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. 

2. Maintain current safety data sheets. A product’s components, dimensions, and origins impact every process required for safe and compliant shipping, including packaging, labels, documentation, employee training, and more. Maintain current safety data sheets with complete and accurate information for all products you ship to help ensure you comply with all shipping regulations.

3. Keep up to date with regulations. Regulations can differ based on quantity, country, and transportation mode, and can continue to change. So don’t just assume that what was correct one year ago is correct today; stay up to date on the latest regulations to make the necessary changes to your shipping operations.

4. Automate compliance processes. Manual compliance processes are inefficient and can lead to errors that bring about delays, penalties and other interruptions. DG technology can automate and streamline the shipping process by producing documentation, validating shipments against the latest regulations, and more. You can then implement these repeatable and reliable processes across all locations, departments, and supply chain partners.

5. Don’t assume functionality. Many transportation and warehouse management systems and enterprise resource planning platforms lack the functionality required to fully address dangerous goods shipping processes. Don’t assume your existing systems have the compliance capabilities you need. You may need additional DG-specific software that can often integrate into your existing platforms.

6. Be aware of carrier policy changes. Carriers can impose tighter restrictions than what regulations require, or they can decline shipments altogether. Even if you’re 100% in compliance regarding training, paperwork, and packaging, individual carriers still may not accept your shipment.

7. Invest in quality training. Ensure all employees involved in shipping and handling DG receive the required training in accordance with 49 CFR 172.704. Online interactive and 3D training can help them digest complicated regulations in a more convenient and engaging format. And know where their training records are—that’s the first thing regulators request during an audit.

8. Know what ships with your goods. Compliance doesn’t pertain just to your company’s products; it also pertains to the items shipped with them. This encompasses items such as those used to regulate temperature or track shipments, including dry ice and monitors containing lithium batteries. These are regulated goods themselves and have their own rules and restrictions.

9. Don’t forget about returns. Return shipments must comply with the same hazmat rules as items shipped to consumers, and it’s the shipper’s responsibility to ensure compliance. Establish standardized returns management processes, such as providing compliant packaging with the required labels and markings, shipping all returns via ground transportation, and training customer service representatives to answer customers’ questions about return shipments.

10. Consider partnering with an expert. Shipping DG is complicated. Partner with an industry expert to help make sense of the regulations and implement the necessary processes and systems to ensure compliance across your supply chain.

SOURCE: Brian Beetz, Director of Regulatory Affairs and Corporate Responsibility, Labelmaster

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.”

Unfortunately, those responsible for DG/hazmat face an uphill battle – not only in meeting evolving regulations, but also in overcoming inadequate infrastructure and training.

According to Labelmaster’s 2017 Global Dangerous Goods Confidence Outlook, conducted to gain insights from DG pros around the world, there is general lack of confidence in their organizations’ ability to meet changing compliance mandates. What are the barriers?

• Reliance on manual processes: Despite modern technology advancements, many shippers (one-quarter of respondents) still rely on manual processes to handle DG compliance. This means searching through regulatory publications for guidance on packaging, labels, marks and documentation, as well as manually maintaining classifications for products, parts, and more.
• Resource reallocation: Companies looking to cut costs earmark DG compliance as one area to combine roles. In fact, 56 percent of hazmat pros have or expect the role of DG compliance to be combined with other roles within their organizations. Additionally, 39 percent believe their increased compliance responsibility is due to cost-cutting measures. This means shippers are entrusting this vital role to folks only partially focused on the job due to other responsibilities.
• Inadequate training & infrastructure: Handling DG can have serious operational, financial, and environmental ramifications. Of those surveyed, 33 percent are not confident that their current infrastructure and training can adopt to the changing needs of their business. Unfortunately, many organizations view training as a “necessary evil” and are simply doing just enough to comply with the stated regulations for training. Nearly half of those surveyed said their training is conducted solely to meet regulatory requirements. Likewise, 48 percent said they DO NOT believe it adds real business value.

