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The transportation market is experiencing local disproportions as regards the availability of 40-foot (FEU) and 20-foot (TEU) containers. These imbalances are not critical, although sometimes it is important that 20-foot equipment is specifically used for transportation of certain cargoes.
Each cargo has its own container
As Alexander Altshuller, General Director of Modul, told Gudok, TEUs are used for heavy-weight cargoes. These include rolled metal products, steel in coils, equipment, ores, mineral fertilizers, weighty boxes and big bags. In addition, 20-foot containers carry bulk cargoes in flexitanks, long-storage foods and groceries. Bulk containers, which are used to deliver bulk cargo to a port for bulk ship loading, are also exclusively 20-foot containers.
“Our company now transports mainly chemical cargoes - terephthalic acid, PET, metals and metal products, various consumer products - in 20-foot containers from China to Russia, and sunflower oil in flexitanks and bulk agricultural cargoes from Russia to China," said Nikolay Olshansky, CEO of ModernWay container operator.
According to Evgeny Barkov, Sales Director of RTSB-RUS, "light, but oversized cargoes are mainly shipped in import-export directions, and 40-foot containers are optimal for this purpose. This creates higher demand for FEU on the market.
Market availability
Europak, whose main specialization is transportation of non-hazardous liquid cargoes in flexitanks (used specifically in 20-foot containers), reports a shortage of TEUs on the market. According to Anna Usacheva, Europak's Logistics Director, there are objectively fewer 20-foot containers on the market now than market participants would like to have. In sparsely populated regions, such as Krasnoyarsk Krai and Irkutsk Oblast, they are the fewest.
At the same time, FESCO has no problems with container availability and even sees a certain surplus. This year FESCO has already purchased more than 20 thousand new FEU and more than 6 thousand TEU. Today the Group operates dry universal containers with a total capacity of 170 thousand TEU.
Modul's fleet totals more than 7 thousand units, and, leaving aside specialized transport equipment such as open top (a container with a removable roof) and flat rack (a container-platform with only two side walls), the ratio of TEU to FEU is approximately 50%/50%. To avoid container deficit or surplus, Modul uses rational approaches in operational fleet management.
Causes and consequences
Operators cite various reasons for the local shortage of containers. While Anna Usacheva points to insufficient import traffic in 20-foot containers, Nikolay Olshansky cites seasonal demand for agricultural exports. Last but not least, China Railways' subsidies for TEU transportation are much lower compared to FEUs, and rail transit requires matching the weight of paired 20-foot containers for balance.
A redistribution of cargo flows and a shortage of containers or rolling stock can lead to higher rates on certain routes and additional efforts required from operators to find optimal logistics schemes. However, the rate for the provision of a 20-foot container is now low. Besides, if there is a shortage of TEU on the market, shippers will be compelled to use 40-foot containers for transportation. Then, the cost of train platform transit will grow for them. "This will call for a significant changes in how we assess the transportation profitability and calculate the economic output,” says Anna Usacheva.
Rational approach
The main problem manifests itself in the imbalance of export and import container transportation, according to Igor Smirnov, director for freight transport and logistics at the Infrastructure Economics Center. "However, there is no talk of a shortage of containers,” he reports. A redistribution of cargo flows and a lack of containers always create the need to determine short-term and long-term plans for operating the fleet. At the same time, it is important to monitor the movement of containerized equipment. Evaluating solutions for back-loading or evacuation in the opposite direction at minimal cost may be suitable for this purpose.
Sergey Volkov
Source: Gudok.ru
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