Chemical Logistics: On A Roll
Chemical Logistics: On A Roll
CHEMICAL
LOGISTICS
ON A ROLL
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,
A WSI worker verifies labels on rolls
of resin sheets before shipping. and they continue to present challenges. Managing
these hurdles requires a lot of thought and planning.
EXTRAORDINARY TIMES
The development of COVID-19
vaccines also consumed transportation
infrastructure and drivers, leaving fewer
resources to handle other chemicals. “It
Odyssey Logistics & Technology ensures its customers’ shipments—valued at approximately
was one of the first times a vaccine had $60 billion annually—arrive at their destinations safely and on schedule.
been mass produced to this scale,” says
Joe Hassenfratz, sales and marketing governing 3,300 high-risk chemical environmental impact of shipments.
manager with The Logistix Company. facilities across the United States hadn’t Many logistics providers are relying
Adding another obstacle, the COVID been updated in more than 10 years. more extensively on automation to
vaccine products that are based on Without a program of regular review, the minimize delays that can occur due
mRNA technology require temperature- facilities could be more vulnerable to to human errors, Buber says. Typical
controlled environments for storage cyber-related threats, the report stated. human errors include incorrect
and transport. This drove a spike in quantities or types of products being
demand for dry ice. “Chemical logistics NAVIGATING THE OBSTACLES shipped, and inventory mistakes.
providers had to scrape through every bit Over the past few years, some chemical Visibility solutions that let companies
of capacity available to meet the pressing shippers have relocated their sources of know the location of their products
concerns,” Kaitwade says. raw materials, adapting to changes in tax in shipment, enabling them to act to
In the United States and other markets, regulations and tariff agreements, says counter any delays, also are attracting
logistics providers directly partnered with David Vieira, chief executive officer with interest. Before a company can
dry ice manufacturers and providers on a CLX Logistics. For instance, a product determine whether to change its sourcing
scale never seen before, he adds. that had been sourced in North America strategy or inventory policies, it needs
The weather also presented unwanted might now be sourced in Asia. Managing visibility to these functions, says Bob
surprises. Early in 2021, severe winter these new supply chains “requires a Boyle, vice president, North American
weather caused nearly every major different set of skills,” he adds. managed logistics services with Odyssey
chemical complex in Texas to shut down. In response, logistics providers “dialed Logistics & Technology.
“It’s the first time I’ve seen gas stations up” tactics on which they’ve long relied Data is similarly key. “The proper
without fuel,” Buber says. to manage congestion and weather use of data, as part of collaborating with
customers and carriers, allows for faster
recovery and improved service within
With some chemical shippers relocating their sources of the various segments of an organization’s
raw materials, providers are tapping a different set of skills. supply chain,” Gonya says.
Add to this a fluke event like the Ever events, Rodysill says. These include GROWING MARKET
Given, a 20,000-TEU container ship, shifting modes or adding locations, such Shippers’ need for visibility and
getting stuck in the Suez Canal for about as ports, to boost their ability to work leverage with carriers is a positive for
a week. A chunk of world trade stopped around congestion. Promptly paying many logistics providers, as it’s prompting
during this time. carriers, who often work on thin margins, a growing number of chemical shippers
Cyberattacks against steamships, also helps secure access to capacity. to use their services, Rodysill says.
pipelines, and logistics providers add Logistics companies also are seeking Valued at about $253.7 billion in 2019,
more uncertainty. The May 2021 attack ways to use less fuel, given how the the global chemical logistics market
against Colonial Pipeline Co. forced it cost of diesel fuel rose by more than is forecast to reach $322.5 billion by
to shut operations for a week. A 2020 one-third, while the cost for gasoline 2027, for a compound annual growth
Government Accountability Office jumped 65% over the past year. An rate of 3.9%, according to Allied
study found the cybersecurity guidance added benefit: these efforts reduce the Market Research.
LTL
LIQUID
BULK
DRY VAN
& FLATBED
thelogistixco.com (401)560-0660
CHEMICAL
LOGISTICS
ON A ROLL
The macro changes impacting regulatory singularity,” says Kaitwade. distribution network, rein in costs, or
chemical logistics show no sign of This would allow more seamless enhance shipment security.
slowing down. A more holistic approach transactions between markets with CLX experts can help clients model
to network modeling has become different regulatory regimes. their supply chains and determine which
critical, Rodysill says. That means To ensure quality talent remains in locations will be most effective for their
evaluating physical logistics networks on the sector, a focus on improving the operations. As part of that analysis,
a global—rather than regional—basis workplace environment also is key, CLX can draw on extensive freight cost
and considering all costs, such as taxes, Kaitwade says. This includes not only benchmarking data it has amassed,
tariffs, and others. This in-depth analysis health and safety, but wage rates and in part through its partnership with
helps pinpoint where it makes sense to other benefits. BluJay Solutions.
add inventory and where to stay lean.
