Chemical Tankers Market Report Scope & Overview:

The Chemical Tankers Market Size was estimated at USD 34.62 billion in 2023 and is expected to arrive at USD 50.75 billion by 2032 with a growing CAGR of 4.34% over the forecast period 2024-2032. The Chemical Tankers Market is experiencing a shift with fleet size expansion driven by rising demand for specialized chemical transportation. Utilization rates have remained high in key regions, reflecting strong trade flows. Technological advancements, including eco-friendly coatings and digital monitoring, are being widely adopted across major operators. Export/import volumes of chemicals continue to grow, with the Middle East emerging as a dominant exporter. Tanker charter rates for stainless steel tankers saw fluctuations, peaking before stabilizing, indicating dynamic market conditions.

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Chemical Tankers Market Dynamics

Drivers

• The rising demand for chemicals across pharmaceuticals, agriculture, and manufacturing is driving the need for efficient and advanced chemical transportation solutions.

The growing chemical industry is a key driver of the chemical tankers market, as the demand for chemicals continues to rise across sectors like pharmaceuticals, agriculture, and manufacturing. The global population is growing exponentially and industrialization in developing nations is also rapidly increasing the need for specialty and bulk chemicals that must be transported in the most efficient and safe manner possible. In chemical production, particularly in dynamic countries of the Asia-pacific, rising production capabilities, exports and imports of liquid chemicals are noted. With this expansion, comes further investment into new chemical tankers including innovative and covered systems, seamless inspection, corrosion-resistant materials, and automatic handling systems that improve safety and efficiency. On top of that, sustainability trends are shifting adoption to bio-based chemicals, which in addition also creates more transportation requirements. The market is furthermore also seeing a move towards LNG-powered and IMO 2020-compliant vessels to cut emissions. The growth of the market for chemical tankers is expected to continues for the future years with rising global trade, technological advancements and the increasing need for safety regulations from authorities.

Restraint

• The high capital investment and maintenance costs of chemical tankers stem from specialized construction, regulatory compliance, and ongoing operational upgrades.

The chemical tankers market requires significant capital investment. Due to the nature of the transport, these tankers need to be made from high quality materials with special coatings and corrosion-resistant cargo tanks to transport oil without contaminating or polluting it. Also, to comply with the increasingly strict international regulations like the IMO, more advanced safety systems for fire and gas detection and remediation, emission control, and ballast water treatment technologies drive up the costs. Continued expenditures such as inspections, cleaning, repairs, etc. are necessary to avoid functional failures and ensure durability. The use of advanced technologies, like automated cargo handling systems and real-time tracking, represents an additional  expense. In addition to this, the unpredictable nature of fuel prices and the rising standards of environmental regulations, both of which make upgrades a necessity, lead to recurring expenditures for the container shipping firms. As a result, chemical tankers are a capital-intensive investment, which continues to affect profits and return on investment for market participants.

Opportunities

• The growing demand for specialty chemicals is driving the need for advanced chemical tankers with specialized materials, ensuring safety, compliance, and new revenue opportunities.

The rising demand for specialty chemicals, including high-purity solvents, agrochemicals, and pharmaceuticals, is driving the need for specialized chemical tankers.  In contrast to bulk chemicals, these materials need to be transported in specialized solutions that are compatible with their unique properties to avoid contamination and degradation. Most modern chemical tankers have stainless steel tanks, modern coatings and segregated compartments that allow them to carry many chemicals at once. On top of this, strict environmental laws and safety rules require novel tanker constructions that use rust resistant material or automated monitoring systems. The increasing demand translates into opportunities for tanker operators to invest in high specification vessels which enables them to provide more services and hence earn more revenue. Rapid industrialization in emerging markets, especially in Asia-Pacific and Latin America, is also supporting the growth of these vessels. More chemical formulation innovation continues to emerge from various industries, making the need for improved chemical tankers a vital component of the provision of global supply chains.

Challenges

• Environmental and safety concerns in chemical tankers necessitate strict regulations, advanced tanker designs, and specialized training to prevent spills, pollution, and accidents.

Environmental and safety concerns in the chemical tankers market are critical due to the hazardous nature of transported substances.  Chemical spills, marine pollution, onboard accidents threaten ecosystems, marine life, and the health of human beings. Regulatory frameworks like the International Maritime Organization (IMO)'s MARPOL regulations impose demanding safety, spill-prevention, and waste-disposal requirements. These regulations necessitate investments in new tanker designs, double-hulled vessels and on-board monitoring systems to reduce risks. Moreover, crew members have to train specifically for carrying toxic or flammable cargo safely. Even so, there will likely be occasional spills and leaks, which can result in costly fines, legal liabilities, and reputational damages to the shipping company. With the growing global concern for environmental sustainability, stakeholders are investing in sustainable alternatives like LNG-fueled tankers and chemical recycling projects to reduce environmental hazards and improve the safety of chemicals transportation.

Chemical Tankers Market Segmentation Analysis

By Fleet Type

The IMO 2 segment dominated with a market share of over 52% in 2023, due to its versatility, safety, and rising global demand. They are designed to carry moderately dangerous chemicals and are utilized in the pharmaceutical, agrochemical, and food processing industries to name a few. Their versatility makes them always in demand throughout different sectors. Moreover, IMO 2 tankers have the built-in safety mechanisms in the design of the vessel, making them a safe mode of transportation of chemical cargo with efficiency and reliability. Also, the demand for these vessels has been accelerated with the increasing industrialization, particularly in emerging markets. With industries developing and chemical commerce growing, it is anticipated that the market for IMO 2 tankers will maintain its robust growth, on account of which the management of chemical tankers will appear more robust.

