Chapter two Strategic Business Units and Support Departments
Chemical Transportation Sector
data indicates that the Chinese and Indian markets in particular are the largest in terms of demand for petrochemicals. A 10% increase in demand for petrochemicals in China and a 9% increase in India are projected in the coming years. Other factors may also have an influence on the petrochemical transport trade, especially bunker fuel prices, freight rates, petrochemical prices, new laws and legislation governing shipping operations, supply and demand of petrochemical tankers, and natural and other unpredictable factors. National Chemical Carriers Ltd. Co. (NCC) is keen to employ the latest software and hardware on its tankers, and to use the latest ship management technology to ensure high levels of protection for transported cargo, tankers, the environment, its clients, and its employees. The Company also constantly seeks to improve its business in the petrochemical transport sector by applying global safety standards and employing the best techniques in the maritime petrochemical transport industry.
The chemical transportation sector has strengthened the Company’s financial position through the transport of petrochemicals by specially designed tankers operated by the National Chemical Carriers Ltd. Co. (NCC) which presently constitute a fleet of 23 chemical tankers, in addition to one tanker under construction, with a capacity of 75,000 DWT. The fleet is operated as follows: • Eleven tankers operate in a commercial pool shared between the companies (NCC–Odfjell Chemical Tankers JLT). • Eight vessels are chartered to International Shipping and Transportation Co. Ltd., a subsidiary of Saudi Basic Industries Corporation (SABIC). • Three tankers are chartered as bareboat charters pursuant to a capital lease contract with a Norwegian company named Odfjell. • One tanker is chartered to Saudi International Petrochemical Co. (Sipchem). The Company received four new petrochemical carriers in May, August, September, and December 2012 and extended its charter contract with Sipchem. The Company promoted its position in the global market, especially in the Arabian Gulf area, through the NCC–Odfjell Commercial Shipping Pool. The demand for chemicals increased in various countries around the world, which led to an increase in the demand for chemical transport. It should be noted that Asia, particularly China, played a key role in this increase in demand. This demand is expected to increase further during the coming years. Despite the uncertainty surrounding the global economy, the demand for petrochemicals is expected to grow in Asian and Middle Eastern markets. The Company therefore aims to raise its market share by increasing its focus on these regions, as
Voyages During 2012, tankers operating within the NCC–Odfjell pool, including the four tankers recently received by the Company, made 70 voyages. Tankers chartered to SABIC and Sipchem made an additional 57 voyages. In total, the NCC fleet made 127 voyages during 2012, in comparison with 100 voyages in 2011.
Number of Voyages in 2012
Number of Voyages in 2011
Type of Operation
Tankers operating within the NCC – Odfjell pool
70
45
Tankers operating under chartering contracts with SABIC and Sipchem
57
55
Total
127
100
30
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