Managing Expansion, Obstacles, and Environmental Responsibility in the Tank Container Sector

Logistics Transportation Review | Friday, December 22, 2023

The tank container sector, a pivotal entity in the global logistics domain, has witnessed unprecedented expansion in recent years due to the growing need for transporting bulk liquids and liquefied gases.

As of January 1, 2023, the global tank container fleet has reached an impressive count of 801,800 units, marking a substantial rise from the 737,935 units reported on January 1, 2022. Notably, the production of 67,865 new tank containers in 2022, signifying an increase of 14,580 units compared to the previous year, has resulted in an 8.65 percent growth in the global tank container fleet for 2022, surpassing the 7.3 percent growth observed in 2021.

Stay ahead of the industry with exclusive feature stories on the top companies, expert insights and the latest news delivered straight to your inbox. Subscribe today.

The surge in production and fleet expansion can be attributed, at least in part, to challenges posed by the

 

global Covid-19 pandemic. Supply chain disruptions created a shortage of tank containers, prompting heightened demand from operators and Beneficial Cargo Owners (BCOs). This shortage led to a record-setting year for tank manufacturers, leasing companies, and operators in 2022.

A noteworthy trend during this period was the refurbishment and reintroduction into service of older tank containers instead of retiring them. This adaptive strategy, driven by supply chain uncertainties and equipment needs, underscores the industry's resilience.

However, a potential challenge looms on the horizon. The substantial growth in the global tank container fleet may result in an oversupply of equipment in the upcoming year, echoing patterns observed in previous global recessions and highlighting the cyclical nature of the industry.

The tank container's pivotal role in the "just-in-time" business philosophy has become increasingly indispensable for major end-users, the shippers. The disruptions in the supply chain over the past three years showcased the tank container's ability to play a critical role in ensuring the timely delivery of goods. Chemical companies, in particular, held a significant number of tank containers on demurrage on a "just-in-case" basis, contributing significantly to the industry's growth.

As the demand for new tanks surged, the global tank container fleet experienced unprecedented growth in 2022. The report notes that 2022 witnessed the highest-ever figure in terms of new production. The top 10 tank container operators and leasing companies continue to dominate the industry, commanding over 49 percent and 83 percent of the global fleet, respectively.

The industry's growth has also attracted smaller players entering the market, offering niche tank services in specific regions such as Southeast Asia. Existing operators reported a shift in shippers' behavior, emphasizing the importance of relationships over the erratic spot market and online price-focused competitive bidding.

Regarding the disposal of older tanks, one facet is gaining increased attention. Tanks built over 20 years ago are approaching the end of their operational lives. There is a shift in the disposal trend, with older, smaller capacity tanks being repaired and reintroduced into service due to the high demand for equipment. This trend is likely to persist if the price of new tanks remains at elevated levels.

In addition to growth, the International Tank Container Organisation (ITCO) is playing a significant role in promoting safety, efficiency, and sustainability in the industry. Over its 25-year history, ITCO has been a leading advocate for the use of tank containers in the transport and short-term storage of bulk liquids and gases.

Safety remains a paramount focus for ITCO, with initiatives aimed at introducing and maintaining safety standards. The organization actively works to integrate tank container education into the curriculum of transport universities and colleges, inspiring the next generation to consider a career in the tank container industry.

The industry's commitment to environmental sustainability is also on the rise. ITCO recognizes the increasing demand for environmental best practices in transport service providers and emphasizes the tank container's inherent sustainability as a key asset for industry growth. The organization has addressed environmental concerns, such as the proposed ban on Perfluoroalkyl and Polyfluoroalkyl Substances (PFAS), through comprehensive guidance documents.

Efficiency and digitization are also key focus areas for the industry. ITCO has established an Efficiency group to create industry standards as part of the digitization process. Projects within this scope include the development of standards for tank container load movement milestones across deep-sea routes, with the goal of enhancing visibility and track-trace capabilities.

As the tank container industry navigates the complexities of a dynamic global market, it continues to evolve, adapt, and play a crucial role in meeting the demands of a rapidly changing logistics landscape.

