Customers cotton on to cost benefits of ISO tanks

ISO tanks are gaining popularity in the market as an option for bulk liquid transportation. According to Kreason Pillay, M&S Logistics director for Africa, contributing factors include the shortage of large, land-side tanks, particularly in terms of India and the Middle East, as well as high prices associated with underutilisation costs.

“Customers are increasingly seeking alternative solutions and ISO tanks are one option,” Pillay told FTW. “These tanks can be used for timeous deliveries to customers, can be stored and delivered when required, and can also be used to form mobile bulk storage sites at a customer’s premises if required.”

He said they were definitely seeing an increase in the bulk cargo volumes being moved in ISO tanks. “As the costs of drums and other packing gets more expensive, we are expecting to continue to see the shift to ISO tanks rather than bulk ships or breakbulk liquid,” he said.

As an ISO tank owner and operator, M&S Logistics is actively driving the shift to bulk in ISO tanks as an end-to-end solution, Pillay said. “We are positive about the bulk liquid market and are seeing steady growth. More customers prefer bulk in ISO tanks especially considering additional disposal costs of packaging and the like.”

Pillay said an important element of the changing environment was educating clients. “Customers are used to receiving products in a certain way and change can be difficult even if the cost saving is very evident.

“Changing people’s mindsets about how they move bulk liquid is probably our biggest challenge at present, but once they are on board and the improvement in the bottom line is visible there is no turning back for any of them.”

His advice to shippers trading in bulk liquid is to look at the various options available in the market at present and not just opt for the historic method. “Receiving smaller bulk parcels in ISO tanks or exporting in ISO tanks makes a lot of sense and has a cost benefit.”

He said more people were realising these benefits and volumes were on the increase.

“Being in the bulk liquid business we have seen the growth and are currently expanding our fleet to cater for the requirements needed and to ensure capacity is available.”

CAPTION

Bulk liquid is increasingly transported in ISO tanks.