Chemical Transportation Sector Refined oil derivatives sector witnessed a boom amid higher demand in Asia, Latin America, Middle East and Africa
New Initiatives and Plans: NCC has launched a new initiative to design and implement an integrated management system across the company to enhance its performance and focus on constant development. The company aims that its offices in Riyadh and Dubai be ISO 9001 certified in 2014. The boom witnessed by the oil and gas industry has spread across North America, providing the growth prospects for new refineries and thermal cracking plants as well as increasing the demand for exports. The increase in refinement capacity marks a significant breakthrough, aligning it with oil production volumes in the Middle East and Asia. In some cases, for example the refineries in Europe that closed down due to weak economic performance, there is a higher demand for long distance shipping, motivating many shipping companies to order large chemical tankers to be built. A large portion of recovery for chemical carriers and oil derivatives tankers depends on the consideration of the owners to expand the fleet and place new orders.
An overview about Chemical Transportation Sector The business activities of the Chemical Transportation Sector are linked to and significantly depend on world economic growth. In this context, China, which is deemed the major driver of the world economy, posted growth of around 7% in Gross Domestic Product (GDP) in 2013. In mid-year, risk related to the reduction of Quantitative Easing in the United States was reported, and the negotiations on European debt levels led to a relative stagnation on markets and hedging against the risk of short-term industrial investment, amid positive sentiment on the long-term economic outlook by some markets. The Shipbuilding sector has witnessed fluctuations in prices during 2013 with some recovery being reported upon announcing the building of a number of (plated steel tank) chemical tankers and oil derivative carriers. The Chemical Transportation Sector is expected to take advantage of the increasing chemical exports from the Middle East and North America (due to lower prices of gas that is deemed a raw material in the manufacturing of chemicals) to achieve balance between the supply and demand in the short-term. Moreover, averages indicate that this Sector would benefit from the closing of non-economic refineries in Europe, which increases the shipped quantities.
The Chemical Transportation Sector attracted private equity, driven by the gradual improvement of price rates and the increased demand for shipbuilding in shipyards of Korea, China and Japan, as a result of the improved economic performance in 2013, compared to 2012. Refined oil derivatives sector witnessed a boom amid higher demand in Asia, Latin America, Middle East and Africa and an increasing refining capacity especially in the Middle East and Asia. Major Achievements in 2013 National Chemical Carriers (NCC) finalized the acquisition of the share of Norwegian Odfjell SE in NCC Odfjell Chemical Tankers (NOCT), and started its operations under the official name (National Chemicals Carriers JLT) which became a wholly owned subsidiary of NCC as of 1 June, 2013. NCC has received the tanker NCC Fajr with a DWT of 75,000 which has been built by South Korea’s Daewoo Shipbuilding & Marine Engineering Ltd. (DSME).
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