Chemical Tankers Market - Forecast(2023 - 2028)

Report Code: CMR 46652 Report Format: PDF + Excel

Chemical Tankers Market Overview

The Chemical Tankers Market size is forecast to reach US$35.6 billion by 2027, after growing at a CAGR of 4.1% during the forecast period 2022-2027. Chemical tankers are cargo ships used for the transportation of liquid chemicals in bulk. Chemical tankers range from 5,000 to 59,000 deadweight tonnage (DWT) in size and have cargo tanks that are either coated with epoxy or zinc paint or made from stainless-steel. Chemical cargoes carry chemicals such as caustic soda, sulfuric acid, methanol, many other organic inorganic chemicals, all of which may be hazardous. Based on the hazards, chemical tankers are designed, constructed and operated to mitigate the risks. In order to transport goods, chemical tankers are also classified based on the International Maritime Organization (IMO) hazard classification of either type I, II or III. The increasing global economic activity acts as a driver for the Chemical Tankers Market.

Chemical Tankers Market COVID-19 Impact

The COVID-19 pandemic has disrupted every sphere of life, led to restrictions on the movement of goods at the domestic as well as international levels. Ports were closed due to quarantine which crippled the shipping industry. Vessels from certain countries were not allowed to dock due to fear of contamination. The challenges of crew rotations to mitigate the spread of the virus quickly grew into a crisis for the global shipping industry. The pandemic disrupted maritime shipping services, leading to canceled sailings, port delays container shortages. These disruptions were particularly profound for imports originating from North-East Asia. Combined with COVID-related changes, the disruptions increased volatility in maritime freight rates across regions caused significant delays in the delivery of crucial imports. According to the International Trade Commission, in the first half of 2020, US maritime container imports declined 7% by volume, compared to the same period in 2019. Container shipping firms canceled more than 1,000 voyages in the first six months of 2020. The pandemic wreaked havoc across the shipping industry resulted in cargo delays, shipping container shortages high freight prices; which impacted the Chemical Tankers Market as well.

Report Coverage

The “Chemical Tankers Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments of the chemical tankers industry.

By Product: Organic Chemicals (Ethanol, Methanol, Ethylene, Butane Others), Inorganic Chemicals (Sulfuric Acid, Caustic Soda, Nitric Acid, Hydrochloric Acid Others), Vegetable Oils & Fats (Palm Oil, Olive Oil, Coconut Oil, Soybean Oil, Sunflower Oil Others) Others
By Capacity: Less Than 10,000 DWT, 10,000-30,000 DWT, 30,000-50,000 DWT More than 50,000 DWT.
By Shipment Route: Inland, Coastal Deep-Sea
By Material: Stainless-steel, Epoxy Coated, Zinc Coated Others
By Geography: North America (USA, Canada, Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia New Zealand, Indonesia, Taiwan, Malaysia, Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, Rest of South America), Rest of the World (Middle East, Africa)

Key Takeaways

  • Asia-Pacific dominates the Chemical Tankers Market on account of the established chemical industry in the region. According to Invest India, the chemicals & petrochemicals sector is expected to grow to US$300 billion by 2025.
  • Chemical tankers are vessels that are used to carry liquids in bulk, from methanol to vegetable oils. 
  • Based on the chemicals transported, different types of coatings are used for the tanker. For instance, edible crude vegetable oils require epoxy coating. Acids and other harsh chemicals are transported in stainless-steel tankers. Some tankers also have zinc coating.

Figure: Asia-Pacific Chemical Tankers Market Revenue, 2021-2027 (US$ Billion)

Chemical Tankers Market

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Chemical Tankers Market Segment Analysis – By Cargo

The IMO II segment held the largest share in the Chemical Tankers Market in 2021. Chemical tankers may carry dangerous, flammable, toxic chemicals. In order to transport goods, chemical tankers need to have the proper International Maritime Organization (IMO) hazard classification of either type I, II or III. A type I chemical tanker is intended to transport most hazardous chemicals, requiring maximum preventive measures to prevent any leakage of cargo. Type II chemical tanker is intended to transport chemicals requiring significant preventive measures whereas type III chemical tanker is intended to transport chemicals requiring a moderate degree of containment to increase survival capability in a damaged condition. Most chemical tankers are IMO II III since the volume of IMO I cargoes is limited. The growth of the IMO II cargo segment of the chemical tankers is because of the use of IMO II chemical tankers for shipping chemicals such as methanol, ethanol, vegetable oils, fats, along with alkanes. Therefore, this segment is anticipated to dominate the Chemical Tankers Market.

