The global Chemical Tankers market was valued at USD 31.2 Billion in 2022 and is projected to reach USD 41.61 Billion by 2030, registering a CAGR of 4.2% for the forecast period 2023-2030.
Chemical tankers are specialist vessels designed to transport enormous quantities of bulk liquids across the world's rivers. Chemical tankers, as opposed to ordinary tankers that transport crude oil or refined petroleum products, are suited to transport a diverse range of chemicals, including both hazardous and non-hazardous liquids. These ships exist in a variety of sizes and layouts to accommodate different sorts of cargo and routes. They frequently have many segregated tanks onboard to transport multiple chemicals at the same time, ensuring the isolation of incompatible cargoes to avoid any potential reactions or risks during transit. Chemical tankers are built and operated in accordance with severe safety and environmental rules due to the nature of the product they transport. These boats necessitate sophisticated handling processes, cutting-edge safety equipment, and highly qualified crew members who understand the difficulties of dealing with various chemicals. Furthermore, they are frequently subjected to stringent inspections and certifications to ensure conformity with international standards and to limit any dangers related with the transport of hazardous commodities. Overall, chemical tankers play an important role in the global supply chain by enabling the safe and efficient transportation of a diverse range of chemicals used in a variety of industries.
- 2022: USD 31.2 billion
- 2030: USD 41.61 billion
- CAGR (2023-2030): 4.2%
Chemical Tankers Market Dynamics
Drivers Propelling the Demand for Chemical Tankers include:
Growing global trade is driving the market:
The growing global trade is a primary driver of the chemical tanker market. As economies become more interconnected, the need for diverse chemicals utilized in industries such as manufacturing, agriculture, pharmaceuticals, and others grows. This rising demand necessitates the need for efficient and dependable global transportation of bulk liquids. Chemical tankers play an important role in addressing this need by facilitating the transport of these chemicals between regions and countries. Furthermore, changing consumer preferences and technology improvements aid in the spread of global trade. The proliferation of specialty chemicals, for example, necessitates the use of specialist transportation options such as chemical tankers. These vessels are built to carry a wide range of cargo, including hazardous and non-hazardous chemicals, ensuring the safe and efficient delivery of these items to markets throughout the world. Furthermore, the increasing globalization of supply chains and the search for cost-effective sourcing choices drive demand for chemical tankers, accelerating market expansion in response to the escalating needs of a worldwide economy.
For instance, in May 2023, Odfjell SE reported an increased net contribution to USD 2 million compared to USD 0.2 million in 4Q22, primarily due to firmer activity level, higher tank lease rates and increased commercial occupancy rates.
In September 2023, MOL Chemical Tankers acquired Fairfield Chemical Carriers, By this acquisition, MOLCT would have a broader, stronger fleet and service network for customers.
In November 2023, the agreement represents a continuation of Odfjell’s long-term relationships with Japanese shipowners and shipyards and include six vessels. This increases the total to twelve 25 - 40,000 dwt stainless steel vessels to be delivered on long-term time charters and pool agreements between 2024 and 2027.
Slow development of crude oil may hamper the market growth:
The slow development of crude oil production can constrain the chemical tanker industry in a variety of ways. Chemical tankers frequently share infrastructure and resources with oil tankers, and any disruptions in crude oil production can have an influence on the overall availability and usage of these shared resources. Reduced crude oil production may result in fewer oil tankers on the road or the repurposing of some tankers for chemical transportation, reducing the capacity and flexibility of the chemical tanker segment. Furthermore, chemical production is inextricably tied to oil refining processes. A drop in crude oil production could mean less feedstock for refineries, reducing the manufacture of numerous compounds generated from oil. This, in turn, may have an impact on the volume of chemicals transported by chemical tankers. Furthermore, slowing crude oil output growth may have an impact on the cost of oil-based chemicals, thereby altering market dynamics, trade volumes, and the profitability of carrying these commodities via specialist vessels such as chemical tankers. As a result, any limits or slowdown in crude oil production can limit the growth and operational capacities of the chemical tanker industry indirectly.
Environmental concerns can put up various challenges:
Environmental laws provide a huge barrier to the chemical tanker industry. These ships transport a wide range of chemicals, some of which might be harmful to the environment if not handled appropriately. To reduce the risk of pollution and assure the safe transportation of hazardous substances, regulatory authorities around the world establish tight rules governing vessel design, operation, and cargo management. To satisfy strict environmental standards, compliance with these regulations necessitates significant investments in technology and operating methods. Meeting these rules frequently necessitates modifying vessels with advanced pollution protection technology, adhering to emission control measures, and executing stringent safety protocols, all of which can increase shipping companies' operational expenses. Furthermore, rules governing ballast water discharge, waste management, and emissions control necessitate continual monitoring and adherence, adding complications and costs to the operation of chemical tankers. As environmental rules continue to grow and become stricter, shipping businesses in the chemical tanker sector confront the issue of managing compliance costs while preserving operating efficiency and profitability.
