Chemical Tanker market is a highly volatile market, clearly a game of thrones in the shipping segment, where supply-share seems a critical win or lose factor, seeing how top players are determined to expand their respective piece of pie.

1. An analysis on
World Chemical Tankers Market
MD. TANVIR HOSSAIN
Bangabandhu Sheikh Mujibur Rahman Maritime University, Bangladesh
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2. Chemical Tanker Shipping Market Segmentation2
Chemical Tanker Shipping market

3. Chemical Tankers classification
IMO Type 1
 Intended to transport Extremely severe cargoes for the environment and safety hazards.
 Requires maximum preventive measures to prevent an escape of such cargo.
IMO Type 2
 Intended to transport Appreciably severe cargoes for the environment and safety hazards.
 Require significant preventive measures to prevent an escape of such cargo.
IMO Type 3
 Intended to transport Sufficiently severe cargoes for the environment and safety hazards.
 Require a moderate degree of preventive measure to increase survival capability in a damaged
condition.
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4. Chemical Market Analysis By Product
(Organic, Inorganic, Vegetable Oils & Fats)
Organic chemicals:
 the leading segment in this industry,
 used as pharmaceuticals, food & beverages, pesticides, crop protection, fertilizers, water treatment,
personal care products, cosmetics, polymers, gasoline additives, and other products.
Vegetable oils & fats:
 the second fastest growing segment,
 usage are culinary applications, biodiesel, pet food additives, as well as manufacturing soaps,
perfumes, candles, skin products and other personal care products.
Inorganics:
 account for 17.7% of the global shipments,
 used as pigments, catalysts, coatings, surfactants, fuels, medicines and agricultural applications. These
chemicals are used as additives, finished products, and industrial processes.
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5. Regional Market
The North American regional segmentation:
 U.S., Canada, and Mexico
The European regional segmentation
 Germany, France, the UK, and Italy among others
The Asia Pacific regional segmentation
 China, India, and Japan among others
Central & South America segmentation
 includes the market of Brazil among others
The Middle East & Africa segmentation
 includes the market of Saudi Arabia among others
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6. Shipment Routes
Inland chemical tankers:
 usually below 4,000 DWT,
 operate on rivers, canals, and inland waterways and
 are used for intra-trade in regions
Coastal chemical tankers:
 also known as short sea chemical tankers,
 are used for cargo shipment mainly by sea, along a coast, without crossing an ocean.
 These tankers range between 3,000 to 10,000 DWT.
Deep sea chemical tankers:
 are the largest tankers above 10,000 tons DWT.
 Such tankers are used for inter-trade among regions.
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7. Some Key Terms
International Operators:
 who trade their ships across different regions, often inter-continents.
 Their ships are more likely to be engaged in longer haul trades,
 The average ship size : 24,000 DWT.
Regional Operators:
 Some operators who tend to restrict their trade within a regional market, for example:
inside of Asia/Europe/Americas,
 The average ship size : 9,300 DWT.
Parcel Tanker Operator
 where cargoes are small in lot-sizes,
 often relying on and stowed in S-S tanks.
 For an operator to qualify as ‘parcel tanker operator’, their fleet must have at least
50% of ships having stainless cargo tanks.
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8. Design features of Chemical Tankers
 Depends on the type of chemical cargo intended to carry.
 Different chemicals having different intensity of risk and hazards.
 Requires different and classified measures of safety and handling.
 Ships are build conforming the required safety standards.
 Some chemical tankers requires totally different and complex
structural design as well as specialized handling equipment's.
 Also requires specialized and competent personnel to handle such
kind of specialized dangerous cargoes.
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9. Complex design features of Chemical Tankers9

10. 10
Chemical tankers Explosions

11. Key discussion points
A general overview on Chemical Tanker Market.
Analyze present status of Chemical Tanker Market & its
future projections.
- New Build Supply
- New build order book
- Demolition market
Represent the dominating market players of Chemical
Tanker Market in the world.
Identify the significant trends and dominating factors -
influencing the market.
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12. Number of ships in the World Merchant Fleet
between 2008 to 2017, by ship’s type12
No of chemical tankers
increased significantly:
Year 2010

13. World seaborne trade in cargo ton-miles
by type of cargo, Year 2000-2017 (Billion of ton-miles)
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Year 2009:
major turning point in
the history of the
world economy and
trade.
GDP slowed down:
abruptly
in the last part of the
year 2008, with the
deepening of global
financial crisis.

