Ammonia, Ethane, Powerships, Hydrogen and LCO2 shipping

Background

• The client is a state-owned shipping company in Southeast Asia and was considering expanding into Petrochemical, Dry bulk, Gas shipping as well as any other new business segments in shipping that have growth potential. Drewry studied the following emerging segments besides conventional segments:

  • Ammonia

  • Ethane

  • Powerships

  • Hydrogen shipping

  • LCO2 shipping

  • Offshore assets

• Drewry was appointed to carry out a detailed study of various shipping sectors and provide strategies for market penetration as well as expected return on vessel investment. The study concluded with the drafting of a roadmap.

Client Objectives

• To create market mapping for Ammonia, Ethane, Powerships, Hydrogen shipping, LCO2 besides  Petrochemical shipping, Gas shipping and New business segments.

• To provide a detailed analysis of the characteristics of each market – fleet supply and strategic issues – and propose a market entry strategy for each market.

• To estimate the return on investment in specific shipping segments.

• To provide vessel investment strategy for expansion.

Results, conclusions and recommendations

Drewry’s report included:

• An overview of Ammonia, Ethane, Powerships as well as Hydrogen and LCO2 shipping supply chains in addition to the supply and demand factors on a high-level basis.

• The ongoing developments and support policies for each new segment.

• The strategic issues unique to each new shipping segment, primarily regulatory and technical challenges, the market adoption rate for Powerships, as well as  Hydrogen and LCO2 shipping.

• Suitable shipping strategies, given the early adoption phases in each new shipping segment, encompassing supply and demand factors, technological requirements, regulatory hurdles and potential market opportunities.