Compliance Confidence Starts With Redefining Its Business Value

What will it take to overcome barriers these barriers? Shippers must recognize (and define) the true impact of a safe and compliant organization–beyond simply the fear of being fined. And, DG pros need to redefine their business value from a cost center to a profit center, a customer acquisition lever, and even a competitive differentiator.

Companies invest in areas they believe will grow their business profitably, and that must include DG. Their willingness to fund technology and training related to hazmat often starts at the top levels of the organization. But, for many, there is lack of awareness among company leadership regarding what those responsible for compliance actually do and how a forward-thinking hazmat shipping function can drive business growth.

Case and point: More than one third of respondents agreed their supervisors are unaware of exactly what they do. Those responsible for DG must do a better job of defining how their operations make overall warehouse and shipping operations more effective and efficient, reduce costs, and grow the customer base.

In addition, better understanding of the business value of DG compliance will open the door for organizations to embrace the power of technology. Innovative technology is available for every part of the supply chain, including DG compliance, and shippers must recognize the impact DG software has on improving compliance. In fact, according to the survey, those who invest in DG software are more likely to feel their company’s infrastructure is “advanced” versus “current but needs updating” or “lagging behind the industry.”

And, those who feel their company’s infrastructure is “advanced” were more confident in their ability to keep up with changing regulations, less likely to have shipments stopped, and more confident that their training provides real business value.

The Business Case for DG Compliance Investment

It may be an uphill battle, but those responsible for DG compliance need to elevate the conversation with executive leadership and make a real business case for why compliance technology and advanced training are critical to the organization. Consider what data and proof points would help them truly see that DG compliance equates to more than the mere cost of doing business or an avoidance of fines. Show them how compliance can ultimately impact whether an organization experiences delayed shipments that negatively impact customer service and brand equity.

Compliance is a team effort, and shippers, carriers and drivers must work together and play interdependent key roles in ensuring hazmat shipments are transported safely. By shippers giving business only to carriers well-versed in the transportation of hazmat materials, the company can ensure the shipment will remain compliant.

Defining & Identifying Hazardous Materials

Any company working with hazardous materials of any type must understand the nature of hazardous materials and the steps that should be taken to ship those goods in the safest possible manner.

By definition, a hazardous material is a substance or material that the Secretary of Transportation has determined is "capable of posing an unreasonable risk to health, safety, and property when transported in commerce and has been designated as hazardous under the federal hazardous materials transportation law." The term includes substances, hazardous waste, marine pollutants, elevated temperature materials, and other materials designated as hazardous. There is a distinction between the obvious hazardous materials, such as liquid gasoline, ammunition and explosives, and less obvious hazmat such as Class 9 commodities like lithium batteries and dry ice that don’t require the transport vehicle to be placarded for domestic transport.

Hazmat Transportation "Must Haves"

All hazard classes pose risk of fines, penalties and violations if not transported properly.

Shippers that transport hazardous materials must:

• Maintain hazmat authority (either with an Environmental Health, Safety & Security expert or an outside consultant)
• Secure qualified carriers with hazmat-certified drivers
• Ensure that only qualified and trained employees have access to any part of the hazmat operation
• Stay abreast of changing regulations
• Maintain constant vigilance over exactly what is being shipped, how it’s being shipped, and what entities are handling those shipments

Any business that uses, stores or offers chemicals of any kind should consider bringing in an expert to evaluate their processes. The risk, liability and exposure are too severe to not have a clear understanding of how to properly handle the hazardous products.

How to Qualify a Hazmat Carrier

When selecting a carrier, shippers should seek out one that has a hazmat department that offers high levels of service and either meets or exceeds safety and compliance standards. For insurance and regulatory reasons, many general commodity carriers have moved away from hauling hazmat over the last few years. Shippers should not assume that all carriers will haul hazmat or that the carriers they select will look after their best interests by ensuring shipments are compliant.

Companies should really vet the carriers they’re working with. A few steps a shipper can take to qualify a hazmat carrier are:

• Verify that the carrier utilizes stringent compliance programs that go beyond what state and federal laws require.
• Request proof of operating authority, permits, safety rating, and years in business providing hazardous materials transportation services.
• Look at the carrier’s financial stability, whether they hold appropriate insurance, whether they understand the classes of hazmat and if they employ experienced personnel.
• Meet with a carrier’s hazmat experts to discuss processes and to get insight into a carrier’s level of hazmat expertise.

