Shell & tube heat exchangers work by passing hot water through a set of tubes, called a tube bundle, that is contained inside a larger tube that is filled with cooler water. There are many tube bundle configurations including multiple pass tube bundles and straight through tube bundle options to provide different flow rates, fluid temperature differentials and clog prevention.

These heat exchangers have a lower initial cost than their plate & frame cousins and also boast a number of other advantages. They have higher maximum operating temperatures and pressures than plate & frame exchangers. They also create little pressure drop across the exchanger, thereby saving on pump costs. Tubular coolers that are used in refrigeration systems are also able to act as a direct receiver and any problems that do occur during operation are very easy to diagnose and also simple to repair. These coolers are larger and less thermally efficient than the plate & frame versions and also do not allow any size flexibility should the desired flow capacity change.