What drivers impact demand for tank storage?

In this article we would like to explain PJK’s tank terminal commercial performance model and why this model offers essential insights into tank storage demand drivers.

Introduction to PJK tank terminal commerical performance model
PJK’s tank terminal commercial performance model (see figure: 1) shows the relation between a terminal’s market environment and its commercial performance. The environment is divided into market fundamentals (which have a slow rate of change) and market dynamics (which have a fast rate of change). In our model the fundamentals drive dynamics. A terminal that has a good fit with market dynamics will find storage rates are being better supported. Besides market dynamics also market fundamentals influence storage rates.

Learn what drives tank storage demand. Join the FREE Webinar: PJK Tank Terminal Commercial Performance Model upcoming August 16 2018.

Market fundamentals
1. The shape of the forward curve;
2. The competitive structure; and
3. Logistical factors such as supply, demand, imbalances and trade flows.
Market dynamics
1. Inventory levels;
2. Arbitrage and trade flows;
3. Changes in product spec; and
4. Variation in vessel sizes.

Learn what drives tank storage demand. Join the FREE Webinar: PJK Tank Terminal Commercial Performance Model upcoming August 16 2018.

These variables have a direct impact on a terminal’s operations and on a terminal’s requirements. When a terminal is able to react faster to these dynamics in relation to its competition, it is more likely that it can create superior commercial performance.

In order to explain the essentials of the model we would like to invite you to join our webinar, presided by PJK International and TankTerminals.com’s Head of Marketing and Sales Jacob van den Berge.

Key highlights of webinar are:
1. Impact of the forward curve on a terminal’s commercial performance
2. Impact of S&D and imbalances on a terminal’s commercial performance
3. Impact of arbitrage and trade flows on a terminal’s commercial performance
4. Explanation of PJK Tank Terminal Week Report

Register now!

PJK’s Tank Terminal Week Report has been based on these essential parametrics that drive tank storage demand. This report will improve your understanding of the world of oil trading and as a result offers you the chance to make intelligent decisions.

Contact PJK International for more information.