E ven as the global from $245.2 billion in 2024, according to Research and Markets—the sector is also navigating multiple challenges. “The market is more complex and there’s no end in sight,” says David Yanik, vice president with KAG Logistics, a subsidiary of Kenan Advantage Group, Inc. For the foreseeable future, it’s likely to be a disruptive market, he notes. For instance, disruptions hindering transit through major waterways like the Suez Canal and Strait of Hormuz are forcing chemical companies to consider alternative ways to source raw materials. Some are locating facilities within the chemical logistics market expands—it is forecast to grow to $324 billion by 2030 North American market to mitigate some of the impact of the disruptions, Yanik says. In addition, many ocean carriers have imposed new surcharges that some chemical distributors see as lacking transparency or appearing disconnected from actual operating conditions, says Eric R. Byer, president and chief executive of cer, Alliance for Chemical Distribution. Shipping delays can extend beyond a week, while some chemical companies report ongoing shortages of key chemical products, Byer says. Unpredictable transportation costs, combined with unreliable service, can mean delayed production schedules and higher overall supply chain costs. The continued overcapacity of chemicals is also straining the market, says Jennifer Braun, vice president of the Kansas City of ce of Trinity Logistics. Aggressive production in Asia has outpaced global demand and lowered chemical manufacturers’ pro tability, she says. That’s prompting chemical companies to look for ways to cut costs. They’re asking logistics providers for creative solutions and technology tools that can optimize routes and loads, boost transportation ef ciency, and identify other ways to decrease costs, Braun says. For example, multimodal transport can help counter rising fuel costs and
capacity issues, so many chemical logistics providers are providing solutions that encompass multiple modes, she says. A growing number of chemical companies also are redesigning their distribution and shipping networks to implement regionalization strategies, says Jesse Jones, vice president of operations at Warehouse Specialists, LLC (WSI). They’re repositioning inventory and/ or renegotiating transportation lanes to be both more sustainable and ef cient. Some are considering locations that are not just less expensive, but also let them move products more quickly to end users. “It’s a big undertaking but we’re seeing these shifts more and more,” he adds. The tight labor market presents another ongoing challenge. The physically demanding nature of many positions in chemical logistics can cut into the number of potential candidates. For example, workers might be wearing rubber suits as they of oad heavy products. “If it’s July in Louisiana, that’s not exactly a fun job,” says Robert Boyle, division president, managed services, with Odyssey Logistics. The heightened criteria for commercial drivers is also impacting capacity, Yanik says. In May 2025, the U.S. Department of Transportation announced new guidelines to strengthen English language enforcement for commercial truck operators. This is one reason segments of some chemical shipments are moving to rail, he adds. CYBERSECURITY CONCERNS ADD UP Cybersecurity is an emerging concern. In the United States, hundreds of millions of dollars of chemical shipments have been lost to criminals, says Jeff Krajacic, a logistics and supply chain expert in the industrials practice of consulting rm SSA & Co. Often, the criminals in ltrate the systems intended to match shippers and logistics providers, falsely portraying themselves as logistics providers. They’ll then take off with the load, perhaps to sell it themselves. Arti cial intelligence has “turbocharged” fraud concerns, Byer says.
WSI’s facilities include 6 million square feet of certified chemical warehousing space in the United States.
June 2026 • Inbound Logistics 51
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