Stolt Sees Little Cause for Optimism
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THE BULK NEWSPAPER BINTERNATIONALULK NEWS ● PEOPLE ●D PRODUCTS ISTRIBUTORJanuary/February 2009 Stolt sees little cause for optimism tolt-Nielsen’s tank container division reported Strong demand in October was offset by both global fl eet now consists of close to 26,000 units. Simproved margins and continued strength in lower shipments in September due to the effects of Commenting on the company’s results Niels G overall demand for the year 2008, although Hurricanes Gustav and Ike and the impact of Stolt-Nielsen, chief executive offi cer of Stolt-Nielsen shipment volumes began to decline sharply late in weakening demand in November. Tank container SA, said: “While SNSA’s performance in 2008 the fourth quarter. utilisation rates decreased in the fourth quarter to refl ected four consecutive quarters of good results, Stolt Tank Containers (STC) reported fourth 77.4%, from 80.2%, 80.9% and 79.4% in the the effects of softening demand and the steep quarter 2008 revenue of US$124.6 million, third, second and fi rst quarters of 2008, decline in global economic activity have now begun compared with $116.8 million in the third quarter. respectively. to have a tangible impact on our operations. However, the fourth quarter included $13.1 million STC reported an operating profi t of $16.1 million Business conditions continued to deteriorate in of revenue from Taby Group, which STC acquired in the fourth quarter of 2008, up from $12.9 December, which strongly suggests that SNSA’s in October 2008. Excluding this revenue, STC’s million in the third quarter of 2008. Results for the relatively favourable fourth quarter results should fourth-quarter revenue decreased compared with quarter refl ected the combined impact of not serve as an indication of our near-term the third quarter of 2008. For the year as whole additional revenue from Taby Group and performance. Tank container utilisation rates started to decrease in the the division reported operating profi t of $50.2 improvements in margins resulting primarily from “Given the current global economic environment, fourth quarter million, up from $45.3 million in 2007. continued strength in freight rates and the effects we see little cause for optimism. We became other factors, I believe SNSA, with its experienced of declining costs. STC is currently taking a broad concerned about the outlook well over a year ago team and strong position in each of its markets, is range of actions to reduce its costs and increase and as a result took a number of actions, including well prepared to manage through this crisis.” effi ciencies, including the redelivery of tank securing fi nancing of our newbuildings, the Including its Stolt Tankers and Stolt Sea Farm IN THIS ISSUE containers on short term leases in anticipation of accelerated recycling of fi ve ships, and the sale of businesses, Stolt-Nielsen SA reported fourth quarter soft market conditions and a decrease in one ship. We expect 2009 and 2010 to be revenue of $489.5 million and a net profi t Flexitanks 3 shipments. extremely challenging years in our industry, and we attributable to shareholders of $52.6 million. With the addition of the Taby Group fl eet, STC’s are planning accordingly. Considering these and Components 5 Tank Containers 7 CV Show victim of slump FIBCs 10 he Commercial Vehicle Show 2009 has been container operator Bulmers Logistics which has Tcancelled, apparently a victim of the current been forced into a ‘pre-pack’ administration, with a Logistics & Intermodal 15 economic slump. The Commercial Vehicle new company, Bulmers Transport – formed by the Partnership, comprising the Society of Motor previous management team – taking over its Ports & Terminals 17 Manufacturers and Traders (SMMT), Road Haulage “trade and assets” for an undisclosed sum. Association (RHA) and Society of Operations Bulmers Logistics had been under pressure for Dry Bulk Logistics 19 Engineers (SOE), plus the CV Show Committee, some time, with the company hit badly by the fall agreed mid-January to pull the plug on this year’s in container volumes. It had already shed some 50 Managing Editor Neil Madden event which was scheduled for 28-30 April at NEC jobs before Christmas in a bid to cut costs, [email protected] Birmingham, UK. however, when its funder declined to provide Tel: +33 (0)3 88 60 30 68 A statement from the partnership said it continuing support, the fi rm was left with little recognised in December that the economic option but to consider either a sale or Editor Patrick Hicks downturn created a