Global Chemical Logistics Market 2016-2020
Logistics deals with the procurement, planning, and implementation of activities in the forward and reverse logistics chain of an organization. The chemical industry uses logistics for the management of the way resources are acquired, stored, and moved to different end-users. The use of logistics allows the chemical industry access to a continuous supply of organic and inorganic chemicals from suppliers and distributors in various locations. Sometimes, a company might choose to outsource its logistics operations, if it is cost effective to do so.
Technavio’s analysts forecast the global chemical logistics market to grow at a CAGR of 11.97% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global chemical logistics market for 2016-2020. To calculate the market size, the report considers the revenue generated by various vendors providing contract logistics services.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Chemical Logistics Market 2016-2020
Technavio recognizes the following companies as the key players in the global chemical logistics market: 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.
Commenting on the report, an analyst from Technavio’s team said: “An emerging trend in the market is the increased demand for large-capacity vessels in sea transportation for chemical transportation. 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.”
According to the 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.
Further, the report states that labeling is an important process in the shipping of chemical products. It provides information about the nature of the product and the conditions required for its safe transport and storage. Product labeling processes adopted by various companies have been found to be inefficient, thus posing a serious challenge to the market. Unstructured and disparate product data make the product labeling processes labor-intensive and complex. Labeling companies have to collect information about the products from multiple sources and centers, re-write labeling copies, and validate the information before developing the labeling artwork. This process of correcting errors and validating data related to labels requires effort, time, and money. In addition, chemical companies need to generate XML-based submissions, which is a time-consuming process.
Agility, BDP International, C.H. Robinson, DB Schenker, DHL, 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, TRANSPLACE.