Chemicals of all types have increasingly been shipped via containers in ocean transportation over the last 12 years, although some chemical types continue to move primarily as bulk cargoes, according to Seabury Group.



The advisory firm reported that photography chemicals showed the most significant increase in containerization from 2000 to 2012, moving from 55 percent containerization to 83 percent, or an extra 457,904 TEUs. Pharmaceutical chemicals registered the second highest jump during the same period, with a 27 percentage point increase in container shipments, or an additional 1.9 million TEUs, followed by biocides, with a 20 percentage point increase, or 1.3 million TEUs.

Regardless of the rate of containerization, the chemical types that move the most via container were photography, at 83 percent; pharmaceuticals and odors and flavors, each at 78 percent; and colors and dyes, at 75 percent.

The types of chemicals with the lowest rates of containerization were inorganics and organics, which showed increases of 8 percentage points and 13 percentage points respectively from 2000 to 2012. These chemical types are still moved mainly by bulk, according to Seabury. Containerized inorganics accounted for 32 percent of total movements in 2012, and containerized organics accounted for 23 percent.

The trend of increasing containerization in the chemicals trade is similar to trends in reefer and agricultural shipments.
In the last 10 years, the global specialized reefer fleet has been progressively shrinking, dropping from more than 850 ships in 2001 to fewer than 650 ships in 2011, said Philip Damas, director of Drewry Supply Chain Advisors, in his TPM 2013 presentation. Furthermore, in 2011 and 2012, 113 reefer vessels were scrapped, but no new reefer ships were delivered, he said.

Meanwhile, global reefer container capacity increased, rising 8 percent in 2011 with an estimated 6 percent increase in 2012, Damas said. As a result, the global container reefer fleet holds about 91 percent of reefer capacity, while the world specialized reefer fleet holds only 9 percent, he explained.
The increase in containerized reefer shipments versus bulk reefer shipments was already noted in 2010 by researchers at the universities of Genoa and Naples in Italy. “The reefer bulk fleet has experienced an irreversible decline, while the reefer container fleet has shown a continuous growth,” the study said.

The study showed that container versus bulk was becoming stronger for reefer commodities such as meat and dairy products, and for high-value products in small quantities or with specific temperature and humidity requirements, such as U.S. pharmaceutical products, cut flowers from Holland and highly perishable vegetables and fruits.

Other agricultural shipments have also become increasingly containerized. For example, shipments of soybeans via containers have risen to ensure quality criteria and reach smaller customers abroad quickly, according to a study conducted last year by Informa Economics and the Illinois Crop Improvement Association. Containers are also more effective at moving soybeans, as well as some grains, meat and poultry, to markets in Asia and Europe that cannot accept bulk shipments as a result of bans on genetically modified foods.

The volume of containerized grain shipments is also steadily growing. Although containerized grain shipments account for less than 10 percent of all U.S. grain shipments, they are of higher value than bulk grain shipments, said Bruce Abbe, president of the Midwest Shippers Association, in his TPM 2013 presentation. Container shipping offers “distinct advantages” for global food manufacturing by offering quality assurance, product differentiation without contamination and greater traceability, he said.

(Source : Journal of Commerce)