diffi cult environment for administration. It eventually entered administration Given the current economic climate cancellation was the only decision [email protected] vehicle manufacturers to commit to large we could take, said the CV Chow Committee on 21 January, with the assets sold later the same Tel: +44 (0)20 8398 9048 international exhibitions. Nevertheless, some 290 day. exhibitors signed up for the show requiring the same dates (28-30 April). Event director Robert Although the company will be making some 50 Dry Bulk Editor Richard Miller partners to consult widely on support for a focused Jervis told Bulk Distributor that some former CV staff redundant, cutting its fl eet by 40 trucks and [email protected] engineering-based alternative. The results indicated Show exhibitors have now taken space at closing its Hull and Immingham offi ces, it saves that while some support was forthcoming, it was Multimodal so as to maintain a presence at the more than 200 jobs, which will transfer to the new Tel: +44 (0)1424 446003 not enough to retain the credibility that the CV event. For more information fi rm under TUPE. In addition, it says it will continue Advertisement Director Anne Williams Show has created as a major international event of www.multimodal.org.uk to service all its current locations directed from its its type and which the partners and the show • The global downturn has claimed Teesside Middlesbrough or Ipswich offi ces. [email protected] committee were keen to maintain. Tel: +44 (0)1932 225632 “We have obviously noted that just about every other show in this sector has been cancelled for Art & production Anna-Karin M. Nicholls 2009,” said RHA chief executive Roger King. “But Overseas representative the advanced status of ours did not permit us to Vos Logistics on path Russia, CIS, Baltic States: Dars Consulting cancel without careful consultation. This was a diffi cult decision but, on balance, the right one. Tel: +7 (095) 933 68 55 What we learned from this exercise was that to rapid recovery Email: [email protected] despite a generally negative response to 2009, uropean logistics service provider Vos Logistics have now created an effi cient and healthy there appears a much more positive approach to Ebased in Oss, the Netherlands, reports that it company which is able to respond effectively to © Oakhill Media Ltd 2010 which encourages us to set plans in motion has completed the restructuring programme the current wildly fl uctuating demand for Bulk Distributor is published by for a show in April of that year.” begun in 2007 which had been brought about by transport services. Costs relating to the Oakhill Media Ltd, Oakhill House, 22 Williams Grove, “This is of course disappointing, but given the the company’s high level of debt. This at the time restructuring exercise will be charged against the current economic climate and the uncertainty had necessitated drastic retrenchment measures. company’s 2008 fi nancial year, resulting in it Surbiton, KT6 5RN, United Kingdom. created, it is the only decision we could make. In the latest round of cost-cutting the company recording a loss for the 12 month period due www.oakhillmedia.com Naturally, the partners are grateful for the NEC’s has further reduced its vehicle fl eet from 1,700 to mainly to these non-recurring expenses. Fax: +44 (0)870 762 0434 support for this decision,” said Nigel Emms, the CV 1,300 units and has reduced its workforce to Investors and other fi nancial parties have Published 6 times a year. Show committee chairman. 2,300 full-time employees. In addition it has been extended present fi nancing arrangements until Reproduction in whole or in part without written www.cvshow.com agreed by mutual consent to reduce the working 2010. They have also strengthened the company’s The cancellation of the CV Show will not affect hours of 60 members of staff located in the permission is strictly prohibited. Multimodal 2009 which also runs at NEC on the Netherlands. According to Vos, these measures Continued on page 19 What’s big, red and travels the world? Answer: Environmental Packaging Technologies’ bulk shipping solutions www.enviropactech.com [email protected] 1-877-8 BIG RED Our BIG Red family of bulk shipping solutions cut shipping costs, increase efficiency and minimize negative environmental impact. No matter what your packaging needs, we have a BIG Red solution for you: • BIG Red Flexitank™ • BIG Red Dry Liner • BIG Red IBC™, composite collapsible, non-hazmat • BIG Red IBC, composite, collapsible, U.N. 31 HH2 Never ship empty space again. 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