Top Supply Chain Challenges for Dangerous Goods

Dangerous goods professionals highlight the need to reduce process complexity, establish effective staff recruitment and retention programs, and enhance digitalization to facilitate the safe and compliant transport of dangerous goods (DG) and hazardous materials, according to the 2023 Global Dangerous Goods Confidence Outlook survey, sponsored by Labelmaster, the International Air Transport Association (IATA) and Hazardous Cargo Bulletin.

Among the survey’s key findings and recommendations:

DG professionals are confident about the industry’s level of infrastructure and investment. 85% of respondents say that their infrastructure is on par or ahead of the industry and 92% increased or kept their DG investment the same year-over-year. While 56% believe their current infrastructure meets existing needs, only 28% responded that it meets both current and future needs.

Process complexity, mis-declared DGs, and attracting qualified staff remain challenging. 72% of respondents need more support to address future DG compliance. Views of the labor market are mixed; 40% indicate that current challenges will persist, 32% expect the labor market to improve and 28% say that it will become more difficult to find qualified staff. 56% say they expect the mis-declaration of DGs to stay the same or worsen.

Sustainability remains a focus across the industry. 73% of DG professionals report that their organizations have sustainability initiatives in place or planned. However, 27% do not have any sustainability initiatives planned, indicating room for improvement.

HazMat To-Do List

Hazardous materials shippers have a lot of moving pieces to manage. Of all the shipper responsibilities, properly classifying a hazardous material is most critical because all the other requirements are based on that proper identification.

According to the Federal Motor Carrier Safety Administration, hazmat shippers are responsible for:

• Determining whether a material meets the definition of a “hazardous material”
• Proper shipping name
• Class/division
• Identification number
• Hazard warning label, packaging, marking, placarding
• Employee training
• Shipping papers
• Emergency response information and phone number
• Certification
• Compatibility
• Blocking and bracing
• Security plan
• Incident reporting

6 Questions to Ask a HazMat Carrier

Ensuring the safe and compliant transportation of hazardous materials requires careful planning and due diligence. Choosing the right carrier is crucial, and asking the right questions can help you mitigate risks and ensure smooth transit for your hazmat shipment.

Before assigning a load, ask your prospective carrier:

1. Are you properly licensed and insured for transporting my specific hazardous material? Different hazmat classes have specific requirements for carrier licenses and insurance coverage. Verify the carrier holds the necessary permits and has insurance limits that meet your risk tolerance and regulatory requirements.

2. Do you have experience transporting this specific type of hazardous material? Experience matters. Ask about the carrier’s track record with similar hazmat shipments. Inquire about their safety protocols, training programs, and any incidents they have encountered.

3. Can you provide detailed information on your equipment and personnel qualifications? Ensure the carrier’s vehicles are properly equipped for your hazmat shipment, including placards, safety equipment, and emergency response measures. Verify the driver’s hazmat endorsements and training certifications match the specific requirements for your load.

4. What is your emergency response plan in case of an accident or incident? Accidents can happen. Ask about the carrier’s established emergency response procedures and their communication channels. Learn who to contact in case of an incident, and ensure their plan aligns with your own.

5. Can you provide references from previous customers who shipped similar hazmat materials? References offer valuable insights into the carrier’s reliability and performance. Contacting previous clients who shipped similar hazmat materials allows you to verify the carrier’s claims firsthand.

6. What is your process for ensuring regulatory compliance throughout the transportation process? Understanding the carrier’s approach to regulatory compliance demonstrates their commitment to safety and adherence to industry standards.

Expanding U.S. Chemicals Manufacturing

To increase domestic manufacturing of military-grade chemicals, the U.S. Department of Defense will award $192.5 million to seven companies under the Defense Production Act Investments (DPAI) Program.

The funding would establish, expand, and modernize U.S. manufacturing capacity for 22 critical chemicals in defense systems applications. The department expects the companies to reach a national capacity of chemicals by 2028.

The seven companies, which have proven that they can produce one or more of the military-grade chemicals, are CoorsTek, Goex/Estes Energistics, Lacamas Laboratories, Magrathea Metals, METSS Corp., Powdermet, and Synthio Chemicals.

Lacamas Laboratories received the largest contract at $86.2 million. The next two largest contracts were CoorsTek at $49.6 million and Magrathea Metals at $19.6 million.

The commercial sector can also apply these chemicals to various operations, including consumer products, pharmaceuticals, automotive components, energy, and agriculture. The funding adds to 10 awards and $289 million the DPAI Program has issued since the start of 2024.

Before Assigning a HazMat Load

• Request copies of the carrier’s insurance certificates and safety permits.
• Conduct a background check on the carrier’s safety record.
• Negotiate contractual terms that clearly define responsibilities and liabilities.
• Maintain open communication with the carrier throughout the transportation process.

Hazmat shipments account for 12% of all freight tonnage shipped within the United States. That equates to roughly 3.3 billion tons of hazardous materials shipped every year, worth an estimated $1.9 trillion.

Advances in technology have revolutionized their operation, enhancing efficiency and safety.

This guide will explore tanker trucks’ types, capacities, and safety measures, focusing on their vital role in hauling everything from fuel to chemicals.

Large Volume Tanker Trucks

Large-volume tanker trucks, pivotal in the transport industry, are engineered to transport massive amounts of fuel, oil, and chemicals. Capable of carrying between 5,000 and 11,600 gallons, these vehicles are equipped with multiple compartments to handle various materials safely.

These heavy-duty trucks play a vital role in the oil and gas sectors, where their capacity and design ensure efficient and safe delivery of hazardous material, proving essential for the continuous flow of industry operations.

Small Volume Tanker Trucks

Small-volume tanker trucks, such as single-axle tank trucks and mini tankers, are designed for precision in delivering smaller quantities of liquids like diesel fuel, gasoline, and water.

With a maximum capacity ranging from 1,000 to 3,000 gallons, they are perfect for hauling fuel to service stations, chemicals to industrial sites, and water for fire suppression.

Their compact size and specific design allow for easy maneuverability in urban environments and tight spaces, making them a versatile asset in the transport industry.

Types of Cargo Tankers

Tanker trucks come in various forms, each specifically designed to transport different materials, from liquids and gases to dry bulk. These include corrosive cargo tanks, compressed gas tankers, and cryogenic cargo trucks.

Cargo Tank Trucks

Cargo Tank Trucks, often called TC-406/DOT-406 trucks, are designed to transport dangerous goods. Typically made of aluminum, these trucks can have one or multiple compartments and are offered only with 3 axles.

These trucks are crucial for hauling diesel fuel, gasoline, and other hazardous materials, with capacities ranging widely to meet specific transport needs.

Corrosive Cargo Tanks

Corrosive Cargo Tanks, MC-312 (DOT-412), are specialized tanker trucks that transport highly corrosive substances like sulfuric or nitric acid. These tanks are characterized by their circular cross-section and reinforcing rings, ensuring safety and integrity during transport.

With an internal pressure of 35 to 50 psi and a rubber or plastic lining, these stainless steel tanks are built to withstand the rigors of carrying high-specific gravity liquids like grain alcohol.

Compressed Gas Cargo Tanker

Compressed Gas Cargo Tankers, or MC-331, specialize in transporting compressed gases and delivering propane, LPG, and anhydrous ammonia.

These vehicles, built to withstand pressures of 100 to 500 psi, are made from carbon steel and are typically white to prevent UV damage. Equipped with advanced safety mechanisms, these tankers ensure the secure and efficient transport of compressed gases to meet the demands.

Cryogenic Cargo Tank Truck

Cryogenic Cargo Tank Trucks (MC-338) transport cryogenic liquids like nitrogen, oxygen, argon, and hydrogen. These insulated vehicles, with a volume capacity of 4,500 to 5,550 gallons, are crafted from aluminum or mild steel to preserve the low temperatures.

Equipped with relief valves, they safely manage internal pressure while delivering these critical cryogenic materials.

High-Pressure Tube Tanks and Trailer Trucks

High-pressure tube tankers and trailer trucks are designed to transport industrial gases efficiently under high pressure. These trailers, equipped with 4-36 high-pressure tanks, range from 20 to 53 feet long and can carry a significant payload.

They serve as a “rolling pipeline,” providing a continuous gas supply for businesses and eliminating the need for frequent cylinder changes. This system is crucial for industries relying on a steady flow of gases for their operations.

Dry Bulk Pneumatic Hopper Trailer

Dry Bulk Pneumatic Hopper Trailers are engineered to efficiently transport dry bulk materials, such as cement, plastic pellets, and grain. With capacities ranging from 1,050 to 2,000 cubic feet, these trailers use pressurized air to unload materials through a piping system.

The aluminum or steel construction and 45-degree hopper slope facilitate the easy flow of materials, making these trailers a staple in industries requiring bulk material transport.

Evolution of Tanker Trucks

The evolution of tanker trucks from horse-drawn carriages to the sophisticated vehicles we see today marks a significant advancement in the transportation industry.

Initially, the petroleum industry relied on horses to move barrels, a method that evolved with the introduction of tank wagons in the 1880s, boosting efficiency and safety. The 20th century ushered in motorized tankers, revolutionizing short-distance deliveries alongside the rise of pipelines and railroads for longer hauls.

Today’s tanker trucks, capable of transporting diverse substances, including hazardous materials, boast significant capacities of up to 11,600 gallons. Modern designs prioritize safety and environmental protection, featuring insulated or non-insulated, pressurized, or non-pressurized compartments made from spark-resistant aluminum.

Tanker Transport and Safety Regulations

Tanker truck transport and safety regulations are governed by the Federal Motor Carrier Safety Administration (FMCSA), part of the U.S. Department of Transportation (DOT).

These regulations ensure the safe transport of hazardous materials, including flammable or combustible liquids, acids, caustics, and poisonous substances. The FMCSA enforces rules on vehicle operation, driver qualifications, and cargo handling to minimize risks on the road.

Tank Safety Features

Regulated safety features for tanker trucks include:

• Spill containment systems to prevent leaks during accidents.
• Pressure relief valves to manage internal tank pressure.
• Emergency shutoff mechanisms for quick response in emergencies.
• Rollover protection to maintain tank integrity on impact.
• Regular inspections and maintenance to ensure safety.
• Driver training programs focusing on hazardous material handling.

FAQs

1. What is a tanker truck called?

A tanker truck, often called a tank truck, is a vehicle engineered explicitly for transporting liquid or gaseous substances.

2. What goes in a tanker truck?

Tanker trucks are versatile, depending on their design, transporting various contents, including fuels, chemicals, water, and gases.

3. What are the different size tanker trucks?

Tanker trucks vary in size from smaller models carrying less than 3,000 gallons to larger ones capable of transporting over 11,600 gallons.

Tanker Trucks in Modern Logistics

Tanker trucks play a crucial role in the transport industry, efficiently moving various liquids and gases, including fuel, chemicals, and water.

These vehicles come in various sizes, from small to large capacities, ensuring the safe and effective delivery of essential substances across distances. 

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, inflation, and challenges in specific 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 difficult 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 officer 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 fleets,” 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.

The “bullwhip effect” has also upended chemical supply chains, says Matt Jensen, vice president, global warehousing, with Rinchem Company. The bullwhip effect describes how small changes in demand at the retail level are magnified as they move up the supply chain to the manufacturing sector.

During COVID, companies scrambled to meet spiking demand. Then, even as demand leveled out, companies continued to produce, often at higher volumes, leading to an inventory glut.

