Odfjell SE - Chemical Tanker Industry Update
The peak growth of new capacity is now behind us and we expect this to
normalize demand growth between 2020 and 2022 compared to 2018 and 2019
Million tonnes
Total liquid chemical capacity - US gulf and Middle East
+4%
190
180
+13%
184
182
178
173
170
166
160
160
157
150
140
130
120
110
100
90
80
88
70
2016
2017
2018
2019
2020E
2021E
2022E
Source: Odfjell, ICIS
26
46
O Growth in new export oriented liquid chemical plants
in the US and Middle East has been key contributors to
the strong tonne-mile demand in 2018 and 2019
The chemical industry is now faced with margin
pressure driven by the large supply growth caused by
major investments in previous years
Economic uncertainty through 2019 has also kept a
lid on investment appetite which is expected to be
further kept low driven by Covid-19 and low prices
We are therefore seeing limited growth in new export
oriented capacity in 2021 and 2022
This is expected to "normalize" tonne-mile demand
growth going forwardView entire presentation