June 18, 2024
Chemical Tanker Market

Chemical Tanker Market is Estimated to Witness High Growth Owing to Increasing Global Seaborne Trade

Chemical tankers are ships specially designed for the transport of chemicals in bulk at sea. They are utilized to carry a variety of liquid chemicals like refined petroleum products, acids, vegetable oils, and molasses. The demand for transportation of chemical and petrochemical products across the globe is driving the growth of the chemical tanker market. Chemical tankers play a vital role in ensuring safety and ease in transportation of hazardous chemicals over long distances. The global seaborne trade of chemicals and petrochemicals has increased substantially over the years, in turn augmenting the demand for chemical tankers.

The Global chemical tanker market is estimated to be valued at US$ 36.16 Bn in 2024 and is expected to exhibit a CAGR of 4.5% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the chemical tanker market are JO Tankers, IINO KAIUN KAISHA Ltd., Eitzen Chemical, Tokyo Marine Asia Pte Ltd., Berlian Laju Tanker, Nordic Tankers, Seatrans chemical tankers, Navig8 Chemicals, Stolt-Nielsen Ltd, and Odfjell.

Key opportunities in the Chemical Tanker Market Trends include expanding bunkering services and adapting advanced vessel monitoring and tracking systems to ensure safety in chemical transport. Technological advancements like digitalization enable real-time monitoring of ship operations and cargohealth.

Market Drivers: The growing demand for petrochemicals and chemicals globally is a major market driver. Asia Pacific accounts for over 50% of the global seaborne trade of chemicals owing to strong regional demand. Stringent regulations regarding safety in chemical transport further promote the utilization of chemical tankers over other modes of transport.

Current challenges in Chemical Tanker Market:

The chemical tanker market is facing challenges due to increasing environmental regulations regarding carbon emissions. Shipping companies need to upgrade their fleets to compliant fuel to reduce SOx and NOx emissions. This leads to higher operational costs. Tank cleaning procedures produce hazardous waste and needs proper treatment, incurring additional costs. Delays in port calls due to bad weather or congestion impacts the supply chain and delivery timelines. Low freight rates amid oversupply situation exert pressure on profit margins of shipping companies.

SWOT Analysis

Strength: Large global fleet with worldwide operations helps meet diverse customer needs. Strong relationships and contracts with major chemical producers ensure high vessel utilization.

Weakness: Compliance to stricter environmental norms requires huge capital investments. Higher operating costs reduces competitiveness. Dependence on trade volumes and commodity price fluctuations.

Opportunity: Rising chemical trade between major economies boosts demand for transportation. Conversion of conventional ships to store gases like LPG expands service offerings. Digitalization assists in efficient route planning and fleet management.

Threats: Entry of new players intensifies competition. Economic slowdowns lower trade volumes. Geopolitical tensions and protectionist policies disrupt global supply chains. Switch to pipeline & rail transportation for certain chemical shipments.

Geographical Regions

The chemical tanker market in North America and Europe accounts for over 40% of the global market value, driven by strong internal trade between countries. China, India, and Southeast Asian countries contribute over 30% due to their role as major exporters and importers of chemicals globally. Transportation within regions supplements intra-regional trade. The Middle East market is growing at a brisk pace owing to increasing petrochemical exports from the Gulf region.

Fastest Growing Region

The Asia Pacific region is witnessing the fastest growth in the chemical tanker market over the forecast period. Rapid industrialization and growing chemical consumption from sectors like automotive and construction in China and India is propelling the demand. Rising trade relations under regional trade agreements aid transportation. Population growth necessitates higher agriculture output, boosting fertilizer shipments. Nations are expanding petrochemical complexes, increasing export-import balancing requirements.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.