By Product

The Deep-sea chemical tankers (10,000-50,000 DWT) segment dominated with the market share of over 48% in 2023, Highly specialized ships equipped for long-range travels to transport bulk liquid chemicals, whether they be specialty or commodity, are capable of transporting them safely, cost effectively, and reliably. Their high capacity allows economies of scale, hence being a preferred solution by global chemical manufacturer and traders. Moreover, innovations in tanker design along with basic regulations for the safe delivery of chemicals augment their market share.

By Application

The vegetable oils and fats segment dominated with a market share of over 34% in 2023, due to rising global demand across multiple industries. Vegetable oils are an important product used in cooking, the food and food processing sector, moreover, the oil finds use in skincare and personal care products as cosmetics and personal care products. Moreover, due to environmental regulations, usage of biofuels has increased, which in turn has enhanced the need for vegetable oils as a major feedstock. As agricultural production has expanded and the consumption in emerging markets has increased, the transport of these oils with chemical tankers has grown. Moreover, the demand for niche tankers for clean and contamination-free shipping is another factor contributing to the market growth. This segment is projected to continue to lead in the global market as the demand accelerates.

Chemical Tankers Market Regional Outlook

North America region dominated with a market share of over 38% in 2023, due to its strong chemical production capacity, well-established maritime trade routes, and the presence of major industry players. Significant presence of chemical manufacturers (especially in the United States and Canada) in the region further increases demand for chemical tankers in North America. Furthermore, North America has a highly developed port infrastructure and is well-connected to facilitate easy import and export of chemicals, which is strengthening its dominance in the market. In the U.S., the Gulf Coast operates as an essential hub for the production and shipping of petrochemicals, guaranteeing tanker demand. In addition, laws concerning the safe transportation of chemicals are becoming more rigid, resulting in higher investments towards modern, environmentally friendly chemical tankers. North America boasts prominent shipping companies, a network of trade agreements, and balance in demand and supply that continue to give it a stronghold on chemical tankers as the continued short-to-long market-growth phasing will keep supply and demand in balance.

Asia-Pacific is the fastest-growing region in the chemical tankers market, driven by rapid industrialization, increasing chemical exports, and expanding refinery capacities. In countries such as China and India, where the production and consumption of chemicals is growing considerably, this means rapid growth in demand for efficient transport. Key regional drivers include the booming manufacturing sector, as well as increasing investments in the petrochemical and specialty chemical industries which are further accelerating revenue growth, states the report. Furthermore, there are government initiatives for aiding trade and infrastructure development, such as expansion of ports and enhancement of logistics networks, etc., which are driving the transportation of chemicals within the country. Tankers are also benefitting from greater demand for chemicals in pharmaceuticals, agriculture and consumer goods.

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Some of the major key players in the Chemical Tankers Market

• Mitsui O.S.K. Lines, Ltd. (Chemical parcel tankers, IMO II & III tankers)

• Scorpio Tankers Inc. (Medium-range (MR) chemical tankers)

• Nordic American Tankers Ltd. (Suezmax tankers for chemical transport)

• Odfjell SE (Stainless steel chemical tankers, parcel tankers)

• Capital Product Partners L.P. (Product and chemical tankers)

• International Seaways, Inc. (Handysize & MR chemical tankers)

• Hafnia Limited (LR1 & MR chemical tankers)

• Team Tankers International Ltd. (IMO II & III chemical tankers)

• Bahri (The National Shipping Company of Saudi Arabia) (Petrochemical & bulk liquid transport)

• Euronav NV (Chemical and crude oil tankers)

• Maersk Tankers (Stainless steel & coated chemical tankers)

• Navig8 Chemical Tankers (Specialized IMO chemical tankers)

• Tsakos Energy Navigation Ltd. (MR and LR chemical tankers)

• Frontline Ltd. (Aframax & Suezmax chemical tankers)

• Stolt-Nielsen Limited (Parcel tankers, chemical logistics)

• DHT Holdings, Inc. (VLCC tankers for chemicals & crude oil)

• Top Ships Inc. (MR & Handysize chemical tankers)

• Ardmore Shipping Corporation (Eco-design chemical tankers)

• MISC Berhad (Specialized chemical & gas tankers)

• TORM plc (Coated tankers for petroleum & chemicals)

Suppliers for (Largest operator of stainless-steel chemical tankers and ISO tank containers) on Chemical Tankers Market

• Odfjell SE

• Stolt-Nielsen Limited

• Sovcomflot

• Teekay Corporation

• BW Group

• Eitzen Chemical

• Hafnia

• Maersk Tankers

• Navig8 Chemical Tankers

• Peninsula

Recent Developments

In March 2024: Mitsui Chemical Tankers, a subsidiary of Mitsui OSK Lines, acquired Fairfield Chemical Carriers for approximately 400 billion USD. This strategic move reinforces MOL’s presence in the chemical tanker market while expanding its fleet capacity, granting a competitive edge.

In February 2024: Chemship, a Rotterdam-based chemical tanker operator, introduced its first vessel featuring wind-assisted propulsion. The MT Chemical Challenger is claimed to be the world’s first chemical tanker equipped with sustainable wind technology. The ship will operate on Chemship’s Transatlantic route, connecting the U.S. East Coast with the Mediterranean.