Pivoting Becomes Crucial

As demand has moderated, the ability to pivot has become key. “Instead of continuing to send shipments via a rail car with bulk tankers, when it’s not needed, why not do a different mode—say, tank truck transportation or in a tote or drum?” asks Curt Gonya, senior vice president of logistics with KAG Logistics. This would cut transportation costs and better align logistics operations with inventory and production levels.

Along with a willingness to pivot, embracing advancing technology is crucial to streamlining operations and driving efficiency. Software solutions, like predictive analytics, help companies react more quickly to changes in their markets or transportation modes, and then to meet the evolving needs of their customers.

At the same time, implementing new solutions, and overcoming any resistance, often requires an investment of time and resources. What’s more, some business customers expect suppliers to implement their proprietary systems and technology platforms. “If you want to remain a valued business partner, you need to learn, comply, and train your staff on myriad technology platforms,” Braun says.

Around 19% of chemical shipments travel by rail. The Railway Safety Act of 2023 addresses safety requirements for rail carriers and trains carrying hazardous materials.

Chemical Transport Via Rail

About 19% of chemical shipments travel by rail. Yet rail transportation often remains a challenge, due to some rail lines’ inability to meet service expectations. “Our members want to move more by rail, but reliability issues make that increasingly difficult,” says Scott Jensen, director of issue communications with the ACC.

One potential solution would be to allow reciprocal switching, Jensen notes. Reciprocal switching would allow shippers to request that their cargo move from one rail line to another when it hits an interchange, instead of automatically continuing on the same line.

Overcoming Rail Challenges

Implementing reciprocal switching would force all the rail lines to earn shippers’ business, versus simply expecting it. The Surface Transportation Board, which regulates much of freight rail, has the issue on its to-do list, Jensen adds.

The recent rail derailments brought attention to the challenges of moving hazardous materials and chemicals. While moving chemicals via train is generally safe and efficient, “the derailments were a huge black eye for the industry,” Buber says.

The Railway Safety Act of 2023, introduced in the Senate in March 2023, may offer improvements. It addresses safety requirements for rail carriers and trains transporting hazardous materials. Among other actions, it increases the maximum fines the Department of Transportation may impose on rail carriers for violating safety regulations, and requires a minimum two-person crew for certain freight trains. The bill has received bipartisan support.

Until recently, logistics providers moving chemicals focused primarily on safety, cost, and service. “Sustainability typically wasn’t a decision factor,” Riggs says. That’s changing.

Sustainability Gains Ground

The chemical industry has steadily improved its environmental footprint. The Responsible Care initiative has driven a 12% decrease in greenhouse gas emissions, an 18% decrease in sulfur oxide emissions, and a 39% drop in nitrogen oxide emissions, all since 2017, the ACC says. Responsible Care, the industry’s environmental, health, safety, and sustainability initiative, is practiced in nearly 70 countries.

At the same time, the systems implemented to cut the environmental impact often add costs. “It’s worth doing, but it’s not free,” Braun says. For instance, some ports and shippers will only allow trucks that are within a certain age range.

Looking Ahead

“This year, everyone is holding their breath, waiting to see what the economy is doing as their customers are drawing inventory down and also waiting to see what is going to happen,” says David R. Vieira, president and chief executive officer with CLX Logistics.

Moving forward, technology will play an even more critical role in chemical supply chains. More chemical logistics providers will use sensors to measure humidity, temperature, and other qualities during transportation and storage. “Hyper-visibility into supply chain conditions will grow,” Jensen says.

The CHIPS and Science Act, among other changes, provides $52.7 billion for American semiconductor research, development, and manufacturing. It’s likely to affect chemical supply chains, as semiconductor manufacturing is a significant user of chemicals.

As more semiconductor factories operate in the United States, they’ll likely find it more efficient to bring materials from within the United States, versus from other parts of the globe. Companies may decide to hold less inventory if shipping takes only a few days, rather than multiple weeks, says Dustin Miles, vice president of global transportation with Rinchem Company.

As chemical production increases in the United States, so will the chemical transportation sector. The ACC is projecting about 1 million additional shipments annually by 2030.

The logistics providers dedicated to the chemical industry will continue to innovate, to leverage effective shipping solutions, and to apply their experience and insight to ensure they can move shipments safely, efficiently, and accurately.

Chemical companies turn to ChemLogix to build and deliver transportation solutions that meet regulatory requirements as well as safety and security concerns.

CLX Logistics: Creating Sustainable Economic Value

“As a third-party logistics and technology company with a focus in the chemical industry, we strive to drive economic value in all our relationships,” says David Vieira, president and chief executive officer. CLX accomplishes this by combining expertise and experience, best-of-breed technology, and a personal, dedicated approach.

ChemLogix is CLX’s industry-recognized chemical 4PL division and the origin of CLX Logistics. Because of its extensive experience in chemical logistics, chemical companies across the globe trust ChemLogix to build and deliver transportation solutions that meet their unique regulatory pressures, as well as safety and security concerns.

CLX’s global transportation management system with partner e2open covers all modes and regions, enabling chemical shippers to plan, execute, and optimize transportation operations and ensure delivery performance to partners and customers anywhere in the world, while complying with relevant regulations and maximizing efficiency.

The system also provides advanced visibility and control over day-to-day transportation operations. Through its interactive dashboards and real-time metrics, shippers can identify outliers and trouble spots that need attention—before they become challenges.

Managed Transportation, a robust suite of CLX Logistics solutions including mode management, digital freight brokering, and analytical tools, helps chemical manufacturers lower costs and boost service. Operations in North America and in Europe are expanding globally for road, rail car management, and bulk liquid intermodal, with specialization in hazardous materials handling and movement.

By working with CLX LaneLogix™ chemical supply chain professionals can more effectively manage their procurement functions to reduce spending and boost margins. Among other capabilities, the CLX database, which is fed daily market updates, can predict rate competitiveness and provide comparable market service requirements.

LaneLogix™ also allows chemical shippers to evaluate carriers and conduct electronic bids.

Boosting Visibility

CLX partnered with a large Dutch chemical company whose annual transportation spending topped $100 million. The company wanted to compare its transportation rates with its competitors, and then optimize them.

Working with the company, CLX leveraged LaneLogix™ to boost visibility and enable faster, more optimized bidding and procurement solutions. Among other benefits to the company, LaneLogix™ identified savings of $9 million, offered greater supply chain visibility, and enabled enhanced decision-making.

CLX Gravity, a transportation analytics solution, extends traditional analytics to provide comprehensive data integration capabilities that combine information from both internal and external sources.

Decision makers can close the gaps between visibility, performance, spend and risk, and then use data-driven insights to build and sustain a next-generation supply chain.

Through CLX Logistics’ intermodal logistics solutions, chemical companies can drive cost reductions of up to 30% when compared to over-the-road chemical shipments. In addition, intermodal offers fewer driver capacity constraints and can cut companies’ overall carbon footprint, among other benefits.

Along with its services and technology solutions, CLX employees are critical to its—and its clients’—continued success. The logistics experts within CLX Logistics truly partner with their clients to strategize and craft informed, custom plans that increase performance and reduce costs.

As the chemical logistics sector evolves, CLX does as well, continuing to help its clients cut costs, boost service, and improve their performance.

“We’re expanding our global freight forwarding operations, our project cargo program, our artificial intelligence capabilities, and our European operations outsourcing,” Vieira says. “At CLX, we are always innovating to help shippers and manufacturers succeed.”

IFS Freight helps companies of all sizes address shipping challenges with comprehensive over-the-road services. From left to right: Dan Witt, CEO; Jason Turley, vice president, sales and operations; and Ronnie Glover, professional driver.

IFS Freight: Logistics Problem Solvers

About 18 years ago, Dan Witt started IFS Freight after a long career in logistics, much of it managing transportation with large corporations.

His experience offered him an inside look at the dearth of solutions available to help small and mid-sized businesses better manage their transportation costs and systems.

“I wanted to help small businesses save money, make their processes more efficient, and make a little money for myself,” he says.

Among other services, IFS offers truckload (TL) brokerage, less-than-truckload (LTL) freight management, and connections to intermodal options, Witt says.

Witt started by evaluating the transportation profile of his first client, a small metal distribution company, and then helped it shift from using one LTL provider exclusively to considering additional carrier options, to both improve service and cut costs.

“We were able to save this small business 25% in annual transportation spend by implementing our logistics platform,” he says.

Since then, IFS Freight has grown by helping clients of all sizes address their challenges with comprehensive over-the-road shipping services.

Most smaller companies have similarly small transportation departments. Trying to identify which of the many LTL carriers is best for a particular shipment can be next to impossible. IFS’ Intelli-Freight™ system allows these businesses access to all carriers in their market.

Once logged into Intelli-Freight™, a shipper can enter its shipment parameters, such as origin and destination, and time frame. Intelli-Freight™ reaches out to carriers to ask them if they service the lane in question, and the estimated transit time and cost. Based on the responses, the shipper can identify the carrier that best meets its needs.

“Within seconds, shippers can get rate quotes and book a shipment. The technology streamlines the process and helps companies make intelligent freight decisions,” Witt says.

One reason IFS entered the chemical logistics space was because Witt noticed the troubles his existing clients were having getting timely deliveries. One customer said he had to send home about 100 people working in its manufacturing plant, because a bulk shipment of materials didn’t show up as promised.

A Focus on Service

IFS is a service-oriented, non-hazardous material carrier that offers stellar on-time performance. “We’re very service-sensitive,” Witt says. “When a customer says ‘we need it delivered tomorrow at 10 a.m.’ we deliver at 10 a.m.”

At the same time, Witt knows these trips aren’t worth doing unless they’re done safely. IFS drivers generally run the same routes across the southeastern United States. The drivers know the routes, which helps boost their safety performance.

In 2014, one of IFS’ customers, a producer of arts and craft paint, was having difficulty obtaining the raw materials it needed for its production.

IFS went into action. It began handling logistics for the company, including TL brokerage and LTL freight management, as well as transporting their raw materials as a liquid bulk non-hazmat carrier.

“The manufacturers have a lot of moving parts. IFS coordinates inbound and outbound shipments, making it easier for the company to manage,” Witt adds. The changes improved service to their production plant and to the company’s customers, while also cutting annual transportation spend.

As a smaller logistics provider, IFS can move quickly to help clients not only with day-to-day operations, but in navigating emergencies and sudden changes.

“We’re available to customers,” Witt says. “And we’re small enough that we actually answer the phone when people call.”

As one of the first managed transportation and logistics providers in the chemical sector, KAG Logistics provides experience and technology that aligns with chemical industry best practices.

KAG Logistics: Industry-Leading Transportation Management Solutions

As one of the first managed transportation and logistics providers in the chemical sector, KAG Logistics brings deep experience and technology that’s aligned with chemical industry best practices. It’s a subsidiary of the Kenan Advantage Group, Inc., a leading tank truck transporter in North America.

KAG Logistics provides value-add logistics services for supply chains throughout North America, including those in the petroleum and renewable energy, chemicals, specialty products, and industrial gases sectors. Its services, including transportation management and technology, freight brokerage, and value-added logistics services, along with its team of experts, help shippers boost their performance.

The Optimate Transportation Management System from KAG Logistics integrates technology, process, and expert logisticians to help shippers design plans that are optimized for capacity and carrier options and can reduce total transportation costs.

