North American Chemical Tanker Shipping Market
is expected to reach USD 339.5 billion by 2027, according to a new
report by Hexa Reports. The growing chemical products exports and low
chartered rates are expected to drive the market during the forecast
period.
After a severe downfall in 2015 to 2016,
the U.S. shale oil/gas is likely to reach its full production scale by
2018. It is also expected to increase its ethylene and caustic soda
exports in reliance with associated low energy prices. These factors are
expected to drive the chemical tanker market in North America.
The growing economy of Mexico and other
South American countries is expected to spur the growth of the market in
the region. Moreover, as Mexico enjoys free trade with most of the
South American nations, it is expected to act as an added advantage for
the industry.
The Great Lakes region is one of the most
significant shipping routes for trade between Canada and the U.S.
Charters in this area are expected to maintain competitive freight rates
on account of weak spot prices and an oversupply of chemical tankers.
However, negative sentiments among manufactures regarding the
renegotiation of NAFTA coupled with the lack in supply of chemical
tankers is likely to hamper the shipping industry in this region.
The chemical tanker ships used for
trading includes inland, coastal and deep-sea ships. The selection of
the ships for transportation depends upon the demand size and type of
cargos such as IMO I, IMO II, and IMO III. There are approximately 73
tank terminals located in Canada and 1,566 located in the U.S.
Further key findings from the report suggest:
- Canadian chemical tanked shipping market is expected to reach a market valuation of USD 60.6 billion by 2027
- The re-stabilization of North American chemical and shale oil & gas industry will heavily contribute to the chemical tanker shipping market growth
- Appreciated dollar rates contributed to slow trade in 2014-2016, making North American products expensive in comparison with the other developed/developing nations. However, exchange rates are likely to decrease in 2017 making American products competitive again.
- Deep Sea shipment route in Canada is expected to have the highest growth rate to reach a market value of USD 41.76 billion during the forecast period
- In 2016, the U.S. shipments through the Great Lakes region were estimated at 7,767.4 kilo tons and is projected to reach 11,494.2 kilo tons by the end of 2027
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