The chemical tanker market facilitates the seaborne transportation of industrial liquid chemicals across the globe. Chemical tankers are designed with multiple cargo tanks for bulk transportation of chemicals in liquid form. Some key products transported include petrochemicals, vegetable oils, acids, bases, and alcohols. Chemical tankers provide a cost-effective and efficient mode of transportation for chemicals over long distances. Features like segregated cargo tanks, heating systems, and dedicated piping systems allow for safe handling and delivery of multiple chemistries simultaneously.
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 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. Sustainability has become a key focus for many industry players with initiatives around reducing emissions and improving cargo segregation. JO Tankers, one of the largest operators, has adopted a no-subsidy policy for heavy fuel oil to push the industry towards cleaner fuels like LNG.
The growing Chemical Tanker Market Trends demand for petrochemicals and industrial chemicals from various end-use sectors is driving the need for seaborne transportation. Countries like China, India, and Saudi Arabia have seen significant capacity additions in petrochemical plants which is bolstering the cargo volume handled by chemical tankers. Further, globalization of trade and outsourcing of chemical production is necessitating deeper port penetration by chemical tankers to diverse geographies.
With growing trade relations between countries, expansion of existing trade routes and opening up of new trade lanes for chemicals is positively impacting the chemical tanker fleet deployment. Key exporting nations like the US, Germany, Saudi Arabia and China see large volumes of petrochemicals, crude products and refined chemicals being shipped across to other regions. Countries in South Asia, Latin America and Africa present new opportunities for fleet owners to station vessels and expand their geographical coverage.
One of the key trends in the chemical tanker market is the rising preference for dual-fuel propulsion systems and clean burning fuels like liquefied natural gas (LNG). Stringent regulations by IMO to curb SOx andNOx emissions are nudging ship owners and operators towards investments in LNG fueled tankers and onboard scrubbing systems. Adoption of cleaner technologies will be crucial for the industry to reduce environmental footprint and meet sustainability goals in the long run.
Porter’s Analysis
Threat of new entrants: High capital requirements acting as a barrier for new entrants in the chemical tanker market. Bargaining power of buyers: Large buyers in the chemical industry like petrochemical and oil and gas companies have significant bargaining power over existing chemical tankers. Bargaining power of suppliers: Suppliers of ships and equipment providers have moderate bargaining power given the differentiated nature of products and services required in the chemical tanker industry. Threat of new substitutes: No direct substitutes exist for chemical tankers used in transportation of liquid chemicals over long distances by sea routes. Competitive rivalry: Intense competition exists among existing players to cater increasing trade volumes and global chemical demand leading to high industry rivalry.
Geographical Regions
The chemical tanker market in Asia Pacific region currently holds the largest share in terms of value, led by China, India, Japan and South Korea. This is due to the presence of major petrochemical producers, exporters and importers of chemicals in the region. Another key factor is the proximity to raw material suppliers and customers resulting in cost savings for transportation of chemicals.
The chemical tanker market is forecast to grow the fastest in the Middle East and Africa region during the forecast period. This is attributed to capacity expansion of petrochemical facilities and crude oil refineries and the need to transport intermediate and end products over long distances reliably via sea routes. Countries like Saudi Arabia, UAE and Nigeria are driving the demand for chemical tankers to transport petrochemicals within the region and for exports.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.