THE CHEMISTRY OF TRUST: Logistics Leaders Reinvent Chemical Supply Chains
analytical reporting so companies can make informed business decisions.” This is key, as many chemical companies are paying more attention to costs, says Mark Lloyd, executive vice president with KAG Logistics, which provides cutting-edge transportation management solutions and value-added logistics services for the chemical and other sectors. During the pandemic, timeliness was a primary focus. “Now, suppliers want to be more cost effective,” Lloyd says, adding that some shipments that used to move mostly by truck are being shifted to rail. GROWING REGULATIONS “The number of regulations governing chemical logistics continues to increase,” Lindsey says. “The growth is due, in part, to the heightened emphasis on sustainable practices and tighter environmental and safety regulations both in the United States and globally.” For example, the EU’s directive on corporate sustainability due diligence, which went into effect in July 2024, requires some companies to identify and address any adverse environmental impacts of their actions within and outside Europe. Across the United States, companies must comply with multiple clean air acts, lower emission standards, and reporting requirements. These rules impact both chemical manufacturing and storage, particularly for sites that transfer products. For instance, to reduce emissions, California’s Advanced Clean Fleets Regulation requires that fleets are well- suited for electrification. This will be accomplished, in part, through requirements that manufacturers only produce zero-emission vehicles starting in the 2036 model year. Fires and other accidents involving the transport of chemicals have prompted greater emphasis on safety and compliance with handling, packaging, and documentation requirements, particularly for cross-border shipments. OSHA has increased the number of warehouse audits, Buber says. Among
LMR specializes in moving bulk hazardous materials, and qualifying and managing carriers to the highest safety standards.
other areas of focus, it is looking at the safe handling of hazardous materials and checking that companies follow regulations regarding stack height and closure instructions on packages. ENSURING SAFETY Many chemical logistics companies diligently strive to comply with safety and environmental regulations. Nearly 100 transportation, warehousing, and logistics management companies are part of the American Chemistry Council’s Responsible Care ® Partner Program, a safety and sustainability initiative. The increase in cyberattacks across logistics firms and infrastructure sites, such as port operators, is another key consideration. In 2024, telecommunications, transportation, and shipping were the three sectors most targeted, according to a Trellix report. To protect themselves and their customers, chemical logistics firms need to implement their own backups and preventive measures. “Another area of concern is cargo theft,” Lindsey says. The United States and Canada saw 3,625 reported incidents in 2024, up 27% from 2023, according to Verisk CargoNet. Targeted goods include copper products, consumer electronics, and cryptocurrency mining hardware.
“Rigorous carrier vetting and real- time safety monitoring don’t just support compliance—they’re critical safeguards against fraud. By verifying every credential, registration, and safety record, quality chemical logistics providers ensure only legitimate, qualified carriers move their customers’ freight,” says Lloyd. “It’s about protecting shippers, logistics providers, and the integrity of the supply chain. This is especially important in the chemical space.” THE NEW NORMAL Starting in April 2025, the imposition and then reversals of multiple tariffs created uncertainty for chemical companies and the chemical logistics sector, says Michael Zimmerman, partner in the strategic operations practice of Kearney, a management consultancy. The uncertainty generated volatility and depressed demand on the part of shippers. The ACD supports the renewal of the Generalized System of Preferences trade program, Byer says. This works to reduce the tariff burden on products essential to U.S. industries. Today’s disruptions and challenges appear likely to remain, although perhaps taking on new forms. Technical tools, such as visibility solutions and automation, along with
66 Inbound Logistics • June 2025
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