The system also offers contract rating and route guides built on business rules and logic, as well as the ability to track all goods in transit. Optimate can integrate with shippers’ systems and business processes, and its drill-down metrics and customizable reports let shippers evaluate carriers’ performance, financials, and key performance indicators.

Expanding Solution Sets

KAG Logistics is investing heavily in technology, and especially in solutions that enable the broad assimilation, focus, and utilization of data. “There’s a heightened urgency to support big data and help improve customers’ operations,” says Curt Gonya, senior vice president of logistics for KAG Logistics.

By continuing to build out and refine its capability solution set, KAG Logistics can continue to offer its customers a range of ways to move chemicals efficiently and at lower cost. “This will ultimately provide our chemical customer base with the optionality, scalability, and resources needed to support any supply chain initiative,” Gonya adds. “We can help our customers change the way they do business, so they stay competitive.”

KAG Logistics is also heavily focused on its robust and diverse carrier management team, which possesses deep experience across multiple modes. These qualities have become key as the market continues to shift, and shippers need access to multiple modes so they can move their products as efficiently as possible.

When a large shipper faced packaging disruptions within its supply chain, KAG Logistics proactively offered multiple mode and scheduling options. This included helping the company initiate nearshoring operations so it could support demand changes across its North America network and avoid production line shutdowns and delays.

KAG Logistics’ ability to act quickly, to help the shipper pivot its production, and to provide quality carrier management and ongoing improvement to the customer’s operations helped it earn the supplier of the year award from the company.

To continue to support its customers, KAG Logistics remains focused on advancing transportation technology, and particularly on solutions that can leverage big data.

“Technology and data can help us—and our shippers—work smarter, boost efficiency, and drive performance,” Gonya says.

Odyssey Logistics’ suite of chemical logistics services includes its bulk tank carrier network, bulk intermodal services, and network optimization analyses.

Odyssey Logistics: Committed to the Chemical Logistics Market

For the past 20 years, Odyssey Logistics has been a leading chemical logistics provider, relied on by top chemical companies as they move products across the country or around the globe.

It’s also certified by the American Chemistry Council as a Responsible Care® partner company. “Odyssey got its start in chemical logistics as a multimodal and global 4PL, and we’ve continued to build out and acquire other services to help meet all our clients’ needs,” says Glenn Riggs, chief strategy officer.

In working with chemical shippers, Odyssey is “agnostic to mode,” Riggs says. The Odyssey team looks at a range of multimodal solutions to identify the optimal path for moving each client’s products, he adds.

Odyssey is able to take a comprehensive view because its experts offer in-depth knowledge of the chemical logistics environment, along with a commitment to understanding and staying abreast of the laws and regulations that govern the transportation of hazardous and non-hazardous products.

The company’s extensive suite of chemical logistics services, including its bulk tank carrier network, bulk intermodal services, and network optimization analyses, allows it to offer a solution for every element of its clients’ chemical supply chains. In all its partnerships, Odyssey remains dedicated to safety, timeliness, and cost-effectiveness.

The chemical sample fulfillment and logistics service Odyssey offers has processed more than 12 million sample shipments. More than 65 major manufacturers rely on this service, which is available to shippers around the globe, enabling them to efficiently store, package, and ship samples and small revenue orders.

Odyssey has invested heavily in its intermodal capabilities. Its chemical ISO tanks, which can move up to 6,600 gallons, fit in the same frame as 20-foot trucking containers. “This allows us to efficiently and safely move shipments from truck to rail or ship and back again,” Riggs says. By leveraging intermodal capabilities, Odyssey takes trucks off the road, leading to a greener footprint.

Global Expertise

The insight and visibility customers can gain through Odyssey’s advanced analytical services and network optimization studies help them evaluate and improve the performance of their global supply chains. Odyssey helped a global manufacturer gain visibility into its $1 billion annual shipping budget by creating a digital twin of its distribution network and then applying advanced modeling software.

By highlighting inefficiencies and identifying actions to better manage sourcing and lead times, among other areas of improvement, the analysis identified $60 million in potential savings. What’s more, this analysis occurred during the pandemic and was conducted remotely, saving another $150,000 in travel costs.

Cloverleaf, Odyssey’s science-based sustainability program, leverages cutting-edge analytical tools and technology to calculate fuel consumption and emission by mode. “We’re seeing a growing trend of customers who want to measure and calculate their carbon footprint, and this program helps them do that,” Riggs says.

Odyssey continues to view the chemical market as significant. “We’re continuing to invest in it, to grow it, and to evaluate acquisitions,” Riggs says. “We’re committed to it.”

Asset-based logistics provider Rinchem focuses on the chemical industry. Every client is a chemical company and most employees have a chemical logistics background.

Rinchem Company: Streamlining the Global Chemical Supply Chain

In contrast to many other large logistics providers, Rinchem “doesn’t chase the holidays,” says Dustin Miles, vice president of global transportation. Because Rinchem focuses on the chemical industry, its capacity remains stable year-round, he says. Every client is a chemical company and most employees come with a chemical logistics background.

Rinchem leverages its four decades of expertise, thought leadership, and logistics transparency, complemented by state-of-the-art technology, to provide chemical companies with reliable, safe, efficient, and cost-effective solutions. “No matter the challenges our customers must tackle, we look for ways to say ‘yes’ and provide options to solve the issues,” Miles says.

The company’s services include trucking, freight forwarding, warehousing, return logistics, and inventory management. As an asset-based logistics provider with a network of 27 chemical and gas distribution centers, Rinchem can warehouse and/or transport shipments coming from across town or across the globe.

“We offer flexibility and door-to-door supply chain management,” Miles says. Through its breadth and depth of services, Rinchem helps clients run leaner supply chains.

As important, Rinchem’s focus on both innovation and safety has led to a total corporate injury rate (TCIR) of less than one. That compares to an industry average of about five, says Matt Jensen, vice president, global warehousing.

Chem-Star®, the company’s proprietary, web-enabled warehousing and transportation management system, provides visibility across Rinchem’s global network of warehouses, which are temperature-controlled and compliant with hazardous materials regulations.

The GPS tracking capabilities within Chem-Star® also offer visibility to Rinchem’s fleet of customized, temperature-controlled, and hazmat-compliant trucks and trailers, as well as its extensive team of hazmat-trained drivers. “The software provides door-to-door visibility, enabling shippers to make proactive decisions,” Miles says. Chem-Star also offers numerous real-time inventory queries and reports.

Enabling Coordination

To improve warehouse receiving and picking speed and accuracy, Rinchem employs radio frequency technology. Its systems can interface with numerous ERP or inventory management systems. This boosts visibility and enables seamless data transfers and coordination across chemical manufacturers’ entire supply chains, so they may be able to reduce safety stock and cut inventory obsolescence and non-value-added activities.

In March 2023, Rinchem announced the development of a technology that revolutionizes how chemical companies track and report regulated materials. The technology, which will track all CAS Registry Numbers for regulated items, was done in partnership with CAS, a division of the ACC. “We’re the first to do something like this,” Jensen says.

Given its strong performance and the growing chemical market, Rinchem remains committed to expansion. In 2023, it is opening new facilities in Oregon and Arizona in the United States, as well as in Malaysia. “Our strategy is to grow where customers need us to go,” Jensen says.

“We want chemical providers to focus on producing chemicals, rather than spending time finding out where their orders are,” Miles says. “So, we provide a one-stop shop for chemical manufacturers.”

Trinity Logistics works with chemical companies of all sizes, helping them manage their supply chains and navigate the complex regulatory environment that governs chemical production, distribution, and transportation.

Trinity Logistics: Improving Lives in Supply Chain by Solving Tough Problems

Over the more than 40 years Trinity Logistics has been providing logistics services, it has relied on a blend of people-centric service and technology. “It’s not one or the other,” says Jennifer Braun, vice president of the company’s Kansas City Regional Service Center.

Eight values—teamwork, integrity, legacy, fun, continuous improvement, excellence, determination, and leadership—guide employees’ partnerships with customers, carriers, business partners, and each other.

Over the decades, Trinity has worked with chemical companies of all sizes, helping them manage their supply chains and navigate the complex regulatory environment that governs chemical production, distribution, and transportation. It can manage many types of shipments, including truckload, less-than-truckload, expedited, drayage, and multimodal.

Custom Technology Solutions

Trinity’s custom technology solutions provide critical visibility and connections. Through its customer portal, shippers can access live tracking updates on shipments, set tracking notifications, access invoices and documents, and make invoice payments, among other functions.

Trinity’s transportation management system (TMS) also provides clients information and visibility to their freight shipments, enabling them to make proactive decisions. It also helps chemical shippers manage their extended supply chains, including their internal logistics departments, suppliers, carriers, and warehouses, among others, gaining control and visibility, Braun says.

The system also enables shippers to evaluate various metrics, like cost per pound shipped. They can determine how rates might be impacted by changes, such as by shipping to different regions or consolidating LTL to truckload shipments.

Trinity also works with its shippers to help them achieve their sustainability and environmental goals. It has been a Responsible Care partner since 2009 and is certified through the NACD’s Responsible Distribution program, an environmental, health, safety, and security program.

Through its participation in the EPA’s SmartWay program, Trinity advances supply chain sustainability by measuring, benchmarking, and improving its freight transportation efficiency.

Over the past six months, Trinity has helped several companies whose containers of imported goods remained stuck at U.S. ports. In some cases, the companies had lost critical warehousing or transloading information.

Trinity was able to access and retrieve the loads, provide drayage service, and transload and truck them to their destinations. By providing access to goods that previously had been detained at the ports, Trinity helped both its clients and their customers.

One Trinity client ships goods that must be protected from freezing during winter months; this essentially eliminates LTL as an option during cold weather. Trinity helped the company consolidate 160 LTL shipments to 53 multi-stop, truckload shipments.

“They didn’t have to wait for the weather to warm to make the shipments,” Braun says. Even better, the changes saved the company almost $50,000.

By emphasizing people-centric service and technology, and committing to a servant-leadership model, Trinity continues to capture business from leading companies across multiple industries, including the agricultural, industrial, pharmaceutical, and coatings sectors. It continues to expand its footprint, with new offices in Arizona and California.

The Trinity Foundation, an independent non-profit, has given more than $600,000 to the communities in which Trinity operates.

WSI has four certified chemical warehouses across the United States that are available for public lease, as well as additional private chemical warehouse facilities. Its services extend beyond the facilities.

WSI Supply Chain Solutions: Absolute Reliability

In the 1960s, six lift truck operators noticed an opportunity as they worked in a coated paper mill: The mill had no place to store the paper. The group brainstormed ideas, pooled their resources, and built the first warehouse in Combined Locks, Wisconsin. (Its current population: 3,641). This was the beginning of Warehouse Specialists, known today as WSI. It’s one of the largest privately held logistics companies in the United States, with operations in 10 states.

Material Logistics & Services, WSI’s chemical handling subsidiary, has extensive experience working with hazardous materials and is a Responsible Care Partner. “We have a strong commitment to the environment,” says Scott Buber, director, operations, chemical division and regulatory compliance.

That includes within its own operations, where WSI has cut energy use by installing more efficient lighting and water systems, among other steps.

WSI offers four certified chemical warehouses across the United States that are available for public lease, as well as additional private chemical warehouse facilities. Its services extend beyond the facilities.

