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of containerised liquid freight rose from 24 per cent in 2011 to 33 per cent in 2020; the share taken by drums and intermediate bulk containers (IBCs) fell over the same period from 70 per cent to 49 per cent. The use of flexitanks also increased sharply but, Leigh-Pemberton said, that is unlikely to continue, especially since the agreement at the COP26 meeting in Glasgow to urge a shift to the non-consumption of plastics rather than their recycling. ITCO has already done a lot to highlight the issue with flexitanks, noting that each ‘big bag’ is equivalent to some 7,000 plastics shopping bags, and Leigh-Pemberton said the message is getting through to shippers, many of them keen to promote their own sustainability credentials.
THE PAST TWO YEARS have witnessed unprecedented conditions in the ocean freight market. How has this trading environment impacted the tank container sector? Despite appearances, it has not all been bad news,
of liquid chemicals, despite some reports that shippers were moving towards bulk consignments in order to avoid high rates demanded by liner operators and increasing congestion at many leading container ports.
WHAT HAVE YOU DONE LATELY All sectors of the international liquid supply chains were affected by the arrival of the Covid-19 pandemic and its consequent impact on production and consumption levels. However, Leigh-Pemberton said, by late 2020 there was a surge in demand for tank containers as shippers were looking increasingly towards multi-sourcing as a way to protect themselves against volatility and uncertainty of supply. However, that rise in demand for tanks was not necessarily good for operators, who derive a significant slice of their revenues from demurrage, when receivers keep hold of the tanks for storage. That picked up again in mid-2021, with a move away from just-in-time inventory management to higher stockholdings, again as a move to protect operational continuity. The past 12 months has also seen an intensification in the consolidation in the tank container industry, both among operators and, more especially, leasing companies. Trifleet Leasing was acquired by GATX Corp; Den Hartogh acquired MUTO; and Suttons took on the international operations of VTG Tanktainer.
as a recent webinar hosted by TT Club heard. William Leigh-Pemberton of Bertschi, chair of the Operators Division at the International Tank Container Organisation (ITCO), explained that the sector benefited from the flexibility that the tank container concept offers in terms of both the movement and the storage
Leigh-Pemberton reported that, despite those rising freight costs, more liquids cargoes have been moving in containerised transport, either in freight containers or tank containers, continuing a long-term trend. He quoted figures from Drewry Shipping Consultants that the share of tanks in terms
As Leigh-Pemberton put it, such deals are like buses: “You wait ages for a big deal then three come along at once.” These trends have combined to generate a “great re-think” in the business, LeighPemberton said. Logistics service providers (LSPs) are now being recognised as an
TRYING TIMES MARKET • TANK CONTAINERS ARE IN GOOD SUPPLY AND DEMAND IS STRONG BUT EXTERNAL FACTORS ARE COMPROMISING THE SECTOR’S PROFITABILITY, ITCO REPORTS
HCB MONTHLY | JANUARY 2022
