The chemical industry is vital in producing goods and services that touch every aspect of our lives. It’s a competitive market to be in.

Adapting to trends is crucial for chemical manufacturers to stay successful. The most profitable companies will be ones that work with business partners who keep them updated on these trends and embrace any changes that may come their way.

Trends Affecting the Chemical Industry

Embracing Artificial Intelligence

The chemical industry has a history of embracing new technologies. Artificial intelligence (AI) is no exception. AI offers many potential benefits for chemical manufacturers. It can help find savings, improve efficiency, and increase productivity. There are so many ways AI can help chemical companies get ahead.

For example, it can help automate manual tasks and analyze vast amounts of data faster. With AI, chemical companies can make more informed decisions and improve quality control. Adopting AI can also help chemical companies improve workplace safety and reduce the risk of human error.

The Growing Significance of Data Analytics

Examining data sets for insights to improve decision-making is becoming more commonplace among chemical companies. Chemical manufacturers can use data analytics in their decision-making to enhance their productivity, reduce costs, and predict critical events that may impact their business. Moreover, they feed AI algorithms this data to forecast better and optimize their operations.

Accessing data can provide insight into the quality control of products or visibility into bottlenecks affecting their chemical supply chain. This data can help them pivot and improve their customer’s experience. Using data analytics is a great opportunity for chemical manufacturers to drive growth and profits.

A Rising Demand for Specialty Chemicals

Many other industries use specialty chemicals, like personal care, electronics, packing, and pharmaceuticals. In fact, the pharmaceutical industry accounts for the largest segment using them as the need for more medication grows.

Additionally, agrochemicals are another significant user of specialty chemicals. The growing population means an increased need for food and food production. Agricultural land is dwindling, and increasing the crop yield per acre of land becomes more important, increasing the demand for specialty chemicals.

Sustainability

The pressure on chemical manufacturers to reduce the environmental impact of their operations and products has never been greater. Regulatory agencies have placed stringent regulations with ambitious emission reduction goals for 2030. While many in the chemical industry have prioritized sustainability in their business, there is still work to do.

Green chemistry is part of this trend that’s gaining momentum. Green chemistry focuses on the processes and products to reduce the effect of hazardous materials and negative environmental impact while conserving natural resources for future generations. Green chemistry embraces recycling technologies, alternative energy resources, and other sustainable practices. This pushes many chemical manufacturers to review their current business strategies.

A Greater Need for Renewable and Bio-based Chemicals

A growing demand for renewable and bio- or plant-based chemicals should be no surprise.

This trend aligns with sustainability goals and brings the chemical industry opportunities for savings and new market opportunities. Companies are exploring avenues like synthetic biology, bioremediation, and the production of bioplastic or biodegradable materials

Prioritizing Safety and Reducing Risk

Safety and mitigating risk are huge concerns for businesses in the chemical industry.

Cybersecurity is a rising trend and threat for many companies. We see it all over the news. Hackers and scammers are becoming more tactical in cyber-attacks and company breaches of private information. It’s crucial for chemical companies to put in place security measures and training to keep their businesses safe.

The transport of hazardous chemicals has also recently gained special attention in the news. Rail transport accounts for around 19 percent of chemical shipments. Recent derailments, like in East Palestine, Ohio, have raised concerns about transportation safety.

Many chemical companies are also investing more in developing safer chemicals and products. Their concerns are not only to be less harmful to the environment but to human health as well.

Improving workplace safety is another concern. Companies install new safety protocols, enhance employee training, and use technology to address this.

Building a Resilient Supply Chain

In the last few years, companies realized how vulnerable their supply chains were.

In a survey by the American Chemical Council, 97 percent reported modifying operations due to supply chain disruptions. Chemical companies are focusing on reducing supply chain risk and increasing flexibility. With 25 percent of the U.S. economy depending on the chemical industry, it’s important their supply chains keep moving.

Keep Your Chemical Supply Chain Ahead of the Trends

Keeping your chemical company ahead of evolving trends and the competition is important. Having business partners that stay tuned to what’s happening in the chemical industry can be invaluable.

Trinity Logistics can help you with many of these trends through our services. Whether you have sustainability goals, are looking to build supply chain resiliency, or need technology to improve visibility and offer data analytics, we have solutions.

We’re members of many industry-related associations like the National Association of Chemical Distributors (NACD) and are Responsible CareⓇ Certified, so you don’t have to worry about falling behind in news or trends that may affect your business. When you work with Trinity Logistics, your designated expert will keep you so informed that you’ll likely know what’s affecting the chemical industry before any of your competitors do.  

That’s just part of Trinity’s People-Centric service you’ll get to experience when working with us. We understand that people are at the heart of all businesses, so that’s who you’ll talk to – a dedicated relationship at Trinity. It’s also who we truly serve – your people.

Our goal is to improve lives, and when you decide to work with Trinity Logistics, you’ll see just that – improved life satisfaction amongst your employees and customers.

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These common mistakes when shipping hazardous materials can end up costing your business a lot of money.

Shipping hazardous materials have very little room for mistakes but very large consequences if done incorrectly. Mistakes when shipping hazmat materials can cause injury, damage to property, or endanger lives, so hazmat shipping should always be handled with tremendous caution.

Safe hazmat shipping is possible but requires diligence, communication, and attention to detail.

These are the most common mistakes companies make when shipping hazardous materials.

DEFINITION OF HAZARDOUS MATERIALS/DANGEROUS GOODS

First, let’s clarify what hazardous materials or dangerous goods are.

Many think of hazardous materials as things like explosives, gasoline, or acids. Yet, many common goods are hazardous when shipped, such as aerosol sprays, nail polish, alcohol, paint, dry ice, or cosmetics. Any substance or material that can pose a risk to health, safety, or property is a hazardous material or dangerous good.

SHIPPING HAZARDOUS MATERIALS VIOLATIONS

Hazmat safety regulations exist to keep people, property, and the environment safe. The Pipeline and Hazardous Materials Safety Administration (PHMSA) handle these regulations.

One reason you don’t want to make any hazardous shipping mistakes? Violations. Currently, hazmat regulation penalties are:

HAZARDOUS SHIPPING MISTAKE EXAMPLES

Many companies have made hazardous shipping mistakes. Here are some true scenarios. 

Example 1: Online Retailer

Fined $91,000

An online retailer shipped a package by air containing flammable liquid adhesive. The motor carrier discovered the product leaking from its container. The online retailer offered the shipment, not including the required shipping papers or emergency response information. The freight’s packaging was incorrect and not marked or labeled as required. Nor were the company’s employees trained in handling hazmat packages for shipment by air.

Example 2: Chemical Company

Fined $325,000

On two separate occasions, a chemical company shipped undeclared hazardous material that is illegal to transport by air. The chemical company allegedly shipped pints of acrolein, which can become explosive when combined with air. Neither shipment had the required shipping papers or emergency response information. Additionally, one of the shipments was not marked, labeled, or packaged as required. Employee training was also found to be non-compliant.

Example 3: Flooring Company

Fined $63,000

A flooring company shipped a package of hazardous freight. The motor carrier found a package leaking. The flooring company did not provide the required shipping papers or emergency response information, nor did they mark, label, or package the shipment as required. Additionally, employees were not trained to handle hazardous materials.