Adding inventory tends to make sense
when you can drive more sales at higher Valued at about $253.7 billion in 2019, the global chemical
margins. Conversely, when managing logistics market is forecast to reach $322.5 billion by 2027.
regulated products, keeping inventory
levels lean and expediting shipments to The companies profiled here have Another CLX offering, Gravity,
a location, when needed, can be more been navigating the recent challenges provides enhanced data analytics and
cost-effective, Rodysill says, since it’s with intelligence, dedication, and a extensive data integration capabilities.
generally harder to move this inventory commitment to their clients and the It’s able to work with information its
between countries, as regulations important work they’re doing. customers generate internally or capture
often differ. from external sources.
Given the futility of trying to predict CLX LOGISTICS: CLX LaneLogix™ offers freight cost
how regulations might change, the PROVIDING ECONOMIC VALUE and service level benchmarking. This
ability to model various scenarios The goal of every employee at CLX software, which has been developed
becomes even more critical, Rodysill Logistics is “to provide economic specifically for the chemical industry
says. If a model shows a 25% chance a value to our customers,” says CEO over the past 20 years, incorporates
shift will go one way, and a 30% chance David Vieira. requirements particular to chemical
it will go another, organizations can By drawing on its extensive history shipments, such as dangerous goods,
decide how to plan for each possibility. in the chemical logistics sector, CLX equipment, and service requirements.
Stakeholders from the chemical Logistics can provide the knowledge, “It does not compare the rate for a
logistics sector should increase technology, services, and processes chemical shipment with, for instance,
collaboration with regulators across the needed to meet this goal, whether the rate for a food shipment,” Vieira says.
globe to bring about “standardization and its clients are trying to optimize their 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
CLX Logistics helps chemical shippers enhance the security of shipments and optimize their
distribution networks, leveraging its chemical 4PL division ChemLogix. the attention it deserves from chemical
THE CHALLENGE
Learn how a control tower
approach drives visibility
References to control towers generally conjure up images of tall buildings lurking in
the middle of airports, filled with air traffic controllers hovering over numerous radar
screens to ensure every aircraft departs and arrives safely. While there may not be a
physical “tower,” a supply chain and logistical control tower works in a similar fashion,
providing visibility across multiple operations, assets and services. When LANXESS was
challenged with managing a variety of assets across multiple partners and countries
such as ocean containers, rail cars or ISO tanks, its team turned to Odyssey to help
track these resources.
chain reliability.
and specialty products. “Our people tested to be best practices,” Gonya Odysseus, the hero of Homer’s poem
are logistics experts with a deep says. Its solutions are tailored to meet Odyssey, was known for the wisdom and
understanding of the chemical industry.” client-specific needs. KAG’s scale and strength he displayed when encountering
KAG’s culture fosters excellence and access to big data allow it to deal with challenges on his travels. Odyssey
drives individuals to be the best they can, each customer individually, while Logistics & Technology demonstrates
he adds. simultaneously driving collaboration similar qualities in ensuring its
customers’ shipments, which are valued with clients to review operational Partner. An independent third party
at about $60 billion annually, arrive at data and recommend opportunities to regularly audits the company’s
their destinations safely and on schedule. boost efficiency or cut costs and the safety, health, environment, and
“Chemical logistics is in our genes,” environmental impact of its shipments. security principles.
says Bob Boyle, vice president. Its Say a shipper is delivering a less-than- “We incorporate sustainability
employees possess in-depth knowledge truckload shipment once a day, several days initiatives into all our logistics and
of chemical logistics and the regulations a week. Odyssey works with the customer supply chain strategies,” Boyle says.
governing these shipments. Odyssey offers to examine the feasibility of sending a This might mean shifting from trucks to
end-to-end logistics services, including truckload shipment once or twice weekly. rail or consolidating LTL to truckload
shipments when practical. Odyssey also
evaluates the carriers with which it works
Visibility solutions, which enable shippers to act to counter to make sure they’re similarly focused on
delays, are attracting interest and investment. reliability, safety, and sustainability.
