Why Chemical Manufacturers Are Rethinking Their Transportation Strategy

For chemical manufacturers, transportation has never been as simple as putting a shipment on a truck and sending it down the road.

Chemical products can require specialized equipment, hazmat-trained drivers, strict documentation, temperature protection, security controls and carefully planned routes.  At the same time, manufacturers are dealing with increasingly complex supply chains, changing regulations, tighter delivery requirements and greater expectations for shipment visibility.

That is prompting many chemical companies to reconsider how transportation is managed—and whether their current network of carriers, brokers and logistics providers is capable of handling the complexity.

Recent activity in the chemical logistics sector illustrates the trend.  Chemical companies are increasingly looking toward strategic transportation partners that can coordinate multiple modes and provide greater visibility across their supply chains. One recent example is the movement toward centralized transportation management across truckload, rail and ocean services.  Other chemical manufacturers have similarly explored managed transportation models to improve capacity, visibility and network efficiency.

For chemical shippers, the question is no longer simply "Who can move our freight?"  It is increasingly:  "Who can safely, compliantly and reliably manage the transportation risks associated with our products?"

Chemical Transportation Has Little Room for Error

Chemical transportation presents challenges that ordinary freight does not.  Depending on the commodity, a shipment may be classified as hazardous material and subject to requirements governing:

• Classification
• Packaging
• Marking and labeling
• Shipping papers
• Driver qualifications
• Equipment
• Loading and unloading
• Routing
• Emergency response
• Security
• Recordkeeping

The federal Hazardous Materials Regulations cover extensive requirements for the transportation of hazardous materials.  PHMSA continues to update and modernize those requirements, including recent work involving harmonization with international dangerous-goods standards and modernization of hazmat registration processes.

Even seemingly routine documentation can have significant consequences. PHMSA recently reiterated that a person may not accept or transport hazardous material by highway unless the required shipping paper has been prepared in accordance with the applicable regulations.

For manufacturers, this means carrier selection cannot be based solely on price or available capacity.  The transportation provider becomes an extension of the manufacturer's compliance and risk-management program.

1. Hazmat Compliance Must Be Built Into the Transportation Strategy

Chemical manufacturers need transportation providers that understand the difference between moving ordinary freight and moving regulated materials.

A qualified hazmat carrier should have established procedures covering everything from accepting the shipment and reviewing documentation to loading, transportation, monitoring and delivery.

At Road Scholar Transport, hazmat transportation is built around compliance and safety.  Our hazmat operations follow applicable state and federal requirements, including EPA, OSHA and DOT requirements, while maintaining necessary documentation.

This matters because a compliance problem doesn't necessarily begin with a major accident.

It can begin with something as basic as:

• Incorrect shipping information
• Improper documentation
• An improperly qualified carrier
• An unsuitable trailer
• An improperly trained driver
• An incorrect route
• Poor communication between shipper and carrier

For chemical manufacturers, preventing these problems before a truck leaves the facility is considerably more valuable than trying to resolve them after an incident.

2. Carrier Qualification Is Becoming More Important

One of the biggest questions chemical manufacturers should ask is:

Who is actually hauling our product?

The answer becomes particularly important when transportation is outsourced through multiple intermediaries.

A manufacturer may work with a logistics provider that then tenders freight to another carrier.  That can introduce another layer of complexity into the supply chain.

Chemical shippers should evaluate transportation providers based on factors such as:

• Operating authority
• Safety history
• Hazmat authority
• Insurance coverage
• Driver qualifications
• Equipment condition
• Compliance procedures
• Claims history
• Security procedures
• Tracking capabilities
• Experience handling similar commodities

There is a growing emphasis throughout the industry on stronger carrier relationships and qualification processes.  Recent chemical-logistics discussions have also highlighted the value of long-term carrier relationships when capacity becomes constrained, particularly for specialized hazmat transportation.

For a chemical manufacturer, the cheapest truck isn't necessarily the cheapest transportation solution.  A missed delivery, rejected load, damaged product, regulatory problem or accident can quickly erase the savings from a lower transportation rate.

3. Why Asset-Based Transportation Matters

For certain chemical shipments, manufacturers may prefer having their freight handled by an asset-based carrier rather than relying entirely on a transactional brokerage model.

An asset-based carrier operates its own equipment and employs or directly manages its transportation operation.  That can provide greater control over:

• Equipment
• Drivers
• Scheduling
• Shipment visibility
• Communication
• Handling procedures
• Service consistency

Road Scholar Transport is a 100% asset-based carrier for our hazmat services, with dedicated services available and specialized equipment and technology.   That distinction can be particularly valuable when a shipment requires specialized handling.

Instead of asking, "Who will eventually pick up my chemical shipment?", the manufacturer can have a much clearer understanding of the transportation operation responsible for moving it.

4. Visibility Is No Longer a Luxury

Chemical manufacturers need to know where their freight is—and increasingly, they need to know more than that.

Modern transportation visibility can provide information about:

• Truck location
• Trailer location
• Temperature
• Door openings
• Transit progress
• Delays
• Route deviations
• Potential delivery problems

Road Scholar uses telematics to track shipment locations and temperatures in real time for hazmat shipments.  Its operations also include 24/7 dispatch and oversight.