COMMON HAZMAT SHIPPING MISTAKES

Failing to Label and Declare Goods Properly

Failing to label and declare hazardous goods is one of the most common shipping mistakes. Transparency is critical at every level to ship hazardous materials without mistakes.

All hazardous freight must have the proper UN hazmat labels or hazmat placards to identify their contents. Shippers must also disclose the information on the shipper’s declaration form.

Failing to properly mark, label, and declare your hazardous materials keeps employees from knowing what kind of materials they are handling, which hazard class they belong to, and what kind of precautionary measures they need to take. In the end, improper labeling and declaration can be an endangerment.

Not Accounting for Differences in Modes of Transportation

Regulations on certain hazardous goods and packaging methods can vary based on which mode they’re shipped with.

Take dry ice as an example. It has different regulations when shipped by ground than when by air. Another example is magnetized material. It’s only subjected to regulation restrictions when transported by air due to the interference it can cause to aircraft instruments.

That’s why it’s important to confirm the mode of transportation when shipping hazardous materials before packing, marking, labeling, and documenting everything. This way, you and your logistics provider know the exact shipping requirements needed.

Lack of Familiarity with Specific Regulations for Each Substance

The USDOT provides detailed tables of hazardous materials and their specific regulations for each classification. This includes specific information such as what packaging to use or transportation modes to ship. It’s your company’s responsibility to be knowledgeable and familiar with those regulations. Even still, ignorance of these regulations is a common mistake when shipping hazardous materials.

Assuming Goods Aren’t Hazardous

There are many materials that the average person wouldn’t think of as hazardous. Assuming goods aren’t hazardous materials when they are is a common mistake that happens when employees aren’t properly trained on hazmat and dangerous goods. As a result, they lack the required knowledge to differentiate what is and isn’t hazardous. This risks transporting hazardous material without being packaged, labeled, and communicated in the correct manner.

This mistake has the potential to cause catastrophic consequences depending on the product, the transportation mode, and several other factors. Ensure your employees are trained and when in doubt, don’t assume. Take the extra time to research the material if needed and follow hazardous protocol when applicable.

Some common items that are assumed to be non-hazardous are:

Letting Untrained Employees Handle Hazardous Materials

What’s the easiest and most important way to avoid hazardous material shipping mistakes? Make sure your employees are trained in hazmat shipping.

Many of these mistakes happen due to untrained employees handling hazmat shipments. Therefore, employees need to undergo formal training and show competence under supervision before handling hazardous goods on their own. Additionally, employees should frequently be reeducated to stay keen on hazmat shipping requirements.

Not Following Exact Instructions for Packaging by the Manufacturer

Hazardous material packaging is designed to meet regulatory requirements. Many hazmat packaging manufacturers will include detailed instructions on how to use their packaging for safe and compliant shipping. It’s important that employees have access to these instructions and understand them completely.

Thinking Any Mistakes Will be Overlooked

It can be easy to think your business won’t get caught with a hazmat shipping violation. Yet, as noted by the examples above, it can and does happen. As the U.S. government remains vigilant in cracking down on hazmat shipping violations, fines continue to increase, making it even more financially smart to stay compliant. Not to mention that those violations can cause harm to the environment or people. No matter what, risking a hazmat shipping violation is never worth it.

AVOID HAZARDOUS SHIPPING MISTAKES WITH AN EXPERT

Everyone makes mistakes sometimes, but when it comes to shipping hazardous materials, it’s crucial to do all you can to reduce them. Now that you know the most common mistakes when shipping hazmat, you can be more aware of avoiding them.

An easy way to help stay compliant when shipping hazardous materials is partnering with an expert knowledgeable in its regulations, like Trinity Logistics. We’ve been in the business of arranging hazardous shipments in several modes for over 40 years. We’ve also been Responsible Care certified since 2009.

If you’re looking for a reliable partner to help you with shipping your hazardous materials, consider Trinity Logistics. We can help take the guesswork out of keeping your hazmat shipments compliant.

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The chemical industry faces challenges such as volatile raw material prices, shortages, supply chain disruption, and more.

The chemicals industry is one of the most important sectors, with 96 percent of all manufactured goods depending on them. With many moving parts and various stakeholders involved in the chemical supply chain, there are several challenges this industry faces. Here are some of the biggest challenges affecting the chemical industry.

CHEMICAL INDUSTRY CHALLENGES

MANAGING RAW MATERIALS

The chemical industry, specifically chemical manufacturing, relies heavily on raw materials. Raw material prices, such as those for crude oil, are volatile and can fluctuate at any given time. This can make it difficult to forecast costs and budget and, keep prices competitive.

Keeping an adequate supply of these materials can be an additional challenge. Having too much inventory can potentially lead to chemical waste or spoilage while too little can make it difficult to meet customer demand.

TRANSPORTATION DISRUPTIONS

Chemical industry supply chains can be long and complex. They have many moving parts, making the transportation of chemical products a challenge. If you add in transportation disruptions, it makes it even more problematic.

While transportation disruptions usually occur at some point, in recent years, there’s been a lot of supply chain disruption caused by the onset of Covid-19.

According to a survey by the American Chemistry Council, 97 percent of companies reported having to change to their operations due to supply chain issues in recent years. Because of this, the chemical industry must stay on the tip of its toes and be able to adapt quickly whenever disruption may happen.

Also, global supply chains see the most impact from transportation disruptions. The chemical industry has more global supply chains than other industries, making this challenge more difficult.

REGULATIONS

Chemical products are often specialized and need specific storage and handling. In addition, they face strict regulations on the transport of their products, especially hazardous materials. These regulations are necessary to have in place to protect the environment and people.

In recent years, several high-profile incidents have involved the release of hazardous chemicals into the environment. This has caused governments to introduce more strict regulations. As a result, this has increased the costs for chemical companies to operate. It’s been estimated that chemical companies will have to spend more than $300 billion over the next few years to meet regulations.

The chemical industry must be more vigilant than ever to remain compliant. These increased regulations put more pressure on chemical companies already trying to meet global standards.

The chemical industry has to work with many different regulations and agencies, such as;

LARGE AMOUNTS OF DATA

The chemical industry handles a lot of data. All manufacturing and operational data must be recorded, categorized, and processed. It’s estimated that chemical companies handle up to;

This massive amount of data can be a challenge, especially with supply chain management.

COMPLEX SUPPLY CHAINS

The chemical industry is a complex one. It can include various kinds of chemical processes with products in all forms, from raw to intermediate, to finished goods. There are also many stakeholders involved, from chemical manufacturers to distributors.

Additionally, chemical products are often required to have very specific characteristics with little to no room for variations. Chemical companies also handle more complex items, like hazmat or temperature-controlled. Chemical supply chains are often worldwide, making them much more complex than other industries.

LACK OF VISIBILITY

Due to its complexity, lack of visibility can be a challenge for chemical supply chains. It can be difficult for chemical suppliers to know their inventory levels or how products are being used. Therefore, it’s important for chemical companies to have an accurate picture of their inventory and supply chain. Improved visibility can provide insight into opportunities to reduce costs without sacrificing quality.

CLIMATE CHANGE

The chemical industry is one of the top contributors to global carbon emissions. As the world becomes more concerned about climate change and sustainability, there’s more pressure added onto chemical companies that already face strict regulations.

There’s also a growing demand from consumers for more green and ethical products. For example, many companies are having to find alternative solutions for plastic or use recycled materials.