Chemical Tankers Market Segment Analysis – By Material

The stainless-steel segment held the largest share in the Chemical Tankers Market is expected to grow at a CAGR of 3.9% during the forecast period. Chemical tankers are generally equipped with a series of separate cargo tanks that are either coated with specialized coatings such as epoxy or zinc paint or made from stainless-steel. The coating or cargo tank material determines what types of cargo a particular tank can carry. For instance, stainless-steel tanks are required for aggressive chemicals such as sulfuric acid, phosphoric acid, other aggressive organic inorganic chemicals. Stainless-steel is widely used as a tank material owing to its better chemical resistance and greater ease in tank cleaning inspection. Thus, cargo contamination hazards can be reduced in stainless-steel tankers. This is the reason why a majority of the chemical tankers have stainless-steel tanks. For instance, the IINO Lines website states that 74.4% of the group’s chemical tanker fleet is equipped with stainless-steel tanks. Therefore, the stainless-steel segment is set to dominate the market during the forecast period.

Chemical Tankers Market Segment Analysis – By Geography

The Asia-Pacific region held the largest share in the Chemical Tankers Market in 2021 up to 46% due to the region's well-established agriculture chemical sectors. Palm oil forms the largest cargo group within the vegetable oil sector. India is the world’s second-largest consumer number one importer of vegetable oil. As per the Economic Survey 2021-22, India imports around 60% of its consumption of edible oils, palm oil constitutes around 60% of the imports of edible oils. According to the Solvent Extractors Association of India (SEA), India imported around 1 million tonnes of edible oil in March 2022 when compared to around 0.9 million tonnes of edible oil in March 2021. Indonesia and

 Malaysia account for 85% of the global production of edible oils. According to government sources, Malaysia is planning to boost its share of the edible oil market after geopolitical tensions due to the Russia-Ukraine war disrupted sunflower oil shipments further tightened global supplies. Japan, Korea, China are major shipbuilding yards. Currently, a majority of the world’s stainless-steel chemical tankers are from these three countries. Therefore, this region is expected to continue to dominate the Chemical Tankers Market.

Chemical Tankers Market Drivers

Increasing Global Economic Activity Post-Pandemic

The pandemic caused severe damage for the global shipping industry. However, once the lockdown was lifted, the revival of the economy began. The global economy is dependent on chemicals, as every industry, directly or indirectly, requires chemicals. For example, chemical tankers carry caustic soda which is required in the processing of bauxite to make aluminum. Transportation of chemicals by sea is a cost-efficient, fast, effective method of cargo delivery over long distances. According to the World Bank, the global economy is poised to stage its most robust post-recession recovery in 80 years, in 2021, ever since the onset of the pandemic. The emergence of vaccines has also given a positive outlook for the global economy. For instance, the US economy has been bolstered by massive fiscal support, vaccination is expected to become widespread by mid-2021, growth is expected to reach 6.8% in 2021. As the vaccination rates increased, several countries began easing restrictions which opened up more shipping routes. Chemical tankers carry hazardous chemicals that are crucial in the synthesis of pharmaceuticals which are in high demand due to the pandemic. The demand for chemicals in the next couple of years will be driven by an expected strong recovery following the pandemic across the globe. Therefore, the increasing global economic activity drives the Chemical Tankers Market. 

Change in Trade Flows

After the pandemic slump, global trade rebounded in 2021 is expected to recover further in 2022. According to the United Nations Conference on Trade Development (UNCTAD), in Q1 2021, the value of global trade in goods services grew by about 4% quarter-over-quarter by about 10% year-over-year. Global trade in Q1 2021 was higher than pre-crisis levels, with an increase of about 3% relative to Q1 2019. Europe relied on Russian exports for methanol, caustic soda, benzene, styrene. Due to the invasion of Ukraine, several countries including European countries, imposed sanctions on Russia stopped Russian exports. As Russian exports are mainly short-haul, replacement volumes will add additional miles therefore drive tonnage demand higher. However, other countries in Asia have not halted Russian exports leading to incremental demand in tonnage an increase in miles. Thus, change in trade flows is a driver for the Chemical Tankers Market.

