APAC is the largest region in the global chemical logistics market
2016 global chemical logistics market research says increased demand for large-capacity vessels in sea transportation for chemical transportation is an emerging trend in this industry.
November 22, 2016
By Lee Kok Leong
APAC is the largest region in the global chemical logistics market and accounted for around 52% of the total market share in 2015. The growing focus towards infrastructure development and availability of adequate safety measures for handling products is offering tremendous growth opportunities for the chemical logistics companies in the emerging countries of APAC. Moreover, the increasing emphasis on pest management services will also augment the growth prospects for the chemical logistics market in APAC over the predicted period.
2016 global chemical logistics market research says increased demand for large-capacity vessels in sea transportation for chemical transportation is an emerging trend in this industry. These high-end vessels are characterized by high engine capacity, high bollard pull, large dock space, and increased storage capacity. These vessels use the latest technology and have a higher utilization rate. Their cargo load capacity is also high and they can transport larger quantities chemicals at one time.
In addition, they can be managed well even in adverse weather and sea conditions. Most of the new orders received in 2013-2014 were for larger vessels. The premium day rates for these vessels are high and generate more revenue for vessel operators.
Complete report from Sandler Research on chemical logistics market spread across 76 pages, analyzing 5 major companies and providing 43 data exhibits now available.
The analysts forecast global chemical logistics market to grow at a CAGR of 11.97% during the period 2016-2020. According to the chemical logistics market report, chemicals are sensitive to external conditions of temperature, pressure, and moisture and effective packaging must be ensured to reduce their potential hazards to the environment. The increased demand of the chemicals from various industries is a major growth driver in the logistics market. Shale gas, from which natural gas is extracted, is produced in high quantities in the US. This gas acts as a feedstock in the production of other chemicals.
The transportation segment will be the largest and the fastest-growing segment in the market during the forecast period. Transportation services are largely outsourced in the chemical industry as they require high investment and expertise, which adds to the company’s expenses. These services include services related to ground, ocean, air, pipelines, intermodals, and rail. Factors such as a rise in intra-regional trades and distribution of chemicals and the relocation of manufacturing facilities to countries with low labor costs are spurring the demand for both domestic and international chemical transportation logistics. Owing to the growing safety and security measures among chemical manufacturers, there will be an increase in the use of intermodal services by 3PL vendors for the transportation of chemicals in the coming years.
The following companies are the key players: Agility, BDP International, C.H. Robinson, DB Schenker, and DHL. Other prominent vendors in the market are: Ahlers, A.N. Deringer, Alfred Talke Logistic Services, APL Logistics, BALTRANSA, BERTSCHI, Bowker, Chemlogix, CT Logistics, Damco, DACHSER, Interbulk, Jacobson Companies, Lesaint Logistics, Logi Trans, Menlo Worldwide Logistics, Montreal Chemical Logistics, Palmer Logistics, and TRANSPLACE.