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Some energy industry news (Nov 28th 2022) for your reference:
After the conflict between Russia and Ukraine, the European Union has been in a serious energy shortage. Recently, however, things have been looking up for European industry.
The move follows Russia's efforts to cut off vital gas supplies to key parts of Europe, putting more pressure on an economy already struggling with the pandemic.
Europe then stockpiled gas for this winter and sourced supplies from outside Russia. That leaves the EU's gas storage facilities 95% full, at least through the winter.
In addition, manufacturing output in the 27-nation European Union hit record highs in both August and September. While German manufacturing continues to lag, as does Italian manufacturing, the relatively slight decline in industrial production is evidence that some companies are improving energy efficiency, thanks to a 20 percent drop in industrial gas consumption in Germany. According to a survey by the IFO institute, 75% of German manufacturers have saved gas without cutting production.
Some industries are still reeling
European manufacturing has so far remained resilient in the face of the continent's energy shortages, although overall strength masks significant weakness in key sectors.
In an energy crisis, the output of those industries that are more dependent on energy or gas, such as metals and chemicals, took a bigger hit.
A special index of energy-intensive manufacturing produced by the German statistics agency (i.e., metal production and processing, glassware and ceramics manufacturing, paper and cardboard manufacturing, coking plants and oil processing) shows that energy-intensive production has fallen by 10 per cent this year, while overall production is flat.
These sectors consumed 76 percent of Germany's industrial energy in 2020, which is why their output fell this year, and why the sharp reduction in energy consumption will hit only a few manufacturing industries.
In the chemical industry, plastics, synthetic rubber and synthetic fibers were the hardest hit, with all of them down 15-20 percent compared to 2018. Nitrogen fertiliser production has been particularly hard hit by reduced supplies of natural gas. According to data on nitrogen production in the euro area, nitrogen production has fallen by 10%.
Among the metal production and processing sectors, copper, iron, steel and metal castings experienced the largest decline in output. European steel and ferroalloy production is down nearly 20 per cent from 2018 levels, and copper production is down 10%.