“We’re not just a warehouse,” Buber says. “We’re hands-on in our operations; we don’t just put products in a bin.” WSI provides nationwide chemical logistics, as well as bulk storage and transfer, flammable and temperature-controlled rooms, packaging and labeling services, and sampling services, among other offerings.

For the past several years, WSI has offered a Foreign Trade Zone (FTZ) in its Council Bluffs, Iowa, location; it is one of the first chemical logistics providers to do this. The FTZ allows manufacturers and producers to save on taxes and levies. Companies in the agricultural chemical sector account for many of its customers.

WSI also works with border patrol to ensure products are packaged securely, so they can be transported efficiently and in compliance with regulations. “It’s more intense than just putting products on the back of a trailer,” Buber says, noting the volumes of paperwork and numerous audits by customs and port directors that often accompany FTZ shipments.

End-to-End Visibility

Through its technology, WSI offers its clients end-to-end supply chain visibility. It’s also looking to artificial intelligence to provide even more knowledge. For example, in addition to knowing their containers are on the water, the new technology will provide more precise locations.

WSI is also investing in analytical tools, as well as technology that offers the ability to monitor features like temperature.

After the recent train derailments, WSI checked its internal safety procedures. The findings were generally positive, although management learned it could offer more hands-on training on procedures to follow if a chemical release occurs.

“We train and drill as if it’s a real-life scenario,” Buber says. Management also lets employees know the goal isn’t to play some sort of “gotcha game,” Buber says. Instead, it’s about continuous improvement, and a reminder to avoid taking short cuts, he says.

WSI also shared the findings with its customers. “They appreciate the transparency,” Buber says.

“More and more, companies know us based on our reputation as faithful stewards of customers’ shipments,” Buber says. “We care about our customers, the environment, and the communities in which we operate.”

Predictive analytics allows companies to visualize and rate multiple types of risk before they materialize, estimate potential damage costs, and solidify alternate plans before problems explode. These tools also help companies comply with the latest regulations and laws.

Tracking transportation mile by mile helps reveal potential route disruptions. As cargo moves from supplier to warehouse to customers, issues like impassable flooded roads or high winds shutting down ports can occur. A major sporting event can reroute or even shut down shipping lanes for high-risk materials. Airport security events can hold up shipments for hours.

By leveraging risk assessment platforms, companies can go beyond simple location monitoring to show weather or traffic forecasts for an entire shipping route. Additional data can reveal other potential route disruptions. Artificial intelligence can then generate detailed heat maps for different transportation lanes or regions, highlighting segments that present the greatest risk.

For shipments in the planning or transit phase, machine learning modeling can make risk-adjusted ETA predictions to provide accurate and updated arrival estimates.

Houston, We Have a Problem

Risk assessment platforms can forecast supply catastrophes. Critical compounds or raw materials are often placed together in specific geographic locations to be close to processing expertise. These geographic clusters are prone to area-wide problems that can lead to catastrophes.

For example, Houston is home to 39% of the waterborne chemicals industry and is at increased risk for disruptions from hurricanes. A category 4 hurricane making landfall in Southeast Texas provides a significant risk for widespread chemical supply chain disruptions.

With risk analysis platforms, companies can customize alerts to monitor specific regions, facilities, or materials. Early warnings can guide a company to declare force majeure, for example, and avoid late delivery penalties or look for additional mitigation strategies or alternative suppliers.

Companies can stay ahead of compliance with risk analysis tools. Utilizing predictive analytics technology, chemical companies can rate the likelihood of emerging regulations and plan for the necessary process changes.

Legislation changes can trigger supply slowdowns as suppliers respond. For example, an explosion at a chemical company can set off a wave of industrial safety inspection campaigns. These campaigns usually trigger nationwide production halts, plant closures, and industrial zone shutdowns.

Risk is an inherent part of chemicals procurement, production, and transportation, but predictive analytics enables companies to visualize and rate multiple types of risk before they materialize. Once a company fully integrates a risk assessment system, it can predict, monitor, and minimize dangerous threats and conditions. This helps establish new levels of safety and security, mitigation strategies, and recommended alternatives, thus lowering supply chain risk.

$317.17 billion

That’s the estimated size of the chemical logistics market by 2026, according to The Business Research Company’s Chemical Logistics Global Market Report 2022.

The figure represents a compound annual growth rate (CAGR) of 3.9% over the next 5 years. For 2022, the chemical logistics market size will grow to $271.73 billion, up 7.9% from $251.94 billion in 2021, the report predicts.

A: TLC got its start working closely with distribution companies moving liquid bulk chemicals. After time, we expanded our business to moving a multitude of commodities in bulk tankers, dry vans, intermodally via rail, repackaging, warehousing, and international freight forwarding.

Q: How do you see the third-party logistics market in relation to the logistics industry?

A: Third-party logistics and logistic brokers play a vital role in connecting small/medium-sized businesses to the wider logistics market. Smaller businesses might not have the resources available to have dedicated personnel to develop relationships with carriers, or know where certain market values should be for their freight.

At TLC, we strive to empower these businesses and place importance on developing those relationships with both existing and new carriers. We’re always looking to the future for growth opportunities, and this attitude allows us to remain competitive while maintaining positive relationships with our customers. It also permits us to expand our coverage footprint—giving our customers more access to shipping locations, as well as leveraging negotiating power.

Q: Why should a shipper consider working with a third-party logistics company compared to asset-based or owner-operator firms?

A: A third-party logistics company works with many different carriers with a multitude of capabilities over a larger area, as opposed to working with asset-based/owner-operators that tend to have extremely limited capabilities or coverage areas.

Q: What is one piece of advice you give to your customers?

A: “Make your freight more attractive.” We have found the most success in securing capacity on businesses that cast the widest net in terms of options. Whenever we’re able to present carriers with an acceptable delivery “range” (as opposed to a single, strict appointment), or locations that have their own dedicated offloading equipment (hoses, pumps, etc.), we have noticed higher acceptance rates on the carrier’s part.

TLC dedicates itself to working closely with our customers to make sure their freight needs are attractive to the right carriers, so that their entire supply chain runs as smoothly as possible.

Q: How has the market moved towards rail and intermodal, compared to liquid bulk and dry van freight?

A: Intermodal and rail are typically a cheaper alternative to shipping commodities that are less time-sensitive in their delivery windows. However, there is a positive correlation that people tend to worry less about the time-sensitivity of using intermodal and rail when OTR (over the road) dry vans/tankers become more expensive.

Q: What strengths does TLC possess as a third-party logistics broker?

A: TLC offers a wide range of different capabilities pertinent to logistics. Our tracking and communication technologies allow us to partner with carriers, warehouses, and repackaging facilities, while being able to relay up-to-date information to our customers at a moment’s notice.

Yet chemical logistics companies are confronting the same challenges—capacity and labor shortages, geopolitical upheaval, port congestion, and factory slowdowns—impacting supply chain and logistics functions in all industries. On top of the supply chain challenges most companies face, chemical logistics companies face additional challenges. The total number of licensed truck drivers able to carry hazardous materials makes for an even smaller pool to hire from, says Dustin Miles, vice president of global transportation with Rinchem Company, Inc., a provider of chemical management solutions.

Many drivers currently can earn more by driving crude fuel oil, says Randy Strutz, president of Quality Carriers, Inc., which operates the largest liquid bulk chemical trucking network in North America. “It’s a boom-and-bust business. Right now, oil prices are up, and business is booming.”

In addition, some of the chemical plants taken offline when a mammoth winter storm struck Texas in February 2021 are still recovering. While companies are generally able to access products from other plants, they’re often located farther away. “All our customers are scrambling,” Strutz says.

Another challenge is that “rates for hazardous material or tanker endorsed shipments skyrocketed 60 to 70% during much of 2021 and early 2022,” Braun says. “Supply chain volatility continues, and recently costs on the spot market have declined.”

The fragmentation of the U.S. trucking sector became even more pronounced during the pandemic, as many drivers left their fleets to start their own small businesses.

However, if diesel prices remain high while spot rates fall, the newer entrants likely will struggle. “If small owner-operators don’t know how to handle these shifts, there may be a bigger swath of bankruptcies,” Braun says. That could mean even less capacity.

Indeed, the rate of loads tendered and then rejected reached as high as 25% during 2021 and early 2022, Braun estimates. Some shippers are charged detention fees because their containers are stalled at the ports, even though they have little control over the delays.

Shippers are not the only ones penalized. “Drivers make money only when their wheels are turning,” says Curt Gonya, senior vice president, chemical and specialty products logistics with KAG Logistics. Drivers who suspect they might be delayed with one load are increasingly willing to find other loads to move.

Leveraging Technology

Challenges notwithstanding, the market for chemical logistics providers is forecast to grow by nearly 4% annually between 2020 and 2027, when it’s estimated to top $322 billion, according to Allied Market Research.

Technology is proving key in chemical logistics. “Capacity management and visibility solutions are critical,” Gonya says. Chemical logistics providers increasingly need to offer technical tools that boost shippers’ ability to access capacity and monitor their shipments throughout their order lifecycles.

Through features such as collision avoidance and lane control, technology also has helped improve safety. “While not unique to chemical logistics, it’s one of the biggest positive impacts of technology,” Strutz says.

Over the next several years, artificial intelligence solutions that can track goods coming from outside a country at the container level and provide live updates will become more mainstream, says Scott Buber, director, operations and chemical division with WSI Supply Chain Solutions.

Restructuring jobs through technology also is proving key to attracting and retaining employees. For instance, in addition to boosting pay scales and offering hiring incentives and bonuses, WSI has largely automated how it schedules trucks, Buber says. Carriers and other logistics partners can log in and edit their schedules if, say, a driver is delayed.

“The providers can manage this themselves versus coordinating through someone else,” he adds.

Intermodal as a Solution

Another tool to blunt the impact of the driver and capacity shortage is greater use of intermodal transportation.

“Moving products on domestic rail versus over-the-road allows shippers to reduce their dependence on drivers and other non-controllable factors,” says Robert Boyle, business unit leader with Odyssey Enterprise Managed Services, a unit of Odyssey Logistics.

During Q1 2022, railroads moved more chemicals than in any other quarter in history, according to the American Association of Railroads.

This is particularly true with long-haul shipments, as more drivers leverage high demand for their services to choose routes that allow them to return home most evenings, says Diane Lyons, vice president, sales, with Odyssey Tank Intermodal. Shifting portions of trips to intermodal helps address this, as rail transportation generally requires fewer employees.

Along with potentially moving to more intermodal tanks versus traditional drums or totes, some suppliers and end users source more regionally as opposed to globally, Miles says.

This approach requires rationalizing a company’s logistics networks, reevaluating just-in-time inventory strategies, and placing even more emphasis on real-time shipment tracking to understand delivery risks. “At the same time, this creates a ton of benefit by avoiding trans-Pacific logistics challenges,” Boyle says.

Becoming a Shipper of Choice

Shippers looking for ways to secure capacity will want to take steps to become shippers of choice. “For the first time we see situations where money does not buy a shipper’s way out of the situation,” Boyle says.

While rates remain important, solid forecasting; the reliability and/or repeatability of lanes; good site behavior, such as few or no delays; and predictable shipper behaviors are all essential to enabling shippers to address capacity challenges.

Another development—driverless trucks—has generated a great deal of buzz over the past few years. While it may be a way to expand final-mile capacity, it’s unlikely to make a dent in the hazardous chemical world.

“Driverless trucks are not something that will be on the forefront of solutions in the next four to five years,” says Joe Hassenfratz, sales and marketing manager with The Logistix Company.

