by Chemical logistics services ensure safe transportation of chemicals while meeting stringent regulations. Outsourcing of logistics activities allows chemical manufacturers to focus on their core business. The services offered include transportation through road, sea and rail networks, warehousing and storage solutions, packaging, logistics documentation, and inventory and order management.
The Global Chemical Logistics Market is estimated to be valued at US$ 397.48 Bn in 2024 and is expected to exhibit a CAGR of 5.0% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the chemical logistics market are A&R Logistics, Agility Logistics, Al-Futtaim Logistics, BASF, BDP International, Inc., BDtrans, C.H. Robinson Worldwide Inc., CEVA Logistics, Deutsche Bahn (DB) Schenker, Deutsche Post AG (DHL), DHL, Montreal Chemical Logistics, Petochem Middle East, Rhenus Logistics, Ryder System Inc. Key players provide end-to-end integrated logistics solutions tailored to the unique supply chain needs of the chemical industry.
The growing demand for chemicals from end-use industries such as automotive, construction, healthcare, and food and beverages is driving the need for efficient logistics services. Strict safety and compliance requirements associated with chemical transportation necessitate the expertise of logistics specialists.
Globally, chemical companies are expanding into new markets to cater to the growing demand. This is increasing the complexity of supply chains and the need for coordination across multiple modes of transportation and international borders. Third-party logistics providers play a key role in managing international transportation and ensuring compliance with varying regulations.
Market Key Trends
Digitization and automation are key trends in the Chemical Logistics Market Size. Integrated IT systems allow logistics providers to track shipments in real-time, manage inventories, optimize transportation routes, and provide visibility across the supply chain. Adoption of technologies like AI, IoT, blockchain and predictive analytics enable data-driven decision making for demand forecasting, load planning and route optimization. Automated guided vehicles (AGVs) and automated storage and retrieval systems (ASRS) reduce manual handling in warehouses, improve productivity and minimize risks.
Porter’s Analysis
Threat of new entrants: New entrants face large capital requirements to build infrastructure and establish relationships.
Bargaining power of buyers: Buyers have moderate bargaining power as there are many logistics providers to choose from.
Bargaining power of suppliers: Suppliers have low bargaining power as there are many to choose from and logistics is a fragmented industry.
Threat of new substitutes: Few substitute options exist for chemical logistics due to shipping regulations and hazardous material requirements.
Competitive rivalry: Intense competition to win contracts from chemical manufacturers and distributors.
Geographical Regions
North America accounts for the largest share of the chemical logistics market Size and Trends currently due to high demand from manufacturing and processing industries in the US and Canada.
Asia Pacific is expected to grow the fastest during the forecast period owing to rising chemical productions and exports from China, India, Japan and other Southeast Asian nations coupled with investments to develop logistics infrastructure.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
