Have you ever wondered what drayage is? Perhaps you hear the term mentioned by other shippers, motor carriers, or your logistics providers. You’ve likely heard some other terms associated with drayage, like demurrage or drop fees, and are curious what those are. Well, if drayage is piquing your curiosity, we’re here to help you learn what it is and if it’s for your business. Here are the most asked questions we receive about drayage from our shipper relationships.
What is Drayage?
This is a great question. You’re probably wondering, what does drayage even mean? Essentially, drayage is the local movement of a container from point A to point B, usually less than 100 to 200 miles. Point A and point B can be moving it from a terminal or port to a receiver or from a shipper back to the terminal or port location.
How Does Drayage Work?
There are two different forms of drayage – imports and exports.
For example, let’s say you have an imported container coming into the U.S. from another country into a terminal, like Los Angeles. As your third-party logistics (3PL) provider, we help you arrange the move of that container to be picked up by a drayage carrier at the terminal and transported to its destination or receiver.
Now, for the second example, let’s say you have freight that you need to get transported on a ship from the U.S. to another country. As your trusted 3PL, we’ll help arrange a drayage carrier to assist you in getting your freight to the port. That drayage carrier will pick up an empty container from the terminal and bring it to your pickup location to get loaded. Then the drayage carrier will take the container with your freight to the port to be loaded onto the ship.
Why is it Called Drayage?
The term dray refers to the movement of freight in a local setting, so a very local move. The word dray stems from moving freight or something heavy in a cart or wagon with no sides. This used to be done using horses, so you’d have dray horses moving dray carts. However, now the containers have replaced the carts, and trucks have replaced the horses, but the movement of freight still refers to a short, local move.
What’s the Difference Between Drayage and Freight?
Drayage itself is the movement of the freight. But what is the freight? The freight is the actual product being moved via drayage.
What is Demurrage?
First off, it’s pronounced like “duh-mur-uhj”. As a customer, you may see or hear the term demurrage from time to time. Essentially, it’s a storage fee.
Once your container arrives at its terminal or port, they are going to give you a certain number of days in which your container can sit there for free.
For example, let’s say you have three free days. Your container arrives on June 5th, so you have June 5th, 6th, and 7th, in which your container can sit there, free of charge. Once June 7th approaches, that is called your Last Free Day (LFD). LFD is a term you will hear very often. Once it’s June 8th, that is going to be the first day of demurrage, or the terminal or port charging you for storing your container and taking space in their yard.
Why is Drayage Important?
You may be wondering, what’s the big deal with drayage? Why do I hear this term so often? What do I need to know about drayage?
Drayage is important because it’s another mode, another way to move your freight. Instead of a standard truckload or less-than-truckload (LTL), it’s another way to get your freight overseas to its destination in the U.S. or from the U.S. to overseas. Really, it’s another way to reach your market or suppliers that may not be located here in the U.S.
What is a Drop Fee in Drayage?
This is important, as you want to know all the fees you may incur. You may be told that there’s a drop fee on your shipment. In a traditional shipment when picking up or delivering, they are being loaded or unloaded right then and there. This is what we call a live load.
In drayage, if a receiver says, “I need you to drop this container today, but we likely won’t be able to unload it until tomorrow. I’ll let you know once we can unload it and then you can come back.” This is where a drop fee comes in. Since the drayage carrier will have to drop the container and then come back to pick it up, the drop fee is a charge by the carrier for having to come back and pick up the empty container to return it to the terminal or port.
You want to make sure you’re having conversations with your logistics provider to get a full understanding of what’s needed for that container. Are they loading and unloading live or is it loading and unloading as a drop? That way you know whether to expect any drop fees.
What is a Chassis? Who Owns Them?
A chassis is the underbody of the truck and container. It’s what the container sits on. Pickup trucks have chassis, as do your 53-foot dry vans.
