The costs to distribute air gases and carbon dioxide (CO2) in bulk by road, rail or sea are a considerable part of the total costs of ownership for an air gas company.
The costs represent between 30-40% of the total costs, and there are even examples where this figure well exceeds 50%.
The main cost drivers are loading, transport, and the assets used to carry and move the product. These assets are trucks, trailers, chassis and containers. Most air gas companies tend to buy these assets and depreciate them over the years. There are examples of Tier 1 air gas companies owning the trucks, the trailers, and employing the drivers as well. They feel comfortable to keep assets and logistics completely in-house.
However, at a lot of companies we find that the majority of the assets is owned and the minority of the equipment is hired. A common trend in Europe is that air gas companies own the trailers and outsource the trucking.
... to continue reading you must be subscribed
