The industry continues to see flexitank systems increasing their market share, at the expense of tank containers, IBCs and other methods of liquid transport. At the same time, there are concerns around the quality of flexitank products themselves and their potential to damage the sides of dry freight containers.

These are certainly not new issues, and the Container Owners Association (COA) formed its Flexitank Division back in 2010 to tackle these matters. One of the results was the COA Flexitank Code of Practice, which sets out  recommended procedures for selecting containers and operating flexitank systems. 

ISO for BeFlexi

Flexitank specialist BeFlexi has embraced the COA Code of Practice and has put in place a system to ensure its products can be operated in accordance with its requirements. On 30 August, BeFlexi announced it had completed an “intermediary audit” on compliance with COA Code of Practice as a flexitank operator. “The certificate issued by NQA, the accredited global ISO certification body, confirms that BeFlexi management systems applicable to flexitank, dry liner operations, logistical and financial services comply with the COA Code of Practice for single-use flexitank systems and meets the BS ISO 9001:2008 Standard,” the company stated.

Speaking with WorldCargo News, BeFlexi business development director Yan Chizhevskiy said the company took this initiative in part because it recognised that most of the problems with flexitanks are due to operational issues, not
manufacturing defects in the products themselves. COA statistics, he added, show that the percentage of shipments that have a leakage problem is just 0.02%, and 98% of those are caused by installation problems, and not the  flexitank itself.

Though these numbers are low, BeFlexi was encountering potential customers who had a bad experience previously and were reluctant to try the system again, even if their past experience was a long time ago. Taking the initiative,  BeFlexi signed an agreement with SGS Inspection Services for it to provide flexitank installation services for its products globally. BeFlexi trained several SGS personnel directly in all aspects of the COA Code, and SGS then trained its own wider network, which has 1,800 locations worldwide. 

Chizhevskiy emphasised that this was not a simple process. SGS, he said, are “true engineers” and have a lot of experience in working with, inspecting and classifying cargo. He added that it took a lot of time, money and effort to  implement a standard set of procedures globally. BeFlexi ultimately hopes its move will raise the bar for the flexitank industry, and shippers will choose to do business with companies that can match their product with installation services that meet the COA standard.

Leaks and bulges

BeFlexi believes that COA compliance will give the market more confidence in its product. When installed through the SGS network, said Chizhevskiy, BeFlexi has “basically zero leakage statistics”. Addressing the other major concern about flexitanks – that they cause bulging of the container walls – is, however, a more problematic issue.

Chizhevskiy acknowledged that the container inspection process is not perfect, and “sometimes not even a visual inspection can 100% guarantee that there will be no bulging”. When it happens, the correct procedure is to tranship the cargo into another flexitank and container, a process, he adds, that does not take much time if personnel are trained. 

Rejecting containers also requires an element of commercial discipline, as the issue of who pays to return a rejected container has to be addressed.

At the moment, the market for flexitanks is difficult, reflecting the downturn in shipping and trade in general. There are, however, some bright spots, and Chizhevs kiy said one of the best is the CIS region, and Ukraine in particular, where BeFlexi is seeing market growth of over 200%. 

Not all of the growth is coming at the expense of tank containers – some of the cargo is actually switching from bulk tanker shipping. The economics of bulk vessels, said Chizhevskiy, are difficult for shippers with less than 3,000t shipments. Cargo has to be accumulated and stored, and bulk vessels are not as well scheduled or as reliable as container services. The end result is that the cargo owner has money tied up for several months, just in the shipping process, before they are finally paid.

Today, an increasing number of shippers prefer to ship 200t of product per week on 30-day payment terms, instead of using large bulk shipments. Container availability is an issue, but there has also been some progress establishing two-way trade links, using the same containers to import products like palm oil, and then exporting lubricants or sunflower oil from Russia, for example. 

Chizhevskiy is confident the market for flexitanks will continue to grow, and he notes that a steady stream of tank container operators from the Benelux region are now contacting the company. “If you give a call to a tank container company that really thinks about the future, they will have a person dedicated to flexitanks,” he added.

As the market continues to develop, the concept of reusable flexitanks has been suggested, which is actually an old idea coming round again, as the very first flexitanks were reusable. Though it is an interesting idea, said Chizhevskiy, he does not really see a need in the market for a reusable product, from the shipper’s perspective. It could, however, have the benefit of saving taxes and import duties. 

Read this item in full
This complete item is approximately 1000 words in length, and appeared in the October 2016 issue of WorldCargo News, on page 35. To access this issue download the PDF here.