To keep up with the ever-changing market and demand, chemical companies need to change their processes. They must find ways to create less waste and more products that help reduce their environmental impact.

Also, as the planet warms, more severe weather is taking place. This is causing more disruptions to chemical industry processes. Whether causing a halt in transportation or a shortage of oil, climate change presents several challenges for the chemical industry.

OVERCOMING CHEMICAL INDUSTRY CHALLENGES

The chemical industry can be a tough market to compete in. To overcome these challenges, chemical companies need to remain resilient and competitive. As the world and market continue to change, they need to be able to adapt.

Finding like-minded, expert partners with applicable technology is ideal to overcome these challenges. A third-party logistics (3PL) company, like Trinity Logistics, is one such resource.

Trinity Logistics has been in business for over 40 years and has worked with chemical companies of all sizes. Trinity is a trusted partner to help chemical companies better navigate their complex supply chains. We’re well-versed in the chemical industry and can help find a quality carrier for your shipment or offer improved visibility through our customized technology solutions.

When choosing to work with Trinity, our Team Member experts keep you up to date on industry news, upcoming regulation changes, or any other relevant information your business needs to stay successful.

Additionally, we’re a Responsible Care certified partner, meaning we’re committed to providing you with the best service for your logistics and transportation management while staying committed to sustainability practices.

At Trinity Logistics, we’re not your typical 3PL. We’re invested in your business and are here to help your business succeed. If you’re looking for a like-minded logistics partner to help you overcome some of your industry’s challenges, we’re here and ready to help.

SEE HOW TRINITY CAN HELP YOUR CHEMICAL BUSINESS

If you’re a large-scale manufacturer, getting liquid freight transported in bulk is a non-negotiable complexity. Bulk transportation, especially liquid freight, has its challenges and may seem daunting. But, with the right information and provider, it doesn’t have to be. So, whether you’re new to bulk transportation for your liquid freight or a seasoned vet, this article breaks it all down so you can safely and efficiently have your liquid bulk product transported.

What Is A Bulk Product?

What Kinds Of Bulk Liquid Products Are There?

What Is Bulk Transportation For Liquid Freight?

Complexities Of Bulk Transportation For Liquid Freight

What Can Go Wrong With Shipping Bulk Liquid Freight?

What Kind Of Equipment Is Needed For Bulk Liquid Transportation?

How Do You Transport Bulk Liquids?

Bulk Transportation: Liquid Freight Regulations

WHAT IS A BULK PRODUCT?

Before we dive into bulk liquid freight, let’s go over what bulk products are. The term “bulk” is used in transportation to describe goods that are not in containers and loose, transported in mass quantities or volumes. Bulk products are usually packed in one large container to be moved, such as a tanker trailer. Bulk products are often not intended for general consumers but are useful to manufacturers. Examples of bulk products are raw materials, ingredients for food manufacturing, materials for landscaping, gravel, dried beans, oil, or grains.

Another term to be aware of when working with bulk products is “break bulk”. Breakbulk is when a bulk shipment is broken down into smaller containers. This is important to know because bulk shipments are handled as loose goods whereas breakbulk shipments are loaded individually in some sort of container. Therefore, when you have a product to ship, it’s very important to properly communicate whether your shipment is bulk or breakbulk.

WHAT KINDS OF BULK LIQUID PRODUCTS ARE THERE?

There are many sorts of liquid products that ship via bulk transportation. These types of liquids are often used in manufacturing, food processing, agriculture, and more. Some examples of bulk liquid freight are:

WHAT IS BULK TRANSPORTATION FOR LIQUID FREIGHT?

Bulk transportation for liquid freight involves using a tanker trailer instead of smaller drums or tanks. Bulk liquid transportation usually refers to the act of moving liquid freight by truck over long distances.

COMPLEXITIES OF BULK TRANSPORTATION FOR LIQUID FREIGHT

Bulk liquid freight, especially when it’s hazardous, can carry more risk than other types of freight. For example, an accident involving a tanker truck can cause the shutdown of roadways, manufacturing production lines, and ultimately, the loss of raw material needed for many products.

The first complexity of bulk liquid freight is the way it’s packaged and stored. Unlike other freight, it’s not packaged in totes or smaller containers. Instead, bulk liquid freight is stored and transported in large containers and tankers, and because of their liquid state, they can slosh around and spill.

Since bulk liquid freight shipments transport differently than dry van shipments, you’ll find complexity in its logistics like:

Longer Lead Times

Tanker transportation is considered more of a specialty compared to dry vans, so you’ll notice fewer tankers available. This can make finding an available tanker longer to find.

Higher Rates

Being a specialty type of transportation, it’s easy to see why rates will be higher for this type of shipping. First, carriers pay more for this kind of special equipment. On average a tanker trailer can cost $100,000 to $125,000 compared to the cost of a dry van around $35,000 to $40,000.

Also, your shipping costs will include deadhead miles every time as each delivery requires a trip to wash the tanker. And unlike other types of transportation, you’ll have the same rate regardless of how full the tanker trailer is since different liquid freight cannot be combined for motor carriers to create a “full tank load” shipment.

Different Driver Requirments

No matter the product, tanker drivers are required to have a tanker endorsement, and if the liquid freight is hazardous, they’ll also be required to have a hazmat certification as well.

More Insurance

Carriers hauling hazardous liquid freight in bulk must carry a minimum of $5 million in liability insurance.

WHAT CAN GO WRONG WITH SHIPPING BULK LIQUID FREIGHT?

A lot can go wrong when shipping bulk liquids, so working with an experienced provider is very important. Drivers must be extra careful when pulling a bulk tanker trailer of liquid freight. Just as you must be careful when carrying a glass of water, liquid freight in a bulk tanker sloshes around with movement. If a driver brakes too hard or turns too fast, the weight of the liquid freight can surge to one side and topple the trailer. And if the freight is hazardous, then massive environmental damage can also happen.

Outside of concerns about a toppled trailer, drivers must be mindful of other issues. For example, what happens when you shake or stir liquid? It agitates and causes foam. This also happens with liquid freight during bulk transport. While foam can be annoying when later unloading the trailer, at worst, too much aeration can ruin a shipment depending on the kind of liquid.

Another thing that can go wrong when transporting liquid freight is contamination. Therefore, tank washing is a requirement for every shipment. If a tank isn’t properly cleaned before the next shipment is loaded, residue from the previous shipment can contaminate it.

Lastly, leaky tanks are another serious issue with bulk liquid shipping. If a leak goes unnoticed, even a small one, a significant amount of product can be lost during transport.

WHAT KIND OF EQUIPMENT IS NEEDED FOR BULK LIQUID TRANSPORTATION?

Bulk liquid freight cannot be transported without the proper equipment. Most often, a bulk tanker trailer is needed to haul liquid freight. A bulk tanker is a large, cylindrical metal tank pulled by a standard freight truck.

But there are several different kinds of tankers that can be used for the bulk transportation of liquid freight. For example, there are tankers designed to keep a product’s temperature regulated or tankers with hoppers on the bottom to make unloading easier. In addition, some tankers include pressurized tanks or acid-resistant tanks. Which type of tanker you’ll need is determined by the liquid freight you need to transport.

Some questions to ask yourself, or that your provider may ask of you, to determine what kind of equipment is needed are:

Types of Tanker Trailers for Liquid Freight

Tanker trailers can be categorized into two categories, depending on the content they transport or their structures.

