Asia-Pacific Chemical Tankers Market is Projected to Grow at the Highest CAGR

The chemical tankers market is projected to reach USD 33.11 billion by 2022, at a CAGR of 4.5% between 2017 and 2022. Note: Chemical tankers market includes revenues earned through shipping of chemicals and related products. The construction process of chemical tankers is governed by the safety standards established by the International Bulk Chemical Code (IBC Code). According to the IBC Code, there are three types of chemical tankers, which include IMO 1, IMO 2, and IMO 3. The main products transported by chemical tankers are organic chemicals, inorganic chemicals, and vegetable oils & fats.

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Expansions, joint ventures, acquisitions, and agreements were the key strategies adopted by the major players to achieve growth in the chemical tankers market between 2014 and 2017. The major players operating in the chemical tankers market include Bahri (Saudi Arabia), Stolt-Nielsen (UK), Odfjell (Norway), Navig8 (UK), MOL Chemical Tankers (Singapore), Nordic Tankers (Denmark), Wilmar International (Singapore), MISC Berhad (Malaysia), Team Tankers (Bermuda), and Iino Kaiun Kaisha (Japan).

Odfjell (Norway) has adopted agreements as a major strategy to increase its share in the chemical tankers market and cater the increasing demand for chemical tankers to ship various types of chemical products. 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) for manufacturing 840,900 Dead Weight Tonnage (DWT) chemical tankers. In March 2017, Odfjell (Norway) received a contract from Hudong-Zhonghua Shipbuilding (China) for the manufacturing of two chemical tankers. These tankers are expected to have 40 stainless steel cargo tanks with a capacity of 38,000 DWT. In July 2014, Odfjell (Norway) signed a contract with Hyundai Mipo Dockyard (South Korea) to construct four new 46,000 DWT chemical tankers with an option for four additional vessels.

Stolt-Nielsen (UK) has adopted acquisitions as a major growth strategy to strengthen its position in chemical tankers market. In July 2016, Stolt-Nielsen (UK) acquired the chemical tanker operations of Jo Tankers (Norway). This development involved acquisition of 13 chemical tankers by Stolt-Nielsen (UK) and 50% share in a joint venture having eight new tanker buildings. This acquisition enabled Stolt-Nielsen (UK) to increase the number of chemical tankers owned by it.

The chemical tankers market is projected to reach USD 33.11 billion by 2022, at a CAGR of 4.5% between 2017 and 2022. Note: Chemical tankers market includes revenues earned through shipping of chemicals and related products. The easy and low-cost water transportation of goods makes chemical tankers a suitable choice for chemical importers and exporters across the globe. These chemical tankers are ships, designed specifically for carrying various types of chemicals. One of the major drivers for the chemical tankers market is the rapidly growing chemical industry across the globe. Increasing use of different types of chemicals in various end-use industries such as automotive, aerospace, manufacturing, and construction has led to the growth of the chemicals industry across the globe, which, in turn, has fueled the growth of the chemical tankers market. Moreover, the growing consumption of vegetable oils & fats by masses also acts as a driver for the growth of the chemical takers market across the globe.

Marine bunkers account for a share of 7% of the total global demand for barrels. The growing dependence of masses on oil has led to the formulation of new environmental regulations across the globe that restrict the use of oil. The new IMO regulations, which are expected to be implemented in January 2020, ensure low sulfur cap of bunkers.

Among product types, the vegetable oils & fats segment of the chemical tankers market is projected to grow at the highest AGR, in terms of both, value and volume during the forecast period. The growth of this segment of the market can be attributed to the growing health awareness among masses and ease of transporting vegetable oils & fats. Increasing popularity of olive oil and palm oil is one of the major drivers for the growth of the vegetable oils & fats segment of the chemical tankers market. Different environmental and geographical conditions across the globe have enabled a few countries to produce vegetable oils & fats in abundance. The increasing demand for vegetable oils & fats in the international market is expected to fuel the growth of the vegetable oils & fats segment of the chemical tankers market in the coming years. Among fleet types, the IMO 2 segment of the chemical tankers market is projected to grow at the highest CAGR, in terms of both, value and volume during the forecast period. IMO 2 chemical tankers are mostly used to transport vegetable oils & fats from one place to another. They are also designed to carry chemicals, which require significant care during their transportation.

Among fleet materials, the stainless steel segment of the chemical tankers market is projected to grow at the highest CAGR, in terms of both, value and volume during the forecast period. The favorable properties of stainless steel such as improved chemical resistance and ease of cleaning tanks manufactured from it, make stainless steel a suitable material for developing chemical tankers. 

The Asia Pacific chemical tankers market is projected to grow at the highest CAGR, in terms of both, value and volume during the forecast period. The growth of the Asia Pacific chemical tankers market can be attributed to the flourishing chemical industry in China, increasing domestic production of chemicals in India, and rising number of industries that are dependent on chemicals in Japan and South Korea.