Using carriers that scrutinize the hazmat shipments they accept can and does catch shipment discrepancies that could otherwise result in unsafe situations or violations at roadside DOT inspections. Such carriers minimize potential risk and liability of non-compliant shipments to the company.

There has always been some degree of risk involved in transporting dangerous goods and hazardous materials, with the responsibility for compliance typically assigned solely to the compliance or shipping department.

Today, with more than 1.4 million DG shipments being made daily in the United States and a greater number of goods now classified as hazardous, that risk has multiplied exponentially—and so have rules and regulations.

The challenge of ensuring compliance with these complex and changing regulations is made even more difficult due to responsibility shifts within many organizations, with the role of hazmat compliance now often involving a number of divisions, including IT, supply chain, compliance warehouse, shipping, EHS (environmental, health, and safety), and more.

Leading the Way in Compliance

The path to safety and compliance requires a commitment to developing the necessary infrastructure, establishing the right processes, and having the right personnel to carry it out. The result is not just enhancing your company’s brand by being a good corporate citizen, but it can also give your business a competitive edge and boost your bottom line by helping to reduce costs, mitigate risk, and virtually eliminate penalties and fines due to violations and rejected shipments.

Internal Challenges 

In addition to facing these external challenges, many companies have internal issues that affect their willingness or ability to adopt a cohesive, enterprise-wide strategy around DG compliance. For example:

• Siloed corporate structure. Some organizations have multiple divisions or facilities in which compliance responsibilities are separated by line of business, functional branch, or geographic location.
• Lack of clarity on ‘ownership’ of DG compliance. In some organizations, compliance responsibility belongs solely to the EHS department. In others, safety and environmental compliance may play only a minor role in the shipping and logistics function. Additionally, lacking C-level awareness or involvement, a cohesive DG strategy (and budget) may simply fall through the cracks.
• There isn’t room in the budget for new technology or resources. Lack of funds may be the most frequent obstacle encountered in deciding whether or not to pursue a corporate-wide safety initiative.
• Use of manual processes and resistance to change. Established companies too often have a set way of doing things and a strong resistance to change. The fact is, in today’s stringent regulatory environment, a single serious safety offense or accident can spell disaster for a company’s reputation and financial future.
• Use of printed documents or homegrown and/or disparate digital systems. Numerous businesses have begun to take steps towards integrating DG compliance best practices into their corporate culture. Unfortunately, those solely relying on printed brochures and manuals to track regulations may not realize that the print editions may be out-of-date and the rules no longer apply.

The Right Infrastructure and Resources Are Key

Companies spend millions of dollars in product development and make large investments in sales and marketing, so it’s important to leverage these investments by making sure your transportation strategies are as efficient, effective, safe, and secure as possible.

Some newer resources that can help ensure accurate DG record-keeping and compliance are easy-to-use databases and applications designed to keep key personnel informed about current regulations. Whether web-based or accessible via USB, these basic apps can inform your internal team and external partners about applicable regulations and what they mean.

For some organizations, more advanced systemic DG/hazmat software solutions automate and streamline the entire process, including accessing regulations, completing documentation, and validating each and every DG shipment.

The strict regulations governing DG/hazmat shipping are not going away and, in fact, may become even more stringent. But how your firm chooses to manage the process can make a tremendous difference. The important thing is to acknowledge that DG compliance is a worthwhile goal, not just “nice to have,” and to drive that decision forward with an investment of time, people, and budget.

• Hazardous Material Classifications

Seemingly overnight, even a product that has been used in numerous devices for decades can be considered a hazardous material. Take lithium-ion batteries, for example. In February 2016, the International Civil Aviation Organization (ICAO) announced a new safety measure prohibiting, on an interim basis, all shipments of lithium-ion batteries as cargo on passenger aircraft. Lithium-ion batteries made the news again in September 2016, when the Federal Aviation Administration advised airline passengers not to turn on, charge, or even stow in their suitcases any Samsung Galaxy Note 7 devices. This followed reports of the phones’ lithium-ion batteries igniting. ICAO develops international civil aviation standards and recommended practices.