Customers’ interest in visibility,
shipment planning and execution, “We’re able to use data to create actionable reliability, and sustainability appears
managed logistics services, intermodal steps forward,” Boyle says. likely to continue. The network studies
and truck services, among others. Because Odyssey has invested heavily that Odyssey conducts provide “a control
When Odyssey deploys these services, in API integrations, it’s able to bring in tower view” that allows its customers to
its customers look for several attributes: third-party information that can help in optimize network flows.
visibility, along with education and more effectively managing shipments. In “With this level of visibility, our
information, Boyle says. To provide 2020, this included the maps that showed clients enjoy an immediate improvement
these, Odyssey has invested in real- COVID outbreaks across the United in performance and environmental
time data acquisition and business States. Odyssey could then identify impact,” Boyle says.
intelligence solutions, as well as shipments either coming from or heading
network modeling software and GPS- to highly impacted areas and plan RINCHEM:
enabled tracking. alternative routes as needed, Boyle says. SOLELY FOCUSED ON CHEMICALS
With these tools, data isn’t merely Odyssey’s sample fulfillment service For more than four decades, Rinchem
collected; it’s also made available to boasts a 99.99978% accuracy rate in Company Inc. has provided first-class
customers, who can leverage it to inform safely storing, packaging, and shipping logistics management and supply chain
and improve their decision-making. If more than 12 million samples of both solutions specifically for temperature-
the technology shows shipments are at hazardous and non-hazardous materials. controlled hazardous chemicals
risk, Odyssey’s clients can work with their Odyssey has earned acceptance into and gases.
customers to mitigate any repercussions. the American Chemistry Council’s “The chemical industry is not a
Members of Odyssey’s continuous (ACC) Responsible Care partnership vertical that we serve, it is the sole focus
improvement program regularly meet program, and also is an EPA SmartWay 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
Rinchem Logistics provides logistics management and supply chain solutions specifically for transportation and warehousing networks,
temperature-controlled, hazardous chemicals and gases. providing customers with real-time
status. GPS tracking technology deployed include multiple ocean providers, further United States. “This is very exciting,”
in Rinchem’s fleet of refrigerated tractors ensuring access to capacity. To minimize Wright says. “Rinchem will be there to
and trailers enhances security and delays, Rinchem has developed relations support them.”
visibility. The company’s use of radio with operators at multiple ports and
frequency technology boosts receiving diversified its routes. THE LOGISTIX
and picking speed and accuracy. “We’ll continue to do all we can to COMPANY:
Rinchem has accelerated its ensure our customers’ shipments move NIMBLENESS AND EXPERTISE
investment cycle to address customer safely and on time,” Miles adds. From its base in North Kingstown,
needs. It continues to invest in its And even as freight rates have jumped, Rhode Island, The Logistix Company
network’s global infrastructure, with Rinchem is able to leverage its global (TLC) has gained years of experience and
expansions in several U.S. states, as well buying power and its strong carrier expertise moving a range of chemicals
as Israel, Taiwan, and South Korea. relationships to access the best rates and managing shipments for entire supply
To address the driver shortage, possible and rein in costs, Miles says. chains, says Joe Hassenfratz, sales and
Rinchem has strategically acquired and A significant portion of Rinchem’s marketing manager.
partnered with select carriers that are business is directly related to the TLC’s expertise ranges from handling
experts in handling hazardous materials. semiconductor industry and the process dry and liquid bulk chemicals, to
This strategy enables Rinchem to chemicals used to fabricate microchips, managing over-the-road, less-than-
leverage a range of assets, Miles says. Wright says. For years, the geographic truckload, and truckload shipments,
and leveraging ocean, air, and
intermodal options.
To manage congestion and weather events, chemical TLC also provides transloading
logistics providers have shifted modes or added locations. services. In addition, TLC employees
can arrange international moves across
Rinchem also continues to invest in locations for semiconductor fabs North and South America. Intermodal
the newest equipment, driver amenities, (fabrication plants) have been shifting transportation can be more economical
and competitive compensation models. to Asia Pacific countries such as Taiwan than other shipping methods,
“These show how important drivers are and South Korea. Hassenfratz notes.
