Bulk Distributor Sept/Oct 16

BULKDISTRIBUTOR www.bulk-distributor.com September/October 2016 Est. 1990 Your single information source for bulk and semi-bulk logistics Tank Containers • Flexitanks • IBCs • Drums • FIBCs • Bulk Liners • Road Tankers • Loading/Bagging • Bulk Logistics • Cleaning & Repair Depots • Components IN THIS ISSUE Shipper 2 Tank Containers 4 Containers 8 Road Tankers 9 Industrial Packaging 11 Cover Story 12 Track & Trace 15 Components 17 South East Asia 20 Logistics 22 Terminals & Storage 23 Managing Editor: Neil Madden [email protected] Tel: [phone] Associate Editor: Stuart Qualtrough [email protected] Tel: [phone] Digital Content Editor: Anna Wright [email protected] Advertising Director: Anne Williams [email protected] Tel: [phone] Circulation: Berni Chetham [email protected] Tel: [phone] Brenntag unveils £50m investment in UK sector C hemical distribution giant Brenntag has unveiled a £50 million investment in the UK market through a five-year growth strategy. The announcement was made in a wide-ranging interview with Bulk Distributor magazine that details the initiatives and targets that are already delivering impressive performance results for the group. The company’s board executives gave their thoughts on the likely competitive landscape post-Brexit, detailed the current merger and acquisition pipeline and described the “hot spot” sectors that the company is preparing for in terms of investment and focus. Steven Holland, Chief Executive Officer of Brenntag AG, said the UK’s vote to leave the EU would not alter their ambitious plans. He stated: “Irrespective of the current ‘Brexit’ concerns, the UK represents a significant market for our products and services and will remain an integral part of our European and global growth strategy.” The interview revealed that Brenntag would confirm its long-term commitment to its UK operations with a planned investment of over £50 million over the next five years including investments in the North of England and Scotland. Russel Argo, President, Brenntag UK & Ireland, commented: “The impact of the UK referendum on economic performance is almost impossible to estimate at the present time. Although growth in Europe is expected to be lower than in the previous year, partly as a result of the referendum, we do not yet believe that this will have a significant effect on our business.” Richard Ward, Commercial Director (Industrial Chemicals and Water Treatment) Brenntag UK & Ireland, added: “Our experience so far is that many of our customers, suppliers and competitors are uncertain about the best course of action in the changing environment we operate in. However, from a Brenntag perspective we always operate in a changing environment so this is nothing new. We are seeing many customers wanting some element of certainty and comfort about their future chemical requirements. Through our innovative supply chain options – which include the management of currency – we can bring that certainty and this clearly has a value to the market. The counter of course is that some areas of the market are exhibiting signs of stress which leads to unpredictable behaviour and in some cases repeated changes of direction.” Interview feature on page 12 … © Ashley & Dumville Publishing Ltd Bulk Distributor is published by Ashley & Dumville Publishing Ltd Caledonian House, Tatton Street, Knutsford, Cheshire WA16 6AG, United Kingdom www.bulk-distributor.com To advertise or contribute please email [email protected] or [email protected] Growth in leased container sector is forecast to slow F ollowing markedly slow growth of just 3.5% in 2015 due to decreased rental demand, the global leased container equipment operating fleet is forecast to increase by little more than 1% in 2016, according to the latest edition of the Container Leasing Industry Annual Report 2016, published by global shipping consultancy Drewry. By the end of 2015, leasing companies were again having to shift 100 a sizeable factory stockpile, as well as contending with rental rates at 95 all-time low. New and used container prices had also fallen to an their lowest in more than a decade because of weaker demand and 75 a recent steep drop in the cost of steel and factory running costs. Only in the more specialised reefer and tank container sectors fleet expansion is expected to outrun that of dry freight, and the world average as a whole, with the leased reefer fleet continuing to grow 25 at a significantly stronger rate than shipping line-owned equipment. 5 too has been a dominant feature of recent years. In 2015, the This lessors’ rate of dry freight fleet growth only just matched that of 0 shipping lines, which it had outrun for several years in succession. “The outlook has deteriorated further for 2016 and the leased fleet is again predicted to grow in line with that owned by Bulk Distributor Advert 88x125mm May June 12 April 2016 11:48:48 transport companies, with each managing only a marginal increase for the coming year,” commented Andrew Foxcroft, Drewry’s lead analyst for container equipment. “However, we expect some recovery in subsequent years and our longer term projection for 2016-19 is for annualised growth of 3.5%, which will still be some way off trend growth over the last 15 years.” Long-term operating lease (LTL) rates suffered further erosion in 2015, as new dry freight pricing fell to a 15-year low. As rate levels and returns have fallen, utilisation has also declined and the box lease industry is facing its toughest financial challenge since the earlier downturn in 2009. The lease industry has