The announcements show how quickly a product can be considered a hazardous material. Once it is, it’s subject to additional regulations when being transported. "Shippers need to realize that many items, such as lithium batteries, are considered hazardous materials when offered for transportation," says Bob McClelland, dangerous goods manager with UPS Airlines in Louisville, Ky. "To offer such goods, shippers generally have to be trained and/or educated in the requirements to ship that item."

Please Handle With Care

Organizations that want to safely ship or transport hazardous materials need educated employees and effective processes and systems. Failing to act with care and follow applicable regulations can cause injuries and fatalities. It also can ruin a company’s bottom line. Penalties for violating the rules can run into hundreds of thousands of dollars. The reputational risk, should a company’s habit of skimping on safety measures be found to have contributed to an accident, can be ruinous.

"You can’t simply hope for the best when you ship dangerous goods," says Matt Parrott, director of transportation with A.N. Deringer Inc., a provider of integrated supply chain solutions based in St. Albans, Vt.

About 2.6 billion tons of hazardous materials were shipped in 2012, according to Hazardous Materials: 2012 Economic Census: Transportation, a U.S. Department of Transportation report. About 60 percent moved by truck, 24 percent by pipeline, 11 percent by water, and 4 percent by rail.

Those numbers can vary when it comes to specific materials. The breakdown for chemicals is about 55 percent by highway, 20 percent by rail, and 20 percent by water, says Bryan Schlake, instructor of rail transportation engineering with Penn State, Altoona. Railroads tend to have a lower accident rate than trucks because drivers are more regulated, he notes. Because railroads don’t go everywhere, however, many shipments end up on trucks at some point in their journeys.

Rules, Rules, and More Rules

In hazardous material transportation, the Pipeline and Hazardous Materials Safety Administration (PHMSA) plays a role similar to a project manager, says Steven Hunt, president of Oregon-based Shipmate Inc., a hazardous goods training and consulting firm. The PHMSA’s mission is "to establish national policy, set and enforce standards, educate, and conduct research to prevent incidents." It also prepares the public and first responders to reduce consequences if an incident does occur. The Department of Transportation publishes and enforces the rules.

Most regulations governing the transportation of hazardous materials are contained in the Federal Code of Regulations (FCR), Title 49, Parts 100-185. The regulations run for pages, and hazmat shippers and carriers need to understand them.

"Hazardous transportation is highly regulated, and there’s a good reason for that," says Bob Rose, an editor at Neenah, Wis.-based safety manual publisher J.J. Keller. "If it wasn’t, there’d be a lot of holes in the earth."

The Federal Motor Carrier Safety Administration outlines responsibilities that hazmat shippers must meet in order to comply with regulations. First is determining whether a substance meets the definition of a "hazardous material." Completing this step is both critical and difficult. "It is from the proper identification of the hazardous materials that the other requirements are based on," the FMCSA states. Shippers trying to determine if a substance is hazardous can turn to Title 49, section 172.101, of the FCR, which includes the Hazardous Materials Table.

Shippers also need to include specific information with each shipment. "In many cases, shippers write down a phone number and think they’ve complied, but they haven’t," Hunt says. He developed a mnemonic (which forms the name of his company) to help shippers remember the information they need to provide when offering hazardous materials for transport:

1. Shipping name: This typically is a chemical name, such as dichloroethylene or trichloroethane.
2. Hazard class: This tells in which of the nine classes the material belongs. (See sidebar below.)
3. Identification number: This can be found on the Hazardous Materials Table.
4. Packing group: I is great danger, II is medium danger, III is minor danger. Certain commodities, such as gases and lithium batteries, don’t have assigned packing groups, Hunt says.
5. Mass/volume: This should indicate the total quantity of hazardous materials covered in the description, with an appropriate unit of measurement.
6. Additional descriptive information: This may include any special permits, a notice that the substance is poisonous or toxic, or other information.
7. Telephone number: This number should be monitored 24/7 while the material is being transported, and should reach a knowledgeable individual who has access to emergency response information.
8. Emergency response information: This must include the immediate hazard posed by the material, the risk of fire or explosion, and the immediate precautions to be taken in the event of an accident, spill, or leak, among other information.

In addition, the packages containing the materials need to include the proper shipping name and identification of the hazardous material contained within. The names need to be in English, durable, and not obscured by other labels. Some packages of hazardous materials require additional information.

Put a Placard On It

Bulk packaging, freight containers, unit load devices, transport vehicles, or rail cars containing any quantity of hazardous materials also must comply with placarding requirements. The placards, which must measure at least 250 millimeters (9.84 inches) on each side, let others quickly identify the type of hazardous material contained within, whether explosive or non-flammable gases. They must be placed on each side and end of the vehicle or container.

The placards are "amazingly important," says Glenn Riggs, senior vice president, corporate logistics operations and strategy with Odyssey Logistics, a third-party logistics provider based in Danbury, Conn. "For the emergency response crews, the placards are life or death." They let responders quickly identify the substance that spilled or ignited or otherwise started an accident, so they can determine how to act.

Both carriers and drivers of hazardous materials need appropriate certification. Drivers need a Hazardous Material Endorsement, which requires completing an application, being fingerprinted, and providing identifying documents, such as a driver’s license and passport. The fingerprint enables the government to conduct a criminal background check, while the test covers information such as the proper segregation of commodities and the use of the emergency response system.

Carriers handling certain types of hazardous materials must obtain Federal Hazardous Materials Safety Permits. "These carriers must maintain a certain level of safety in their operations and certify they have programs in place as required by the Hazardous Materials Regulations and the HM Permit regulations," the FMCSA states. Obtaining a permit requires, among other qualifications, a satisfactory safety rating, a satisfactory security program, and proof of insurance.

Embrace Change

When it comes to the rules governing the transportation of hazardous materials, "there’s always some degree of tweaking," says Chris McLoughlin, risk manager at C.H. Robinson, a provider of multimodal transportation services and third-party logistics. For instance, in September 2016, the PHMSA proposed an amendment to the regulations to maintain consistency with international standards. This will include changes to proper shipping names, hazard classes, packing groups, and air transport quantity limitations, among others.

Similarly, more changes to battery regulations are coming, McClelland says, noting that the United States has yet to align with the ICAO rules, although it’s expected to do so for U.S.-to-U.S. shipping early in 2017. The ICAO will implement new lithium battery markings in 2017, as well as new requirements to mark packages containing batteries in equipment, such as laptops and cell phones, when more than two packages are in the shipment.

A regulation adopted in May 2015 enhanced tank car standards and operational controls for high-hazard flammable trains, or HHFTs. "The regulation was a big game changer in the rail industry," Schlake says.

The rule was written to deal with the increasing number of trains carrying oil and gas produced from fracking, Riggs notes. Among other changes, the rule imposes speed restrictions, regulates the trains’ braking systems and routing, and changes tank car design standards to improve safety.

The Department of Transportation and the PHMSA currently are studying the levels and structure of insurance held by railroad carriers transporting hazardous materials, and comparing it to the full liability potential for damages resulting from an accident. "The issue in question: Is there a need for some form of supplemental insurance? Is the level of insurance out there adequate?" says Scott Jensen, director of issues communication with the American Chemistry Council. The study is scheduled for completion in April 2017.

Not all changes increase regulations. The Hazardous Waste Generator Improvement Rule, proposed in August 2015, will help retailers and others that may occasionally generate very small quantities of hazardous waste, says Tim Semones, chief operating officer with Plano, Texas-based Quest Resource Management Group, which specializes in designing and managing custom, comprehensive waste minimization solutions. At the moment, for instance, a container of charcoal lighter that spills in a grocery store is technically hazardous waste. The grocery store must follow the applicable regulations.

The proposed bill will allow these businesses to streamline the process. For instance, they can send damaged goods to a central point to be collected, segregated, and tracked, as long as the location is managed by the corporation. Currently, each location needs a program in place to manage the waste. "The cost savings to the retailer is huge," Semones says.