Drayage carriers do not own chassis. Instead, the drayage carriers must rent the chassis from the terminal or port. Once the drayage carrier has the chassis hooked on, a crane will load a full or empty container onto the chassis for them to transport.
What is Overweight for Drayage?
Every drayage carrier has slightly different weight limits, but universally there are some general limits.
First off, you have different types of containers and sizes. The standard sizes are 20-foot and 40-foot containers, and you have refrigerated (also referred to as a reefer) or dry containers.
Refrigerated containers will be able to hold a little less than your dry containers because reefer containers hold heavier freight, like frozen goods. They also sometimes have generators connected to them as well, taking away from the amount they can carry.
A 20-foot refrigerated container can hold up to around 36,000 to 38,000 pounds.
A 40-foot refrigerated container can hold up to around 38,000 to 40,000 pounds.
A 20-foot dry container can hold up to 38,000 to 40,000 pounds.
A 40-foot dry container can hold up to 42,000 to 44,000 pounds.
Make sure you’re having a conversation with your logistics provider to get a full scope of the weights that can be handled so your freight can be loaded correctly on those containers.
Who Needs Drayage?
Well, if you’re reading this article, you might be considering drayage because there may be some point at which your business will need it. It’s a great mode and tool to have when you may be talking to other suppliers overseas. Drayage is one way to service them. For example, with drayage, you can say, “Not only can we get your freight from Germany to California, but we can do that final mile delivery for you as well.” It gives you more to offer your partners and another way to move your freight.
How is Drayage Cost Calculated?
As a customer of Trinity Logistics, we want to make sure we’re transparent with you and that you understand all the different charges that you may see or come across.
Typically, you’re going to have three charges that you’ll see on most of your drayage quotes.
First, there’s your line haul. That’s moving the freight from point A to point B.
Then, there’s your fuel surcharge, which is a percentage of your line haul for fuel expenses.
Lastly, there’s the chassis charge.
As far as any additional charges, your Trinity relationship will provide you with a list of any potential charges that may arise, such as that overweight fee, drop fee, hazmat, or refrigerated fee. We want to make sure you know exactly what you’re being charged so there are never any surprises.
LEARN MORE ABOUT TRINITY'S DRAYAGE SERVICE.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
- Transportation Disruptions
- Regulations
- Large Amounts of Data
- Complex Supply Chains
- Lack of Visibility
- Climate Change Pressure
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;
- Environmental Protection Agency (EPA),
- Food and Drug Administration (FDA),
- Good Manufacturing Practices (GMP),
- Occupational Safety and Health Administration (OSHA),
- and Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH).
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;
- 50,000 data points per raw material,
- 100 samples per test,
- 10,000 pieces of equipment per plant,
- 150 data points per customer!
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 BUSINESSIf 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 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:
- Vegetable oil
- Alcohol
- Milk
- Juice
- Syrup
- Sugar alcohols
- Vinegar
- Essential oils
- Mineral oils
- Artificial colors or dyes
- Chemicals
- Hydrogen peroxide
- Sulphuric acid
- Nitric acid
- Mining chemicals
- Solvents
- resins
- All types of water
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:
- What bulk liquid do you intend to transport?
- Is the freight hazmat?
- Is the freight temperature sensitive?
- What volume are you transporting?
- From what kind of container(s) will you be loading it?
- Can the loading facility accept a center or rear unload trailer?
- Does the tanker truck need special connectors?
- Is a pump or compressor required for unloading?
- Can the customer accept air compressor offload?
- At what pressure can the tanker unload?
- Does the product need a rubber-lined trailer?
- Are there any prior content restrictions we need to be aware of?
- Will you need a dropped trailer?
- Do you need any extra hoses for loading or unloading?
- What are the pre and post-wash requirements?