More in News

Despite infrastructure and regulatory support challenges, the refrigerated trucking industry continues to shift towards more efficient, environmentally friendly, and technologically advanced solutions. Growing environmental concerns, shifting legislation, and technological advancements drive changes in the refrigerated trucking sector. The cold chain, which includes refrigerated trucking, guarantees the secure delivery of perishable commodities like food, medications, and other items sensitive to temperature changes. This industry is focused on developing a more tech-driven, efficient, and sustainable approach to satisfy market needs and regulatory requirements. The future of refrigerated trucking is dictated by integrating innovative technology, including IoT sensors, GPS tracking, and real-time monitoring systems. These technologies allow fleet managers to monitor real-time temperature, humidity, and location, ensuring optimal product conditions during transit. Alerts are sent if the temperature or environmental factors fluctuate, allowing operators to address the problem before it compromises the shipment. Increased visibility and control are essential for ensuring the integrity of products, especially in industries like pharmaceuticals. The green and efficient energy trend is mushrooming at a fast pace since refrigerated trucks are one of the biggest diesel consumers and thus contribute enormously to the release of greenhouse gases. Organizations are investing in other sources of alternative energy, including electric refrigeration units, solar power, and hydrogen fuel cells. Hybrid systems combining traditional fuel with renewable energy are becoming popular. Electric refrigerated trucks are fast becoming the talk of the town for shorter distances and urban deliveries. As the battery technology progresses, they will probably be much more mileage-efficient for long distances. One more issue is tight environmental regulation in cities.Sustainability is not merely about fewer emissions but lesser food wastage and better cold chain efficiency. Advanced insulation materials and better refrigeration technologies also help keep the trucks cool for extended periods with reduced energy input. Packaging innovations help keep the cold chain intact within the trailer through vacuum insulation panels and phase-change materials, extending the shelf life of perishable products, minimizing waste, and helping reach the end consumer fresher. E-commerce is another strong driver of change in the refrigerated trucking industry. The demand for online grocery shopping and delivery of perishable goods directly to consumers has increased demand for last-mile refrigerated transport solutions. Companies are now developing smaller, more agile refrigerated vehicles for urban and suburban deliveries. Such cars, in general, are tuned for frequent stops and fewer miles, which are then used for fast and efficient last-mile delivery. Meanwhile, cold storage facilities have strategically been placed close to urban centers to ensure prompt delivery, prevent product quality degradation, and maintain modern consumers' expectations for quick, fresh deliveries. Autonomous and semi-autonomous vehicles also make up the future of refrigeration in trucking. Although fully autonomous refrigerated trucks are still testing, the implications are enormous. Labor costs will be reduced, safety will increase, and more consistent speeds will allow for fuel consumption optimization. Modern refrigerator trucks already have semi-autonomous features like automated brakes, lane-keeping, and driver fatigue monitoring. All these technologies improve safety and efficiency, allowing the industry to achieve higher mileage with fewer interruptions and higher dependability. ...Read more
 Container shipping has transformed global trade, establishing itself as the backbone of the international logistics industry. It offers an efficient, versatile, cost-effective solution for transporting goods worldwide, vital in driving economic growth and global connectivity. Beyond reducing costs and enhancing security, container shipping also supports environmental sustainability. Its intermodal compatibility drastically cuts the time and effort needed to transfer cargo across different transportation modes, ensuring faster deliveries and smoother supply chain operations.  The uniformity of container sizes, typically 20 or 40 feet, simplifies logistics planning, cargo handling, and inventory management, enabling companies to optimize their operations and reduce delays. Cost-effectiveness is another significant benefit of container shipping. Containers help reduce per-unit transportation costs, making international shipping more affordable. Containers maximize space utilization on ships and minimize the need for excessive packaging materials, lowering expenses. The economies of scale achieved through containerized shipping benefit businesses of all sizes, from multinational corporations to small exporters, enabling them to compete in global markets. Container shipping greatly enhances the security of goods. Containers are made of robust materials like steel and equipped with secure locking mechanisms, protecting cargo from theft, tampering, and environmental damage during transit. Advanced tracking systems for containerized cargo provide real-time updates, enhancing transparency and minimizing the risk of loss or misplacement. Container shipping also contributes to environmental sustainability. Larger vessels carrying thousands of containers reduce the carbon footprint per shipment. Another critical advantage of container shipping is its versatility. Containers are suitable for transporting various goods, from perishable food items and electronics to machinery and hazardous materials. Specialized containers, such as refrigerated (reefer) containers, enable the shipment of temperature-sensitive products like pharmaceuticals and fresh produce, ensuring they remain in perfect condition throughout the journey. The flexibility to customize container solutions for specific cargo types allows businesses to meet diverse customer demands and expand into new markets. As global trade continues to grow, the container shipping industry has adapted by building larger ships and more advanced port infrastructure to accommodate increased cargo volumes. Container shipping facilitates global connectivity. It links producers and consumers across continents, enabling access to various products and fostering international trade relationships. Container shipping helps businesses expand their reach, drive economic growth, and promote cross-cultural exchange by supporting efficient and reliable transportation. Container shipping offers many benefits that make it the cornerstone of global trade. Its efficiency, cost-effectiveness, security, environmental sustainability, versatility, scalability, and role in fostering connectivity have transformed how goods are transported worldwide. ...Read more
