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Tank marketing will meet opportunities in the future

29 Nov 2021 View :

interview / kdmes director Yang Jin Seong
Aim at the environmental energy market with 22 years of "chemical / logistics" expertise
Add short-term one-stop rental service for ISO storage tanks




"If you understand the advantages of ISO tank container and use it for your purpose, it may be the best mode of transportation. We will do our best to provide customers with the unique differentiated service of kdmes with safety first."

There are not many experts with chemical and logistics expertise in Korea. Yang Zhencheng, director of the University majoring in chemical engineering, is currently leading the tank team of MES in the Far East based on his professional knowledge of excavating only one "dangerous and liquid logistics" well in the past 22 years.

While environmental energy such as liquefied natural gas (LNG), hydrogen and ammonia have become the key words to open the blue ocean, director Yang said that Guodong MES is leading the training of risk and liquid cargo experts to help customers have great potential in the ISO TANK market. He stressed that this will help reduce costs and ensure safety. The following is Q & A with kukdong MES director Yang Jin Seong.


Q. Can you introduce the tank?

In 2005, kukdong MES, which focuses on general containers, began to handle liquid goods and flexible bags of ISO tanks at the same time. As part of its business diversification, it has created a new service field while seeking horizontal project expansion.
The tank team, which started from a small scale, has now developed to about 10 professionals, and is building a unique position. ISO TANK alone can operate about 1000 vehicles.
There is a saying that a person walks fast, wants to go far, and walks together. Although it is still small compared with the DP container team, I want to grow more and play an important role in helping kukdong MES go further in the future.


Q. What is the biggest harvest this year?

The flexibag business, which has been the flagship project for the past 16 years, has recently experienced a sharp decline in sales due to fierce competition from competitors. This year, the situation has become more difficult because it has been reduced to category only items.

On the other hand, ISO tank has realized the growth of quantity and quality. The introduction of differentiated services that cannot be easily provided by other companies, such as production agency and short rent, has led to improved profitability.

The biggest advantage of kukdong MES ISO TANK team is that it can be used as a customer and partner of tank depot, repair and management at the same time, as well as leasing companies, operators, agents, chemical companies, transportation companies, etc In addition, based on long-term accumulated professional knowledge, it also provides risk and liquid cargo logistics related consulting to improve competitiveness, which is also a positive factor.

In addition, this year is a year to further expand the business fields of tank operation, leasing, sales and paint tank sales. In addition, ISO tank parts that are difficult to purchase due to the lack of production base are imported from Europe and supplied to South Korea at competitive prices. In the medium and long term, we plan to expand short-term and one-stop rental services by increasing the number of ISO tanks currently managed.


Q: What are the advantages of ISO tank?

The flexible bags installed and used in general containers are made of plastic bags, so it is not easy to take action in case of accidents. In order to handle the goods at the destination, the labor cost is very high, so ISO cans have recently been used as an alternative to flexibags. Flexibag is still widely used in Southeast Asia and Latin America, where labor costs are relatively low.

In Korea, like Japan and the United States, with the rise of labor costs, ISO cans are increasingly used instead of elastic bags and barrels. ISO tanks, in particular, have recently attracted attention because they can be transported by truck, rail and sea, and are highly utilized in energy markets such as LNG and hydrogen with rapidly increasing demand.

The use of ISO tanks is expected to increase further, not only in China and Vietnam where Korean companies have many factories, but also in Indonesia, Thailand and Singapore where the demand for renewable energy is explosive. Recently, more and more companies knocked on the door of kukdong MES after seeing the impact of ISO tank for the first time.


Q: The shortage of containers continues. I want to know what is the situation of ISO box?

This year's equipment shortage is expected to continue until the first half of next year. In the ISO TANK market, slightly larger flows are more important than fluctuations in limited country markets. Originally, the traffic volume between South Korea and China was very large, but this year, the traffic volume recovered much faster than other sections, resulting in a shortage of equipment between the two countries. China is getting better bit by bit, but South Korea still lacks a lot of equipment.


▲ ISO tank operated by Kukdong MES


Q. What is the impact of soaring logistics costs on the business environment?
At present, it is greatly affected by sea freight rates. Customers who only rent existing ISO tanks recently asked not only about tank freight, but also about sea parcels. Some customers even put off work because they couldn't find space to transport tanks.

There is no special way. In order to expand the range of customers' choices, our experts are working with as many shipping companies as possible and sharing the results with shippers so that they can make decisions quickly.

Q. What are the current problems in the logistics industry?

Supply and demand balance. Balancing all goods for transportation is a hot topic today. As the balance is broken, we believe that freight and container prices have soared. Of course, this is not an easy problem. It's not that the shipper didn't try. The changes of freight rate and volume will continue to develop in a balanced direction.

Q. I'm curious about your future vision and medium - and long-term business plan.

Due to the changes of electronic grade chemical industry and energy industry, the ISO TANK market has considerable potential. While the growth of the general chemical market stagnates, the ISO TANK market is also expected to grow significantly with the attention paid to the industries known as electronic grade such as semiconductor displays.

Recently, with the rise of electric vehicle industry and hydrogen economy, in line with these changes, the supply of electronic ISO storage tanks is increasing, and is ready to enter the energy related market. If you don't know chemistry, it's not easy to operate the tank. With the increase of entry threshold, this will be a good opportunity for us. People have high expectations for the MES tank team in the Far East in the next 5 to 10 years.


Q: What advice would you give to the industry or authorities?

Unfortunately, most customers think that logistics service is only a cost. Reducing logistics costs is the first thing when planning a new year's business plan every year. If you don't even do a simple inspection to save a small amount of money, the damage will come back several times, not thousands of times.

Especially for chemical logistics, the first consideration is safety and environment, not cost. There are still some very absurd things in this field, such as using shortcuts. This year, due to cost reasons, some companies transported chemicals in an obviously dangerous way.

Some companies that receive deliveries in this absurd way claim that they have reduced logistics costs. You may be lucky today, but you won't be lucky every day. It's not too much to keep 150% safe. Please keep it.

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