Key industry trends
Like most other industries right now, the chemicals sector is facing some new challenges but also leveraging new opportunities this year. According to Chemical Processing, growth in U.S. chemical production rebounded strongly at the beginning of the year, but has since slowed in recent months with a deceleration in end-use markets and headwinds for US exports from a higher dollar and lower global growth.
“With a strong start earlier in the year, we expect that output of U.S. chemicals grew by 3.9% in 2022, one of the best years over the past decade. In 2023, chemicals output is expected to fall 1.2%,” the publication predicts. It says basic chemicals output is expected to fall by 1.5% in 2023—led by declines in organic chemicals and synthetic materials—and that specialty chemicals output will fall by 1.2 percent.
“In line with the rebound in end-use markets, growth in both basic and specialty chemicals reemerges in 2024,” Chemical Processing adds, noting that despite slower growth, US chemicals remain “advantaged” due to abundant domestic production of natural gas and natural gas liquids. “According to the Energy Information Administration, U.S. production of natural gas surpassed its pre-COVID peak earlier in the year and the outlook is for further production gains through 2023.”
Why you need an expert logistics provider
According to a recent American Chemistry Council (ACC) survey, nearly all (93%) chemical companies say that supply chain and freight transportation disruptions are impacting their domestic chemicals manufacturing businesses right now. The good news is that with the right multimodal logistics partner in their corner, chemical companies can overcome these challenges and ensure that their shipments get to their destinations safely, securely and on time.
With origins in chemical logistics, Odyssey’s experts have an in-depth knowledge of the unique chemical logistics environment and stay abreast of the laws governing the transport of hazardous and non-hazardous products. The company’s full-suite of chemical logistics services and proven track record offer a solution for every aspect of the chemical supply chain.
Certified by the American Chemistry Council as a Responsible Care® partner company, Odyssey uses the latest distribution logistics technologies to get your cargo from point A to point B in the safest possible manner. The global leader for outsourced sample fulfillment and logistics services, Odyssey’s chemical sample fulfillment maintains a 99.99978% accuracy level when safely storing, packaging and shipping your samples.
We’re in it for the long haul
Odyssey utilizes the intermodal rail network for the long-haul portion of domestic shipping via ISO tanks to help solve cost, capacity and sustainability challenges of shipping bulk over long distances. The company offers safe and dependable end-to-end transportation management through the most extensive bulk tank carrier network available under a single-source system in North America.
Odyssey’s core divisions— intermodal; transportation and warehousing; managed services; and freight forwarding—come together under one roof to form the ideal multimodal partner for chemical shippers.