Chemical Tanker Market is Anticipated to Witness High Growth Owing to Rising Seaborne Trade of Oil & Chemical Products

Chemical Tanker Market 

The global chemical tanker market comprises hydrocarbon and chemical tankers that are engaged in seaborne transportation of commodity and specialty chemicals. The shipping of chemicals via dedicated tankers is a safe, cost-effective, and reliable mode of transportation. Chemical tankers offer segregated cargo tanks that help prevent contamination and ensure product purity during transportation. Shipping chemicals via tankers also reduces carbon footprint significantly compared to road and rail options.

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.

Rising seaborne trade of oil, petrochemicals, and other industrial Chemical Tanker Market Trends  is expected to drive the demand for chemical tankers globally. Asia Pacific dominated the market in 2021 due to presence of large chemical industries and demand from China and India.

Key Takeaways

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. The key players are investing in newbuildings and expanding their fleet size to tap growing opportunities in Asia and North America.

The global chemical tanker market is anticipated to witness significant growth opportunities owing to rising demand for specialty chemicals from end-use industries. Countries like China, India, and Southeast Asian nations offer promising growth prospects with rising manufacturing activities.

Major players are exploring opportunities in the Americas and pursuing fleet expansion strategies to gain a foothold in the lucrative US chemical shipping market. Players are focusing on acquiring small regional fleets and partnering with local traders to expand their global footprint.

Market Drivers:

Rising seaborne trade volumes of oil, petrochemicals and industrial chemicals across major economies is a key growth driver. Global oil demand is projected to grow by over 25% until 2040.

- Growing chemical manufacturing capacity additions in Asia Pacific to cater to rising domestic demand in industries like plastics, petrochemicals, agrochemicals etc is expected to drive ton-mile growth.

Market Restrains:
- Volatility in oil and chemical product prices can impact shipping demand in the short term.

- Stringent environmental regulations on engine emissions and ballast water management increase compliance costs for tanker owners.

Segment Analysis

The chemical tanker market has two key segments - organic chemicals tanker and inorganic chemicals tanker. The organic chemicals tanker dominates the market as it accounts for over 60% share. Organic chemicals like aromatics, edible oils, and vegetable oils form a major part of seaborne trade. The demand for transportation of these chemicals via tankers is expected to grow in the coming years due to rising consumption in Asia and other developing regions.

Global Analysis

The Asia Pacific region dominates the chemical tanker market with over 40% share. China, Japan, and India are among the largest producers and consumers of chemicals globally. This drives the need for transportation of petrochemicals, organic and inorganic chemicals via sea routes. The region is projected to witness the fastest growth during the forecast period due to expanding manufacturing sector and domestic demand. North America and Europe hold a substantial share as well. The developed infrastructure and presence of chemical industry hubs in the US and Western Europe support the movement of chemicals through seaborne trade in these regions.

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