, Klinge adds, causing some people to leave the industry. “We have to be aware of that and keep talking to our customers,” he says. And all are aware that there could be another upsurge in infections, causing further problems. But for now, at least, Allan Klinge is happy with the way things have been going. “We’re doing just fine,” he concludes. klingecorp.com