Specialization and Diversification offering new opportunities for the Chemical Tankers market:
Within the chemical tanker business, specialization and diversification present major prospects. Specializing in the transportation of specific types of chemicals or investing in specialty cargo vessels might provide competitive advantages. With an increased demand for specific chemicals used in industries like as medicines, electronics, and agriculture, chemical tanker firms have an opportunity to meet these specialized needs. Companies can carve out a niche and potentially command premium pricing for their services by investing in vessels specialized for handling these specific chemicals safely and efficiently. Diversification among various sorts of cargo can also be advantageous. Chemical tankers that can transport a diverse range of chemicals, both hazardous and non-hazardous, can provide flexibility in addressing changing market demands. Diversifying routes and expanding into newer countries where certain chemicals may be in higher demand might also bring up new revenue streams. Companies who can effectively mix specialization in specific markets with the flexibility to diversify their cargo and routes stand to benefit from a broader range of options in the chemical tanker industry's dynamic landscape.
|Market Size in 2022
|USD 31.2 Billion
|Market Forecast in 2030
|USD 41.61 Billion
|Compound Annual Growth Rate (CAGR)
|Revenue (USD Million) and Volume (Kilo Tons)
|By Product Type, By Fleet Type, By Fleet Size, By Fleet Material, & By Region
|By Product Type
|By Fleet Type
|2018 - 2022
|2023 - 2030
Segment Analysis of the Chemical Tankers Market
The Chemical Tankers’ market is segmented by product type, by fleet type, by fleet size, by fleet material, & by region.
By Product Type
The Chemical Tankers market based on the segment product type is classified into vegetables oils and fats, organic chemicals, inorganic chemicals, and others. The Vegetable Oils & Fats segment is expected to grow at highest growth rate during the forecast period. The increasing global need for edible oils, driven by reasons such as population increase, changing dietary patterns, and the developing food processing sector. With a growing emphasis on healthier eating and cooking oils, as well as the numerous applications of vegetable oils in food, pharmaceuticals, and cosmetics, the demand for their transportation across various locations has increased. As a result, due to their critical role in meeting the escalating demands of numerous sectors globally, the transportation of vegetable oils and fats via chemical tankers is likely to keep a significant market share. Furthermore, vegetable oils have a variety of industrial applications outside from food, such as biofuels, lubricants, and chemical feedstocks, which contributes to their importance in the chemical tanker industry. This multidimensional utility, combined with their expanding demand across multiple industries, positions vegetable oils and fats as a significant component of the items delivered by chemical tankers, with a significant share likely remaining in this category.
By Fleet Material
Based on the fleet material segment the market for Chemical Tankers is classified into coated and stainless steel. Stainless steel because of its corrosion-resistant qualities makes it an excellent choice for conveying a wide range of chemicals, particularly those that are corrosive or reactive in nature. The use of stainless-steel tanks in chemical tankers provides the safe transport of multiple substances, providing durability and dependability while reducing the possibility of contamination or interactions between distinct cargoes. The ability of this material to withstand a wide range of chemicals, combined with its strength and ease of maintenance, positions stainless steel as a preferred and widely used option in the construction of chemical tanker fleets, reflecting its significant share of the industry.
Asia-Pacific expected to holds the largest share during the forecasted period:
The Asia-Pacific expected to be the largest market during the forecasted period. The region's substantial industrial growth in industries such as chemicals, manufacturing, and agriculture feeds demand for diverse chemicals, boosting the need for efficient and dependable chemical tanker transportation services. Furthermore, the Asia Pacific region's expanding population and rising disposable incomes contribute to greater consumption of goods such as pharmaceuticals, food products, and other chemical-based items, driving up demand for chemical tanker services. Furthermore, strategic initiatives and investments in infrastructure development and trade facilitation within this region contribute to its dominance in the chemical tanker market, positioning Asia Pacific as a major hub for both chemical production and consumption, with a significant share of the transportation and logistics associated with these products.
List of the prominent players in the Chemical Tankers Market:
- Wilmar International
- MOL Chemical Tankers
- MISC Berhad
- Iino Kaiun Kaisha
- Nordic Tankers
- Team Tankers
By Product Type
- Vegetable Oils & Fats
- Organic Chemicals
- Inorganic Chemicals
- IMO 1
- IMO 2
- IMO 3
- Inland Chemical Tankers (1,000-4,999 DWT)
- Coastal Chemical Tankers (5,000-9,999 DWT)
- Deep-Sea Chemical Tankers (10,000-50,000 DWT)
- Stainless Steel
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
The COVID-19 epidemic has had a wide-ranging influence on the chemical tanker industry. At first, it caused disruptions in global supply networks, producing swings in demand for chemicals used in a variety of industries. Movement restrictions, lockdowns, and economic slowdowns curtailed industrial operations, impacting chemical shipment quantities. Some segments saw a fall in demand due to lower production and consumption, affecting the demand for chemical tanker services. The pandemic, on the other hand, underlined the crucial role of chemical tankers in assuring the supply of essential chemicals, such as those used in pharmaceuticals, healthcare, and sanitization goods. This highlighted the resilience and importance of these vessels in maintaining critical supply networks, resulting in increasing demand for certain chemicals and, as a result, chemical tanker services.
Due to tight health and safety procedures, operational issues occurred, affecting crew changes, port operations, and logistical processes. During the pandemic, these issues, together with unpredictable demand patterns, impacted the overall operational efficiency and profitability of the chemical tanker business. The chemical tanker market displayed resilience, albeit with variations, as the situation unfolded and industry adapted to the new normal, navigating through the complicated dynamics generated by the COVID-19 issue.