Chemical Logistics Market Overview:
The Global chemical Logistics Market is multi-billion dollar industry, in 2014 it amounted to $770 billion and has only grown since. The market is well penetrated with a number of companies providing Chemical logistical Services. The trend of Chemical Exports since 2015 has been growing with the total Chemical Export Value in 2017 being around $17 trillion. China was the leader in the exports amounting to and export value around $2 trillion followed by USA and Germany at $1.5 trillion and $1.4 trillion respectively.
Chemical Logistics Market Outlook:
Chemical Logistics pertains to the supply chain operation of Chemical products from the procurement of raw material to the end distribution channels till the consumers. There are various logistical service providers and are categorized as 1st, 2nd, 3rd, 4th and 5th Party Logistics on the basis of what part of the supply chain operations and how much of the operations are outsourced. Companies providing logistical services for chemicals provide many services in the field such as procurement services, material flow services, transportation and distribution services both national and internationally, warehouse management and storage services, contractual services to manage the whole supply chain operations, customs and security services, consulting services to optimize the supply chain and related operations and various other value added services.
Chemical Logistics Market Growth drivers:
The shale gas boom in the US has been a major growth driver for the Chemical Logistics Market as it provides a lot of the base chemicals for the petrochemical industry at a comparatively lower cost. Thus increasing the demand for supply of those materials globally.
Manufacturers focusing primarily on core businesses only has also been a growth driver for the Chemical Logistics Market as more of their services are opted for transportation and distribution of the products.
Increasing number of trade deals between governments of various countries across the Globe and step taken to decrease trade barriers is also a major growth driver for the chemical Logistics market as it increases their business opportunities and volumes.
Chemical Logistics Market Challenges:
One of the major challenges that chemical logistic companies face is the volatile nature of crude oil prices which directly affect the petroleum, diesel and Natural gas prices. These are the primary sources of fuel used in transportation and directly affect the cost of supplying operations.
The current trade war between US and China also hampers businesses operating in and between these two countries. Both of these countries are large consumers and manufacturers of chemical products. Heightened tariffs over trade between these two countries will affect the supply and demand of chemical products between these two countries and effect the Chemical Logistic Companies working between these two countries.
Other trade hampering activities by governments such as anti-dumping tariff, increasing import or export duties and heavy regulatory paperwork and events effecting the supply or demands of chemical such as factory accidents, natural disasters and labor force challenges are the other major challenges that are present for the Chemical Logistics Market.
Chemical Logistics Market Research Scope:
The base year of the study is 2017, with forecast done up to 2023. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the Chemical Logistics Market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include the types of plastics in the electric vehicle market, and their specific applications in different types of vehicles.
Chemical Logistics (SAP) Market Report: Industry Coverage
Chemical Logistics Market– By Type of Logistics Provider: 1st Party Logistics, 2nd Party Logistics, 3rd Party Logistics, 4th Party Logistics and 5th Party Logistics.
Chemical Logistics Market– By Services: Transportation and Distribution, Storage and Warehousing, Freight Logistics, Contract Logistics, Customs and Security, Green Logistics, Consulting and Management Services, Technology and others.
Chemical Logistics Market – By Method of Transport: Road, Rail, Air, Ship and Intermodal.
Chemical Logistics Market – By End User Industry: Chemical industry, Pharmaceutical Industry, Cosmetic Industry, Oil and Gas Industry, Specialty Chemicals Industry, Coating Industry and others.
The Chemical Logistics Market report also analyzes the major geographic regions for the market as well as the major countries for the market in these regions. The regions and countries covered in the study include:
- North America: The U.S., Canada, Mexico
- South America: Brazil, Venezuela, Argentina, Ecuador, Peru, Colombia, Costa Rica
- Europe: The U.K., Germany, Italy, France, The Netherlands, Belgium, Spain, Denmark
- APAC: China, Japan, Australia, South Korea, India, Taiwan, Malaysia, Hong Kong
- Middle East and Africa: Israel, South Africa, Saudi Arabia
Chemical Logistics Market Key Players Perspective:
Some of the Key players in this market that have been studied for this report include: DAMCO, Broekman Logistics, WSI, Odyssey Logistics, DHL, C.H. Robinson, Rhenus Logistics, Agility Logistics, BDP International, Jayem Logistics and many more.
Market Research and Market Trends of Chemical Logistics Market
- One key trend that is noticeable in the market is the digitalization of various segments of the businesses and the opportunities that technological advancements are bringing for the customer. Companies are providing their own propriety trademarked TMS to their customers for better supply chain visibility, management and in depth analytics data so that Supply chain operation can be optimized.
- Increase concerns over pollution levels and emissions from the transport sector has pushed many companies to take a more environmentally friendly approach, some companies give carbon emission reports and provide data so that companies can decrease their carbon footprint and general environmental impact. Many other companies are taking proactive steps to reduce their emissions and increase the efficiency of their energy consumption, companies are also providing waste recovery services.
- With the growing Chemical productions in China and India as well as other APAC countries and the trade war between USA and China the market is going to see a shift towards the APAC markets as China and India take more steps to reduce trade barriers by reducing tariffs on imports and export. This will be a business environment change for the Chemical Logistics market shifting from the Western sphere.