What’s more likely is a continued shift to alternative fuel trucks, such as fuel cells and electric vehicles. Most companies, no matter where they’re located, face pressure to reduce carbon emissions in quantifiable numbers. “Everyone wants to get ahead of this before any sort of fees, taxes, or regulations are levied,” Hassenfratz says.

Longer term, all decision makers who can make a positive impact on the U.S. supply chain must work together to make it easier to do business by improving the responsiveness and resiliency of the entire transportation network, Gonya says.

While many reasons account for the poor condition of much of the U.S. infrastructure, a key one is the gap between election cycles and investments.

“Election cycles are short, and infrastructure investments are long-term,” says David Viera, chief executive officer with CLX Logistics, LLC. “Untangling the current logistics challenges isn’t simple.”

Many logistics providers, however, are taking steps to meet these challenges and ensure their clients’ products move safely, securely, and on time. “There’s great demand for creative solutions,” Viera adds.

The chemical logistics providers highlighted here offer a range of creative solutions.

CLX LOGISTICS: Configurable Solutions

Quality people, processes, and technology are key to the success of CLX Logistics. “With these three elements, we make solutions happen,” Viera says.

CLX’s technology stack is focused on chemical shippers. “It’s configured for chemical shippers and can handle the constraints they face,” Viera says.

For example, the CLX TMS (transportation management system) is the only globally deployed, enterprise-scale, software-as-a-service TMS with a focus on chemical products.

The TMS covers all regions and modes, and allows chemical shippers to plan, execute, and optimize their transportation operations, ensure delivery performance, and comply with regulations. Deployed in more than 60 chemical industry implementations, the CLX TMS offers shippers visibility and control over their day-to-day transportation operations.

Shippers can identify outliers and potential problems that require attention, and more easily manage and optimize logistics operations on any mode and region. With the TMS, shippers also can calculate the carbon impact of their shipments.

Another solution, CLX Gravity, offers advanced analytic management capabilities that can help shippers gain supply chain visibility to drive improvement, optimize spend, and reduce risk. The tool accomplishes this by pulling data from the TMS as well as other information systems.

For example, with this solution, a vice president of supply chain can access a dashboard that identifies all sites that have shipped products, and also monitor the progress of those shipments. “It’s infinitely configurable,” Viera says.

Focus on Intermodal

CLX’s focus on and experience with intermodal transportation is another way it stands apart. The company is the largest intermodal transport company and provider of domestic, door-to-door, intermodal transportation service for the bulk liquid chemical market.

Not only does this help shippers mitigate the truck driver shortage, but it also can slash transportation costs by up to 30%, when compared to domestic tank truck shipments of hazardous and non-hazardous chemicals.

The Managed Transportation solution CLX offers is a robust suite of à la carte solutions that chemical shippers can customize and adjust on demand, according to their requirements. The solutions include capacity management, brokerage, intermodal services, Gartner-recognized freight rate benchmarks and bids, carrier negotiation, rail fleet management, and detailed reporting.

By leveraging these solutions, shippers can lower costs, improve service, and fill in any gaps in their knowledge with a proven team specializing in the chemical industry.

As an example, CLX worked with a company that produces chemical pigments in Mississippi and ships them via rail to transload locations in the northeastern United States, where they’re moved to trucks and delivered to customers. CLX and the company collaborated to help book, schedule, and manage bulk tanker operations in the Northeast. The result? Streamlined, more efficient processes and reduced costs.

While technology is key, so are the people that make up CLX, Viera says. Their industry expertise and knowledge of the myriad regulations that govern the transportation of chemicals set them apart. They can help shippers optimize their spending on chemical shipments, while also ensuring they comply with the relevant regulations.

“Our employees know how to handle the freight, they know the opportunities, and they can maximize cost and performance,” Viera says.

KAG LOGISTICS: Purpose-Built Technology

A subsidiary of The Kenan Advantage Group, Inc., KAG Logistics is a leading tank truck transporter and logistics provider across North America. KAG Logistics provides industry-leading transportation management solutions and value-added logistics services designed for the chemicals, energy, specialty products, food, and merchant gas supply chains across North America.

“We were one of the first managed transportation and logistics providers in the chemical space,” says Curt Gonya, senior vice president, chemical and specialty products logistics with KAG Logistics. Supported by KAG’s resources, KAG Logistics has the capacity to grow, invest in infrastructure, and remain a leader, he adds.

Among other services, KAG Logistics offers multimodal transportation, carrier management, procurement, emergency fuels delivery, enhanced tracking and alerts, fuel management with best-buy sourcing, and inventory optimization and management.

When working with its customers, no matter their size, KAG Logistics can scale to meet their needs. “Because of our size and growth, we’ve been able to invest in technology and build a strong stable of logistics experts with a deep understanding of the chemical industry,” Gonya says.

KAG Logistics has also established a robust carrier management team with deep experience in multiple modes, Gonya says. Ongoing communication strengthens the commitment between KAG Logistics and its carrier partners, allowing the carriers to operate with maximum performance and efficiency within their desired network. A dedicated logistics team and a 24/7/365 logistics operations center offer additional support.

“Best-in-class technology solutions are core to the KAG Logistics solution set,” Gonya says. One such solution is KAG Logistics Optimate TMS, which offers both capacity management and visibility, selecting the best mode, equipment, and contract to safely and cost-effectively transport shipments.

KAG Logistics’ shipment execution technology enables optimal routing and contract compliance while meeting customers’ business rules and contract requirements.

Recognizing each customer has a unique set of transportation needs and requirements, KAG Logistics ensures its technology “is purpose built to every customer’s specifications,” Gonya says. Because the technology is based on a cloud computing architecture, it delivers exceptional performance and simplicity that allow straightforward and rapid implementations.

Enabling Improvements

When working with a large chemical shipper, KAG Logistics leveraged its solution set to view the sales and operations-planning side of the company’s supply chain and react quickly to potential challenges. The customer drastically improved its transportation cycle time and KAG Logistics earned a global supplier award for its technology, proactive communication, and capacity management ability.

Looking ahead, data and technology will remain core to KAG Logistics’ support of its chemical customers. “Data allows a deeper understanding of events, so customers can proactively confront the continuing pressures they face throughout their supply chains,” Gonya says. “Our data and technology enable chemical shippers to pivot and make better decisions.”

ODYSSEY LOGISTICS & TECHNOLOGY CORPORATION: Empowering Agility

With its origin in chemical logistics, Odyssey’s team has developed a level of expertise that sets it apart.

“Our customers can tap into the knowledge base we’ve developed over our decades of experience,” says Diane Lyons, vice president, sales, with Odyssey Tank Intermodal.

Odyssey, a multimodal logistics provider, has worked through numerous and wide-ranging challenges. It continually monitors the laws governing the transportation of hazardous and non-hazardous products, and can rely on its extensive infrastructure and ability to ship products across transport modes. These resources allow it to help chemical shippers tackle whatever challenges they may confront.

Among other services, Odyssey offers 3PL, 4PL, domestic ISO, intermodal, asset and brokerage bulk tank transport, and international transportation management. Odyssey is certified by the American Chemistry Council as a Responsible Care partner company.

Through its fully outsourced solutions, Odyssey provides the ability to manage global chemical supply chains.

“We essentially take over the logistics function for a chemical manufacturer,” says Robert Boyle, business unit leader with Odyssey Enterprise Managed Services, a unit of Odyssey Logistics.

Along with handling the basic blocking and tackling of chemical logistics, Odyssey can tap into its multiple divisions to leverage a range of synergies. “We have the capacity to craft end-to-end logistics solutions,” Boyle adds.

The company’s logistics experts can apply their analytical skills to identify opportunities for greater efficiency and effectiveness and provide increased visibility and control.

Among other initiatives, the at Odyssey team is dedicated to developing technology that allows shippers to quickly and automatically access capacity, and carriers to bid on lanes.

Leveraging the Network

As a leading provider of bulk intermodal services across North America, Odyssey’s chemical ISO tanks utilize an extensive rail network for the long-haul portions of domestic shipments. This helps address the cost, capacity, and sustainability challenges of shipping bulk over long distances.

Odyssey’s leadership team is evaluating a new service to use rail farther into Mexico. Currently, Odyssey typically rails to Laredo, Texas, and then trucks shipments from there. “Intermodal allows the existing driver pool to be more efficient by shifting the long-haul portion of the move to rail,” Lyons says.

On top of that, intermodal offers the unique ability to turn long-haul freight into more appealing local work for many truck drivers. “Intermodal can help play a part in attracting more drivers to the industry by changing the parameters of the shipments,” she adds.

Through its Cloverleaf Program, Odyssey helps clients address their Scope 3 sustainability reporting challenges and measure and optimize sustainability, service, and cost, Boyle says. The Cloverleaf Program, has also helped Odyssey to optimize nearly 1.2 billion miles to more sustainable modes and reduce yearly carbon dioxide emissions by more than 489,000 tons in 2021, among other achievements.

Moving forward, Odyssey’s initiatives will be centered around two core aspects: market awareness and technology. Quick changes in market dynamics are to be expected in the future, Boyle notes.

Odyssey’s ability to respond to these changes in real time will be critical. To that end, Odyssey devotes a great deal of resources to helping customers determine how to spend their transportation budgets most effectively, while meeting their business requirements.

“Combining multimodal services with the ability to be technology-forward allows us to focus on our customers’ specific needs,” Lyons says. “We help them navigate current and future market challenges, while empowering a more agile supply chain.”

QUALITY CARRIERS: Experience and Scale

Quality Carriers, a division of leading transportation supplier CSX Corporation, has designed new domestic intermodal ISO tanks that can offer a safe, efficient rail option for chemical shipments. Randy Strutz, president, notes that bulk chemical intermodal shipments haven’t gained much traction in the chemical industry in the United States.

“We designed the equipment to U.S. standards with U.S. fittings, ground level vapor recovery, and other features to make it easier for customers to switch to intermodal from over-the-road,” Strutz says.

The newly designed tank, for which a patent is pending, is scheduled to hit the market in summer 2022. For deliveries, among other advances, it uses a slider chassis so that the rear valves are flush with the bumper, allowing for safer unloading.

“The tank provides a simple, safe, environmentally friendly conversion option for customers,” Strutz says.

Long-Term Expertise

This advance is just one benefit of Quality’s long history in the chemical transportation industry. The company has been transporting goods and materials since 1913, when founder B. F. Leaman began delivering lime and milk in Lancaster County, Pennsylvania, from a single Pierce Arrow truck.

From that modest start, Quality Carriers, now based in Tampa, Florida, operates more than 2,500 trucks and 7,400 trailers, making it North America’s largest bulk tank trucking fleet. A network of more than 100 company-owned and affiliate terminals and facilities across the United States, Canada, and Mexico supports Quality’s drivers. “We have the scale to handle all business anywhere in North America,” Strutz says.

Quality Carriers and its employees bring to each customer and shipment the experience they’ve gained from more than one century of delivering freight. That experience, along with Quality’s size, means it can handle almost every customer’s requirements and meet even extended surges in demand.

“We provide a lot of custom equipment solutions that other companies won’t touch,” Strutz says.

Another point of differentiation is the volume of chemical shipments Quality Carriers handles that require crossing the U.S.-Mexico border. “When transporting chemicals, these trips can be difficult to navigate, but we have the experience to handle them,” Strutz says.

