Proven Research Methodology
IG’s conceptual model shows relations between market circumstances and a terminal's commercial performance. In this model market fundamentals drive market dynamics. A terminal that has a good fit to these market dynamics will find that their storage rates are supported.
Apart from this direct relation between tank terminal characteristics, market dynamics and storage rates, there is also a relation between market fundamentals and storage rates.
The distinction between market fundamentals and market dynamics lies mostly in the difference in rate of change. Market fundamentals tend to be more stable compared to market dynamics.
Market dynamics have a direct relation to operational activities at tank terminals. Main focus points are related to market fundamentals: logistics, forward curve outlook and competitive structure. Furthermore, expected impact on market dynamics and corresponding tank terminal operations will also be taken into consideration.