Chemical Tankers Market

The Chemical Tankers Market is valued at USD 55.6 Bn in 2026 and is projected to reach USD 77.2 Bn,  growing at a CAGR of 5% by 2033.

Surge in Economic Activity, and Rise in Sea-borne Trade to Provide Ample Opportunities to Chemical Tankers Market

Amidst the COVID-19 pandemic, several businesses were disrupted with international lockdowns limiting the economic activity across countries. However, post the pandemic situation, as lockdown and regulations were lifted, trading took a promising growth curve worldwide. Among several industries, chemical sector also began to witness an upswing in the manufacturing and trading activities, especially from the developing economies. The import and export of chemicals increased considerable past 2021, thus influencing economic development. This further translated into momentous opportunities for the maritime trading as sea is considered as the most cost-effective medium for delivery of cargo for longer distances. This is expected to drive the growth of chemical tankers market. According to the United Nations Conference on Trade and Development (UNCTAD), more than 80% of the international trade volume is carried out by sea. In addition, according to World Trade Organization, seaborne trade is picking up speed and has significantly exceeded its pre-pandemic situation in the first two quarters of 2021.

The United Nations Conference on Trade and Development also concluded that global trade value grew by 4% in the first quarter of 2021 as compared to the previous year. This triggered a major boom in the global trading scenario, especially seaborne trade, thus giving an impetus to the demand for chemical tankers. Chemical tankers come in different types and are used to transport dangerous materials, toxic chemicals, pharmaceuticals, and other temperature sensitive chemicals. This factor coupled with changing trade flows is expected to augur well for the market. For instance, with the Russian invasion on Ukraine, several countries including few European countries imposed strict international sanctions against Russia, thus stopping Russian exports. This resulted in Russian exports to go short haul, which indirectly resulted in an incremental demand for tonnage and increase in miles per hour. This changed the trade flow as other countries witnessed a surge in their exports via sea trade. This factor remains instrumental in driving the growth of the chemical tankers market. 

IMO II Chemical Tankers to Account for Major Revenue Share in Chemical Tankers Market

The demand for IMO II chemical tankers witnessed an increase in the past and is expected to further swell in the coming years. The IMO II chemical tankers are widely used for the transportation of chemicals that require significant preventive measures. These tankers are also used to carry bulk chemicals such as animal/vegetable oils, bio-based lubricants and other chemicals including methanol, alkenes, and ethanol among others. This has fuelled the adoption of IMO II tankers, in turn significantly contributing towards value growth of the chemical tankers market.

Asia Pacific is expected to lead the chemical tankers market in the coming years on the back of accelerated growth in the refining and petrochemical industries. Countries such as China and India are likely to account for a significant share in the market. India is the biggest importer and second largest consumer of edible oil. According to 2021-22 Economic Survey report, approximately 60% of India’s consumption of edible oil is imported yearly. As per SEA (Solvent Extractors Association) of India, in March 2022, the country imported 1 million tons of edible oil as compared to a 0.9 MT of the product a year ago.

In addition, significant growth in the chemical industry has been embossing a positive influence on the chemical tankers market in Asia. For instance, according to India Brand Equity Foundation (IBEF), chemical industry in India is projected to grow at a CAGR of 9.3% by 2025. During the April 2021 – March 2022 timeline, the exports of inorganic and organic chemicals increased by more than 38% to touch US$24.3 Mn in India, as per IBEF. Moreover, in Asian Pacific, India is third largest producer of agrochemicals after Japan, and China. Moreover, Korea, China, and Japan are major shipbuilding hubs in Asia and most stainless steel chemical tankers are being delivered from these hotbeds. Given the background of a strong chemical industry backed by presence of major shipbuilding hubs, the chemical tankers market growth in Asia Pacific is likely to remain robust in the forthcoming years.

Chemical Tankers Market: Competition Scenario

Acquisitions, new launches, collaborations, partnerships and increasing research and development activities by key players have been observed in the chemical tankers market. For instance, in November 2021, an announcement was made by Hafnia Ltd (a BW Group company), one of the leading oil tanker operators, to acquire an entire fleet of around 32 IMO II tankers previously owned by Chemical Tankers Inc. (Oaktree Capital Management). Same year in July, a partnership was signed between Golden Stena Baycrest Tankers and IMC’s Aurora Tankers to operate and manage stainless steel chemical tankers. Also, this partnership is focused on expansion of the two companies in Asia Pacific, as an effort to strengthen their position collectively.

In November 2021, short sea vessels business of Odfjell was disposed b the company to maintain focus on its business of core deep sea chemical tankers. In 2022, Shenghang Shipping announced its plan to purchase two chemical tankers amidst industry boom. This acquisition was mainly to enter the international shipping market by deploying the business of transporting hazardous chemicals. The two chemical tankers, King Bay and King Tank owned by Hong Kong basked High Shipping Company Limited would be purchased by Shenghang by end of 2022 for a total valuation of US$ 22 million.

A few of the major players in global chemical tankers market include 

• Stolt Nielsen Limited
• Odfjell SE
• MOL Chemical Tankers Pte. Ltd.
• Navig8 Chemicals / Navig8 Group
• Hafnia Limited
• Bahri Chemicals (Bahri)
• Team Tankers International Ltd.
• IINO Kaiun Kaisha, Ltd.
• MTMM (M.T.M. Ship Management)
• Hansa Tankers
• Sinochem Group Co., Ltd.
• Tokyo Marine Asia / Tokyo Marine
• Eitzen Chemical
• Chembulk (various operators)
• Ace Quantum

Fleet Type

• IMO 1
• IMO 2
• IMO 3

Product

• 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)

Application

• Organic Chemicals
• Inorganic Chemicals
• Vegetable Oils & Fats
• Liquified Gases
• Others

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa