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ACC Survey Shows Impact of Supply Chain Issues on Chemical Manufacturers
01/10/2022

US chemical manufacturers saw a detrimental impact to operations due to persistent, and growing supply chain disruptions, and transportation constraints in all regions of the country, according to a recent survey from the American Chemistry Council (ACC).

The ACC conducted the survey of chemical manufacturers doing business in November and December 2021, and showed almost all of the 67 companies (98%) that participated had modified operations because of supply chain/transportation issues, and two-thirds lost production. Nearly all participants also reported shipping delays (94%), shortages of raw materials (94%), and increased transportation costs (93%).

More than one-third of companies over the past year also experienced or declared force majeure because of supply chain/freight transportation issues. Over the same period, nearly all (93%) companies reported additional costs into the several millions of dollars, with estimates ranging from $100,000 to $250 million, and more than a third of companies reporting costs higher than $20 million.

Chemical shipments represent a large share of the overall total shipments for marine, truck and rail transportation, and the ACC said it anticipates chemical shipments and industry transportation needs will increase significantly this year, thus heightening the urgency for untangling ongoing supply chain issues.

The US has implemented initiatives aimed at helping to ease supply chain constraints and move more cargos in 2021, which include extended service hours and additional funds for improvements at port facilities and recruitment programs to help get more truck drivers on the road. The ACC is also calling on Congress to pass the Ocean Shipping Reform Act of 2021, urging Congress to pass legislation to improve capacity for trucking by increasing the Gross Vehicle Weight (GVW) on the Federal Interstates, and pushing the Surface Transportation Board to allow greater access to competitive and reliable freight rail service.

You can find the ACC's full 16-page supply chain/logistics survey and report online at americanchemistry.com.


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