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The Future is Bright for Global Chemical Logistics

October 23, 2014
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Research and Markets: Global Chemical Logistics Market 2014-2018

The chemical industry has a small number of prominent manufacturers in distant locations from one another. This ups the importance of logistics to the chemical industry so a continuous supply reaches these plants. There are three categories of chemical products that are transported to the different locations: basic chemicals, specialty chemicals, and consumer chemicals.

One major trend upcoming in this market is the growth of the Chinese economy, which is enabling chemical logistics players to expand their network. The increase in investment by the government in profit-making chemical projects and the rise in export demand for all varieties of specialty chemicals, bulk chemicals, and high-grade polymers are the key drivers of growth in the China market forecast for 2014 – 2018. According to one report, one of the main drivers of the market is the increase in the usage of intermodal services, which help logistics vendors to transport material using different modes of transportation such as rail, road, and sea taking into account their cost and flexibility. This puts DB Schenker in a good position as a global leader in intermodal services.

Other obstacles detailed in the report states that the lack of infrastructure in several countries in Europe and North America makes it difficult for many players to expand their network beyond their domestic boundaries. Lack of infrastructure worsens capacity issues for road and rail transportation at ports and in hinterland areas. The increasing restrictions on transportation of hazardous goods in certain countries and the complexity and effort of obtaining permits for new intermodal terminals are increasing the overall transit time and cost for chemical logistics vendors.

Tags: Logistics
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What’s ahead? Global Healthcare Logistics Market 2014-2018

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