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September 2023 - Chemicals

More than nine in 10 chemical industry leaders say supply chain and transportation is affecting chemical industry: A survey of leaders in the U.S. chemicals sector has revealed that more than 93% have experienced supply chain and transportation disruptions which are impacting their businesses.

The survey by the American Chemistry Council (ACC) also found that companies reported improvements in the second half of 2022, with two-thirds saying that the situation with supply chain and freight transportation disruptions was better. When compared to conditions before the Covid-19 pandemic, however, more than 8 in 10 companies polled said conditions were worse.

When looking at how companies coped with disruptions as well as delays in H2, 86% said that they modified their operations, with 62% of chemical manufacturers reporting cost rises over H2.

Also revealed by the survey was that in both the first and second half of 2022, more than a third of companies experienced customers cancelling orders (36%), with reasons given including they feared the goods would not arrive, or they would not arrive on time.

When asked what could be done to correct the issues affecting chemical supply chains, policy reforms such as establishing minimum standards, and actions to increase competition were cited, as well along with "efforts to increase gross vehicle weight limits”.

Emily Sanchez, economist for ACC, said: “There are signs that conditions have improved, but the transportation problems plaguing our members are far from resolved. Marine and truck transportation have improved while poor rail service continues to be a major concern.”

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