Stolt sees softness in tank container demand

Stolt Tank Containers has reported fourth-quarter operating revenue of $133.3m, down from $139.5m in the previous period, after a second successive quarter of softening demand. Operating profit rose from $18.2m to $19.7m, despite a $2.0m write-off from STC’s withdrawal from the flexitank business, expected to be completed by the middle of this year. Increased profitability reflects lower ocean and inland freight costs and a significant decrease in empty repositioning costs.

Tank utilisation fell from 76.1% in the third quarter to 70.3%, partly as a result of a further increase in the company’s fleet after the delivery of 1,570 new tanks. The current newbuilding programme, which has added nearly 7,000 tanks over the past two years, is expected to be complete by the end of the current quarter.