Tankers by Structure

General Purpose Tanker

These tankers are used to transport bulk liquid freight that doesn’t require special care or procedures. They are usually made of steel.

General Purpose w/ Heat Coils

These tankers are the same except for the addition of heat coils to help raise or maintain the temperature of the product.

Pneumatic Tanker

These tankers have a series of hoppers on their underbellies to help with unloading. Although pneumatic tank trailers are mostly used to transport dry bulk freight. They are also effective for liquid bulk.

Vacuum Tanker

This is simply a tanker with a pump to help load bulk liquid from underground or any other location into the tank. These tankers are most used to transport septage, industrial liquids, sewage, or animal waste.

Rubber Lined Tanker

These tankers are commonly used to transport corrosive chemicals.

Aluminum Tanker

These lightweight tankers can carry more volumes before reaching their weight limit and have lower operating costs. They are typically used to transport petroleum and petrochemicals.

Compartmentalized Tanker

These tankers have compartments built into them that allow tanker carriers to ship different chemicals.

Fiberglass Reinforced Plastic Tanker

These tankers are most used for food-grade bulk liquids, corrosive chemicals, and other hazardous liquid freight.

ISO Tankers

These tankers are built according to the standards of the International Standard Organization (ISO) for the shipping of most bulk liquid freight.

Tankers by Liquid Content

Fuel/Petroleum

These carry gasoline, fuel, oil, or propane. Most often these tankers are required to carry a hazmat certification, also making this a more dangerous job.

Food Grade

These tankers carry liquid freight like water, milk, or juice. These tankers can be equipped with heating or cooling systems for temperature control.

Chemical/Acid

These are used to transport many types of industrial chemicals. Some are designed to carry corrosive chemicals.

But Wait, There’s More…

Before we move on to the next section, two things you might want to know about are baffles and tanker weight limits.

Baffles

What are baffles? Remember when we spoke on liquid agitation earlier? That’s where baffles come in. Most tankers have baffles on the inside to help reduce the movement of the liquid. They act as different chambers to help divide the liquid up into smaller compartments, so the entire weight of the liquid is prevented from surging up against the side of the tank.

Tanker Weight Limits

Tankers are not limited by the amount of liquid they can contain, but by their weight. The U.S. Department of Transportation mandates that the maximum weight limit for trucks on public roads cannot exceed 80,000 pounds. So, if the liquid you need to transport is dense, like syrup or paint, you might not be able to fill an entire tanker truck. This is essential to keep in mind when arranging your bulk liquid shipments.

HOW DO YOU TRANSPORT BULK LIQUIDS?

Now that we know what kinds of equipment are used in transporting bulk liquid freight, let’s talk loading and unloading. These proper handling procedures ensure your liquid freight is transported safely.

Loading and Unloading

Before loading, the carrier must have the tanker cleaned so that it is without any residue or odor. The only time a tank washing may not be required is if the tanker is transporting the exact type of chemical it most recently unloaded.

They must also thoroughly inspect that nothing is out of place and there are no leaks. If there is any concern, the entire tank can be filled with water to test for leaks. Not only is a leaking tank inconvenient and expensive, but it’s also illegal.

There are two major methods for loading and unloading liquid freight from a bulk tanker: compressors and pumps. Pumps suck the liquid out of the tank while air compressors rely on pressure to force liquid out. It’s important to know that you cannot use air compressors for any flammable liquids as static electricity could build up and cause a spark.

Fun fact: When you unload a tanker of liquid freight using a pump, you must vent it by opening the hatch on top. The trailer can implode if this step is missed, just like your pressurized cooker at home. However, if you’re unloading with a compressor, make sure the hatch is closed.

When a bulk liquid shipment arrives for unloading, the receiver should always first take a sample to confirm the right product was delivered and in good condition.

Hazardous Labeling

Regulations mandate that any trailer transporting hazardous materials must be labeled. This helps anyone recognize the kind of content the trailer is carrying so they know what precautions are required.

WHO IS RESPONSIBLE FOR WHAT?

It’s important to know your and other parties’ responsibilities to ensure a safely transported bulk liquid shipment.

Shipper Responsibilities

Receiver Responsibilities

Carrier Responsibilities

BULK TRANSPORTATION: LIQUID FREIGHT REGULATIONS

Depending on what kind of liquid freight you’re transporting in bulk, regulations can vary. For instance, if you’re shipping liquid intended for human consumption, you’ll need to abide by any regulations set by the U.S. Food and Drug Administration (FDA), like the Food and Safety Modernization Act (FSMA).

If you’re shipping hazardous liquid freight, you’ll need to abide by any hazmat regulations.

Regardless of the kind of liquid freight you’re transporting, you’ll need to make sure the provider you work with has a tanker endorsement.

The chemical industry serves as support for many other industries, like agriculture, automotive, construction, and pharmaceuticals. According to an American Chemistry Council report, 96 percent of all manufactured goods trace back to chemical manufacturers. Chemical manufacturers often process raw materials into refined products used in other industries or within the chemical industry. However, raw materials costs have been rising recently, along with additional operating costs in the chemical industry.  

As chemical manufacturers face increased expenses, many find it more challenging to remain profitable. How can chemical manufacturers better manage their operating costs? In this blog, we’ll take a walk through what chemical manufacturers are currently facing and how they can better manage their operating expenses.  

Rising Raw Material Costs 

Raw materials costs have been rising in recent years. Part of the cause for increased prices is because they’ve gotten scarcer as the demand has risen for them. For example, raw agricultural materials have increased 117 percent since 2000, rubber has seen an increase of 359 percent, and steel is up 167 percent.  

Crude oil, which many chemical companies use for energy and other materials, is up 250 percent since 2000. Crude oil prices are the most important ones to watch because it affects so many different markets. For example, many basic ingredients originate in the oil and gas fields and then travel through a global supply chain to make materials like plastics, packaging, fertilizers, lubricants, paints, and much more. Additionally, higher energy costs mean higher operating costs for the chemical industry.  

Logistics Operating Costs in the Chemical Industry 

The strength of long, global supply chains continue to be tested. From the start of the Covid-19 pandemic to battling intense weather and labor shortages, prices for logistics operating costs in the chemical industry have skyrocketed. Chemical supply chains have had their weaknesses exposed, from their dependence upon the volatile oil and gas sector to their global shipping networks. It’s caused additional cost as many of the materials needed to operate are out of stock due to shipping congestion and backlogs. According to a survey done by the National Association of Chemical Distributors, 85 percent of chemical industry distributors reported at least one imported item out of stock. 

How to Better Manage Operating Costs in the Chemical Industry 

Interestingly enough, skyrocketing logistics costs are beginning to outweigh other operating expenses for chemical manufacturers. Finding better management and control in your logistics may be the thing to keep your chemical company cost competitive. As a result, a growing trend among chemical manufacturers is turning to outside help for their logistics. Many chemical companies find that using a third-party logistics company (3PL) makes a lot of sense. It helps them free up resources to focus on other aspects of their business. Here are some ways working with a 3PL can help you manage your operating costs.  

Find the Right Carrier – In Less Time 

We all know the stress and workload of finding a carrier to move your freight, especially for chemical manufacturers who need carriers that know how to handle their products safely. Capacity can be limited when looking for a hazmat certified, or tanker endorsed carrier for a decent shipping rate. Outsourcing your transportation is one solution to that problem.  