Along with federal regulations, shippers and carriers need to be familiar with the many state regulations regarding hazardous material transportation. For instance, 26 states require transporters of hazardous wastes to obtain special permits or licenses, and 15 states require them to register with the state, according to the National Conference of State Legislatures.

Ready for the Trip

Managing the myriad, changing regulations governing the movement of hazardous materials starts with educated employees. "It is vital for carriers and shippers involved in the transportation of hazardous materials to have personnel on staff who are knowledgeable about the federal hazmat regulations and make safety a top priority," says Megan Bush, manager of safety policy with the American Trucking Associations.

This includes shippers who work with a logistics solution provider. "As a 3PL, we have a firm belief that our customers understand all the rules and regulations that go along with shipping hazardous materials," Parrott says. After all, the shippers need to complete airway bills, certify the hazard class of the material, and provide information on the hazardous substance, among other responsibilities. In short, they need to know what they’re asking the carrier to transport.

Shippers also need to know their carriers, says Joe Beacom, vice president and chief safety and operations officer with Landstar, Jacksonville, Fla., which provides integrated transportation solutions. Shippers should ask about a carrier’s safety record, which is available through the FMCSA’s Safety and Fitness Electronic Records (SAFER) system. The site also allows shippers to check the status of a carrier’s permit to transport hazardous materials.

It’s also smart to ask about the carrier’s experience working with the commodity being shipped, and to confirm it has experts available 24/7 if an emergency occurs. "The biggest step is having a dialogue about how to resolve issues," Beacom says.

The carrier should have insurance and be financially stable. "Shippers don’t want a carrier that operates on razor-thin margins and might cut corners," Riggs says.

Traceable, Visible, Accountable

Technology is another key to safe hazardous material transportation. Managing the movement of hazardous materials requires "traceability, visibility, and accountability," says Richard Howells, global vice president of extended supply chain with software solutions provider SAP. Traceability helps shippers track down goods in case of a recall, visibility allows them to see where the materials are, and accountability lets them know who touched the product and who has the authority and skill to move it.

Modeling technology enables companies to create a digital representation of an entire supply chain, including the relevant regulations, says Toby Brzoznowski, executive vice president with Llamasoft, a supply chain solutions provider based in Ann Arbor, Mich. This allows the organization to identify an optimal logistics network that also complies with regulations.

The universe of robust transportation management systems at all price points continues to expand, Beacom says. That makes it easier for even smaller shippers to more effectively manage the regulatory and documentation requirements that accompany hazardous material transportation.

Technological advances extend to the containers and packaging used with hazardous materials. The American Transportation Research Institute continually works to improve safety devices, such as braking systems, forward visibility, and blind spot detection, McGloughlin says.

UPS has devised and implemented fire-resistant aircraft containers, fire containment covers for cargo pallets, and quick-donning full-face oxygen masks for crew positions on every aircraft. "These steps and others provide a multi-layered approach that drastically reduces the risk of a significant incident due to an issue with lithium batteries or other hazardous material on an aircraft," McClelland says.

Leading the Charge to Innovation

The innovations will continue. Some researchers are working on devices that measure the state of charge in lithium-ion batteries, for example. It’s not easy; the batteries decay in an exponential, rather than linear rate, and if the state of charge is reduced too much, the battery becomes nothing more than a paperweight, Hunt says. Yet, this work should lead to products that can be transported with less risk.

Another area receiving attention is Positive Train Control (PTC), which allows a train to be remotely controlled if, for instance, the conductor becomes incapacitated. In 2008, Congress mandated PTC implementation on certain passenger railroad lines, as well as those that transport materials that are poisonous or toxic when inhaled.

The original PTC implementation deadline of Dec. 31, 2015 was extended to Dec. 31, 2018. The initial deadlines "didn’t fully recognize the complexity of the technology," Jensen says, adding that the technology needs to work on all rail systems in operation. But it’s clear that Congress wants to move forward. A Federal Railroad Administration status update in August 2016 underscored "the need for railroads to implement Positive Train Control as quickly and safely as possible."