Chemical Tankers Market Challenges

Volatility of Crude Oil Prices

Maritime vessels use bunker fuel to power their motors. Despite the International Maritime Organization (IMO) announcing a 0.50% global sulfur cap on marine fuel emissions from January 2020, the fuel maritime vessels run on is obtained from crude oil. Therefore, crude oil prices directly affect the chemical tankers industry. The US-China trade war in 2019 resulted in a large crude oil price drop. In August 2019, U.S. West Texas Intermediate (WTI) crude fell US$1.18, or 2.1%, to US$54.17 a barrel. On 20 April 2020, the price of WTI crude oil slumped into negative for the first time in history, falling to negative US$37.63 per barrel. The Texas Freeze in February 2021 also impacted crude oil prices. WTI crude fell 62 cents, or 1%, to settle at US$60.52 a barrel. On February 24, when US President, Biden, announced sanctions against Russia, WTI crude rose 71 cents, or 0.8%, to settle at US$92.81 a barrel, after earlier rising to US$100.54. As Russia is the world's second-largest producer of crude oil after Saudi Arabia, supplies about a third of Europe's needs, the geopolitical tensions directly affect crude oil prices. On 6 March 2022, the US Secretary of State said that the US administration its allies were discussing a ban on Russian oil supplies. This led to a jump in oil prices to US$139 a barrel. Due to the ongoing geopolitical tensions, crude oil prices skyrocketed in international markets as WTI reached US$120 a barrel. As of June 2022, WTI crude settled at $120.26 per barrel. Thus, the volatility of crude oil prices poses a challenge for the Chemical Tankers Market.

 Chemical Tankers Industry Outlook

Product launches, acquisitions and R&D activities are key strategies adopted by players in the Chemical Tankers Market. The Chemical Tankers top 10 companies include:

  1. Stolt-Nielsen
  2. Odfjell
  3. Navig8 Chemicals
  4. Wilmar International
  5. Mitsui O.S.K. Lines
  7. Tokyo Marine Asia Pte Ltd
  8. Nordic Tankers
  9. Seatrans Chemical Tankers
  10. Bahri Chemicals

Recent Developments

  • In November 2021, Odfjell announced that it disposed of its last short-sea vessels in the Asia-Pacific market to focus on its core deep-sea chemical tanker business. 
  • In November 2021, BW Group’s Hafnia Ltd. announced that it is acquiring a fleet of 32 IMO II tankers from Oaktree Capital Management’s Chemical Tankers Inc.
  • In July 2021, IMC’s Aurora Tankers formed a partnership with Golden Stena Baycrest Tankers to manage operate stainless-steel chemical tankers. The partnership aims to focus on expansion across Asia for the two companies.