Flatbed transportation is crucial in logistics and shipping, particularly for transporting oversized, irregularly shaped, and heavy goods. The future of flatbed transportation is poised for significant changes driven by technological advancements, regulatory shifts, and market demands. Autonomous technology is set to revolutionize the flatbed transportation sector. Self-driving trucks can enhance efficiency by reducing human error, increasing operational hours, and optimizing fuel consumption. Although regulatory and infrastructure challenges remain, these advancements promise to reduce labor costs and improve safety. Telematics and IoT are transforming fleet management. Telematics systems provide real-time data on vehicle location, performance, and driver behavior, enabling better route planning and maintenance scheduling. Flatbed transportation means better handling of high-value and sensitive cargo, reducing the risk of damage and improving customer satisfaction. Environmental concerns and stricter emissions regulations are driving the adoption of electric and hybrid trucks. While the technology is still developing, several manufacturers invest heavily in electric truck models that can handle heavy loads typically associated with flatbed transportation. The vehicles promise lower operating costs and reduced environmental impact, aligning with global sustainability goals. Governments worldwide are implementing stricter emissions standards to combat climate change. These developments are likely to accelerate the shift towards cleaner transportation options in the flatbed sector. Investments in infrastructure, particularly in ports, highways, and railways, are crucial for the future of flatbed transportation. Enhanced infrastructure supports more efficient and reliable logistics operations. Companies, such as 5th Dimension Logistix , are already making significant strides in developing autonomous trucks, which could be integrated into flatbed fleets soon. Governments and private sectors are expected to invest heavily in upgrading infrastructure to support growing trade volumes and adopting new technologies like autonomous and electric vehicles. Flatbed transportation, traditionally used for large and industrial goods, is now being adapted to meet the needs of the e-commerce sector. Innovations in loading and unloading technologies, like automated and modular flatbeds, can significantly reduce handling times, meeting the high-speed demands of modern consumers. Ensuring that cargo is securely fastened is paramount in flatbed transportation. MAI Fulfillment provides advanced logistics solutions that integrate technology to enhance fleet management and order processing efficiency, meeting the needs of modern e-commerce. Innovations in load securement technologies, such as automated tie-down systems and smart straps with integrated tension sensors, enhance safety and efficiency. The technologies help prevent accidents, reduce manual labor, and ensure compliance with safety regulations. Safety remains a top priority in the transportation industry. The technologies protect drivers, safeguard cargo, and reduce the risk of costly accidents. Strategic partnerships and financial planning will be crucial to navigate this transition. The push towards sustainability presents both challenges and opportunities. Achieving the goals requires careful planning and embracing change. Autonomous vehicles, telematics, electric trucks, and advanced load securement technologies promise to enhance efficiency, safety, and sustainability. The innovations come with challenges, including significant initial investments and the need for a skilled workforce. ...Read more
Containerized cargo has transformed the shipping industry, making global goods transportation more manageable and efficient. Containerization is packing and shipping varied products in standardized containers, simplifying logistical procedures and lowering costs. This concept revolutionized global trade by greatly enhancing efficiency and lowering labor expenses connected with loading and unloading cargo tank containers at each stage of transit.  Exploring the Revolutionary Impact of Containerization: Containerization has not only transformed the shipping industry in many ways but also had a significant impact on ocean traffic. Its inception resulted in numerous notable impacts. Before containerization, products were loaded and unloaded individually, which was time-consuming and labor-intensive. With standardized containers, cargo handling became more efficient, reducing port turnaround time. Containers also provide a self-contained environment for goods, which reduces the possibility of damage or theft. This has greatly reduced the number of instances of lost cargo, boosting trust in the maritime trade. The increase in container ships has sparked concerns about environmental damage. Modern ships are enormous and rely on bunker fuel, which results in increased carbon emissions. While containerization has improved shipping efficiency, proactively addressing these environmental challenges is crucial. Navigating the Challenges of Container Shipping: Containerized cargo has transformed the shipping industry, but it also introduces new challenges that must be addressed. These include adequate packaging, securing, and labeling, as well as potential hazards such as cargo damage, theft, or piracy. Proper packaging is required to ensure that commodities are not destroyed during transit. This includes employing proper packaging materials, such as pallets or crates, to safeguard large objects from damage. Additionally, suitable securing measures must be implemented to prevent containers from shifting during transit. For example, utilizing lashing bars or strapping can assist in keeping containers secure on a ship's deck. Correct labeling is essential in ensuring seamless operation across the supply chain. Key Trends in Container Shipping: Blockchain technology has made waves in various fields, including logistics and supply chain management. It can improve efficiency and reduce fraud in containerized cargo transport by offering a secure, transparent, and immutable digital ledger that tracks shipments from their origin to their final destination. It also improves collaboration among stakeholders in global trade by improving communication processes. Automation has also grown increasingly common in the shipping industry. These innovations, ranging from automated container terminals to autonomous ships led by artificial intelligence (AI), aim to improve operational efficiency while lowering human error risks associated with manual and labor-intensive jobs. ...Read more