Navigating the complexities of chemical logistics: The power of flexible freight for supply chain resilience

The chemical industry is diverse, with products ranging from hazardous materials to everyday items. And the way these products move is just as varied. From barges and rail cars to drums and totes on trucks, chemical supply chains are complex. 

Regulatory requirements, special handling for hazardous items, and intricate multimodal routes create a delicate balance within chemical supply chains. Because chemical suppliers and manufacturers rely on multimodal routes, the number of ways chemicals can be transported requires careful planning and seamless organization. Otherwise, a single disruption, like unavailable equipment or a delayed shipment, can impact capacity and availability, leaving companies scrambling to work through next steps.

As companies navigate the complexities of chemical logistics, they need proactive solutions to mitigate risk and unanticipated events, like the Francis Scott Key Bridge collapse in 2024 or severe weather events like hurricanes and wildfires. Working with a managed transportation partner for contingency planning and risk mitigation, maintaining a diversified network and supply chain, and leveraging technology and data can help chemical companies remain resilient while staying ahead of the competition. 

Unique challenges in chemical supply chains

Transporting chemicals isn’t as straightforward as moving other types of goods, and there isn’t a one-size-fits-all option. Across supply chains and networks, you could regularly have oil flowing through a pipeline, larger product amounts moved on barges or rail cars, or smaller batches in special trucks, drums, or containers.  

Additionally, the different types of chemicals that companies move daily are just as complex. Liquid and powder chemicals require different packaging and shipping methods. Hazardous materials (HAZMAT) and dangerous goods require special handling and paperwork, with strict regulations around how they are packaged, loaded, and shipped. The people handling them also need certifications and training, which can impact capacity. 

Where the shipment is going matters, too; whether that’s to another production plant or manufacturing site as raw material, a supplier, or a construction site changes the modes and equipment needed, which may not always be available on time. 

All of these challenges add up, making it essential for companies to adopt the right strategies and tools to keep their supply chains moving. 

Mitigating risk and contingency planning 

The delicate balance of chemical supply chains makes them vulnerable to disruptions. Unlike industries with less regulated freight and fewer static lanes, even minor issues can have significant impacts. 

For example, chemical companies often use rail services to move petrochemicals to areas that heavily rely on them, like Houston and New Orleans. But severe weather, like widespread flooding that occurred after Hurricane Helen in 2024, can restrict their movement, causing shippers to have to readjust quickly. Many chemicals are also heat- and cold-sensitive, requiring constant monitoring, meaning weather disruptions from extended heat waves in the summer or polar vortices in the winter could cause delays or damage. Unanticipated events, like port strikes, can also put chemical shippers in a tailspin, unless proactive adjustments and risk mitigation strategies are in place. 

This is where the expertise of a managed transportation partner is key. Uber Freight is an American Chemistry Council Responsible Care® Partner, and its managed transportation teams deeply understand the chemical logistics industry, including the intricacies of coordinating diverse and dynamic transportation modes. They can collaborate with shippers to develop comprehensive contingency plans and drive continuous improvement to identify cost savings and efficiencies across a supply chain. This could look like:

• Proactively rerouting shipments to avoid bottlenecks or delays
• Securing alternative modes of transportation 
• Identifying storage solutions to protect shipments in case of delays
• Diversifying a shipper’s supply chain and network to reduce risk 

Besides contingency plans and strategies, Uber Freight’s Consulting team can work with chemical companies to revamp roadmaps and networks to help make them more diverse and resilient. A bulk oil and fuel distributor saved $16 million over two years by implementing Uber Freight’s recommended network designs. They also improved routing processes to help them be more strategic and efficient when routing their fleet to customers for fuel refills.   

Incorporating a managed transportation system (TMS) that offers real-time, end-to-end visibility and AI-driven insights can also proactively mitigate risk.  Uber Freight’s TMS and Control Tower can help identify potential issues like weather-related risks, provide predictive analytics, and assign every shipment a risk score.

If it becomes clear there is a risk—like water-based products shipping through an area facing a cold snap—shippers can take control of shipments, adjust schedules, or secure alternative modes to avoid disruptions.

Creating a diverse, multimodal network 

Continued success in the chemical industry means shippers must continually adapt. Chemical shipments are diverse, and consistent capacity for time-sensitive or bulk shipments is challenging, making dynamic solutions vital. Without the dynamic tools and access to a specialized multimodal network, chemical shippers will struggle to remain flexible and reliable. 

With Uber Freight, chemical shippers can leverage a scaled, diverse, multimodal network for every type of shipment. As one of the largest multimodal networks, shippers can access solutions across chemical bulk, ISO tanks, and railcar for reliable capacity to deliver hazardous and non-hazardous materials. This includes collaborating with other chemical shippers to co-load and consolidate shipments to optimize routes, limit empty miles, and streamline operations to keep their supply chain moving. 

Before Uber Freight, BASF, the world’s largest chemical company, struggled with network and transportation optimization, making it more difficult to manage its expansive supply chain. By partnering with Uber Freight, BASF could scale its network and implement new technology to enable more flexible and reliable operations, saving $15 million in transportation costs annually. 

Leveraging technology to remain agile

While contingency planning, risk mitigation, and diversifying networks are vital, moving beyond traditional transportation management is also important. Building a resilient and agile chemical supply chain means leveraging technology strategically. Although many chemical shippers have adopted technology, some still rely on solutions that don’t provide the actionable insights, visibility, or centralized operations necessary to navigate complexities effectively.   

Uber Freight’s TMS helps change that, enhancing efficiency to help chemical shippers remain agile and resilient. By adopting Uber Freight’s TMS, companies can reduce costs and optimize their supply chains. 

For example, with Uber Freight, Kronos Worldwide, a producer and marketer of titanium dioxide pigments, has seen $1.7 million in savings from continuous improvement projects. They also gained full visibility and insight into their shipments and warehouse operations with the TMS, streamlining processes to better serve their global customer base. 

When you combine a clear, modern, and data-driven system with the knowledge and support of experienced chemical logistics professionals, chemical companies can build a supply chain that‘s more reliable, agile, and efficient. 

Navigating chemical complexities with Uber Freight

Getting a supply chain under control can be difficult while navigating chemical logistics. But to remain competitive, chemical companies must continue to embrace new solutions. 

Uber Freight is a trusted and expert managed transportation partner, with $3.8B+ in managed freight for bulk and chemical shippers. By working with Uber Freight, chemical shippers gain end-to-end visibility, expert insights, access to strategic planning, modern tooling, and a growing number of capabilities—from Insights AI to Uber Freight Exchange—to successfully mitigate risk and evolve with the industry. 

Learn more about Uber Freight’s solutions for chemical shippers and connect with our team today.