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1. Chemical Tankers Market- Market Overview
    1.1 Definitions and Scope
2. Chemical Tankers Market - Executive Summary
    2.1 Key Trends by Product
    2.2 Key Trends by Cargo
    2.3 Key Trends by Capacity
    2.4 Key Trends by Shipment Route
    2.5 Key Trends by Material
    2.6 Key Trends by Geography
3. Chemical Tankers Market – Comparative analysis
    3.1 Market Share Analysis- Major Companies
    3.2 Product Benchmarking- Major Companies
    3.3 Top 5 Financials Analysis
    3.4 Patent Analysis- Major Companies
    3.5 Pricing Analysis (ASPs will be provided)
4. Chemical Tankers Market - Startup companies Scenario Premium Premium
    4.1 Major startup company analysis:
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Product portfolio
        4.1.4 Venture Capital and Funding Scenario
5. Chemical Tankers Market – Industry Market Entry Scenario Premium Premium
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Successful Venture Profiles
    5.4 Customer Analysis – Major companies
6. Chemical Tankers Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters Five Force Model
        6.3.1 Bargaining Power of Suppliers
        6.3.2 Bargaining Powers of Buyers
        6.3.3 Threat of New Entrants
        6.3.4 Competitive Rivalry
        6.3.5 Threat of Substitutes
7. Chemical Tankers Market – Strategic Analysis
    7.1 Value/Supply Chain Analysis
    7.2 Opportunity Analysis
    7.3 Product/Market Life Cycle
    7.4 Distributor Analysis – Major Companies
8. Chemical Tankers Market – By Product (Market Size -$Million/Billion)
    8.1 Organic Chemicals
        8.1.1 Ethanol
        8.1.2 Methanol
        8.1.3 Ethylene
        8.1.4 Butane
        8.1.5 Others
    8.2 Inorganic Chemicals
        8.2.1 Sulfuric Acid
        8.2.2 Caustic Soda
        8.2.3 Nitric Acid
        8.2.4 Hydrochloric Acid
        8.2.5 Others
    8.3 Vegetable Oils & Fats
        8.3.1 Palm Oil
        8.3.2 Olive Oil
        8.3.3 Coconut Oil
        8.3.4 Soybean Oil
        8.3.5 Sunflower Oil
        8.3.6 Others
    8.4 Others
9. Chemical Tankers Market– By Cargo (Market Size -$Million/Billion)
    9.1 IMO I
    9.2 IMO II
    9.3 IMO III
10. Chemical Tankers Market – By Capacity (Market Size -$Million/Billion)
    10.1 Less Than 10,000 DWT
    10.2 10,000-30,000 DWT
    10.3 30,000-50,000 DWT
    10.4 More than 50,000 DWT
11. Chemical Tankers Market – By Shipment Route (Market Size -$Million/Billion)
    11.1 Inland
    11.2 Coastal
    11.3 Deep Sea
12. Chemical Tankers Market – By Material (Market Size- $Million/Billion)
    12.1 Stainless Steel
    12.2 Epoxy Coated
    12.3 Zinc Coated
    12.4 Others
13. Chemical Tankers Market - By Geography (Market Size -$Million/Billion)
    13.1 North America
        13.1.1 USA
        13.1.2 Canada
        13.1.3 Mexico
    13.2 Europe
        13.2.1 UK
        13.2.2 Germany
        13.2.3 France
        13.2.4 Italy
        13.2.5 Netherlands
        13.2.6 Spain
        13.2.7 Russia
        13.2.8 Belgium
        13.2.9 Rest of Europe
    13.3 Asia-Pacific
        13.3.1 China
        13.3.2 Japan
        13.3.3 India
        13.3.4 South Korea
        13.3.5 Australia and New Zeeland
        13.3.6 Indonesia
        13.3.7 Taiwan
        13.3.8 Malaysia
        13.3.9 Rest of APAC
    13.4 South America
        13.4.1 Brazil
        13.4.2 Argentina
        13.4.3 Colombia
        13.4.4 Chile
        13.4.5 Rest of South America
    13.5 Rest of the World
        13.5.1 Middle East
        13.5.2 Africa
14. Chemical Tankers Market – Entropy
    14.1 New Product Launches
    14.2 M&As, Collaborations, JVs and Partnerships
15. Chemical Tankers Market – Industry/Segment Competition Analysis Premium
    15.1 Company Benchmarking Matrix – Major Companies
    15.2 Market Share at Global Level - Major companies
    15.3 Market Share by Key Region - Major companies
    15.4 Market Share by Key Country - Major companies
    15.5 Market Share by Key Application - Major companies
    15.6 Market Share by Key Product Type/Product category - Major companies
16. Chemical Tankers Market – Key Company List by Country Premium Premium
17. Chemical Tankers Market Company Analysis - Business Overview, Product Portfolio, Financials, and Developments
    17.1 Company 1
    17.2 Company 2
    17.3 Company 3
    17.4 Company 4
    17.5 Company 5
    17.6 Company 6
    17.7 Company 7
    17.8 Company 8
    17.9 Company 9
    17.10Company 10 and more
"*Financials would be provided on a best effort basis for private companies"