Another technology that may play a greater role in hazardous material transportation is the Internet of Things (IoT), Howells says. As this technology advances, and as the cost of sensors drops, it will be possible to monitor shipments to ensure, for instance, that those requiring controlled temperatures remain free of tampering.

While technology and training help companies ship hazardous materials more safely, logistics professionals also need to continually review their supply chains to identify ways to reduce inherent dangers. That could mean reducing product toxicity, or shortening the distances the hazardous materials have to move, Schlake suggests.

As logistics professionals look for ways to reduce these dangers, they also need to ensure the hazardous materials in their supply chains move safely, efficiently, and in compliance with regulations. That requires informed employees; processes and systems that provide visibility, facilitate compliance, and streamline recordkeeping; and packages and containers that keep their materials safe.

Hazardous Material Classifications

The U.S. Department of Transportation organizes hazardous materials into the following nine classes:

1. Explosives
2. Gases
3. Flammable liquids and combustible liquids
4. Flammable solids, spontaneously combustible and dangerous when wet
5. Oxidizers and organic peroxides
6. Poisons (toxic) and poison inhalation hazards
7. Radioactive materials
8. Corrosive materials
9. Miscellaneous

The spectrum of materials considered hazardous ranges from radioactive materials to items “consumers might have under their sink at home,” says Chris McLoughlin, risk manager at C.H. Robinson, a provider of multimodal transportation services and third-party logistics.

Along with the material itself, volume comes into play when calculating just how hazardous a shipment is. Acetone, a primary component of nail polish remover, is a flammable liquid. A small bottle typically can be moved safely. “But 7,000 gallons of acetone in a tank becomes dangerous because of both vapors and flammability,” says Glenn Riggs, senior vice president, corporate logistics operations and strategy with logistics solutions provider Odyssey Logistics.

Fewer than 50 percent of the nearly 150 supply chain professionals from internationally based chemical companies responding to Loftware Inc.’s recent GHS Readiness Survey have met the latest Globally Harmonized System of Classification (GHS) labeling requirements. The United Nations originally adopted the GHS in 2002 to ensure hazardous materials are safely produced, used, and disposed of.

In addition to not using proper labeling solutions, many companies lack a barcode labeling strategy, leading to fines and potential business disruptions, according to Loftware’s survey. To avoid future fines, supply chain professionals in the chemical industry will need to adapt Enterprise Labeling Solutions that enable them to meet regulations, even as they consistently evolve.

“With GHS, companies face more regulations in chemical labeling than ever before,” says Deborah Grant, industry manager at Portsmouth, N.H.-based Loftware. “To accommodate this new level of complexity, today’s labeling must be both dynamic and data-driven to maximize flexibility, ensure accuracy without replication of data, and provide speed and scalability to meet GHS labeling standards.”

Nearly 35 percent of survey respondents acknowledge that regulatory compliance is currently the most difficult aspect of labeling. Consequently, they are interested not only in meeting labeling requirements such as barcodes, formats, and logos, but also improving the efficiency of their supply chains, which, like GHS requirements, are constantly evolving.

“Companies are recognizing the integral part that labeling plays in gaining true supply chain efficiency, achieving higher levels of customer satisfaction, maintaining business continuity, and meeting regulatory demands,” notes Josh Roffman, vice president of product management at Loftware.

“Labeling solutions must be designed to meet the rigors of GHS labeling, while supporting large-scale, global deployments with numerous products and packaging variations,” he adds.

St. Louis: Mecca For All Modes

St. Louis, Mo., remains an epicenter for all modes of transportation, which makes it ripe for future growth opportunities, according to the recent Southwestern Illinois Freight Transportation Study, overseen and released by the Leadership Council Southwestern Illinois.

The study finds that the St. Louis area’s freight capabilities will increase in the coming months and years, primarily due to the area’s domestic trade partners and economic expansion.

The study, which was funded through an Illinois Department of Transportation grant to the Leadership Council, and administered by Madison County, Ill., also projects that rail, truck, and intermodal shipments will rise as well; however, rail shipments will grow at a slower pace than truck or intermodal shipments.

