Report

The Hazardous Goods Logistics Market is anticipated to register a CAGR of more than 6% over the forecast period.

Key Highlights
The requirement to ship dangerous goods is anticipated to increase yearly, in addition to the numerous dangerous goods rules being updated annually. The need for UN packaging, training, labels, and placards will rise as a result of the growing requirement to move lithium batteries and the region's well-established gas and oil businesses, which are both driving the dangerous goods market to record highs.
Around 4% of the transit of risky items took place at the EU level in both 2021 and 2020. The EU Member States with the highest percentages of dangerous commodities in their road transportation were Finland (7.4% in 2020 and 6.9% in 2021) and Cyprus (12.3% in 2020 and 10.9% in 2021). These two countries were followed by Belgium (9.4% in 2020 and 8.3% in 2021). Several EU nations, including the large nations of France, Spain, and Italy, reported statistics that fell between the range of 4% and 7%. Poland had shares of 2.3% in 2020 and 2.4% in 2021, compared to Germany's 3.9% in 2020 and 3.8% in 2021. Slovakia, Lithuania, and Ireland, in contrast, saw proportions of harmful goods fall below 2% in 2020.
The key to successfully transporting hazardous goods is digitization. A digital supply network serves as a technology platform for supply chain linkages and cross-business processes in transportation operations. It links suppliers, customers, shippers, and third-party logistics providers so they can work together more effectively and conduct business. Automated systems translate paper or email into the proper forms so that the document can be shared electronically with other people. This includes manual operations like completing a purchase order, recognising the receipt of the order, and shipping confirmation.
The lockdown during the COVID-19 pandemic created impediments for transporting chemicals and other dangerous goods, thereby hampering the growth of the hazardous goods logistics market. However, the demand from the pharmaceutical sector during COVID-19 had a positive impact on the market.


Hazardous Goods Logistics Market Trends

Increase in shipment of flammable liquids driving the market

The share of hazardous chemicals in all freight traffic is rising quickly due to the chemical industry's tremendous growth. About two-thirds of the carriers that transport hazardous commodities also transport flammable petroleum liquids, including kerosene, petrol, LPG, naphtha, etc. Such compounds are more likely to be involved in accidents during transportation than other types of cargo. Involvement in a traffic accident can have disastrous results, including fire, explosion, injury, loss of property, and environmental damage.

The flammable liquid shipments account for most of the demand. For instance, in 2021, more than half of the freight traffic in dangerous goods transportation by road in Europe will be related to flammable liquids, followed by compressed gasses and corrosives.

57% of all rail tank cars in the United States carrying Class 3 flammable liquids were constructed in 2021 to the new DOT-117 or DOT-117R criteria. In 2021, there were no phase-out deadlines. The next significant deadline comes in 2023, when the transport of ethanol will be restricted on all DOT-111 and CPC-1232 tank cars. By 2021, the vast majority (78%) of ethanol-carrying vehicles would have met the new DOT-117 requirements.7,473 tank cars carrying ethanol were in service under the DOT-111 and CPC-1232 standards; these vehicles will be replaced by DOT-117 vehicles. According to survey findings, 8,322 DOT-117 and DOT-117R tank cars are expected to be produced or upgraded in 2022.

Class 3 flammable substances were transported in 103,312 rail tank cars in 2021, up 57% from just five years earlier. The percentage of DOT-117 tank cars in the fleet for crude oil alone increased from 81% in 2020 to 87% in 2021.

Increase in chemical production driving the market

The growth in the output of chemical manufacturing from countries across the world is expected to drive the demand for dangerous goods logistics over the forecast period. The U.S. chemical industry was ready for significant production increases in 2021 after two years of weakness attributed to trade tensions and COVID-19. But in February, a huge swath of chemical and other industrial capacity was shut down when winter storm Uri brought icy conditions and power outages to the Gulf Coast. Due to a lack of raw materials, some other facilities had to shut down or scale back their operations. The manufacture of numerous essential chemicals was halted for more than a month in August due to Hurricane Ida. This year's lower demand for some chemicals was also influenced by supply chain problems in significant end-use areas. In the future, things look promising.

Chemical imports and exports from the United States have significantly increased in 2021, while the rate of improvement has slowed in the second half as a result of port delays and other logistical problems. Production interruptions brought on by bad weather along the Gulf Coast have also impeded exports. The trade surplus decreased from USD 28.6 billion in 2020 to USD 24.0 billion in 2021 as exports increased to USD 151 billion and imports increased to USD 127 billion.

The chemicals sector has also been attracting high growth rates in developing countries. For instance, the SMEs in the Indian chemical manufacturing sector are expected to witness revenue growth of around 20% owing to an improvement in domestic demand and higher realization due to the high prices of chemicals. A revival in domestic demand post-pandemic and robust exports are driving the chemical industry's production in India.

Hazardous Goods Logistics Market Competitor Analysis

The Hazardous Goods Logistics Market is fragmented by nature, with a mix of global and local players. Some of the strong players include DHL, DSV, Ceva Logistics, Bollore Logistics, and DGD Transport. Contracts, collaborations, joint ventures, and partnerships are among many other strategies that have been implemented by these players to stay ahead of the competition and meet the expanding needs of their clients. Furthermore, they are engaging in research and development operations to strengthen their portfolios and gain market share. The capabilities of local players in terms of technology, items handled, service offered, and inventory management are all improving. With the tightening of hazardous goods logistics regulations, an increasing number of freight forwarding businesses have emerged that can provide competent hazardous goods logistics full-chain services independently.

Additional Benefits:

The market estimate (ME) sheet in Excel format
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