Tank Containers
4 BULKDISTRIBUTOR May / June 2018
Tank Containers
Global tank fleet keeps growing
ITCO ’ s 6th Annual Tank Container Fleet
Survey estimates that the global tank container fleet stood at 552,000 units worldwide at 1 January 2018 . This represents an increase of 8.7 percent over the previous 12 months which posted a figure of 508,000 . A total of 48,500 units were manufactured in 2017 , compared to 44,500 in 2016 , an increase of 4,000 units . The survey shows how , numerically , the industry continues to be dominated on a global level by a relatively small number of major tank container operators and leasing companies . Operating companies have a combined total of 365,000 tanks ( owned or leased-in ), of which the top 10 account for over 215,000 tanks ; 59 percent of the global operators ’ fleet . Of the 245,000 tanks owned or managed by leasing companies , the top 10 lessors account for 184,392 tanks , which is about 75 percent of the total leasing fleet . However , the growth in the demand for tank
The industry continues to be dominated by a small number of major operators and leasing companies
containers has enabled smaller players to enter the market - usually offering niche products or working in a regional market . Reg Lee , ITCO President , noted : “ This year ’ s ITCO Tank Container Fleet Survey again shows significant growth in the tank container business during the past 12 months . The expansion of the tank container industry underlines the fact that this mode of transport is safe , reliable , economic and sustainable . Much of the industry ’ s growth continues to take place in Asia , where both deepsea and regional operators see opportunities to expand their business , by encouraging shippers to move their products in tank containers – instead of other forms of transport .” As with last year , the survey and analysis were conducted by Prof Bingliang Song , of Shanghai Maritime University , China . The survey estimates that about 4,500 tanks were either scrapped or sold for static storage . Tank containers are normally depreciated over a residual life of 20 years but often remain in service for a longer period . That service life has in the past been extended by remanufacturing and refurbishment , but in recent years the price of new tanks has been low making this option unviable . Some tanks are sold for recycling as scrap metal , especially if the tank is seriously damaged beyond economic repair . Scrap might be a viable economic option when the commercial price of scrap stainless steel rises . In any case the figure for disposals is likely to increase in future years , reflecting the economics of relatively lower prices for new manufacture versus the increased cost for repairing older tanks .
Operators
Among tank container operator fleets , the big change over the 12 month period is the growth of the Newport / Sinochem fleet . This jumped from 18,000 at 1 January 2017 to 32,000 in the latest survey , making it the third biggest operator behind Stolt Tank Containers ( 35,395 ) and Hoyer Group ( 32,958 ).
GEM
Among operator fleets , the big change over the past 12 months is the growth of the Newport / Sinochem fleet
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Newport and Chinese logistics giant Sinochem announced plans to create a common ownership platform for international deepsea tank operations in 2013 . Prior to this the two firms worked under an ‘ operating agreement ’, allowing the two companies to operate as one company , but as two brands . Under the new ownership structure , the partners created a single brand and organisation . The importance of China as a market is also reflected in the growth of the reported fleet operated by China Railway Logistics . This rose by just under 5,000 units over the year to reach 20,879 .
Lessors
The most noteworthy development among tank container leasing companies is the continued fleet expansion among some of the top 10 firms . The largest , Exsif Worldwide , expanded from 46,400 to 52,000 during 2017 . The second and third biggest lessors – Seaco Global and Eurotainer – contracted slightly . Seaco ’ s fleet dropped back from 44,400 to 42,000 , while Eurotainer ’ s went from 35,300 to 35,000 over the year . Given the new build boom of the previous few years , which had a significant dampening effect on leasing rates , it is perhaps surprising