Quality Carriers is a registered SmartWay Transport Partner. Through this program, it’s committed to reducing its environmental footprint and advancing supply chain sustainability by measuring, benchmarking, and improving freight transportation efficiency.

RINCHEM COMPANY: End-to-End Solutions

A global provider of chemical management solutions, Rinchem thrives when applying its expertise against the fiercest obstacles to create and manage safe and efficient supply chains for high-purity, pre-packaged chemicals, and gases.

“We want the most demanding and challenging customers and supply chains,” says Dustin Miles, vice president of global transportation. “We thrive on building end-to-end, custom solutions that tackle these challenges.”

Through its global network, Rinchem safely handles more than 4 billion pounds of chemicals and gases each year. It is a leader in end-to-end, cold-chain chemical management with operations in the United States, Israel, Ireland, South Korea, Malaysia, and Taiwan. Rinchem works to manage the entire supply chain process with full visibility, while many other companies must involve several partners to execute, Miles says.

Rinchem’s diverse network of warehouses are temperature-controlled and comply with relevant hazardous materials regulations. In conjunction, its global fleet of more than 300 hazmat-trained drivers operates temperature-controlled trucks and trailers customized to handle hazardous materials.

As an owner of three trucking companies, Rinchem offers industry-leading pay and numerous regional, “pony express” routes so drivers can get home more often. This has been helpful in addressing some of the driver shortages, Miles says.

Chem-Star®, a proprietary web-enabled warehousing and transportation management system, provides inventory visibility across Rinchem’s network of warehouses. “Our customers expressed the desire to track their freight,” Miles says. “We listened to them and soon made technology advancements to develop our ‘glass pipeline.'”

Chem-Star is available to Rinchem customers at any time and offers an expansive range of real-time inventory queries and reports.

Within its warehouses, Rinchem leverages radio frequency barcoding technology to improve receiving, picking speed, and accuracy. It also offers direct customer web access and eliminates human error caused by keystroke entries or misplaced documents.

Increasing Capacity

In response to current supply chain challenges, Rinchem leverages its buying power with its preferred carriers and even chartered vessels to capture space and minimize the supply chain risk to its clients. “We’ve become more proactive and creative in adjusting to this new normal,” Miles says.

Rinchem expanded its service capabilities by growing its asset fleet and acquiring two strategic trucking companies. Carolina Tank Lines specializes in refrigerated, dry van, hazmat, and pharmaceutical freight. Rinchem also purchased JS Transportation in Taiwan, the market leader for spec gas transport in the semiconductor industry.

These additions, plus Rinchem’s established U.S.-based CGL Transportation and its global Rinchem Trucking fleets, provide increased capacity in full-truckload, less-than-truckload, final mile, temp-control LTL, refrigeration, hazardous, and bulk offerings.

Rinchem continues to enhance its service offerings, including intermodal tank yards in the United States, Asia, and Israel; it’s also planning to offer these in Europe. Among other steps, and following customer requests for the service, it’s evaluating the purchase of ISO tanks for chemical suppliers or semiconductor manufacturers. This would free them from the capital outlay and the maintenance these tanks require.

“We continue to expand through organic growth and acquisitions, and we’re looking to increase our service offerings to best meet our customers’ needs,” Miles says.

THE LOGISTICS COMPANY: From Soup to Nuts

The members of The Logistix Company’s (TLC) leadership team each bring at least 15 to 20 years of experience, says Joe Hassenfratz, sales and marketing manager. Their experience, along with the company’s national network of carriers and service providers, enable TLC to provide a diverse suite of offerings.

Among other capabilities, TLC offers steaming and anti-freeze facilities, liquid bulk and less-than-truckload shipments, warehousing, international freight forwarding, customs clearing, and rail transit.

In addition to standard dry van shipments, TLC can arrange refrigerated, temperature-controlled shipments, international shipments, and blind/double-blind options.

“There’s not a transportation lane or need with which we haven’t had some partnership,” Hassenfratz says. “We offer diverse capabilities paired with excellent customer service.”

Asking the Right Questions

TLC’s expertise also means it knows the questions to ask to ensure it can properly handle complex chemical shipments. “We’ve dealt with a range of scenarios and lean on that experience to ask the right questions,” Hassenfratz says.

For instance, before drivers can legally handle some shipments, they need specific documentation or classification. Similarly, transporting some liquid bulk chemicals requires specific equipment. TLC checks for all this, boosting safety and helping to avoid delays and potential fines.

For example, TLC had been working with a company that was importing ISO tanks. However, the company lacked the customs approval and documentation needed to move the tanks into the United States. TLC’s legal team worked with the company to help it properly obtain the documents needed to gain customs approval.

That wasn’t the end of TLC’s role, however. Once the tanks made it to the United States, the company’s customer couldn’t accept them because it lacked the necessary equipment. TLC arranged drayage so the tanks could be moved from the Port of New York & New Jersey, transloaded into totes, and efficiently distributed to the end user. “From soup to nuts, we can provide solutions,” Hassenfratz says.

When it comes to transporting goods via ocean vessel or intermodal shipment (railroad), TLC’s decades of experience managing ISO and 20- or 40-foot shipping containers come into play.

Along with managing the movement of physical freight, TLC understands import/export processes, customs brokerage, shipment tracking, how to move goods in and around ports, and transloading, among other functions.

Through its years of logistics experience, TLC has been able to build a private fleet of carriers to transport freight across the nation and around the globe. These carriers are experienced and eager to grow and develop with TLC’s customer base.

As a result of the range of solutions it offers, its network of carriers and other business partners, and the quality service it provides, TLC has enjoyed outstanding growth over the past two years.

“We are looking to continue that,” Hassenfratz says. “Customers want to solve their supply chain needs and we can provide those solutions.”

TRINITY LOGISTICS: Ongoing Quality Service

Trinity Logistics is one of a few companies in the logistics arena with a largely female leadership team, many of whom started at entry-level jobs and then worked their way up. This approach, along with focus on its employees and business partners, helped Trinity recently reach $1 billion in rolling 12-month revenue.

“That was a huge benchmark,” says Jennifer Braun, vice president of Kansas City operations with Trinity Logistics.

To celebrate and reward the employees who made this milestone possible, the company held several giveaways; among them were two cars.

As a unit of Burris Logistics Company, Trinity, which has been a Responsible Care Partner since 2009, can provide the resources and solutions required to meet the needs of any size customer and working in any transportation mode.

Among the services it offers are drayage, ISO, access to C-TPAT providers, pollution liability coverage, business intelligence and reporting, cybersecurity and emergency preparedness, and the technology to track and measure shipments.

“We take a customized approach to working with customers, and provide each one with a single point of contact,” Braun says.

Trinity brings more than 40 years of experience in shipping hazardous materials and complies with the Department of Transportation’s HM-232 Hazmat security plan regulations. Its industry-leading operating procedures help ensure safety, and the Trinity compliance team monitors carrier certificates to ensure its trucking companies and driver partners also comply with regulations.

Shippers benefit from Trinity’s market knowledge and ability to be nimble, quickly pivoting to ensure their costs decline when the market fluctuates downward, Braun notes.

Optimizing Via Technology

Technology is a core element of Trinity’s services. The Managed Services solution handles clients’ logistics functions, enabling these companies to gain control and visibility of their shipments. This solution can integrate with customers’ operating systems, minimizing the need for calls and emails to check the status of their shipments, no matter the mode.

The Managed Services solution also tracks every piece of information, such as package size and weight, on each shipment. It can even calculate the price per gallon to ship, for instance, from California to Texas, and then show how this varies by month.

The solution can provide this information in a continual feed. By leveraging this data, shippers can determine information such as their most frequently used lanes, while identifying ways to contain costs and enhance service. “With this information, we can help customers make optimal moves,” Braun says.

In one case, a global agricultural company leveraged Trinity’s Managed Services solution to improve on-time performance and cut costs. Based on several independent analyses, Trinity’s Managed Services solution consistently helps lower the company’s total freight expenditures to about 15% below prevailing market rates.

In addition, all customers, including those that aren’t using Managed Services, can leverage Trinity’s online portal to access information on shipments, quotes, payments, and place and track shipments they’ve placed with Trinity.

Along with its technology, the team at Trinity Logistics helps differentiate it and ensure shippers benefit from ongoing, quality service. Trinity recently added a vice president of digital strategy and a director of user experience, with a goal of ensuring all customer interactions are positive and productive.

Trinity continues to improve and expand, most recently adding a location in Scottsdale, Arizona. It also offers a network of about 120 agents.

“Trinity is constantly looking to improve, update, and revamp,” Braun says. In doing so, they’re helping customers optimize their transportation spend and service.

WSI SUPPLY CHAIN SOLUTIONS: One-Stop Source

For more than 50 years, WSI has provided reliable, integrated third-party logistics. It is one of the largest privately held 3PL solutions providers in the country, with a family of companies that includes: Warehouse Specialists, LLC; Material Logistics & Services, LLC (MLS); Fulfillment Specialists of America, Inc. (FSA); American Warehouse, LLC; WSI Transportation, LLC; and WSI Freight Solutions.

WSI’s Materials Logistics & Services (MLS) division offers a range of chemical logistics solutions, including transportation, warehousing and storage, distribution, sampling, blending, and packaging. The company can offer custom chemical packaging in virtually all forms and sizes, including drums, boxes, and bags. Its reliable and capable global transportation network includes intermodal shipping capabilities.

Because of the broad range of services it provides, chemical shippers can turn to WSI as a one-stop source for chemical logistics. In fact, WSI provides chemical logistics services for some of the top chemical companies worldwide. Its Material Logistics & Services, LLC division brings extensive experience in safely and efficiently handling hazardous and non-hazardous materials in accordance with environmental regulations.

WSI was one of the first 3PLs to earn Responsible Care Partner accreditation. “It’s not just how we do things, but who we are,” says Scott Buber, director, operations and chemical division. “In a specialized field, we planted our flag and said, ‘This is who we are, and how we’ll operate, communicate, document, ensure safety, and maintain our sites, day in and day out.'”

For instance, employees at all WSI sites know how to safely respond if they receive a leaking drum. They know the steps needed to eliminate the leak and ensure employees and nearby communities are safe.

In addition, WSI establishes partnerships with local regulatory agencies, like fire departments and planning commissions, and works with them to ensure safety across the communities in which they operate.

“That sets us apart,” Buber says. WSI is working hard to dispel the sometimes inaccurate, often negative stereotypes around chemical warehouses and operations, he adds.

In addition to its emphasis on safety, WSI works closely with clients to help them manage their chemical transportation spending as effectively as possible. For instance, one client’s manufacturing plant was located about one mile from a WSI distribution facility. Yet, the client had been shipping its product, a polymer, about 50 miles away for processing, before returning it to the WSI facility.

WSI invested in the equipment needed to process the polymer, and constructed a clean processing area within the warehouse, complete with air filters to contain the dust produced. This enabled WSI to process, package, store, and distribute the product, eliminating the need for the product to travel for processing.

As a result, the company saves hundreds of thousands of dollars in transportation costs annually, while also cutting lead times and inventory levels.

“We look outside our own box,” Buber says. “We ask customers how we can partner with them to boost their performance.”

Researchers used genetic engineering to create a strain of E. coli that converts one of the chemicals used to make plastic into vanillin.

Because vanillin can produce many other higher value-added products, this is a big step toward a circular supply chain for plastics, researchers say, because it transforms plastic waste into a usable material.

