Analyst Insight: The American Chemistry Council (ACC) estimates more than 1 million additional chemical shipments are expected per year by 2030 across all modes of transportation — truck, rail and sea. While that’s still years away, chemical logistics providers and their partners are preparing now to build resiliency, visibility and sustainability strategies into their everyday practices, in order to better serve their customers and prepare for future shipment growth. 

The chemical industry was particularly hard hit by supply chain issues and transportation disruptions and delays ushered in by the pandemic. Because this is an essential industry that touches everyone’s lives, the need to keep chemicals moving through the supply chain pipeline is critical. While the chemical logistics landscape hasn’t returned to pre-pandemic levels just yet, there are signs of optimism looking forward. It’s a time of greatly needed transformation in the chemical logistics industry that will lead to significant leaps of progress. 

Intermodal Builds Resilience 

For the last several years, the chemical industry has endured frequent disruptions, higher shipping costs and a reported drop in service levels caused by labor and supply shortages, along with higher materials demand. As demand for chemical shipments escalates, in order to be resilient, the industry needs more transportation options than just over-the-road trucking. 

Working with logistics partners that have an extensive intermodal network offers more options that chemical suppliers can tap into for safe, cost-effective and timely delivery of their products. Since chemical logistics is often very complex, those seeking intermodal services should look for a partner that understands the complexities, has an enduring track record in chemical logistics, and stays ahead of the laws governing the transport of hazardous and non-hazardous products. 

Visibility Drives Decision-Making

There are many moving parts in the day-to-day management of chemical logistics processes driving the need for greater visibility, transparency and control across the entire network. Technology platforms that provide a comprehensive, web-based global transportation management solution (TMS) can help chemical shippers make sound, long-range decisions and overcome costly inefficiencies and oversights. 

Through a TMS, chemical shippers can optimize transportation, manage events, generate analytics and reporting, select carriers, and configure graphical dashboards showing key metrics or performance indicators in a single display. Technology platforms can also erase the gaps from thinly or newly staffed departments while delivering the visibility needed in an increasingly complex chemical logistics industry. 

Advancing Sustainability

The expected increase in chemical product shipments is on a collision course with increasing efforts to reduce the supply chain industry’s environmental impact. But more shipments don’t have to translate into more carbon emissions to transport them. Chemical shippers can leverage the power of current and emerging technologies that show great promise for driving sustainability as well as business goals. 

Some of the technologies that are unlocking new possibilities in sustainability are electrification, alternative fuels, dynamic routing, predictive and prescriptive analytics, artificial intelligence (AI) and internet-of-things (IoT) enabled devices. As the world moves toward carbon neutrality by 2050, the chemical industry is positioned to make meaningful change that protect the environment while building strong, more profitable supply chains.   

Outlook: The chemical industry is on the precipice of tremendous growth, but this shouldn’t instill uncertainty about whether chemical logistics providers will be able to meet the demand. There are many opportunities to put the challenging times of the last few years in the rear view. By exploring intermodal transportation options, improving network visibility and advancing sustainability initiatives, the chemical supply chain can transform to meet the moment. 

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