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
- Have knowledge of the properties of the liquid product you’re shipping
- Communication that information with the provider, along with any needed equipment or certifications
- Know which regulations apply
- Give the driver any placards, seals, or other items required
- Give the drive all paperwork for the shipment
- Provide personnel to load the tanker
Receiver Responsibilities
- Before unloading, verify that you’re receiving the correct commodity and in good condition
- Make sure there’s enough room for the delivered product
- Provide a clean and safe environment for unloading
- Assign someone to check unloading
Carrier Responsibilities
- Provide a clean tanker
- Have appropriate insurance
- Provide a driver who is well-trained and has all necessary licenses, certifications, or permits
- Provide any safety equipment required by the shipper to ensure safe loading
- Provide proper driver safety equipment, such as personal protection equipment (PPE), if the shipment is hazardous
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.
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
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.
Author: Christine Morris
Trinity Logistics is always looking to grow our company, our brand presence, and most importantly, our knowledge within our focus industries; chemical being one of them. We find being involved with industry associations helps keep us in tune with current challenges our customers may be facing while giving us new opportunities to connect. Recently, we came across NACD and thought it a perfect fit for Trinity.
What Is NACD?
NACD stands for the National Association of Chemical Distributors. It is an international association, established in 1971. It is made up of chemical distributors (called members) and their supply-chain partners (affiliates), like Trinity Logistics.
There are nearly 450 member and affiliate companies of NACD. They represent more than 85% of the chemical distribution capacity in the nation and 90% of the industry’s gross revenue.
Why It’s A Great Organization For Chemical Manufacturers
Becoming an NACD member provides many benefits to chemical manufacturers. You gain access to educational programs, important industry data, and networking with current or potential customers and supply chain partners. You also gain access to their list of “Responsible Distributors”, which can help you ensure your products are handled safely throughout the supply chain.
What Is Responsible Distribution?
In 1991, members of NACD created Responsible Distribution. Responsible Distribution is a mandatory third-party verified environmental, health, safety, and security program. It lets their members show their commitment to improvement in all phases of chemical storage, handling, transportation, and disposal.
Why NACD Made Sense For Trinity
As a supply chain partner and service provider, we are always looking for ways to better support our customers. We also want to continue learning and growing while networking. Striving to be our best is just something Trinity does.
NACD fits those objectives while aligning with our company culture. Learning about their Responsible Distribution program further solidified our decision to join. Since Trinity has been Responsible Care certified since 2009, gaining the opportunity to connect with like-minded companies that keep to similar standards of improvement made sense.
We are excited to be a new affiliate of NACD and to have the opportunity to connect with more members of the chemical industry.
Keep an eye out for NACD’s upcoming August edition of their magazine, Chemical Distributor. One of Trinity Logistics’ articles will be featured, written here by yours truly!
Interested in learning more about NACD and how to become a member? Join NACD
Ready to network with us and see how we can be your best supply chain partner? Request a quoteWhat is Responsible Care®?
According to their website, Responsible Care® is the chemical manufacturing industry’s environmental, health, safety and security performance initiative. It is an international improvement initiative of the chemical industry. Companies of the American Chemistry Council (ACC) carry out Responsible Care®. Choosing a 3PL that is part of the Responsible Care® program can be a benefit to your company, especially when shipping chemicals.
Why is it beneficial to choose a 3PL that is Responsible Care® certified?
Working with a Responsible Care® certified broker holds many advantages for your company. The 3PL will:
- understand the requirements to ship your chemicals
- provide extensive carrier vetting
- have a selection of many approved carriers
- understands the liability of moving hazardous chemicals
- be committed to doing all it can for sustainability
As of 2018, there are only 103 Responsible Care® Partner companies.
Only 24 of those are 3PLs.
How does Trinity Logistics use Responsible Care® when arranging chemical shipping?
Trinity Logistics has been Responsible Care® certified since 2009. Unlike most brokers, we carry Pollution Liability coverage. We chose to carry such insurance with Environmental, Health, Safety, and Security (EHS&S) in mind. Spills happen and need to be remedied immediately. Pollution Liability covers costs associated with pollution clean-up, and liability claims for pollution-related injuries, illnesses or death.