14. World fleet by principal vessel type, 2017
(% share of DWT and price value)
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DWT: 2.3%
Price value: 4.0%

15. Deliveries of new buildings with countries of built, 2016
(Thousands of gross tons)
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16. Data on new buildings (Year 2011-2018)
Thousands of Gross Tons
Vessel Type 2011 2012 2013 2014 2015 2016 2017 2018+
Oil Tanker - - - - - - 47 -
Bulk Carrier - - - - - - - 31
Container 11 - - - 34 34 17 149
Liq. gas carrier 1033 114 1658 3589 2788 3139 4877 7551
Chemical Tanker - - - - - 34 11 79
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Source: UNCTAD secretariat calculations, based on data from Clarkson's Research (Order
book as of Jan 2017)
124 thousand GT

17. Demolition Market Scenario, Year 2016
Vessel types and Countries where demolished
(Thousands of gross tons)
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INDIA: 74%

18. “Supply-Demand” balancing
(Year: 2010 – 2020)
18
24
35
19
6 8
14
18
14
29
18
1
-42
-28
-11
-7
-12
-5
-50
-40
-30
-20
-10
0
10
20
30
40
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
SST & Part SST Chemical Tankers
Deliveries Orderbook Demilition
48 tankers under order
Total Demolition till 2017 : 107 ships
Total Deliveries till 2017 : 138 ships
OVER CAPACITY
Such domineering supply-share moves may not be just a strategy
but could also be due to the service nature of the chemical shipping business.

19. Global 6,000-49,000DWT Chemical Tanker
Fleet Growth
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20. Top 10 Chemical & Parcel Operators,
Ranking-2018
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 It’s clearly a game of thrones in the chemical shipping segment,
 where supply-share seems a critical win or lose factor,
 seeing how top players are determined to expand their respective piece of pie.

21. Fleet Growth of Top 3
Parcel & Chemical Operators
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22. 22
Percentage Share in International &
Regional Chemical Tanker Market

23. Chemical Tanker Shipping Market Analysis By Product
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 The global chem. tanker shipping market size valued at USD 2,072.6 billion in 2016.
 High concentration of chemical production and increasing demand across the globe is
mostly responsible for the market growth.
 In 2016, the U.S. accounted for approx. 15% of the worldwide chemical shipments.

24. BIG PLAYING FIELD IN CHEMICAL TANKER OPERATIONS
 Stolt-Nielsen’s CEO Niels Stolt-Nielsen:
“The chemical tanker market continued to soften in the quarter driven by oversupply of
tonnage……We do not anticipate any substantial improvement in the chemical tanker market until
2019 when the orderbook reduces and the supply/demand balance improves.”
 Odfjell’s CEO Kristian Morch:
“We have also solved our tonnage renewal need and achieved our growth target of operating
about 100 chemical tankers”
“To operate chemical tankers in an efficient way is highly complex. There is currently an overflow
of operators and vessels in the market, with many owners struggling to utilize their vessels
efficiently and losing money,”
 MOL Chemical Tanker’s MD Tsuneo Watanabe:
“Beginning from 2017 to 2019, our company will have 13 new large-scale stainless steel chemical
tankers added to our fleet.
It would allow us to enhance our competitiveness and expand our businesses into new horizons.”
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 There are altogether almost 800 ship operators in the world, operating
about 4,000 chemical tankers in different parts of the WORLD.
 Where only 30 international operators make
- 58% of total share in terms of number of ships and
- 80% in terms of aggregated DWT.

26. Conclusion
 Overcapacity remains a key factor in 2018.
 However, the improvement in global trade economy may
provide some light at the end of the tunnel.
 USA created trade war is the major concern against all sorts of
world trade.
 The strategic planning of the ship-owners and operators like
mergering, consolidation, alliance etc. are the remarkable effort
to sustain in the struggling market.
 The regulatory challenges like BWM is still remain a challenge
for ship-owners, not only as a sustainable financial investment,
but the technical requirements of adapting the existing space on
a vessel.
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