Growth strategy for operator of chemical tankers

Assignment

JBR was approached by an operator of chemical tankers asking for support in defining a growth strategy.

Background

The client mainly transports various chemicals and vegetable oils in Europe, South America and North America. However, the fleet is aging and the company intends to grow strongly in the coming years (organically and acquisitively).

However, international tanker transport has a number of significant opportunities and challenges. The energy transition and associated regulations are driving the demand for new cargoes and sustainable propulsion of ships. For example, in 2023 the ETS (Emission Trade System, Europe's trading system for CO2 emissions from industry) will apply to tanker transport within Europe and, to a large extent, to Europe's inbound transport flows.

In addition, there is a shift in demand for chemicals, particularly toward Asia. The current geopolitical conditions combined with the desire to make logistics chains less vulnerable and initiatives by world powers to become less dependent on intercontinental flows (e.g., "Made in China 2025" and "Strategic Autonomy Europe") are causing an increase in shorter transport routes.

In short, the chemical tanker industry is rapidly evolving and requires clear strategic choices to be future-proof and create long-term value.

Problem Statement

The shareholder has asked the company's management team to initiate a process to jointly shape a future-proof growth strategy. The desire here is to be actively involved in the process and be a part of the strategic choices.

Our contribution

Based on internal and external analyses, several growth hypotheses were identified and defined as possible growth strategies. During an initial work session, the alternatives were prioritized based on an aligned consideration framework.

For the prioritized growth strategies, key strategic questions and potential barriers to success were identified and analyzed through market research and interviews.

During a second working session, the different growth strategies were discussed in detail and a growth path was defined based on the consideration framework and key next steps were identified.

The result

The strategic plan was presented to the company's shareholder and management team and approved and will be implemented in the coming period.