Researchers plan to optimize and scale the reaction, and explore how to make other valuable molecules from plastic waste.

Early in the pandemic, demand for cleaning and sanitizing products prompted both price increases and supply shortages. For example, the price for isopropyl alcohol—a component in many sanitizers—more than tripled between March 10 and March 20, 2020, jumping from about $880 to $3,160 per metric ton.

“The pandemic created a volatile and vulnerable supply chain that turned inventory levels upside down,” says Curt Gonya, senior vice president, chemicals and specialty products with KAG Logistics. “The surges in some industries and the devastation in others was very real.”

Capacity Constrained

Along with price jumps and commodity shortages, transportation capacity was strained. The limited availability of cylinders and cryogenic storage tanks made it difficult to ship supplies.

The container shortage was largely due to uneven trade fluctuations. “If the rising water had lifted all boats at the same time, we would have been in better shape,” notes Jade Rodysill, Americas chemicals and advanced materials industry leader with EY.

In ground transportation, the driver shortage impacted many shipments, including fuel supplies, as not enough drivers were available to transport petroleum, says Chris Wright, senior vice president of operations with Rinchem Company, Inc., a chemical logistics provider.

The capacity challenges extended to the ports, where some ships waited weeks to discharge their loads. Several factors drove the delays, including the need to comply with social distancing requirements and use fewer employees, as well as absences due to workers who either needed to quarantine or became sick, says Scott Buber, director of chemical operations with WSI, a logistics provider based in Appleton, Wisconsin.

While port congestion is nothing new, most previous instances were isolated and short term, and often caused by regional weather events or specific geopolitical challenges, says Dustin Miles, director of global transportation, Rinchem. During the pandemic, congestion and disruption were global, and they continue to present challenges. Managing these hurdles requires a lot of thought and planning.

Warehouse space was similarly scarce, Buber says. Adding to the challenge, only a few areas within the United States have the capability to store certain products, such as substances that requiretemperature-controlled storage, ignition control, ventilation, and/or proper segregation.

Extraordinary Times

The development of COVID-19 vaccines also consumed transportation infrastructure and drivers, leaving fewer resources to handle other chemicals. “It was one of the first times a vaccine had been mass produced to this scale,” says Joe Hassenfratz, sales and marketing manager with The Logistix Company.

Adding another obstacle, the COVID vaccine products that are based on mRNA technology require temperature-controlled environments for storage and transport. This drove a spike in demand for dry ice. “Chemical logistics providers had to scrape through every bit of capacity available to meet the pressing concerns,” Kaitwade says.

In the United States and other markets, logistics providers directly partnered with dry ice manufacturers and providers on a scale never seen before, he adds.

The weather also presented unwanted surprises. Early in 2021, severe winter weather caused nearly every major chemical complex in Texas to shut down. “It’s the first time I’ve seen gas stations without fuel,” Buber says.

Add to this a fluke event like the Ever Given, a 20,000-TEU container ship, getting stuck in the Suez Canal for about a week. A chunk of world trade stopped during this time.

Cyberattacks against steamships, pipelines, and logistics providers add more uncertainty. The May 2021 attack against Colonial Pipeline Co. forced it to shut operations for a week. A 2020 Government Accountability Office study found the cybersecurity guidance governing 3,300 high-risk chemical facilities across the United States hadn’t been updated in more than 10 years. Without a program of regular review, the facilities could be more vulnerable to cyber-related threats, the report stated.

Navigating the Obstacles

Over the past few years, some chemical shippers have relocated their sources of raw materials, adapting to changes in tax regulations and tariff agreements, says David Vieira, chief executive officer with CLX Logistics. For instance, a product that had been sourced in North America might now be sourced in Asia. Managing these new supply chains “requires a different set of skills,” he adds.

In response, logistics providers “dialed up” tactics on which they’ve long relied to manage congestion and weather events, Rodysill says. These include shifting modes or adding locations, such as ports, to boost their ability to work around congestion. Promptly paying carriers, who often work on thin margins, also helps secure access to capacity.

Logistics companies also are seeking ways to use less fuel, given how the cost of diesel fuel rose by more than one-third, while the cost for gasoline jumped 65% over the past year. An added benefit: these efforts reduce the environmental impact of shipments.

Many logistics providers are relying more extensively on automation to minimize delays that can occur due to human errors, Buber says. Typical human errors include incorrect quantities or types of products being shipped, and inventory mistakes.

Visibility solutions that let companies know the location of their products in shipment, enabling them to act to counter any delays, also are attracting interest. Before a company can determine whether to change its sourcing strategy or inventory policies, it needs visibility to these functions, says Bob Boyle, vice president, North American managed logistics services with Odyssey Logistics & Technology.

Data is similarly key. “The proper use of data, as part of collaborating with customers and carriers, allows for faster recovery and improved service within the various segments of an organization’s supply chain,” Gonya says.

Growing Market

Shippers’ need for visibility and leverage with carriers is a positive for many logistics providers, as it’s prompting a growing number of chemical shippers to use their services, Rodysill says. Valued at about $253.7 billion in 2019, the global chemical logistics market is forecast to reach $322.5 billion by 2027, for a compound annual growth rate of 3.9%, according to Allied Market Research.

The macro changes impacting chemical logistics show no sign of slowing down. A more holistic approach to network modeling has become critical, Rodysill says. That means evaluating physical logistics networks on a global—rather than regional—basis and considering all costs, such as taxes, tariffs, and others. This in-depth analysis helps pinpoint where it makes sense to add inventory and where to stay lean.

Adding inventory tends to make sense when you can drive more sales at higher margins. Conversely, when managing regulated products, keeping inventory levels lean and expediting shipments to a location, when needed, can be more cost-effective, Rodysill says, since it’s generally harder to move this inventory between countries, as regulations often differ.

Given the futility of trying to predict how regulations might change, the ability to model various scenarios becomes even more critical, Rodysill says. If a model shows a 25% chance a shift will go one way, and a 30% chance it will go another, organizations can decide how to plan for each possibility.

Stakeholders from the chemical logistics sector should increase collaboration with regulators across the globe to bring about “standardization and regulatory singularity,” says Kaitwade. This would allow more seamless transactions between markets with different regulatory regimes.

To ensure quality talent remains in the sector, a focus on improving the workplace environment also is key, Kaitwade says. This includes not only health and safety, but wage rates and other benefits.

The companies profiled here have been navigating the recent challenges with intelligence, dedication, and a commitment to their clients and the important work they’re doing.

CLX Logistics: Providing Economic Value

The goal of every employee at CLX Logistics is “to provide economic value to our customers,” says CEO David Vieira.

By drawing on its extensive history in the chemical logistics sector, CLX Logistics can provide the knowledge, technology, services, and processes needed to meet this goal, whether its clients are trying to optimize their distribution network, rein in costs, or enhance shipment security.

CLX experts can help clients model their supply chains and determine which locations will be most effective for their operations. As part of that analysis, CLX can draw on extensive freight cost benchmarking data it has amassed, in part through its partnership with BluJay Solutions.

Another CLX offering, Gravity, provides enhanced data analytics and extensive data integration capabilities. It’s able to work with information its customers generate internally or capture from external sources.

CLX LaneLogix™ offers freight cost and service level benchmarking. This software, which has been developed specifically for the chemical industry over the past 20 years, incorporates requirements particular to chemical shipments, such as dangerous goods, equipment, and service requirements.

“It does not compare the rate for a chemical shipment with, for instance, the rate for a food shipment,” Vieira says.

A chemical company with more than $100 million in annual transportation spend across multiple lanes and modes and with a mix of products turned to CLX to benchmark its costs and evaluate its procurement strategy. By leveraging its expertise and LaneLogix’s capabilities, CLX was able to analyze the company’s contracts and costs and gain visibility to all modes across the company’s global network.

CLX then worked with the company to optimize its chemical supply chain. Among other results, CLX identified savings of about 9 million euros (US$10.9 million), as well as opportunities to reduce complexity by combining and managing disparate systems.

In some organizations, the inbound logistics function doesn’t always receive the attention it deserves from chemical shippers. “If you’re not looking at your supply chain both ways—inbound and outbound—you’re leaving a lot on the table,” Vieira says.

CLX works with clients to boost carrier utilization on both inbound and outbound loads. Vieira notes that a professional procurement function, like CLX can provide, is key to managing the financial pressures most companies face today.

CLX developed a new product, Global Special Products, to handle oversized shipments. One client using this service moves containment units for spent nuclear rods, which can weigh more than 225,000 pounds. This is just one example of how clients count on CLX to consistently deliver the solutions they need.

“Every day, the CLX team works with our customers to find creative solutions to their challenges,” Vieira says.

KAG Logistics: People and Process Prowess

A critical component of the success KAG Logistics has enjoyed is its people.

“You win with people,” says Curt Gonya, senior vice president, chemicals and specialty products. “Our people are logistics experts with a deep understanding of the chemical industry.”

KAG’s culture fosters excellence and drives individuals to be the best they can, he adds.

KAG Logistics, based in North Canton, Ohio, serves multiple verticals across North America, including fuel, renewable energy, chemicals, food, and merchant gas supply chains. Its transportation management solutions include multimodal transportation, brokerage, dedicated transportation solutions and carrier management, and procurement. KAG also offers enhanced tracking and alerts (ETA), fuel management, inventory optimization, and other value-added logistics services.

As a wholly owned subsidiary of The Kenan Advantage Group, Inc., KAG Logistics can offer a range of unique transportation solutions, building on KAG’s North American bulk transportation network. “Our size and scalability allow KAG Logistics to act as extensions of our customers’ transportation and logistics functions,” Gonya says.

Along with its people, process is key. “KAG employs proven processes, time-tested to be best practices,” Gonya says. Its solutions are tailored to meet client-specific needs. KAG’s scale and access to big data allow it to deal with each customer individually, while simultaneously driving collaboration with its customer and carrier base, to provide solutions that benefit all involved.

Leading technology solutions also underpin KAG’s logistics offerings. Among other solutions, KAG Logistics’ Optimate TMS selects the right mode, equipment, and contract to safely and cost-effectively transport customers’ shipments. Shipment plans are routed to the optimal routes and contracts, while complying with customers’ business rules. This reins in costs while ensuring contract requirements are met. Optimate TMS is supported by a dedicated logistics team and a 24/7/365 Logistics Operations Center.

KAG’s visibility solution, Enhanced Tracking and Alert Solutions, or ETA, continually tracks each load’s location and status and provides real-time visibility, no matter the carrier. It also issues alerts when shipments may be late or disrupted. This comprehensive visibility to all shipments in transit allows supply chain executives to manage by exception.

“Over the years, KAG Logistics has undergone significant growth,” Gonya says. The experience and expertise it has gained has helped it withstand the challenges of the past year, he adds.

KAG plans to build on its success. “Our vision is to continue to grow and evolve, while staying at the forefront of our contemporaries,” Gonya says. “We will do this with a focus on our people and delivering every load on time and without incident.”

Odyssey Logistics & Technology: Leveraging Data Insights

Odysseus, the hero of Homer’s poem Odyssey, was known for the wisdom and strength he displayed when encountering challenges on his travels. Odyssey Logistics & Technology demonstrates similar qualities in ensuring its customers’ shipments, which are valued at about $60 billion annually, arrive at their destinations safely and on schedule.