Outbound freight is anticipated to increase faster than inbound shipments because the area currently produces more outbound intermodal freight than inbound intermodal cargo.

Meanwhile, the St. Louis area anticipates more than $700 million in bridge, port, rail, and roadway investments over the next five years—funds that will follow the $100 million that was already spent on bridge and roadway repairs in Madison and St. Clair counties.

“The study was primarily undertaken to determine the best ways to advance the St. Louis region as a premier multimodal hub, based on anticipated growth in the freight industry,” says Mark Harms, chair of the council’s transportation enhancement committee.

“The findings will help us better understand how certain advantages position our region in a highly competitive freight marketplace, while also identifying opportunities to build on those advantages in the future,” he adds.

3PL CEOs See Future Growth

For nearly six years, large-scale acquisitions were few and far between within the third-party logistics (3PL) industry, due to the aftermath of 2008’s global recession. Recent months have shown signs of continuous economic recovery, however. In that time, 10 major 3PL acquisitions comprising $18 billion have occurred.

As a result, 3PL CEOs are once again gaining confidence in the industry’s growth potential, reveal the 22nd Annual Surveys of Third-Party Logistics Provider CEOs, sponsored by Penske Logistics, Reading, Pa.

Of the 30 3PLs surveyed in North America, Asia Pacific, and Europe, 80 percent report profit gains in 2014. In fact, the 30 companies’ total revenue exceeded $40 billion. North American CEOs project their companies’ revenues will increase by 7.86 percent, on average, over the next three years; 6.54 percent of which will originate from merger and acquisition activity as the industry restructures considerably in a variety of markets.

3PL CEOs are also focused on e-commerce. Currently, e-commerce comprises 11.9 percent of North American 3PL revenues, and CEOs anticipate this aggregate will rise to nearly 21 percent by 2019.

North American CEOs cite two other issues affecting the industry: oil prices and the driver shortage. Eighty percent of surveyed CEOs say the oil price decline is positively influencing customers. But the driver shortage is hindering the industry; 26 percent of CEO respondents say the shortages continue to impact 3PLs throughout the world.

“The driver shortage is here, is real, and is not going away,” says Joe Carlier, senior vice president of global sales at Penske Logistics. “The global projections included in the surveys mirror our business climate. E-commerce is having an effect on our customers and many verticals are focusing on omni-channel.”

“The 3PL industry is clearly in a consolidation phase,” adds survey author Dr. Robert Lieb, professor of supply chain management at Northeastern University’s D’Amore-McKim School of Business. “And it will fundamentally change the competitive dynamics in many markets for logistics services around the world.”

SCM Tool Purchases Perk Up

Supply chain management (SCM) software tool expenditures remain a priority for logistics decision-makers, and companies intend to spend 14 percent more on SCM tools in 2016 than they did in 2015, according to Boston-based Nucleus Research’s 2016 Buying Intentions Survey.

Of the 72 supply chain leaders in North America and Europe responding to the survey, 55 percent will purchase more supply chain applications in 2016 than they did this year; while another 37 percent plan to retain their software expenditures so that they do not exceed 2015’s aggregate.

Respondents also reveal their two top choices for software investment next year: supply chain planning and inventory optimization.

“Such SCM spending is driven by a number of trends, including concerns about having a steady product supply in a volatile global, digital marketplace,” explains James Cooke, principal analyst, Nucleus Research. “And with corporate pressure to control costs in activities such as warehousing and inventory, supply chain managers continue to upgrade their execution and planning applications.”

To cut costs, nearly 25 percent of survey respondents say they would use their expenditures to continuously roll out applications they purchased in 2015, or to upgrade applications they have already used in the past.

The survey also finds that only 47 percent of the polled companies use cloud applications for software deployment. And, of the companies using a cloud application for supply chain tools, they often use only one type of application—transportation management, a trend that Nucleus Research anticipates will change in the future.

“Over the next five years, as more trading partners work together in the global marketplace, multinational corporations should become more inclined to adopt the cloud for advanced supply chain solutions to facilitate data exchange,” Cooke says.