LNG Tank Container Market - Drivers and Forecasts by Technavio

Technavio has published a new report on the global LNG tank container market from 2017-2021. (Graphic: Business Wire)

LONDON--()--Technavio analysts forecast the global LNG tank container market to grow at a CAGR of almost 7% during the forecast period, according to their latest report.

The research study covers the present scenario and growth prospects of the global LNG tank container market for 2017-2021. The market is segmented based on transportation (marine transportation and land transportation) and geography (EMEA, APAC, and the Americas).

The demand for LNG storage tanks surged in 2016 as the total number of marine voyages for LNG trade increased in the same year compared with 2015. This was because the new liquefaction capacities that started operating in the Middle East and African regions emerged as significant LNG importers. More than 4,200 voyages for LNG trade were completed during 2016, which was a 5% increase when compared with 2015. LNG trade was conducted on a regional basis through fixed routes by serving long-term point-to-point contracts.

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Technavio transportation and logistics research analysts highlight the following three factors that are contributing to the growth of the global LNG tank container market:

  • Increasing intermodal freight transportation
  • Surge in LNG trade worldwide
  • Rise in use of fleet management systems

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Increasing intermodal freight transportation

Shifting freight from over-the-road to intermodal has a cost saving of more than 20%. The infrastructure investments in intermodal facilities, including depots, container yards, and cargo terminals, are expected to grow during the forecast period, which will help intermodal with a more attractive option for shippers. The combination of road and marine for freight transportation is used for the intermodal freight transportation market.

Shakti Jhakar, a lead logistics research analyst at Technavio, says, “An intermodal freight shipment connects tank trucks to single hull and double hull tanker ships for transportation of oil and gas products, such as LNG. After reaching the terminus, oil and gas freight is distributed to the destination via trucks. In Port of Antwerp, Europe, more than 18 million tons of freight is carried per year. In this freight movement, more than 50% intermodal rail transport is used to carry over 150 intermodal containers, which shuttles per week.”

Surge in LNG trade worldwide

In 2016, the LNG trade worldwide reached a new record of more than 256 MT from 244 MT in 2015, which is the third consecutive year of incremental growth. This surge in LNG trade has increased the demand for LNG tank containers worldwide for transporting LNG. The supply growth was mainly supported by the commercial production of LNG at multiple new liquefaction plants, such as in East and West Australia and commissioning LNG production train in Malaysia.

“The LNG supply is expected to increase during the forecast period as various LNG plants such as Titusville, Florida, US started exporting LNG in 2016. Key economies, such as China and India, as well as new LNG importers, such as Pakistan, Jordan, and Egypt, will continue to increase the LNG demand. The LNG trade also increased in established European markets with suitable infrastructures, such as the UK, France, and Spain, during 2015-2016,” adds Shakti.

Rise in use of fleet management systems

Container fleet management is complicated due to its dynamic demand imbalance, operation, and uncertainty. Also, it includes several activities, such as container fleet sizing, distribution, repositioning of empty containers, tracking containers, and maintenance. These complications can be resolved using fleet management techniques, in turn, improving the operational efficiency, minimizing risk, tracking the fleet, and controlling cost.

Fleet management systems are formed by the integration of software, hardware, and communication technologies, which act as a platform for fleet operators to help in efficient control, tracking, and monitoring of vehicles used for commercial purposes. They improve the overall operational efficiency by reducing non-value-added activities of the operators. Fuel cards are used for fuel management while driver safety systems monitor the driver behavior.

Top vendors:

  • Chart
  • CIMC
  • Cryeng Group
  • Furuise Europe
  • Uralcryomash JSC

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Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 361 1100
UK: +44 203 893 3200
www.technavio.com

Release Summary

Technavio analysts forecast the global LNG tank container market to grow at a CAGR of almost 7% during the forecast period, 2017-2021.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 361 1100
UK: +44 203 893 3200
www.technavio.com