3PLs will take over the responsibilities of finding and vetting qualified carriers. A 3PL should make sure carriers have the proper credentials, insurance, and experience for your freight. Take control of your time and let someone else take on the workload so you can gain time for the rest of your business.  

Do you need help arranging your shipments? Gain access to our carrier network.

Create Efficiency With A 3PL’s Technology 

Working with a 3PL also offers you access to their technology services, like shipment tracking, automated workflows, and detailed reporting. By replacing your manual processes with logistics technology, you’ll find more visibility into your supply chain. And that visibility can help you find efficiencies to help you manage your operating costs. While the technology itself can be an extra cost alone, most 3PLs offer you technology applications along with freight arrangements. Additionally, you’ll have experts you can rely on to help you navigate those applications.  

Transportation Management Systems 

Click Here to Download our whitepaper on Guide to Transportation Management System.

All chemical companies are focusing on streamlining their operations, whether they choose to outsource their logistics or not. Many companies are turning to transportation management systems (TMS) to optimize their transportation networks. 

A TMS can help your business gain visibility into your supply chain, create new efficiencies, and automate your manual workload, so you can better manage operating costs.  

When using a 3PL, you often have options to choose how you want to integrate your TMS. Trinity Logistics offers you customer integration and a specialist to work with you every step of the way. No matter what option you choose, you gain the visibility and automation you’re looking.  

Control Your Logistics Costs 

In business and life, there are certain aspects that you can manage and control. As a chemical manufacturer, you must manage those costs that you can control and plan for those variances in costs for those you cannot. Logistics is one operating cost you can manage when you choose to partner with a 3PL.  

And you don’t have to look too far to find one. Trinity Logistics is well-versed in the chemical industry and understands your complicated market. Our Team of experts is here to help you find the quality carrier you need while offering technology to help you create efficiencies. We can help you gain control over your logistics costs, so you can make room for those other unknowns.  

If you’re ready to get a handle on your operating costs in the chemical industry, let’s get connected.  

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Author: Christine Morris

The chemical industry faces complexities every day. From safety regulations to handling and shipping these products, making, and delivering chemicals is no easy task. One of the significant challenges facing the chemical industry today is the pressure for sustainability. With climate change in the spotlight, consumers are taking notice, and sustainability is molding the chemical industry. 

Changing the Old Ways

While safety, service, and costs are still important aspects of the chemical industry, sustainability is becoming an important detail. The industry faces pressure from activists, lawmakers, and the public to become more sustainable to help battle climate change. 

A big issue arising for the chemical industry is that most people have trouble putting the words “green” with “chemicals.” This idea is something progressive, and future chemists are trying to help the industry adapt.

And while it’s not ideal to pay more money for creating products, it’s the path we’re headed. Studies show that more than three-quarters of consumers are willing to change their shopping habits to reduce their own carbon footprint. Additionally, more than one-third are willing to spend more money on products that help with sustainability. 

Climate change is in the spotlight and so sustainability is a growing concern for many. The chemical industry is feeling the effects by facing issues and working to find sustainable solutions to appease consumers. In this video, we discuss the issues facing the chemical industry, solutions, and ultimately, how this all affects logistics.

Sustainability Issues within the Chemical Industry

With over 881 million tons of chemicals transported in previous years, this industry is growing and on the rise. Yet, with its growth comes an increase of challenges on the chemical industry to meet sustainability goals. 

One major goal for sustainability is reducing one’s carbon footprint in the world. For the chemical industry, abiding by modern environmental standards like replacing petroleum-based combustion engines with electronic vehicles, or manufacturing with plant-based materials over oil-based, can help achieve carbon reduction. However, the chemical industry has several issues to resolve to meet this goal.

One of those issues is plastic. Over one-third of the plastic we use is single-use, meaning that after one use of a water bottle, zip lock bag, or straw, for example, these items are thrown away. The “Plastic Waste Markers Index,” published by the Minderoo Foundation, calculated that energy and chemical companies are the sources of half of the world’s single-use plastic waste. Single-use plastic accounts for most of the waste harming marine life and seeping into land when burned. This issue is not taken lightly. Many lawmakers and activists are acting to introduce a new form of recyclable and reusable plastic. 

Major oil spills in recent years have become a rising issue as well. One major oil spill was the Exxon Valdez off the coast of Alaska in 1989, with over eleven million gallons of oil spilled in the ocean. Some more recent ones were the True Oil pipeline in 2020, the tanker truck rollover in 2020, and more. 

Finding Sustainable Solutions

The chemical industry is working hard to find new solutions to be more sustainable. One of the significant changes being made is reducing the rise of fossil fuels.

The use of hybrid or electric vehicles has been on the rise, and we’ve seen significant sales growth for these types of vehicles. People are turning away from pumping gasoline to plug their cars into an electric outlet. While these electric vehicles are not yet popular in the trucking industry, many companies are working to build new electronic trucks. Not to mention, President Biden’s recent executive order aimed at making half of all new vehicles (including semitrailers) sold in 2030 electric. 

Fossil fuels also play a part in plastics. Single-use plastics are made from polymers, with their base material from fossil fuels. As companies strive to reduce their plastic use or manufacturing, it simultaneously reduces fossil fuel use. 

However, with new rules to reduce single-use plastic items, the logistics field will need to find new sustainable ways to package shipments. Currently, products are packaged and shipped in some sort of plastic. 

Although these seem like small changes that one person can easily make, the companies that use or manufacture these products face major changes to their business. As severe weather and climate change continue to be front and center worldwide, chemical companies feel the pressure to make these changes towards sustainability.

We’re Here to Help You

Sustainability affects all practices for the chemical industry, including their logistics. Here at Trinity, we’re here to help you reach your logistics goals, including those on sustainability. We offer several modes of transportation, including intermodal, which can reduce your carbon footprint. Our Team of experts can help recommend customized solutions like freight consolidation as another way to be more sustainable with your freight transportation. Or you can consider using technology, like our best-in-class transportation management system, to gain efficiencies and data-driven insights into your logistics, which can also help you with sustainability in your logistics. 

We know sustainability practices are necessary for every business. This is why we take pride in our efforts and are proud of our earned recognition as both an SDCE Green Supply Chain Award winner and as a Food Logistics Top Green Provider. 

If you’ve been looking for a like-minded logistics partner to reach your goals, we’re here and ready to help.

See how we can help you with sustainability in your logistics.

Author: Turner Lee

How does the cold chain process differ from your typical supply chain? The cold chain is a variation of your standard supply chain. It involves the movement of refrigerated or frozen products from temperatures of two degrees Celsius (35 degrees Fahrenheit) all the way down to negative 70 degrees Celsius (158 degrees Fahrenheit). The cold chain involves industries such as food and beverage, pharmaceuticals, and chemicals.

How does the cold chain process differ from your typical supply chain? And what is it exactly? In this video, we’ll walk you through what the cold chain process is, what its main elements of it are, and much more when it comes to temperature-controlled shipping.

WHAT IS THE COLD CHAIN PROCESS?

The cold chain process is a logistics management process for perishable products that need refrigerated temperatures to maintain quality and safety from end to end. It involves performing a chain of tasks to prepare, store, and transport products in the cold supply chain. 

