Welcome!

News Feed Item

Growth in the Chemical Industry Offers Opportunities to Logistics Providers, Says New Report

LONDON, December 20, 2013 /PRNewswire/ --

According to the latest report from Transport Intelligence, Global Chemical Logistics 2013, the chemical industry is undergoing huge change. Some of this change is driven by well-established trends such as the growth of the Chinese economy or other emerging markets. Other aspects are more recent, such as the effects of shale-gas production in the US. Both are remaking the structure of the chemical sector and the logistics capabilities that support it.

20 years ago the wave of 'globalisation' gradually shifted chemical production away from locations within single economies, towards very large continental clusters such as Antwerp or Singapore. Now these clusters no-longer just serve their hinterland but compete with one another, selling not into a single region but on a global scale. The largest example of this is the Middle-East, where both Saudi Arabia and the Gulf Emirates are selling their expanding production into all of the major markets; Europe, North America and Asia. Yet a region which appeared ready to lead the world has been challenged from an unexpected source. The bonanza of shale oil in the US and Canada has transformed the prospects for the American chemical sector. What was previously an industry in gentle decline now has the prospect of becoming a major exporter to global markets such as China, whilst the powerful export machine along the Rhine is threatened by higher energy costs.

The implications for the chemical logistics sector are fundamental. It has increased its profile as chemical producers rely on it to access global rather than local markets.

The big beneficiaries of this change over the past couple of years have been those logistics providers capable of adapting to such shifts in global trade. In the vanguard of this are the marine bulk storage providers led by Vopak, alongside the tank container operators capable of flexing their business model to an intercontinental reach. The chemical tanker sector has exhibited more discipline than most shipping markets but it can hardly be described as booming. Chemical terminal and businesses are more prone to fast changes in chemical trade flows but the long term trends offer opportunities for those in the right location. For those in the wrong location the threats can be serious. The comparative cost of energy as well as economies of scale in logistics threaten the existence of many smaller and medium-sized production locations, particularly if they are linked to older oil and gas fields.

Logistics for downstream product is possibly changing at a slower rate simply because the nature of customer demand is changing more slowly. The huge expansion in demand in China is the most salient trend. However, other regions, such as India, parts of South America, South East Asia, Eastern Europe and Turkey, have a large appetite for downstream chemical logistics development. In addition the downstream ambitions of the Middle-Eastern producers require considerable support.

Even in developed markets, changing patterns of chemical trade are affecting how downstream logistics operates, with globalised flow of product enhancing the desirability of globalised logistics solutions.

The market for chemical logistics worldwide is likely to grow in-line with the expansion of the chemical sector generally, that is in low single digit percentages in the region of 3%. That said, within that range different sectors will see wide variation with European providers threatened in the short-term, whilst LSPs in North America may experience something like boom conditions. However extrapolating from short-term trends is difficult and dangerous. The chemical sector offers real opportunities to logistics providers but success will only come to those who not only identify new opportunities but also put themselves in a position to exploit them.

Notes to Editors

About Global Chemical Logistics 2013

Global Chemical Logistics 2013 provides comprehensive commentary and analysis of the global chemical logistics industry including market sizing, forecasts, company profiles and geographical breakdown.

About Transport Intelligence

Transport Intelligence (Ti) is one of the world's leading providers of expert research and analysis dedicated to the global logistics industry. Utilising the expertise of professionals with many years experience in the mail, express and logistics industry, Ti has developed a range of market leading web-based products, reports, profiles and services used by all the world's leading logistics suppliers, consultancies and banks as well as many users of logistics services.

Contact Details

Mike Nordmann, Business Development Director: [email protected]

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...
Ixia (Nasdaq: XXIA) has announced that NoviFlow Inc.has deployed IxNetwork® to validate the company’s designs and accelerate the delivery of its proven, reliable products. Based in Montréal, NoviFlow Inc. supports network carriers, hyperscale data center operators, and enterprises seeking greater network control and flexibility, network scalability, and the capacity to handle extremely large numbers of flows, while maintaining maximum network performance. To meet these requirements, NoviFlow in...
StarNet Communications Corp has announced the addition of three Secure Remote Desktop modules to its flagship X-Win32 PC X server. The new modules enable X-Win32 to safely tunnel the remote desktops from Linux and Unix servers to the user’s PC over encrypted SSH. Traditionally, users of PC X servers deploy the XDMCP protocol to display remote desktop environments such as the Gnome and KDE desktops on Linux servers and the CDE environment on Solaris Unix machines. XDMCP is used primarily on comp...
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
Is the ongoing quest for agility in the data center forcing you to evaluate how to be a part of infrastructure automation efforts? As organizations evolve toward bimodal IT operations, they are embracing new service delivery models and leveraging virtualization to increase infrastructure agility. Therefore, the network must evolve in parallel to become equally agile. Read this essential piece of Gartner research for recommendations on achieving greater agility.
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
To leverage Continuous Delivery, enterprises must consider impacts that span functional silos, as well as applications that touch older, slower moving components. Managing the many dependencies can cause slowdowns. See how to achieve continuous delivery in the enterprise.
Enterprises have forever faced challenges surrounding the sharing of their intellectual property. Emerging cloud adoption has made it more compelling for enterprises to digitize their content, making them available over a wide variety of devices across the Internet. In his session at 19th Cloud Expo, Santosh Ahuja, Director of Architecture at Impiger Technologies, will introduce various mechanisms provided by cloud service providers today to manage and share digital content in a secure manner....
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...