Chemical Tankers Market - Forecasts from 2022 to 2027

The chemical tankers market is projected to grow at a CAGR of 3.91% during the forecast period to reach US$29.576 billion by 2027, from US$22.611 billion in 2020.

Chemical Tankers are specialized vessels, or ships carrying liquid or chemical cargo that may be hazardous to the environment, flammable, or highly reactive. They are created and run according to unique regulations, and more and more have built-in stainless-steel tanks with molybdenum. They constitute a sizable market for molybdenum and duplex stainless steel. Furthermore, these tankers are used to transport bulk liquid chemicals and are designed to carry a range of the number of different chemical products. These chemical tankers are highly sophisticated ships with the most complex vessels and they are able to carry different types of chemicals according to their own conditions. Moreover, these tankers have their own piping and pumping system. The rising transportation of chemicals and related products is the prime factor driving the chemical tankers market during the forecast period. However, factors such as slow growth in crude oil production and stringent oil bunkering regulations are hindering the growth of the chemical tankers market.

The chemical tankers market is segmented into product type, fleet type, fleet size, fleet material, and geography.

The growing chemical industry along with demand for oilseeds and vegetable oils is propelling the chemical tankers market.

The rising volume of global imports and exports of chemicals is boosting the demand for chemical tankers. Increasing demand for oilseeds, vegetable oils, and fats is also contributing to the growth of the chemical tankers market. For instance, as per the EU's Committee for the Common Organization of Agricultural market report published in September 2022, the total oil seed domestic consumption is expected to grow from 49,847 thousand metric tonnes in 2021/22 to 50,680 thousand metric tonnes in the year 2022/23 in the European Union. Further, the report also highlights a similar growth in the total supply of oilseeds in this region. Furthermore, the rising production of chemicals in developing regions, especially APAC, will provide a great opportunity for the growth of the chemical tankers market in the coming years.

The IMO 2 fleet type is expected to grow at a notable rate during the forecast period.

The market is divided into IMO 1, IMO 2, and IMO 3 categories according to fleet type. In terms of value and volume throughout the predicted period, the Chemical Tanker Market's IMO 2 fleet type segment is anticipated to grow. The use of IMO 2 Chemical Tankers for shipping vegetable oils & fats along with various types of chemicals including alcohols, alkanes, and alkyl amides can be used to explain the rise of the IMO 2 fleet type segment of the Chemical Tanker Market.

The chemical tankers market is expected to be led by the Asia Pacific region.

The APAC region is expected to grow rapidly during the anticipated period due to the rising chemical production in the region. Further, the APEC's Chemical Dialogue is a forum for regulatory and trade officials and industry representatives that aims to find solutions to challenges faced by the chemical industry in this region. Such initiatives and active organizations working for the growth of the chemical industry are A prime factor behind the growth of the chemical industry in the Asia-Pacific region. Moreover, the APEC Chemical Dialogue: Strategic Framework for Chemicals in the Asia-pacific region 2020-2023 report aims to facilitate trade and raise the standard of sound management of chemicals.

Key Development

• In May 2022, Stolt-Nielsen announced that the company has entered into an agreement to acquire three 33600 dwt stainless steel chemical tankers built in Japan. This acquisition opportunity opened the doors for Stolt-Nielsen to secure competitively priced tonnage ahead of an expected cyclical upturn in the chemical tanker industry, claims the company.
• Bahri, a global leader in logistics and transportation signed a new agreement worth US$410 million with Hyundai Mipo Dockyard in August 2020. Bahri expands its marine capabilities with this new agreement to receive 10 new chemical tankers from Hyundai Mipo Dockyard.

COVID-19 Impact

The pandemic had a notable impact on the chemical tankers market. Stringent regulations and restrictions on transportation coupled with export bans for a certain period of time to prevent the spread of coronavirus affected the overall exportation of chemicals. Furthermore, the slow growth in the production of crude oil and reduced capital investments due to the economic recession affected the chemical tanker market's growth.

Market Segmentation:

• By Product Type

Inorganic Chemicals

Organic Chemicals

Others

• By Fleet Type

IMO Type 1

IMO Type 2

IMO Type 3

• By Fleet Size

Coastal

Inland

Deep-Sea

• By Fleet Material

Coated

Stainless Steel

• By Geography

North America

• USA
• Canada
• Mexico

South America

• Brazil
• Argentina
• Others

Europe

• United Kingdom
• Germany
• France
• Italy
• Others

Middle East and Africa

• Saudi Arabia
• UAE
• Israel
• Others

Asia Pacific

• China
• Japan
• South Korea
• India
• Others