Our main goal as a company is continuous improvement. To do better today than we did yesterday. We do this by selecting approved carriers given the information our customers provide regarding their chemical shipment.
Trinity Team Members mitigate risk to our customers and carriers through carrier vetting and thorough communication.
Carrier vetting
Carrier vetting avoids the selection of carriers not approved for particular shipments. Doing so reduces the risk for the loss of containment.
Only trained Team Members can select approved carriers for hazardous shipments. Required training takes place each year for those Team Members involved. This annual training keeps those Team Members up to date with any regulations or process changes regarding hazmat certification. Operating procedures are in place for shipments that need specific certifications, such as hazmat or Customs Trade Partnership Against Terrorism (CTPAT).
We have an entire team dedicated to vetting motor carriers. Our Carrier Relations & Development Team must verify the motor carrier’s operating authority, insurance, certifications, etc. before the carrier may be added in our database as an “approved” carrier.
Operations training
Our onboarding for new Team Members is extensive. Ongoing training is required to maintain the knowledge needed by a Team Member.
Trinity has a complete program to manage its process with chemical transportation. This includes compliance with the Department of Transportation (DOT) and Occupational Safety and Health Administration (OSHA) requirements using system wide operating procedures.
Operations Team Members have a role in the sharing of this information. Team Members make sure information is correct and meets standards with our customers. They create shipping documents and communicate that information with the drivers. Communication is the most important part of process safety and is kept open with our customers, carriers, and our Compliance Team.
Outside of Arranging Chemical Shipping
Responsible Care® is much more than preventing and taking care of chemical spills. Responsible Care® is all about sustainability; how we take care of this earth now, so it is still here in the future.
Trinity has Responsible Care® rooted in its company culture. It is a green, environmentally friendly way of life that we have taken ahold of.
As stated by our point person for our Responsible Care® Management System,
“Trinity’s purpose is to “continually improve people’s lives by constantly striving to be our best”. Implementing the Responsible Care® Management System, RCMS, drove greater visibility and accountability. It became an integral part of our daily operations. Having this system in place allows us to reduce risk and strive towards a sustainable future.”
Examples of our Responsible Care® initiatives at our offices include:
- Battery recycling
- Safety Data Sheets for every chemical in office
- Employee wellness programs
- Active shooter programs
We perform regular checks on our environmental, health, safety, and security performances. We then measure and define our improvement objectives.
Trinity Logistics upholds Responsible Care to keep all of our stakeholders safe. This includes our customers, carriers, Team Members, and our community.
Discover how our chemical customer, Albaugh, came to chose Trinity Logistics as their one source logistics provider in our case study.
Read more about what goes into shipping chemicals safely in our blog post, Chemical Shipping and Storage: What You Need to Know.
If you’re ready to work with a transportation provider that is Responsible when shipping chemicals, click the link to get started. Request A QuoteOriginally posted February 3, 2020. Updated July 14, 2020 by Christine Griffith
If you play a big role in the transportation and logistics industry, you know that a lot of behind-the-scenes work has to take place to arrange a shipment. There are additional requirements, monitored by the Federal Motor Carrier Safety Administration (FMCSA) and Department of Transportation (DOT), to ensure shippers are compliant in how they ship hazardous materials. For those who arrange transportation, you’ll want to find a trusted source for shipping hazmat – which is something we’ve been arranging for more than 40 years.
In the automotive, agricultural, industrial, and specialty chemical fields, there are different requirements for transportation of hazardous materials, known as hazmat shipping. Not only do we have the best operating procedures in place to ensure safety in arranging transportation for hazmat chemicals, but we also have the right contacts in place with reliable trucking companies. Read more to find out how we can save you time, money, and headaches when it comes to shipping hazmat.
What shipments are Hazmat Shipments?