Logistical planning and management protect the integrity of cold chain shipments. This involves using proper packaging, proper transportation equipment, carefully chosen transportation routes, perfect timing, and visibility throughout to ensure that what’s expected is what happens. The cold chain process is best done by using technology and data at every point of the process.

WHY IS THE COLD CHAIN IMPORTANT?

The cold chain ensures perishable products are safe, of high quality, or potency at the point of consumption or use. Failure to keep those products at correct temperatures results in degradation, discoloring, bruising, or microbial growth. When you have quality cold chain products, you’ll have satisfied customers, meaning greater demand, and the protection of public health. 

Additionally, cold chain providers contribute a great deal to the economy and workforce. According to GCCA, approximately $6.1 billion is generated by the refrigerated warehousing industry annually. Not to mention, the North American refrigerated warehousing industry employs more than 62,774 people annually on a full-time basis, with 92 percent being permanent employees versus contract or temporary.

WHAT ARE THE MAIN ELEMENTS IN THE COLD CHAIN?

Storage

The cold chain starts with the storage of the product at a refrigerated facility. If manufacturers of cold chain products don’t have storage equipment needed to keep their products regulated, they’ll have to outsource their cold chain operations to a partner who can provide the proper equipment. 

Common cold storage equipment and facilities include refrigerated containers, cold rooms, chillers, cold boxes, blast freezers, and vaccine carriers.

Packaging

Temperature-controlled products need correct packaging to maintain their quality. Proper packaging helps reduce the risk of product contamination and ensures energy-efficient storage along the cold chain. 

The most common refrigerants used in packaging are dry ice, gel packs, gel bricks, phase change material (PCM), and EPS panels (expanded polystyrene or Styrofoam).

Monitoring

Tracking certain information for specific cold chain products is a necessity. This includes temperatures and other environmental parameters, like humidity levels. Without monitoring, suboptimal conditions can happen and damage the quality of the product. 

Cold chain monitoring often refers to the use of the Internet of Things (IoT) or other sensor software. These monitoring systems can detect temperature problems, keep track of all cold chain products on one platform, and improve predictive maintenance through the integration of sensor data with supply chain management software, like a transportation management system (TMS). 

Delivery

Cold chain management also involves the delivery of shipments. Delivery is based upon the end-user consumers’ preferred methods for receiving cold deliveries. 

WHY IS AN EFFICIENT COLD CHAIN PROCESS IMPORTANT?

Unlike shipping non-perishable products such as furniture, interruptions in the cold chain can result in damage to the quality of the product, making it unusable. An efficient cold chain process uses monitoring and reduces the amount of handling from end to end. 

The cold chain industry has standardized temperature zones classified to maintain the quality of products. These classifications are: 

Banana

Bananas and other tropical fruits like oranges, pineapples, or even potatoes have a temperature range of 12 degrees to 14 degrees Celsius (53 to 57 degrees Fahrenheit). This helps control ripening during transport. 

Pharmaceutical

Most pharmaceutical products need temperatures between two and eight degrees Celsius (35 to 46 degrees Fahrenheit).

Chill

This classification is between two and four degrees Celsius (35 to 39 degrees Fahrenheit) for many other fruits, vegetables, and fresh meat.

Frozen

This temperature range is between minus 10 to minus 20 degrees Celsius (50 to 68 degrees Fahrenheit) for frozen meat, cakes, and bread.

Deep Frozen

Seafood, ice cream, and other frozen foods need colder temperatures at minus 25 to minus 30 degrees Celsius (minus 77 to minus 86 degrees Fahrenheit).

Ultra-Low

This is a new and growing temperature range often for pharmaceutical products that need temperatures reaching minus 70 degrees Celsius (minus 158 degrees Fahrenheit), like certain vaccines. 

Shipping temperature-sensitive items? Check out our Temperature Shipping Guide for temperature suggestions.

WHAT ARE SOME INDUSTRIES THAT USE COLD CHAIN?

Food and Beverage

Controlled temperatures are needed for transporting food and beverage products such as milk, produce, or meat. Interruptions in the cold chain can lead to spoilage or bacteria or mold growth. As mentioned above, many fruits like bananas ripen during their shipment.

Pharmaceutical

Many pharmaceutical products need temperature control. This includes products like vaccines, medication, or biologicals, like blood or plasma. Spoilage of these products can mean a loss in efficacy and can become a public health hazard if not caught.

Chemical

Temperature control is critical when it comes to some hazardous chemicals. Specifically, ones that can be susceptible to reactions due to heat release. If heat escapes from a chemical good that requires it to remain at a certain temperature, it can cause a spark, flame, or explosion to occur, not only damaging the product but potentially harming others.

Oil and Gas

This sector uses explosion-proof refrigerated containers on oil rigs, oil tankers, and offshore locations.

Military

The U.S. military must control the temperature of its medical supplies, which often travel long, hard-to-reach areas. Because of this, the cold chain process can become more complicated when handling products for the military.

WORK WITH AN EXPERIENCED PROVIDER

Not all temperature-controlled products are the same. Each product is unique and requires specialized solutions throughout the cold chain. Many cold chain manufacturers are turning to third-party logistics companies (3PLs) to handle their complex challenges in the cold chain process. For your cold chain to be successful, you need to be sure to work with a provider who understands your industry, regulations, and product requirements.

Luckily, you don’t have to look very far to find one. Here at Trinity, we have more than 40 years of experience in specialized industries such as cold chain. 

Contact us today to find your customized logistics solution for your cold chain process.

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Author: Christine Morris

What do semiconductors, plastics, furniture, chlorine, and more all have in common lately? They are near impossible to find. As disruption after disruption has interrupted supply chains, shortages are now messing with shipping and demand. Specifically, raw material and product shortages are affecting the chemical industry. With many other industries relying on the chemical industry, this is becoming a significant challenge to overcome.

MATERIAL AND PRODUCT SHORTAGES

Shortages in the chemical industry have worsened over the last quarter. According to a June survey of 84 National Association of Chemical Distributors, nearly 85 percent of distributors report at least one imported item as out-of-stock. This is a huge jump compared to only 47 percent found in March. Inventories in the chemical industry have begun increasing, but they have yet to reach their pre-pandemic levels. These shortages are not only hurting the chemical industries but the many industries that rely on them. One example is the shortage of citric acid, as it’s often used in vitamin or electrolyte drinks, even in soda. These material shortages mean tight supplies, high prices, and continued delivery delays.

Some recent materials and products that currently face shortages in relation to the chemical sector:

Semiconductors

Many manufacturers worldwide are having trouble securing supplies of semiconductors, delaying the production and delivery of goods, and increasing prices. Several factors are driving the crunch, which first affected the auto industry. The shortage is going from bad to worse, spreading from cars to consumer electronics. With the bulk of chip production concentrated in a handful of suppliers, analysts warn that the crunch is likely to last through the rest of 2021. Materials most vulnerable in semiconductor production include wet chemicals, solvents, photoresists, gases, and substrates. Several semiconductor process materials in the petroleum supply chain are also running short. Those materials include acetone, PGMEA, NMP, and IPA, and a few of several solvents.

Plastics

Yet another shortage complicating business is plastics. Food packaging, automotive components, clothing, medical and lab equipment, and countless other items rely on them. Since March 2020, a perfect storm of events has been putting severe strains on the supply of plastic raw materials, base plastics, and compounded plastics. This shortage has hit plastic product manufacturers very hard. 

