June 18, 2024
Chemical Tanker Market

Chemical Tanker Market: Powering Growth in Global Chemical Logistics

The chemical tanker market is poised for substantial expansion driven by growing chemical trade globally. Chemical tankers provide a safe and cost-effective solution for transporting bulk liquid chemicals and petrochemicals across countries by sea. Globalization and increasing cross-border trade in chemicals have augmented the demand for dedicated ships for transportation of substances such as vegetable oils, petrochemicals, acid, alkalis and other industrial chemicals.

Chemical tankers are specially designed cargo ships used for transporting chemicals in bulk. They are fitted with sophisticated cargo containment systems, advanced safety mechanisms and pollution prevention equipment to allow safe ocean transport of even hazardous liquids.

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

The thriving global Chemical Tanker Market Trends petrochemical industry coupled with rising trade of industrial chemicals has boosted demand for dedicated chemical tankers. Chemical transportation via sea is more cost-effective compared to other modes of transport and caters to the growing demand from import-export focused economies.

Major players are investing in fleet expansion and newbuilds to capitalize on new trade routes and volumes. Players are diversifying their fleets and services to achieve global coverage. Growing trade partnerships and trade treaties are also boosting the demand for international chemical transportation.

Market Key Trends

One of the key trends witnessed in the chemical tanker market is the rising demand for specialized vessels that can transport dual grade and multiple cargoes. Leveraging advanced coatings and dedicated cargo containment systems, modern chemical tankers offer more versatility and higher revenue potential. This has prompted ship owners and operators to invest in specialized newbuilds and retrofit existing older fleets. Sustainability regulations around emission control and safety are also shaping investments towards eco-friendly tanker designs with reduced environmental footprint over the lifecycle.

Porter’s Analysis

Threat of new entrants: The chemical tanker shipping industry requires huge capital investments for new ships, which acts as a barrier for new entrants. Bargaining power of buyers: Large buyers have significant bargaining power due to bulk purchase volumes and availability of multiple suppliers. Bargaining power of suppliers: Suppliers of technical ship management services and fuel have moderate power due to availability of substitute suppliers in the market. Threat of new substitutes: Lack of cost-effective substitutes for seaborne transportation of chemicals curbs threat from new substitutes. Competitive rivalry: Intense competition exists among existing players to acquire new contracts and retain market share.

Geographically, North America and Europe hold the major share of the global chemical tanker market in terms of value, followed by Asia Pacific. North America has huge exports and imports of chemicals by sea contributing to the dominance of the region.

Asia Pacific is expected to witness the fastest growth in the chemical tanker market during the forecast period. Increasing import of chemicals for rapidly growing end-use industries such as pharmaceuticals, fertilizers, coatings and polymers in China and India is anticipated to drive the demand. Rising intra-Asia trade of chemicals is another factor pushing the growth of chemical tankers in the region.

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