Odfjell SE - Chemical Tanker Industry Update
...
And our end-user demand and cargo mix is highly diversified - The food
industry followed by the construction and automobile sector are key drivers
Total seaborne import demand by end-user market
Organic chemicals (MMT)
Inorganic chemicals (MMT)*
Vegoils & molasses (MMT)*
120
28
85
110
26
5%
80
75
20%
100
19%
24
14%
70
26%
22
65
90
20
60
80
20%
18
35%
70
16
5%
45
60
14
25%
40
12
50
35
6%
10
30
40
30
80
25
6
46%
20
10%
23%
20
36%
4
10
10
10%
20
0
0
505050505050505050
6%
12%
12%
69%
15
Electronics, appliances, packaging
Food
Construction, automotive
Fertilizer
Industrial
Textile, clothing
Other (Fragmented)
Construction, automotive
Bleach, water treatment
Alumina, pulp, paper
Other (Fragmented)
Fertilizer
Other (Fragmented)
Industrial
Construction, automotive
Food
Electronics, appliances, packaging
Textile, clothing
Other (Fragmented)
⚫ We consider 28% of seaborne trade of liquid chemicals to have a negative effect from lengthened Covid-19 effects on the global economy
O This is mainly related to organic chemicals with exposure to the global construction and automotive industry (auto parts and also fuel consumption through blends)
A recovery in Construction and automotive is therefore a key to reduce the risk of a low growth scenario for chemical tanker demand
Demand from the construction industry could recover quickly through policy support as highlighted by IMF and the same goes for the automotive industry when it comes to fuel consumption
from easing lockdowns. While demand from the automotive industry when it comes to production stand at a risk of having a more prolonged negative effects for demand
Still, we find 50% of products in our market to have a neutral/neutral to positive effect from Covid-19 driven by food/agricultural industry, packaging, pharma and the remaining 22% to have a
mixed demand picture based on regional differences and diversified end-user applications
24
Source: OdfjellView entire presentation