While the word “hazmat” may sound daunting, the materials considered in this realm are necessary to keep the economy moving. Industries requiring hazmat materials include farming, manufacturing, mining, the medical field, and more. While hazmat shipments are needed every day, there are necessary security measures put into place to make sure these materials are transported safely.
Hazmat Certification
FMCSA regulates hazmat shipping. To qualify to haul a hazmat load, both the carrier must have a hazmat certificate registered with the DOT, and the driver performing the load must have a hazmat certificate on their CDL. Our compliance team monitors carrier certificates and ensures trucking companies and drivers are adhering to these regulations before arranging hazmat loads. This ensures best possible safety in transit with trained, qualified drivers, while helping mitigate risk for customers.
Tanker Endorsement
In 2014, the Federal Motor Carrier Safety Administration (FMCSA) rolled out a new regulation meant to keep the roads safe from commercial drivers carrying large amounts of liquid or gaseous freight without the proper training. All states began enforcing this regulation in July 2015. In order to make these changes, the FMCSA changed the definition of “tanker endorsed,” meaning even those who are driving dry vans, reefers, flatbeds, and box trucks were required to hold a “tanker endorsement” on their CDL. Our Carrier Relations team works with our carriers to make sure those hauling hazmat loads have this education under their belt. Read more about these requirements in our blog about the regulation.
Hazmat Capacity
When shipping hazmat, it can become tough to find a carrier for your shipment, especially in harder to service specialty moves or those requiring additional certification. We’re in compliance with the requirements set forth in the Department of Transportation HM-232 Hazmat security plan regulations. Thanks to our relationships with specialty hazmat carriers, we can help you with capacity for your hazmat shipping needs – even if they are harder to service.
Responsible Care ®
In 2009, we became part of the Responsible Care ® Partnership Program to further our dedication to the chemical shipping industry. As part of this partnership, Trinity has committed to following Responsible Care’s program, through endorsing their guiding principles; measuring and publicly reporting our performance on an annual basis; implementing the Responsible Care Product Safety Code, Process Safety Code and Security Code; implementing the Responsible Care Management System ® to achieve and verify results; and obtaining independent certification that a management system is in place and functions according to professional specifications. As a Responsible Care ® partner, we are committed to improving our environmental, health, safety, and security performance for all of our functions. You can find out more on how Trinity implements Responsible Care ® in our blog here.
Choose to save time, money, and headaches with your hazmat shipping.
The hardest part can be filling out a form. We’ll handle the rest.
Get A QuoteOriginally published April 20, 2017. Updated by Christine Griffith.
The word “chemical” may sound a little scary. But it covers many different items, including some items in your kitchen or bathroom cabinets. When people talk about the challenges of chemical shipping, they’re often talking about materials that need special care. These might include materials that could explode, ignite, emit toxic gases, or cause serious harm if not handled in a safe manner.
There are many safety rules to keep hazardous chemicals from spilling or leaking. Anyone who transports or stores hazardous chemicals must understand how to handle those types of products. If a company or person violates certain rules, they may come face to face with civil and criminal penalties and thousands of dollars’ worth of fines. This chemical safety stuff is no joke! So, what could happen if chemicals aren’t stored and shipped properly?
What Could Happen
If rules and regulations for chemical storage and shipment aren’t upheld, a dangerous situation could occur. In February 2014, a facility near Carlsbad, New Mexico experienced an impactful issue.
An issue occurred at the Waste Isolation Pilot Plant facility that was responsible for storing waste from the making of plutonium bombs. This operation was a result of a clean-up effort of old nuclear weapon manufacturing sites. A storage drum containing plutonium waste broke open because of improper packaging. This resulted in waste being sprayed into the air and 22 employees were exposed to small amounts of radiation.
The incident ended with the closure of the New Mexico repository. Investigation of the Los Alamos National Laboratory also occurred. This was where the plutonium waste was being packaged in a way that led to the occurrence.