to our business,” Wright says. However, the recent global chip At the same time, intermodal
To ensure access to capacity, shortage and the resulting impact on transportation requires detailed
particularly over the past year, Rinchem U.S. manufacturing have prompted and in-depth planning to ensure
worked closely with its carrier partners, the federal government to earmark shipments aren’t lost or delayed due
repositioned equipment, and increased $50 billion for expansion and research. to miscommunication or regulatory
its equipment pool. The breadth of its Multiple leaders in semiconductor concerns. TLC possesses the expertise
carrier relationships has been key in manufacturing have announced multi- required to ensure its shipments will
gaining access to capacity. Rinchem billion-dollar investments in Arizona, move between transit modes seamlessly
also has broadened its partnerships to New Mexico, and other markets in the 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,
The Logistix Company (TLC) moves a range of chemicals and manages shipments for entire committed ownership. “They provide the
supply chains. TLC offers a private fleet with multiple storage solutions including ISO tanks. resources we need to hire the best people
In a year full of challenges that no one saw coming, the only road
forward is through continuous improvement. Using data and
collaborative planning to keep your supply chain moving is the
best way to stay in front of the next roadblock we face together.
Contact KAG Logistics today, so you can focus on your core
business with the peace of mind that we are doing what we do
best for you – Deliver every load. On time. Without incident.
877-203-3283 | www.kaglogistics.com
Among the first American Chemistry Council Responsible Care 3PL partners, WSI ensures the safe storage, transport, sampling, packaging,
and distribution of chemicals and other hazardous products. WSI acts as a single-source provider of logistics solutions for many companies.
and invest in technology,” he adds. WSI: solutions it provides, WSI can act as
TLC’s relatively smaller size also is ABOVE-AND-BEYOND SERVICE a single-source provider of chemical
a benefit, Hassenfratz says, as it fosters WSI was among the first ACC logistics solutions for many companies.
nimbleness. The company is able to Responsible Care 3PL partners. “This Many top-tier organizations have turned
efficiently onboard new customers and shows our dedication to voluntarily to WSI for just that reason. “We’ve
evaluate multiple freight options. Its operating above and beyond what’s completed just about every function
flexibility also allows it to quickly manage required to ensure the safe storage, within the chemical arena,” Buber says.
volume surges. transport, sampling, packaging, and Along with its emphasis on safety,
The company’s employees also have distribution of chemicals and other WSI is working to enhance sustainability
made a point of developing strong hazardous products,” says Scott Buber, and reduce the level of emissions its
relationships with workers at multiple director of chemical operations. operations generate. Among other steps,
ports, particularly on the East Coast, The company’s commitment the company is shifting to electric lifts,
as well as with drayage and freight to safe, sustainable operations has upgrading equipment to cut power
companies across the country. been a hallmark of operations for the consumption, and installing energy-
“Our relationships help ensure our approximately 30 years it has worked efficient lighting. WSI tracks all
customers’ shipments move quickly and within the chemical industry, and is improvements and works to continue
aren’t overly delayed by congestion,” instilled in employees, from the front reducing its environmental impact.
Hassenfratz says. And if one port is lines to executive leadership. “We take As part of these initiatives, WSI
congested, TLC’s employees have the a lot of pride in how we operate, and partners with its customers to help them
knowledge and relationships that allow we’re dedicated to providing the expertise reduce their environmental footprint
them to quickly shift to another. required to meet our customers’ needs,” where possible. This may mean, for
While TLC currently is a smaller Buber says. WSI’s chemical facilities instance, evaluating greater use of
logistics provider, that might not be comply with myriad regulatory schemes, intermodal or rail transportation. These
analyses can help customers cut costs
and greenhouse gas emissions.
The complexity of today’s chemical industry demands both WSI’s chemical warehouse in Council
flexibility and responsiveness, along with a safety focus. Bluffs, Iowa, is a Free Trade Zone.
Customers pay no duties while storing their
the case for long. “We have a strong including DOT, EPA, DHS, and others. products, only when moving them into
customer base and we’re looking to In addition to outfitting all warehouses the domestic market. “This provides huge
grow,” Hassenfratz says. with the latest fire suppression and tax benefits, especially when bringing in
TLC’s clients recognize the value containment systems, WSI regularly products from overseas,” Buber says.
of the stellar customer service and invites local fire departments to conduct The complexity of today’s chemical
competitive rates the company provides. drills at all its chemical sites. “This helps industry demands flexibility and
They also appreciate the range of build rapport and the firefighters become responsiveness, as well as a strong culture
carriers with which TLC partners, and familiar with our operation,” Buber says. of safety. “Safety is not just a priority at
the breadth of its services. “We can If anything unusual should happen, the WSI, because priorities change,” Buber
manage entire supply chains, including department is prepared to respond quickly says. “It’s part of our culture. We strive
for companies with multiple, complex and effectively. every day to be safe, faithful stewards of
operations,” Hassenfratz adds. Given the range of services and the products entrusted to us.” n