Tank Terminals as Market Indicators [3/3]
10.08.2018 - NEWS

October 08, 2018 [TankTerminals.com] - Tank terminal projects are very good market indicators since projects are often announced early and set the stage for future product flows. Bulk liquid terminals play an important role when trading centers are shifting and new hubs are being developed.

Demand and production swings are taking place all the time resulting in shifts between long and short haul shipments. Short haul shipments tend to have smaller volumes and therefore require smaller vessels. Such changes have an impact on loading and discharge operations at tank terminals, including jetty capabilities and tank sizes.

As Owners are looking for economies of scale, ships are however getting bigger and ship owners need to make sure that tank terminals can handle such larger vessels and large quantities of cargo.

A good example is the Bow Pioneer, the largest IMO II chemical tanker with a deadweight of 75000, measuring 288 meters long and 37 meters wide. The use of larger tankers in any market segment may result in the development of more hub terminals to receive larger vessels and support regional distribution and transshipment activity.

Tank terminals may also be an interesting investment opportunity for ship owners to diversify and create a more balanced business portfolio. While freight rate and volume levels may be low during an economic downturn, inventories at terminals may be high during such times. Some storage contracts are negotiated on a take or pay basis which means the client pays even if they don’t use the tank.

This provides a level of guaranteed income. And if not invest, why not develop a strategic tank terminal tanker owner alliance for a specific project.

We hope this article is providing some food for thought, so why not read your free Infographic now to learn more about the benefits of TankTerminals.com’s database platform for tanker owners and ship brokers.

Read all the articles of the series Tank Terminals in Tanker Shipping: 

  1. Importance of Tank Terminals in Tanker Shipping
  2. Importance of Tank Terminals in Tanker Shipping in What-If Scenarios


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