The Global "Chemical Tankers Market" is expected to grow at a high CAGR during the forecasting period (2022-2029).
Chemical tankers are cargo ships constructed or adapted and used for the carriage of any liquid chemicals in bulk. Chemical tanker market is expected to grow due to the growing development in the chemical industry and increasing capacity of manufactures. Moreover, the rising demand for oilseeds and vegetable oils coupled with the oversupply in the chemical tankers will ensure robust growth of the market in the next five years. On the basis of product type, the vegetable oils & fats segment is expected to lead in the market in the next five years due to the rising awareness about health benefits associated with the consumption of vegetable oils & fats among consumers.
The global Chemical Tankers Market is primarily driven by the rise in the growth of the chemical industries in the countries like china, India which has made the market grow for the chemical tankers.
China's chemical industry grew 5% year on year in the first quarter of 2019, according to the NDRC.
However, the Oil Banker Regulations are hammering the Chemical Tanker Market.
The impending IMO fuel deadline in 2020 is creating a dilemma for chemical tanker owners when it comes to selecting the solution to become compliant. The key options on the table range from the installation of scrubbers to replacing high Sulphur fuel (HSFO) by burning cleaner fuels, such as low Sulphur fuel oil (LSFO), LPG or LNG, which will increase the cost of the operation. The increase will affect the market for the chemical tankers market.
By product type, the global Chemical Tankers Market is segmented into Petrochemical products, Coal tar products, Carbohydrate derivatives, Animal and vegetable oil, and Heavy chemicals. Petro-chemical products have a dominant position in the Chemical Tankers market and are expected to retain their dominance in the forecast period, due to an increase in the number of refineries.
Like, Abu Dhabi is targeting significant petrochemical production growth. Adnoc is expanding its global refining and petrochemicals footprint, with plans to transform its main Ruwais facility into a sprawling integrated refining and petrochemicals complex. In 2018, the company said it aims to double crude refining capacity and triple petrochemicals production in a $45 billion (Dh165bn) investment drive alongside its partners.
However, increased demand of Animal and vegetable oil and the rise of production of vegetable oil in China has promised significant market growth for the Chemical Shipping Market. It is expected that Animal and vegetable oil will grow at a CAGR of ~XX% during the forecast period.
By geography, the global Chemical Tankers Market is segmented into North America, Asia-Pacific (APAC), Europe, South America, and Middle East and Africa (MEA).
APAC holds the largest market share for Chemical Tankers Market due to rapid expansion in the chemical industry in APAC particularly in China which indeed has attracted the chemical shipping rising its demand and has made APAC to hold most of the market share.
According to shipping consultancy Drewry, the demand for chemical tankers has been boosted by the rapid expansion in Chinese base chemical production capacity. Some 55% of the new production capacity is located in East China, 23% in North China and 22% in South China. Given that the domestic supply of major chemical products is increasing, demand for vessels for the country’s domestic chemical trade is set to rise. Chinese coastal chemical trade increased by 7% in 2018 year on year, up from a 3% increase witnessed in 2017. And Chinese coastline in 2019 would also underpin the continued rise in domestic chemical tanker freight rates.
However, Middle east and Africa is after APAC in terms of market share of Chemical Tankers Market, due to large number of oil industry and the chemical that is obtained as the byproduct of this oil industry has the significant market for the chemical tanker market.
Odfjell has forecast chemical tanker supply growth of 2% and chemical tanker demand of 5% on average per year through 2021. The company has noted early signs of a positive effect from new and large export-oriented expansions from the US and Middle East coming on stream.
Key players are adopting strategies such as Acquision, and investment in R&D to stand out as strong competitors in the market. The major players include Stolt-Nielsen, Navig8, Bahri, MOL Chemical Tankers, and Odfjell. Other key players in the market include Nordic Tankers, MISC Berhad, Wilmar International, Iino Kaiun Kaisha, Stena Bulk, Team Tankers, and Maersk Tankers..
In October 2018, Swedish tanker shipping company Stena Bulk has partnered up with Singapore-based Bay Crest Management in an effort to expand its presence in Asia. Commenced its operation on January 1, 2019, the new company is established to undertake the operation and commercial management of chemical tankers. Apart from its headquarters in Singapore, GSB Tankers will have offices in both Dubai and Japan. The joint venture will initially manage eighteen chemical tankers with the aim of managing thirty chemical tankers within the next two years.
In November 2017, Odfjell (Norway) signed an agreement with Sinochem Shipping (Singapore). According to this agreement, Odfjell (Norway) is expected to take four new orders from Sinochem Shipping (Singapore) to manufacture 840,900 DWT chemical tankers. This agreement aims at enabling Odfjell (Norway) to serve the growing demand for chemical tankers, which are used to ship chemicals and chemical products. The leading players operating in the market have also adopted the strategies of expansions, joint ventures, agreements, and acquisitions to increase their shares in the chemical tankers market.
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