May 27, 2024
Chemical Tanker Market

The Chemical Tanker Market is Estimated to Witness High Growth Owing to Increasing Demand for Petrochemicals and Oil Products

The chemical tanker market comprises shipping tankers that are specifically designed for transporting chemicals and petrochemicals in bulk. These ships have separate cargo tanks that are coated with specialized coatings to ensure safe transport of chemicals without any contamination or chemical reaction. The demand for chemical tankers is driven by the growing petrochemical and oil industries where there is frequent transportation of chemicals over long distances via sea routes.

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 from 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 surge in global oil production and growing international trade of petrochemicals is generating significant opportunities for transportation of chemicals via sea routes. Key players are focusing on expansion into new markets by acquiring regional fleets or through strategic partnerships to capture this demand. With recovery of oil prices and investments in large petrochemical complexes globally, the demand for chemical tankers is projected to grow steadily over the next decade.

The major players are focusing on expanding fleet size and existing operations in high Chemical Tanker Market Trends like Asia Pacific and Middle East regions. Secondly, the growing trade of chemical and petrochemical products between North America, Europe and Asian countries is generating significant demand for interregional transportation of chemicals. Thirdly, with rising petrochemical production and exports from GCC countries, ME countries and US, the long haul transportation of chemicals is projected to rise significantly promoting growth of chemical tanker market globally over the forecast period.

Market drivers

One of the key drivers for the chemical tanker market is the increasing demand for petroleum products and chemicals globally. With rising population and economic growth, the consumption of petrochemical derivatives in end use industries like construction, packaging, automotive etc is growing steadily. This is propelling chemical producers to boost output, driving demand for transportation of chemicals and petrochemical feedstock over long sea routes. Secondly, globalization of trade is promoting export of chemicals from areas of surplus production to markets with higher demand. This interregional trade is majorly dependent on transportation via sea due to cost effectiveness, thereby augmenting demand for chemical tanker services.

PEST Analysis

Political: The chemical tanker market is impacted by international maritime laws and regulations related to transportation of chemicals by sea. Nations have created regulatory bodies that monitor safety standards and environmental protection measures.

Economic: Fluctuations in the prices of crude oil and petrochemical products impact the demand for transportation of chemical products globally. Growth in international trade positively influences the operating revenues of chemical tanker owners and operators.

Social: Adoption of green technologies and emphasis on sustainable shipping influences cargo handling practices and development of eco-friendly fueled vessels. Safety of coastal communities is a critical issue addressed by compliance with quality and emission norms.

Technological: Adoption of digitalization solutions allows remote monitoring of vessel performance and cargo conditions. Developments in fuel types help lower emissions. Automation and use of alternative fuels can enhance efficiency of operations.

The geographical regions where the chemical tanker market is concentrated in terms of value are Asia Pacific and Europe. The Asia Pacific region accounts for the largest share due to extensive trade between China, Japan, India and other developing economies.

The fastest growing region for the chemical tanker market is expected to be Asia Pacific due to rising manufacturing activity and increasing exports from China, India and other countries. This drives the demand for transportation of petrochemicals, organic chemicals and other industrial raw materials within the region and globally.

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