The demand for plastics continues to surge, especially for food packaging and automobile components plastics production. Plastics required by high purity chemical providers for packaging and wet processing equipment are experiencing raw material price increases due to availability issues.

Plastics make every kind of product imaginable — from food packaging, appliances, smartphones, and car parts to exercise equipment and roller skates. So with the ongoing surging demand for goods, it’s easy to see why these shortages are a big deal.

Chlorine

The swimming pool boom from the pandemic created a higher chlorine demand, thus contributing to a shortage. There was also a manufacturing lab fire in August of 2020 in Louisiana that only further aided the shortage. 

Some pool supply stores have imposed quantity restrictions. In certain regions, prices for chlorine tablets have doubled from last year. The chlorine shortage is widespread, and it will likely worsen as homeowners use their swimming pools for the season. 

Gas, Oil, Fuel

It’s not quite that there’s a huge shortage of crude oil or gasoline. Instead, it’s a shortage of tanker truck drivers who deliver it. According to the National Tank Truck Carriers, 20 to 25 percent of tank trucks in the fleet are parked due to the shortage of qualified drivers. The driver shortage has been an issue for a while, but the pandemic multiplied it. 

Gas prices, which typically rise at the start of the summer as seasonal regulations take effect — requiring the more expensive “summer blend” of gasoline needed to combat smog — are also rising. The national average has surpassed $3 a gallon this summer and could get even higher if any hurricanes hit the Gulf Coast or if there are any other disruptions to supply, such as a refinery fire. 

Other Raw Materials

As countries work to switch over to green energy, the demand for copper, lithium, nickel, cobalt, and other rare earth elements is soaring. And these raw materials are vulnerable to price volatility and shortages as limited access to known mineral deposits is another risk factor. Only three countries together control more than 75 percent of the global output of lithium, cobalt, and rare earth elements – the Democratic Republic of Congo, China, and Australia. Constraints on the supplies of their raw materials — especially polyethylene (PE), polypropylene (PP), and monoethylene (MEG) — are leading to factory shutdowns, sharp price increases, and production delays.

SHORTER SUPPLY + HIGHER DEMAND = HIGHER COSTS

Consumer spending rapidly grew because of the pandemic. Remote working and schooling created an increased demand for electronics. Higher demand came for food packaging and healthcare markets. Automotive production rebounded and surged beginning in the third quarter of 2020. All these and more are impacting the chemical industry.

These disruptions have undoubtedly led to rising prices. Echemi reported in late March that more than 20 chemical companies including BASF, DuPont, Dow, DSM, and LANXESS, have raised prices. These price hikes are largely due to difficulty in getting raw materials used to make products. And there’s less supply than there was a couple of months ago. As demand is rising relative to production, prices have increased for chemicals, like polypropylene, acetone, and other solvents. 

…AND LOGISTICS DELAYS

Not only have shortages worsened since March, so have delays. NACD’s survey found that 82 percent of respondents are dealing with an average uptick in travel time for their shipment of 11 days or more. And these issues extend throughout the supply chain. 

Containers and boats to ship products from overseas are in short supply. Products could be sitting in a factory overseas for months because they can’t get loaded onto a ship. Then you have the ports struggling with delays. Currently, you can look at live video outside of Los Angeles and you’ll see up to 30 boats driving around waiting to get an appointment because there are so many ships coming in. Ships are waiting longer to get in and once they do get in, there is a shortage of drayage drivers that only adds to the congestion. 

A lack of truck drivers and warehouse workers has contributed to the delays as well. The driver shortage was an issue before COVID, but the recent labor shortage in warehouse workers has created a larger problem. Say you do have a truck available. But if you don’t have somebody in the warehouse to pull the goods out of the racks and load them on the truck, then that’s another issue causing delays.

Supply chain issues continue to hamper the whole of manufacturing. It’s hard to look at the global supply chain and not think, “everything that can go wrong has.” The impact of these issues continues to impact many industries downstream. On raw materials such as chemicals and plastics, inventories are unlikely to be rebuilt amid continuing strong demand. There’s simply not going to be a quick return of inventories. 

WHAT YOU CAN DO DURING THESE TOUGH TIMES

Begin building a more resilient supply chain

Consider moving manufacturing operations closer to home. This can help reduce your transportation times from future delays or disruptions. Make plans now to be prepared for all potential disruptions. Disruptions to the supply chain are not new, but this current phase of repeat instances has been rougher than most.

Gain access to technology

Integrating technology into your supply chain has now become a necessity. Implementing technology like a transportation management system (TMS) will help all stakeholders maintain real-time communication and visibility. A TMS can help you optimize your routes and work with the best carriers, increasing your service levels and reducing any delays. It can provide you with data-driven insight so you can better manage current and future disruptions. And by using data analytics, you can recognize which carriers most likely have available capacity, reducing your time spent on transportation coverage. Gain insight into what’s happening across all markets, ensure proper rates for shipments, and keep more control over your budget and logistics costs with TMS technology.

Work with experts that keep a pulse on the market

An expert can help you pick up on early warning signs and help you prepare for potential constraints. They can also offer you alternative solutions when needed. 

Here at Trinity, we are a Team of experts. We do more than arranging your freight. When working with Trinity, we become logistics partners in your business and aim to help you with your growth. We can help you streamline your logistics procedures and give you insight into the freight market. We keep a close eye on it and keep you educated to help you plan and forecast. 

We also work very hard to follow through on what we say we are going to do. When issues arise, we work until they are resolved, keeping communication every step of the way. We have over 40 years of experience in logistics and industry challenges in supply chains is our day-to-day.

Industry experts and forecasters are saying this tough market is far from over. It may even look to extend into 2022. So don’t hesitate in asking for help. We’re here and ready to provide you with our People-Centric approach for you during this historical time in logistics.

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Author: Jennifer Braun

Does the COVID-19 vaccine have your cold chain logistics worried? If not, you should be taking it into consideration. 

Everyone’s over the pandemic. We’re ready to be back attending public events, traveling to popular destinations, have our kids in school full time, and more. So much of 2020 has had to cancel or make the move to virtual and it’s not the same. Additionally, here at Trinity, the health and wellbeing of our Team Members, Authorized Agents, Carriers, and Customers is our number one priority.

Pfizer, Moderna, and others have quickly turned around vaccine solutions, making the light at the end of the tunnel seem in reach. With everyone looking to gain some sense of normal back into their lives, it means all hands will be on deck for the upcoming vaccine distribution. That means other cold chain commodities, will fall lower in priority. How will this affect your cold chain logistics?

THE IMPORTANT ROLE OF COLD CHAIN LOGISTICS FOR A COVID-19 VACCINE

Vaccines are fragile. Most have to store at specific colder temperatures to protect them from deterioration. If left out too long or exposed to fluctuating temperatures, vaccines can lose their effectiveness. According to the World Health Organization, one in four vaccines loses its integrity during transit. Due to their fragility and the extensive attention to detail that the logistics sector has to maintain, roughly 80 percent of a vaccine’s cost comes from its storage and transport. 

