WASHINGTON, Jan. 10, 2022 /PRNewswire/ -- U.S. chemical
manufacturers reported that persistent, and in some cases
worsening, supply chain problems had a detrimental impact on their
operations. According to survey results released by the American
Chemistry Council (ACC), the impacts of supply chain disruptions
and transportation constraints for many companies are wide-ranging
and occurred in all regions of the United
States.
The survey was conducted to gain a better understanding of the
scale supply chain and transportation issues that ACC member
companies experienced and how they impacted operations. Highlights
of the survey include the following topline findings:
- Almost all companies (98%) reported modifying operations
because of supply chain/transportation issues.
- Two-thirds reported lost production and nearly all reported
shipping delays (94%), shortages of raw materials (94%), and
increased transportation costs (93%).
- Over the last year, more than one-third of companies
experienced or declared force majeure because of supply
chain/freight transportation issues.
- Over the same period, nearly all (93%) companies reported
additional costs into the several millions of dollars. Estimates
ranged from $100,000 to $250 million, with more than a third of companies
reporting costs higher than $20
million.
Supply chain problems are a critical issue for ACC and its
members because chemical shipments represent a large share of the
overall total shipments for marine, truck and rail transportation.
The stakes are expected to only get higher as ACC's economists
anticipate that chemical shipments and the industry's
transportation needs will increase this year and into the
future.
"Our industry forecasts for 2022 anticipate significant growth
in chemical production and shipments, which heightens the urgency
for untangling ongoing supply chain issues," said Martha Moore, ACC's Chief Economist. "Our member
companies have made it very clear that widespread problems across
all modes of transportation created an unwelcome and very
disruptive environment for chemical manufacturers."
Several initiatives that President Biden and Congress put in
place over the past year are helping move more cargo and address
supply chain constraints for chemical manufacturers. Those
initiatives include extended service hours and additional funds for
improvements at port facilities and recruitment programs to help
get more truck drivers on the road.
As part of its effort to rebuild America's infrastructure, the
Federal Government must place a greater emphasis on resolving
freight transportation problems. ACC has joined with several other
industry groups to advance additional policies aimed at fixing
these problems by helping promote greater competition between
freight carriers and increasing capacity for truck and marine
shipments.
Specifically, the Council is calling on Congress to pass the
Ocean Shipping Reform Act of 2021, urging Congress to pass
legislation to improve capacity for trucking by increasing the
Gross Vehicle Weight (GVW) on the Federal Interstates and pushing
the Surface Transportation Board to allow greater access to
competitive and reliable freight rail service.
"The supply chain problems impacting our member companies simply
didn't disappear at the stroke of midnight on New Year's Eve.
Unfortunately, they will carry over well into 2022," said
Chris Jahn, President and CEO of
ACC. "President Biden and Congress have made modest progress, but
now is not the time to let up. To put these systemic supply
chain problems behind us, we must continue to move forward on
additional policy reforms that will unlock the full capability of
the entire freight transportation network."
American Chemistry Council
The American Chemistry Council (ACC) represents the leading
companies engaged in the multibillion-dollar business of chemistry.
ACC members apply the science of chemistry to make innovative
products, technologies and services that make people's lives
better, healthier and safer. ACC is committed to improved
environmental, health, safety and security performance through
Responsible Care®; common sense advocacy addressing
major public policy issues; and health and environmental research
and product testing. ACC members and chemistry companies are among
the largest investors in research and development, and are
advancing products, processes and technologies to address climate
change, enhance air and water quality, and progress toward a more
sustainable, circular economy.
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SOURCE American Chemistry Council