GREATER PREDICTABILITY EQUALS REDUCED DEMAND FOR STORAGE

We see growth in the latter in the sense that it replaces chemicals because of its health image, biodegradability, etc. We see an autonomous growth anyway from soft oils to palm oils also because of the health and nonGMO issues. The growth of prosperity in the former Eastern Bloc countries will also contribute. So we think we are in for a period of steady growth in the years to come.”

But he points to another phenomenon:

“Our good friends in Malaysia know exactly how much palm oil they will harvest at any time of the year so in that respect I believe the demand for trading purposes will further decrease in Rotterdam because there is far less need for strategic storage due to greater predictability of the availability of the product now. We will see quicker throughputs needing less capacity than in the past, ” he says, adding: “This is a very personal view.”

Okker does not see this as a negative development: “If we need less capital to handle more tonnage that’s good for the industry because the cost per tonne goes down, and it’s good for us because our yield per cubic metre goes up.”

*Oleochemicals are made from vegetable and animal oils and fats and/or petrochemicals feedstocks. Oleochemicals feedstocks are converted into chemical products for use in foods, lubricants, soaps and detergents, cosmetics, pharmaceuticals, paint and coatings, printing inks, plastics, etc.