Usually vaccines transport in temperature ranges of two to eight degrees Celsius. Currently, nine COVID-19 vaccines are in their Phase 3 trials, with two, Pfizer and Moderna, being very close to distribution. Because of the quick turnaround the world is seeking, these vaccines are containing higher protein bases which need ultracold temperatures, as low as minus 80 degree Celsius. Those receiving vaccines will need to get two doses, each about three to four weeks apart. Over time, vaccines will be developedrequiring more typical refrigeration temperatures and single doses. Regardless, cold chain logistics will continue to play a vital role in the distribution of a COVID-19 vaccine and for now, the specifications will be strict. 

ALL COLD CHAIN HANDS ON DECK

Currently, Pfizer expects to produce and distribute up to 50 million doses of their vaccine in 2020 and 1.3 billion in 2021; Moderna expects 20 million in 2020 and anywhere from 500 million to one billion in 2021. Not to mention the other vaccines that will make their way as well. It is estimated that to immunize 7.8 billion people worldwide, 10 billion doses of a coronavirus vaccine will be needed.

The FMCSA recently announced their most recent extension of the Hours-of-Service waiver to February 28th and included carriers transporting COVID-19 vaccines. This effort is expected to be the biggest challenge the logistics sector has ever faced. Currently, logistics experts are struggling to plan ahead because of the lack of very specific information that they need to know about, such as the packaging, amount of dry ice needed to maintain temperatures, warehousing, equipment needed, and more. 

Shipping temperature-sensitive items? Check out our Temperature Shipping Guide.

AREAS TO WATCH

Through Operation Warp Speed, Moderna and other upcoming vaccines will deliver to the Mckesson distribution center in Irving, Texas, and then arranged deliveries to hospitals, nursing homes, and other determined points. Moderna will manufacture its vaccine in New Hampshire, Pennsylvania, and Indiana. 

Pfizer, however, has chosen to not distribute through Operation Warp Speed. They manufacture their vaccine in Michigan and plan to ship with transportation providers such as UPS and FedEx to locations around the country. They’ve chosen to directly ship to gain greater control and real-time insights into the status of their frozen vials. 

HOW IT AFFECTS CAPACITY

Obviously, reefer capacity is going to be needed for vaccine distribution. But, it’s already tight. If you’re in the cold chain, shipping temperature-controlled items, prepare to continue paying premiums for this service.

Recently, reefer rejection rates have been at almost 50 percent. That means almost one out of every two reefer shipments are being turned down by carriers. When the rejection rates are higher, the tighter capacity is, and the higher cost for you to get your cold freight moved. Reefer rates are already 20 percent higher year-over-year due to increased consumer demand while spending more time at home. 

WHAT THIS MEANS FOR YOU

If you ship temperature-controlled goods, the upcoming vaccine distribution efforts should be a concern for your business and logistics, especially if you regularly ship through less-than-truckload (LTL). Many top tier transportation companies such as UPS, FedEx, and DHL are ready to help Operation Warp Speed in the vaccine distribution. Everyone knows the vaccine distribution is the highest priority, but transportation providers also know they will be well compensated for their service of transporting it. This means other cold chain commodities will be pushed further down in priority. This will only continue on as more COVID vaccines become available to be distributed and until risk of COVID is greatly reduced. In the form of some ultracold transportation logistics, winter is coming and the demand for reefers will continue to rise. 

SHIPPING COLD CHAIN? WHAT YOU CAN DO TO PREPARE

Communicate.

Get ready now. Start talking to your relationships and providers to make sure you will have trucks to move your freight. Talk to your customers. Let them know now that things may slow down or get behind with the upcoming and expected vaccine distribution efforts.

Things may be getting tougher for you, but I think we all know this is good. We’re one step closer to returning to some sense of normalcy. Hold on, because the light at the end of the tunnel is there. It’s now in reach. We’re just in for a few more bumps in the road, but we’ll make it. 

Looking for an expert in cold chain logistics? 

Find Your Solutions with Trinity

Author: Christine Morris

Chemical manufacturers collect and use a lot of data in their supply chain. They deal with data on their products, customers, transportation, storage, operations and more. Acquiring that data is not hard but managing and utilizing that information to be able to analyze your business is the challenge. Taking advantage of a Managed Services solution can assist in better managing and using your data in your chemical supply chain.

Managed Services

Managed Services is when you outsource your freight and logistics processes to a third-party logistics (3PL) provider, such as Trinity Logistics. You can find ways to manage your data in one place using a 3PL’s Transportation Management System (TMS). By better managing, using, and analyzing your data, an organization can reduce costs, improve margins, generate revenue, and make smarter business decisions. How does a TMS offer you all this?

Supply Chain Visibility

A TMS can provide visibility into your supply chain data in many ways. Best-in-class TMS’s, such as Trinity Logistics’, can provide better insight into your logistics processes.

Executives can combine this improved visibility with robust reporting to help guide their decision making. You can also provide system access to your outside supply chain members such as suppliers, carriers, and vendors. Each partner can better plan for their part, having the potential to reduce expensive production costs, limit excessive accessorial charges, and improve customer service.

Freight spend visibility has many benefits within itself. By analyzing freight spend by lane, companies can learn which of their lanes are not profitable based on transportation costs. Identifying company-wide shipment volumes and rates can provide you leverage when negotiating your carrier contracts.

Reporting & Analyzing

Not all TMS’s can generate the reporting you may need. Most generate basic reports that summarize your transportation information. Examples of basic reports include freight spend totals, shipment statuses, and shipment volume reports. But a best-in-class TMS can generate advanced reports that go into specific logistics metrics. Advanced reports can include accountability, analyzed freight spend, lane analysis, and carrier performance to name a few. The reports are dynamic, and you can filter, summarize, or graph information based on what you want to see.

The above-mentioned offers:

Accountability Reports

Accountability reports offer companies the opportunity to hold core members of their supply chain accountable for controlling costs. For example, with carriers you can view costs of carriers used, late fees accrued, any unnecessary detention charges and more.

Analyzed Freight Spend Reports

Analyzed freight spend reports allow a company to track their freight spend based on parameters. Having the ability to track it in this way ensures that potential causes of lost profits are identified and addressed right away.

Lane Analysis Reports

Analyze changes in rates by lane and predict trends in your freight costs with a lane analysis report. You can prepare for changes up front or try to prevent them altogether through carrier rate negotiations.

Carrier Performance Reports

Carrier performance reports can help you identify which carriers are best meeting your transportation needs.

Reports are an important tool to use to find areas of successes and setbacks. Once identified, companies can take advantage of this information by adjusting their practices. They can find ways to create more successes and overcome shown setbacks. Yet, most companies don’t have the technology needed to analyze their processes in such a manner. Money is often wasted on unknown and unnecessary expenses.

Quarterly Business Reviews

When choosing to work with Trinity’s Managed Services team, you gain a relationship with a specialist. Our Team analyzes, produces, and presents Quarterly Business Reviews (QBR), making it easier for you to digest your data. We help you understand what is working, what is not, and what can be done to further escalate your company’s growth.

The importance of data doesn’t revolve around how much data you have, but what you do with it. Managing and analyzing your data effectively is what will take your chemical company even farther. Take it from one of our largest chemical customers, Albaugh;

““We have had tremendous growth over the last 3-4 years. This would not have been possible without the level of service and expertise Trinity Logistics provides. They are a true strategic partner in a very dynamic environment.”

Click here to read our case study on how Managed Services helped Albaugh with their growth.

When you combine your data with our Managed Services solutions, you can,

Do you want to see what you will find when you manage and analyze your data with Trinity Logistics?

Start your free consultation.