Strategy and hegemony in chemical tanker shipping, 1960-1985

Abstract

The article analyses the emergence of chemical shipping as a specialized shipping segment. In the 1950s and 1960s seaborne transport of chemicals was characterized by rapid technological development. This was based on the introduction of parcel tankers, which could carry chemicals in bulk. Norwegian shipping companies were among the pioneers in this trade. By the early 1970s the two leading Norwegian companies had built up substantial market shares, but were challenged by financially stronger British companies. The article traces the background of the main companies involved in chemical shipping in the 1970s. In particular, we look at their entry into the chemical tanker market and the strategies that enabled them to capture a considerable share of the trade. Two elements – fleet structure and timing – can explain why the Norwegian companies managed to fend off the British challenge, and emerged in an even stronger position in the first half of the 1980s.