Executive Briefings

Chemical Industry Urged to Pump More into Export Logistics

The boom in natural gas production in the U.S. is "rippling downstream" to the plastics industry, and chemical companies will need to invest more in export logistics facilities as they ramp up U.S. plastics production, says Owen Kean, senior director of the American Chemistry Council. "For the most part, what's happening in the chemical industry is largely an export story."

Chemical Industry Urged to Pump More into Export Logistics

Steve Schellenberg, a vice president for trade and supply chain consultants IMS Worldwide Inc., said the U.S. in the next five years is expected to produce an additional 22 billion pounds of polyethylene and polypropylene-plastics made by refining natural gas.

"Most of that - a lot of that - will be exported," Schellenberg said. Based on that volume, "that means about 40 million square feet of warehouse space will be required as export centers" for the approximately 800,000 20-foot equivalent units (the standard measurement for containerized cargo) the U.S. will be exporting, he said.

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Steve Schellenberg, a vice president for trade and supply chain consultants IMS Worldwide Inc., said the U.S. in the next five years is expected to produce an additional 22 billion pounds of polyethylene and polypropylene-plastics made by refining natural gas.

"Most of that - a lot of that - will be exported," Schellenberg said. Based on that volume, "that means about 40 million square feet of warehouse space will be required as export centers" for the approximately 800,000 20-foot equivalent units (the standard measurement for containerized cargo) the U.S. will be exporting, he said.

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Chemical Industry Urged to Pump More into Export Logistics