09.2022, Tank Container World

Development of new liquid chemistry transportation routes: trends and prospects

Due to the change in the political and economic situation in February 2022, in recent months there has been a decrease in the volume of transportation of liquid chemical cargoes in tank containers along traditional routes; at the same time, there has been an expansion of supplies to new export destinations. We asked representatives of transport and logistics companies which particular routes are of interest, what hampers their development, which of them may be in demand in the future and what solutions are used by specific operators.

Svetlana Androsova, Head of Corporate Communications Department of SG-Trans JSC:

Against the background of the geopolitical crisis, export shipments of bulk chemicals in tanks and tank containers has decreased by about half compared to February 2022. But, despite the overall negative dynamics, new export routes have appeared, along which deliveries are now growing. These are, in particular, Brazil, Argentina, Turkey and China. From February to August, exports in these areas increased by a total of eight times — to more than 240 thousand tons per month. The key items of export are nitrogen fertilizers and alcohols.

Deliveries of cargos in tank containers to Brazil have begun, which is a new route for the market. Tank container shipments to Turkey, China, and Kazakhstan have also increased, though exports to Finland, the Baltic States, and the EU member states have fallen significantly.

We believe that in the future export shipments of bulk chemicals to Russia-friendly countries in South America and the CIS, China and Turkey will be the most active. Actually, the trend that we see now will further develop. As for specific cargos, according to our assessment, liquid fertilizers, alcohols, nitro compounds, hydroxides, acids can become the drivers of growth.

We count on the rapid development of the domestic industry in the near future and the growth of domestic shipments. At the same time, international projects will remain an important driver for the development of transportation of bulk chemicals in tank containers. The first key direction for us and for the market as a whole is China. The volume of transportation of bulk chemicals in tank containers in communication with this country is steadily growing, the range of goods is expanding. In the current conditions, a number of customers have switched from the European market to the Chinese one. At the same time, the Chinese market has its own specifics, which should be taken into account when establishing a dialogue.

Spectransgarant (“STG”) has a trade representative office in China. We have every opportunity to support both customers in Russia and our Chinese partners.

The second important destination for us is Turkey. The development of shipments along this route is interesting in the short and medium term, since it is Turkey that has become a major junction, in particular, a transportation hub, between Russia and Europe.

The Middle East has a very considerable potential, as well. Iran stands out especially prominently among other countries. Previously, this destination was not particularly high in demand, but as the international situation changes, interaction with the region is intensifying. STG has both experience in organizing shipments and partners in the Middle East and Central Asia who can provide customers with a full range of services.

In the future, transportation of bulk chemicals to India may develop. Stable economic relations are just beginning to take shape, trade turnover is growing, and it will take some time to reach its full potential.

In general, I would like to note that STG successfully implements the multimodal transportation of bulk chemicals in tank containers. This method of delivery enables to safely move products between contractors in different cities and countries while eliminating the need in transfer between containers, which saves time and reduces transportation costs.

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