“Chemical logistics is in our genes,” says Bob Boyle, vice president. Its employees possess in-depth knowledge of chemical logistics and the regulations governing these shipments. Odyssey offers end-to-end logistics services, including shipment planning and execution, managed logistics services, intermodal and truck services, among others.

When Odyssey deploys these services, its customers look for several attributes: visibility, along with education and information, Boyle says. To provide these, Odyssey has invested in real-time data acquisition and business intelligence solutions, as well as network modeling software and GPS-enabled tracking.

With these tools, data isn’t merely collected; it’s also made available to customers, who can leverage it to inform and improve their decision-making. If the technology shows shipments are at risk, Odyssey’s clients can work with their customers to mitigate any repercussions.

Members of Odyssey’s continuous improvement program regularly meet with clients to review operational data and recommend opportunities to boost efficiency or cut costs and the environmental impact of its shipments.

Say a shipper is delivering a less-than-truckload shipment once a day, several days a week. Odyssey works with the customer to examine the feasibility of sending a truckload shipment once or twice weekly. “We’re able to use data to create actionable steps forward,” Boyle says.

Because Odyssey has invested heavily in API integrations, it’s able to bring in third-party information that can help in more effectively managing shipments. In 2020, this included the maps that showed COVID outbreaks across the United States. Odyssey could then identify shipments either coming from or heading to highly impacted areas and plan alternative routes as needed, Boyle says.

Odyssey’s sample fulfillment service boasts a 99.99978% accuracy rate in safely storing, packaging, and shipping more than 12 million samples of both hazardous and non-hazardous materials.

Odyssey has earned acceptance into the American Chemistry Council’s (ACC) Responsible Care partnership program, and also is an EPA SmartWay Partner. An independent third party regularly audits the company’s safety, health, environment, and security principles.

“We incorporate sustainability initiatives into all our logistics and supply chain strategies,” Boyle says. This might mean shifting from trucks to rail or consolidating LTL to truckload shipments when practical. Odyssey also evaluates the carriers with which it works to make sure they’re similarly focused on reliability, safety, and sustainability.

Customers’ interest in visibility, reliability, and sustainability appears likely to continue. The network studies that Odyssey conducts provide “a control tower view” that allows its customers to optimize network flows.

“With this level of visibility, our clients enjoy an immediate improvement in performance and environmental impact,” Boyle says.

Rinchem: Solely Focused on Chemicals

For more than four decades, Rinchem Company Inc. has provided first-class logistics management and supply chain solutions specifically for temperature-controlled hazardous chemicals and gases.

“The chemical industry is not a vertical that we serve, it is the sole focus of our business,” says Chris Wright, senior vice president, operations with the Albuquerque, New Mexico-based firm. Rinchem provides storage, handling, and transportation services covering final mile, interstate, ocean, and air shipments.

Chemical manufacturers and end users alike benefit from Rinchem’s global network. It provides the flexibility needed to scale without significant investment in infrastructure or employee training. “Our assets, employees, systems, and expertise are customized for managing chemicals and gases on a global scale,” says Dustin Miles, director of global transportation.

Chem-Star®, Rinchem’s proprietary software, seamlessly links Rinchem’s transportation and warehousing networks, providing customers with real-time visibility into inventory location and status. GPS tracking technology deployed in Rinchem’s fleet of refrigerated tractors and trailers enhances security and visibility. The company’s use of radio frequency technology boosts receiving and picking speed and accuracy.

Rinchem has accelerated its investment cycle to address customer needs. It continues to invest in its network’s global infrastructure, with expansions in several U.S. states, as well as Israel, Taiwan, and South Korea.

To address the driver shortage, Rinchem has strategically acquired and partnered with select carriers that are experts in handling hazardous materials. This strategy enables Rinchem to leverage a range of assets, Miles says.

Rinchem also continues to invest in the newest equipment, driver amenities, and competitive compensation models. “These show how important drivers are to our business,” Wright says.

To ensure access to capacity, particularly over the past year, Rinchem worked closely with its carrier partners, repositioned equipment, and increased its equipment pool. The breadth of its carrier relationships has been key in gaining access to capacity. Rinchem also has broadened its partnerships to include multiple ocean providers, further ensuring access to capacity. To minimize delays, Rinchem has developed relations with operators at multiple ports and diversified its routes.

“We’ll continue to do all we can to ensure our customers’ shipments move safely and on time,” Miles adds.

And even as freight rates have jumped, Rinchem is able to leverage its global buying power and its strong carrier relationships to access the best rates possible and rein in costs, Miles says.

A significant portion of Rinchem’s business is directly related to the semiconductor industry and the process chemicals used to fabricate microchips, Wright says. For years, the geographic locations for semiconductor fabs (fabrication plants) have been shifting to Asia Pacific countries such as Taiwan and South Korea.

However, the recent global chip shortage and the resulting impact on U.S. manufacturing have prompted the federal government to earmark $50 billion for expansion and research. Multiple leaders in semiconductor manufacturing have announced multi-billion-dollar investments in Arizona, New Mexico, and other markets in the United States. “This is very exciting,” Wright says. “Rinchem will be there to support them.”

The Logistix Company: Nimbleness and Expertise

From its base in North Kingstown, Rhode Island, The Logistix Company (TLC) has gained years of experience and expertise moving a range of chemicals and managing shipments for entire supply chains, says Joe Hassenfratz, sales and marketing manager.

TLC’s expertise ranges from handling dry and liquid bulk chemicals, to managing over-the-road, less-than-truckload, and truckload shipments, and leveraging ocean, air, and intermodal options.

TLC also provides transloading services. In addition, TLC employees can arrange international moves across North and South America. Intermodal transportation can be more economical than other shipping methods, Hassenfratz notes.

At the same time, intermodal transportation requires detailed and in-depth planning to ensure shipments aren’t lost or delayed due to miscommunication or regulatory concerns. TLC possesses the expertise required to ensure its shipments will move between transit modes seamlessly and accurately, he adds.

Customers who need blind or double-blind shipments to keep confidential the source of the product they’re distributing can also rely on TLC.

To complement its expertise across multiple transportation modes, TLC offers a private fleet with various storage solutions, including ISO tanks, as well as heating, steaming, and anti-freezing facilities. TLC also provides tracking and tracing systems, as well as GPS technology. “Whatever the need, we can call on our own carrier fleet or work with our partners to help facilitate it,” Hassenfratz says.

Behind the comprehensive range of capabilities TLC offers is strong, committed ownership. “They provide the resources we need to hire the best people and invest in technology,” he adds.

TLC’s relatively smaller size also is a benefit, Hassenfratz says, as it fosters nimbleness. The company is able to efficiently onboard new customers and evaluate multiple freight options. Its flexibility also allows it to quickly manage volume surges.

The company’s employees also have made a point of developing strong relationships with workers at multiple ports, particularly on the East Coast, as well as with drayage and freight companies across the country.

“Our relationships help ensure our customers’ shipments move quickly and aren’t overly delayed by congestion,” Hassenfratz says. And if one port is congested, TLC’s employees have the knowledge and relationships that allow them to quickly shift to another.

While TLC currently is a smaller logistics provider, that might not be the case for long. “We have a strong customer base and we’re looking to grow,” Hassenfratz says.

TLC’s clients recognize the value of the stellar customer service and competitive rates the company provides. They also appreciate the range of carriers with which TLC partners, and the breadth of its services. “We can manage entire supply chains, including for companies with multiple, complex operations,” Hassenfratz adds.

WSI: Above-and-Beyond Service

WSI was among the first ACC Responsible Care 3PL partners. “This shows our dedication to voluntarily operating above and beyond what’s required to ensure the safe storage, transport, sampling, packaging, and distribution of chemicals and other hazardous products,” says Scott Buber, director of chemical operations.

The company’s commitment to safe, sustainable operations has been a hallmark of operations for the approximately 30 years it has worked within the chemical industry, and is instilled in employees, from the front lines to executive leadership. “We take a lot of pride in how we operate, and we’re dedicated to providing the expertise required to meet our customers’ needs,” Buber says. WSI’s chemical facilities comply with myriad regulatory schemes, including DOT, EPA, DHS, and others.

In addition to outfitting all warehouses with the latest fire suppression and containment systems, WSI regularly invites local fire departments to conduct drills at all its chemical sites. “This helps build rapport and the firefighters become familiar with our operation,” Buber says. If anything unusual should happen, the department is prepared to respond quickly and effectively.

Given the range of services and solutions it provides, WSI can act as a single-source provider of chemical logistics solutions for many companies. Many top-tier organizations have turned to WSI for just that reason. “We’ve completed just about every function within the chemical arena,” Buber says.

Along with its emphasis on safety, WSI is working to enhance sustainability and reduce the level of emissions its operations generate. Among other steps, the company is shifting to electric lifts, upgrading equipment to cut power consumption, and installing energy-efficient lighting. WSI tracks all improvements and works to continue reducing its environmental impact.

As part of these initiatives, WSI partners with its customers to help them reduce their environmental footprint where possible. This may mean, for instance, evaluating greater use of intermodal or rail transportation. These analyses can help customers cut costs and greenhouse gas emissions.

WSI’s chemical warehouse in Council Bluffs, Iowa, is a Free Trade Zone. Customers pay no duties while storing their products, only when moving them into the domestic market. “This provides huge tax benefits, especially when bringing in products from overseas,” Buber says.

The complexity of today’s chemical industry demands flexibility and responsiveness, as well as a strong culture of safety. “Safety is not just a priority at WSI, because priorities change,” Buber says. “It’s part of our culture. We strive every day to be safe, faithful stewards of the products entrusted to us.”

Gulf Winds is constantly working to determine the best solutions for its clients. This consultative approach manifests itself through understanding the unique needs of each customer and never settling for the status quo.

For years, Houston export resin containers have been moved in standard weights of 23.375 MT. This weight allows the trucking company to use a permitted Day Cab Tractor and a standard 40-ft. chassis.

The chassis is either owned by the trucking company or managed through independent equipment providers (IEP) in conjunction with the steamship line. The weight allows the shipper to load an extra pallet of product, while taking advantage of standard chassis pool equipment.

While loading additional weight is good, there is opportunity to maximize the loading patterns and achieve significant savings long term.

In 2018, Texas passed a bill that allows for max weights to be hauled within a 30-mile corridor of the container terminal or starting point. While the increased weight savings are available, the bill mandated a specialized lightweight chassis to be used, along with specific safety features on the truck, and an annual $6,000 permit. Although an option, the costs can be prohibitive unless a shipper’s volume can offset the price of the permit and equipment.

The Solution

In working with a major chemical company on a unique plan, Gulf Winds was able to present a “middle ground” solution to allow for loading of 24.75 MT (additional pallet of product) at no additional costs. The savings would be achieved on the ocean side, through shipping fewer containers.

In this case, the shipper was able to achieve well over six-figure annual savings in total on ocean freight, chassis fees, and labor at their loading warehouse.

Months of testing and equipment engineering produced a safe, consistent, and cost-effective solution that was not readily available at this scale in the market.

Gulf Winds invested in more than 200 new lightweight chassis and a market-leading dedicated fleet of trucks for the client under a long-term contract to ensure the solution was sustainable.

Today, Gulf Winds continues to grow its customized lightweight solutions, such as gwiMax, for resin shippers in the Houston market, regularly achieving weights of up to 27 MT through specialized engineering of equipment and market expertise.

To learn more:
email: pricing@gwii.com
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