VTG halts tank container business due to tough market conditions
VTG is terminating its tank container transport and logistics business and will discontinue the relevant activities by the end of the second quarter of this year.
Discontinuing all the tank container logistics activities of VTG Tanktainer will also involve closing its international subsidiaries, with the exception of the joint venture Shanghai COSCO VTG Tanktainer. VTG will continue and expand its tank container leasing business.
The firm said this step was necessary in order to response to the increasingly fraught market situation with which VTG has been confronted since the third quarter of last year.
A slump in demand for transport in the chemical industry and declining freight rates – in part due to the massive increase in energy costs – has been accompanied by substantial price hikes in the intermodal segment.
At the same time, freight costs can now only be planned on the basis of prices valid for between three and six months.
After thoroughly examining various options, the executive board, acting in agreement with the shareholders, took the strategic decision to discontinue the logistics activities of VTG Tanktainer.
Tank container leasing activities – including the staff and the assets themselves – are to be transferred within the VTG Group at the Hamburg site by the end of the second quarter of 2023.
VTG Tanktainer’s other facilities in Germany, Finland, North America and Singapore will be closed by the end of 2023. The joint venture Shanghai COSCO VTG Tanktainer in China is not affected by these measures.
Discontinuing all the tank container logistics activities of VTG Tanktainer will also involve closing its international subsidiaries, with the exception of the joint venture Shanghai COSCO VTG Tanktainer. VTG will continue and expand its tank container leasing business.
The firm said this step was necessary in order to response to the increasingly fraught market situation with which VTG has been confronted since the third quarter of last year.
A slump in demand for transport in the chemical industry and declining freight rates – in part due to the massive increase in energy costs – has been accompanied by substantial price hikes in the intermodal segment.
At the same time, freight costs can now only be planned on the basis of prices valid for between three and six months.
After thoroughly examining various options, the executive board, acting in agreement with the shareholders, took the strategic decision to discontinue the logistics activities of VTG Tanktainer.
Tank container leasing activities – including the staff and the assets themselves – are to be transferred within the VTG Group at the Hamburg site by the end of the second quarter of 2023.
VTG Tanktainer’s other facilities in Germany, Finland, North America and Singapore will be closed by the end of 2023. The joint venture Shanghai COSCO VTG Tanktainer in China is not affected by these measures.