Storing Chemicals
There are a lot of rules and regulations when it comes to storing chemical materials. One wrong thing and you could literally have an explosion on your hands. To protect the environment and people that work where hazardous materials are being stored and used, containment is important. This is to prevent contamination.
Regulations are created at the state and federal levels to help prevent incidents from happening while chemicals are being stored and moved across the country. The Occupational Safety and Health Administration (OSHA), the Environmental Protection Agency (EPA), the Department of Transportation (DOT), and other agencies all have specific requirements for handling chemicals.
Douglas Brown, of Brown Chemical Company in Oakland, NJ states that his company must interface with nine different agencies just to open the doors every day. Along with OSHA, DOT, and EPA, those agencies include the Food and Drug Administration (FDA), U.S. Customs and Border Protection, the Drug Enforcement Agency (DEA), the Transportation Safety Administration (TSA), and the FBI.
There are also safety steps companies enforce to prevent spills, leaks, and injuries. Some safety rules include forklift speed limits, passageway traffic rules, and safety training. Other safety measures could be:
- Implementing storage rules – Larger volumes of chemicals tend to be stored in drums, barrels or Intermediate Bulk Containers (IBC), on racks or in large chemical storage units. Using signage to show the maximum volume a pallet or rack can hold will prevent collapsed areas and spills.
- A specialized storage system – It’s common for large warehouses to store products by alphabetizing, order of most used, or reference numbers. But these methods don’t work well when it comes to chemicals. That’s because there are several sets of chemicals that should never be near each other and could cause explosive reactions. If conflicting materials were to come into contact, fire, explosion, violent reactions or toxic gases could result.
- Inspections and emergency response plans – Companies should schedule regular, thorough visual inspections of storage areas to make sure no spills or leaks go unnoticed. This can lessen the possibility of employee health issues, damage to the building and other products, or worse. An emergency response plan should be in place in case a leak or spill happens.
Other typical storage considerations may include temperature, ignition control, ventilation, segregation, and identification. There are even special types of equipment that should be used in these environments. For example, EE-rated non-spark equipment prevent any spark from igniting a vapor or gas. In addition, special padding and static guard helps to ensure electrical equipment doesn’t set off accidents. All proper storage information is on Safety Data Sheets (SDS). An SDS must be on hand for every hazardous chemical in your workplace.
Shipping Chemicals
There are extra requirements that the Federal Motor Carrier Safety Administration (FMCSA) and DOT track to make sure shippers are compliant when transporting chemical materials. In order for a carrier to haul a chemical load that contains hazardous materials, both the driver assigned to the truck must have a hazmat certificate on their CDL and the carrier must have a hazmat certificate registered with DOT. Before shipping chemicals, a best practice would be to vet common carriers to be sure they have the above requirements. Using a third-party logistics company like Trinity will give you peace of mind when trying to get this information.
Our Carrier Compliance Team monitors carrier certificates and ensures trucking companies and drivers adhere to these requirements before arranging a chemical load. This provides the best possible safety and lessens the risk for shippers.
Responsible Care® partnership is also something to consider when shipping chemical products. This is the chemical manufacturing industry’s environmental, health, safety, and security performance initiatives. Trinity is a proud Responsible Care® partner and is committed to following the program through endorsing their guiding principles; measuring and publicly reporting our performance on an annual basis; implementing the Responsible Care Product Safety Code, Process Safety Code and Security Code; implementing the Responsible Care Management System ® to achieve and verify results; and obtaining independent certification that a management system is in place and functions according to professional specifications.
Another thing to consider with chemical shipping is capacity. Capacity is already an issue because of the driver shortage. But in the chemical industry, shipments often involve regional trips. These long-distance hauls can be unattractive to drivers. Finding tanker trucks for bulk chemical shipments proves especially tough.
Using a third-party broker like Trinity Logistics, will help take the guess work out of shipping your chemical materials.
Need a quote? Click on the button below to fill out our quick form. Request A QuoteOriginally published August 16, 2018. Updated by Christine Griffith.