A bout 992 million tons of chemical products were transported across the United States in 2021, and the chemical industry is one of the country’s largest exporters, according to the American Chemistry Council (ACC). Despite the chemical industry’s size and signi cance, it hasn’t been immune to the challenges that have affected many industries. In a recent ACC survey, 93% of respondents said supply chain and transportation disruptions were impacting U.S. chemical manufacturing. More than one-third of companies said customers canceled orders over concerns that they either wouldn’t arrive or wouldn’t arrive on time. Several factors are behind these numbers, including a limited driver pool, in ation, and challenges in speci c transportation modes, as well as new technology and a growing focus on sustainability. The dwindling number of truck drivers particularly impacts producers and logistics providers that focus on the chemical industry as drivers hauling chemicals and hazardous materials must meet additional safety requirements. Safety concerns also make it dif cult for chemical companies to turn to the spot transportation market. “In the chemical industry, you want contractual relationships with asset providers you know and trust, and that have solid safety records,” says Glenn Riggs, chief strategy of cer with Odyssey Logistics. Rising wages have impacted chemical logistics providers, just as they have many other companies. “The cost to operate trucking and logistics companies has grown exponentially,” says Jennifer Braun, vice president, Kansas City Regional Service Center with Trinity Logistics. The National Association of Chemical Distributors (NACD) has urged Congress to enhance workforce programs that ensure well-trained drivers can remain on the road, says Eric Byer, the group’s president and CEO. This includes preserving the independent contractor (IC) business model on which many truck owner-operators rely. “By securing a strong workforce and protecting the IC system, we can ensure the smooth movement of goods and maintain businesses’ control over their own eets,” he adds. Accessing new equipment also can be challenging, says Scott Buber, director, operations, chemical division and regulatory compliance, with WSI. For instance, his company purchased six new lifts, and the lead time is 18 months, up from about two months a few years ago. “Even scan guns and bluetooth communicators have lead times of six to eight months,” he says. WSI was able to shift additional equipment from other locations to support its operations, or secure temporary equipment.
June 2023 • Inbound Logistics 87
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