The International Tank Container Organisation (ITCO) recently published its 4th Annual Tank Container Fleet Survey. Based on detailed research of tank container operators, leasing companies and other owners, the survey provides what ITCO describes as “a qualified estimate” that there were some 458,200 tank containers in operation worldwide as of January 2016. This headline figure represents an increase of 7.2% compared with the 427,560 units recorded for January 2015.

According to the survey, a total of 43,780 tank containers were manufactured in 2015 (January 2016 data), down from 48,200 in 2014. 

The accompanying table shows the estimated global number of tanks by industry sector (some estimates and assumptions are made). The survey gives details of 205 operators of tank containers worldwide for 2016. The operator
figure of 329,080 units (up from 305,700 in 2015) is numerically dominated by the top 10 global tank container operators. These represent some 54% (178,000 tanks) of the total fleet. 

The top 10 operators were Stolt Tank Containers (11%), Hoyer Group (10%), Bulkhaul (6%), Den Hartogh Logistics (6%), Newport (5%), Bertschi Group (5%), China Rail Logistics (5%), VTG Tanktainer (2%), Interflow (2%) and Suttons (2%), with the remaining 46% divided among other operators.

Lease fleet

A total of 36 leasing companies, with a fleet size of 201,750 units (up from 195,000 in the previous year) are listed in the survey. The top 10 lessors account for 85% (172,000 units) of the total lease fleet, with the top three  companies accounting for 58% of the total. These comprised EXSIF (22%), Seaco Global (21%), Eurotainer (15%), Trifleet (6%), TAL (5%), NRS (4%), Raffles (3%), IEL (3%), TWS (3%) and Multistar (3%), with the remaining 15% divided among smaller leasing firms.

ITCO’s global fleet total does not include leasing company tanks, except idle units, as the rest of the lease fleet is counted in the figures for operators and shippers/ others in the table. 

Tanks might be idle because they are in the process of preparation, such as maintenance and testing, or in the process of being repositioned to a demand area or remaining as newly manufactured stock. Typically, says ITCO, this represents 10% of the leased fleet. In the current economic environment the average idle number might be higher, but for reporting consistency, at estimate of 10% has been maintained. The shipper fleet shown in the table – also referred to as producers or consignors – comprises tanks operated by chemical or food/beverage companies. These units are mostly special tanks manufactured or modified to meet a specific need, and include tanks designed to  transport liquefied and refrigerated gases.

The “other” tank users include the many units operated by entities such as military, shipping and barge lines, rail, oil and mining industries, Chinese domestic and companies that use tanks for storage or special transport operations
such as bitumen. Some of the tanks disposed from operator and lessor fleets might be modified and utilised within this category. 

ITCO says its methodology for calculating the number of shipper/others fleet has been adjusted to align with the estimated static growth of the owned part of the fleet. 

Growth in the tank container industry is reflected by the number of new units built. The survey gives details of 18 tank container manufacturers, which produced the 43,780 new tank containers in 2015 (shown in the 2016 column,
as survey data relates to January). Compared to 2014, when 48,200 new tank containers were manufactured, this represents a decrease of 9.2%. 

Manufacturing is concentrated in China, with the only other large volume manufacturer (Welfit Oddy) based in South Africa. A total of 18 manufacturers are listed in the survey, but the top five represent 90% of global manufacturing – CIMC (46%) Welfit Oddy (14%), Singamas (13%), Nantong Tank NTT (12%) and CXIC (5%). The majority of manufacturing is of the industry standard tank range but, nevertheless, there is a very active and growing specialised tank sector, says ITCO. 

The accompanying table also summarises the ITCO surveys completed since 2013. The estimated 2016 growth, compared with the 2015 survey, is around 7.2%. Shipper-owned fleets are not considered to be growing, due to the trend to outsource logistics to operators. The 2014 and 2015 shipper/others owned fleet has been adjusted by ITCO, to reflect a static position, but the leased part of the fleet shows a percentage increase. 

Pending more precise data, a nominal figure of 2,000 has been included in the survey for disposals – a figure that ITCO says is likely to increase in future years, reflecting the economics of the comparative reduced price of new  manufacture versus the increased cost to repair older tanks. 

ITCO states that figures for disposals are not easily verified, and there is difficulty estimating them, since respondents tend not to reveal details of their fleets. 

Tank containers are typically depreciated over a residual life of 20 years, but often remain in service for a longer period. The service life of the tank might be extended by refurbishment. Disposals result from repair costs exceeding 
the economic value of the tank and/or the age profile required by some users. Prevailing low materials prices, exchange rates and interest rates have lowered the cost of new tanks. This reflects on the decision whether a heavily damaged unit is economic to repair or remanufacture.

Some disposals are purchased by others and modified for continued use outside of the mainstream sector, and so may be accounted in the survey’s “others” category. 

Gassing up 

One area highlighted by this year’s survey for the first time is the gas tank fleet, but ITCO says this sector is difficult to estimate as few respondents detail their fleet by type. Nevertheless, assumptions were made on the basis of the
responses received. The total fleet is estimated at 37,000 units. Especially high growth is taking place in cryogenic tanks for refrigerated liquefied gases. According to ITCO, seven manufacturers specialise in gas tanks, and these alone manufactured 1,740 units during 2015. Furthermore, Chinese manufacturers include a quantity of gas tanks in their total number, and, together with other manufacturers not listed, cryogenics manufacture probably amounts to about 2,500 units, says ITCO.

Another area detailed for the first time in this year’s survey is the swap tank fleet. Swap tanks are mainly (99%) used by tank operators in Europe to benefit from the economics of the rail tariff and the generally higher permitted maximum gross mass. ITCO says that China and other areas are also potential growth markets, although 40ft configurations might prove to be better suited. The association believes there is likely to be continued growth in this sector. 

“The tank container industry continues to grow, both in terms of the volume of cargo transported the number of tank containers in the global fleet,” said Heike Clausen, ITCO president. “This growth reflects the accepted recognition of the tank container as a safe, reliable, economic and sustainable means of transport. “Continuing investment in the industry reflects considerable confidence in the long-term opportunities, with international operators expanding their deepsea services, while niche regional operators are opening up and developing new, regional markets.” The complete survey, including the methodology used, can be downloaded from www.itco.org

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This complete item is approximately 1000 words in length, and appeared in the October 2016 issue of WorldCargo News, on page 34. To access this issue download the PDF here.