Chemical Tanker Shipping Market Witness Lucrative Growth Of $2.50 Trillion By 2025: Grand View Research, Inc.
According to a report,”Chemical Tanker Shipping Market Analysis By Product (Organic, Inorganic, Vegetable Oils & Fats) By Shipment Route (Inland, Coastal, Deep Sea) By Cargo Type, By Region, And Segment Forecasts, 2018 – 2025″, published by Grand View Research, Inc., The global chemical tanker shipping market is anticipated to reach USD 2.50 trillion by 2025, according to a new report by Grand View Research, Inc. The growing chemical trade on account of increasing manufacturing activities across the world is projected to augment market demand. The disparity in regional production and demand trends has triggered the global trade for chemicals and derivatives.
Organic chemicals such as acetic acid, alcohols, propene, benzene, salt, benzyl acetate, methanol, formic acid, and phenol are some of the vital substances shipped through chemical tankers across the world. The U.S., China, Germany, and Russia are some of the major exporters of chemicals and are expected to foster the global chemical trade over the coming years.
The U.S. will probably grow at a high rate on account of increasing number of fleet owners, shipbuilders & charterers, availability of raw material, and capital inflow from multinational companies. The expanding market of Asia Pacific is one the most significant areas for growth due to the presence of a large number of small manufacturers in the region.
Key Takeaways from the report:
• The global chemical tanker shipping market was valued at USD 2.07 trillion in 2016 and is estimated to grow at a growth rate of 2.1% from 2017 to 2025 to reach a market valuation of USD 2.50 trillion
• Chemical tanker shipping market is concentrated on account of presence of considerable number of fleet operators
• Competitive freight rates on account of easy availability of containers through freight forwarders and clearing agents places higher power in the hands of buyers
• Deep sea chemical tanker shipments accounted for the most significant share in 2016 and is projected to grow at the highest CAGR over the coming years on account of extensive international trade
• IMO III cargo type accounted for the largest volume share in 2016 due to high shipment of vegetable oils & fats and other non-volatile chemicals across regions
• Asia Pacific accounted for the most significant volume share due to presence of major manufacturing counties such as China and India which have a strong foothold in the chemical industry
• Chemical tanker shipping companies are expanding their fleets to cater to the growing chemical trade business globally. New entrants in the market are expected to result in excess supply of tankers in the industry, thereby reducing charter rates.
• Some of the significant chemical tanker charters include Navig8 Group, Odfjell SE, Stolt Nielsen, MSC, Stena Bulk, and Maersk Tankers
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North American chemical production has started growing, and the manufacturers are planning for capacity expansion because of the huge natural gas production coupled with low prices. The U.S. distributes a significant portion of its total chemical production to Mexico and Canada followed by China and Belgium. Majority of the North American producers are finding their way to Asian and European market, thereby increasing lengthy route freight movement in the region.
The European market is expected to experience a very sluggish growth on account of the decreased chemical production. The lower production can be attributed to higher raw material and energy costs.
Asia Pacific is anticipated to grow at the highest CAGR and occupied 42.9% of the global revenue in 2016. Emergent economies such as India and China are expected to spectate strong economic growth over the coming years. Increasing demand for various harmful liquefied substances from these regions is attributed to market growth.
Asia Pacific production is expected to grow at substantial rate owing to factors such as lower raw material costs, less stringent environmental policies, etc. Shale gas revolution in China is also expected to be the major factor for the growth in the region on account of low-cost feedstock production.
Global chemical tanker shipping market is fragmented with a large number of regional players in the market. Key players include Odfjell, Stolt- Nielsen Ltd., IINO KAIUN KAISHA Ltd., Tokyo Marine Asia Pte Ltd, MISC, Navig8 chemicals and Nordic tankers.
Industry participants have adopted innovative strategies related to environment protection owing to stringent regulations. They are also focusing on quality management and safe transportation techniques. Other players are JO Tankers, Eitzen Chemical, Berlian Laju Tanker, Seatrans chemical tankers and Lomar.
North America is expected to attract new players in the market on account of shale gas boom in the region positively impacting ethylene production in the region which in turn is expected to boost organic chemicals shipment supply globally.
Source: Grand View Research, Inc.