That information can become particularly important when a shipment is:

• Temperature sensitive
• High value
• Time critical
• Hazardous
• Security sensitive

Imagine a chemical shipment that is scheduled to arrive at a manufacturing facility at 8 a.m.  If the truck encounters an unexpected delay at 5 a.m., visibility allows the shipper to know about the problem while there is still time to respond.  Without visibility, the manufacturer may not discover the problem until the truck misses its appointment.

Information gives supply chain managers time to act.

5. Temperature-Sensitive Chemicals Require Specialized Transportation

Not every chemical shipment can simply be exposed to whatever conditions occur during transit.  Some chemical products have specific temperature requirements or can be damaged by freezing or excessive heat.  That makes equipment selection critical.

A transportation provider may need to provide:

• Refrigerated equipment
• Heated equipment
• Temperature monitoring
• Temperature alerts
• Freeze protection
• Specialized loading procedures
• Continuous monitoring during transit

Road Scholar offers temperature-controlled transportation as well as freeze-protection capabilities within our hazmat services.  Our equipment and telematics capabilities can provide real-time monitoring of shipment location and temperature.

For manufacturers shipping temperature-sensitive chemicals, temperature control is ultimately product protection.  A shipment that arrives on time but has been exposed to damaging temperatures may still be unusable.

6. Multimodal Planning Can Create More Options

Chemical supply chains frequently extend well beyond a single truck route.  Depending on the shipment, transportation may involve:

Truck → Rail → Truck

or

Truck → Ocean → Truck

or

Truck → Air → Truck

The right combination depends on the commodity, distance, urgency, cost and infrastructure involved.

Road Scholar's broader transportation network provides access to truck, rail and air services through our transportation and brokerage operations, including access throughout the U.S., Canada and Mexico.

That creates another important advantage for chemical manufacturers:

Transportation strategy can be based on the shipment's requirements rather than forcing every shipment into the same transportation model.

A routine replenishment shipment may be appropriate for standard truckload transportation.  An emergency production requirement may call for expedited service.  A long-distance shipment may warrant evaluating rail.  A cross-border shipment may require coordination among multiple transportation modes and providers.

The objective is not simply to select a mode.  It is to select the right transportation solution for the shipment.

7. Emergency Shipments Can Stop a Production Shutdown

Few things are more expensive to a manufacturer than a production line sitting idle because an essential chemical hasn't arrived.

Chemical manufacturers can face emergency transportation requirements when:

• A supplier misses a scheduled delivery
• Production requirements unexpectedly increase
• A shipment is damaged
• Inventory falls below safety stock
• A customer suddenly accelerates an order
• A transportation failure disrupts the normal supply chain

Road Scholar provides same-day, next-day, AM/PM, weekend, relay and other expedited services in our Northeast and Mid-Atlantic service area. Our relay network is designed to maximize legally available driver hours and accelerate long-distance deliveries.

For a chemical manufacturer, that capability can mean the difference between a transportation inconvenience and a production interruption.

8. Security Has Become a Chemical Transportation Issue

Cargo theft isn't limited to consumer electronics, food or pharmaceuticals.  Chemical products can also be attractive targets, particularly when criminals can identify valuable or easily resold commodities.

The broader cargo-theft environment has become increasingly sophisticated, with criminals using deception, fraudulent documentation and technology to target shipments.  That makes security an increasingly important part of chemical transportation strategy.

Manufacturers should consider:

• Who has access to shipment information?
• How are drivers and carriers verified?
• How is the truck monitored?
• Are unexpected stops identified?
• Can trailer doors be monitored?
• Is the shipment tracked continuously?
• What happens if a truck deviates from its expected route?

For high-value or sensitive chemical shipments, these questions should be answered before the shipment is tendered—not after something goes wrong.

9. Cross-Border Shipping Adds Another Layer of Complexity

Chemical manufacturers operating throughout North America also have to consider the complexities of cross-border transportation.

A shipment moving from the U.S. into Canada or Mexico can involve additional requirements surrounding:

• Customs
• Documentation
• Carrier qualification
• Hazardous-material regulations
• Border procedures
• Transportation modes
• Delivery coordination

Road Scholar provides access to points throughout the U.S., Canada and Mexico through its brokerage subsidiary, Pentagon Transport, using a network of vetted carriers.  We also offer multimodal and intermodal transportation options.

For chemical manufacturers, having a transportation partner capable of coordinating these moving pieces can simplify the process.

The Bigger Question: Is Your Transportation Network Built for Today's Chemical Industry?

Chemical manufacturers are operating in an environment where transportation is becoming increasingly interconnected with compliance, security, production and customer service.

The transportation provider is no longer simply responsible for moving a product from Point A to Point B.  The right provider can help manufacturers manage:

Compliance + Capacity + Visibility + Security + Speed + Risk

That is why manufacturers are increasingly examining whether their existing transportation networks provide enough control and flexibility.  The answer may not always be to replace an entire transportation network.  It may mean identifying the shipments that require a higher level of expertise and assigning those shipments to a transportation provider specifically equipped to handle them.

Road Scholar Transport: A Transportation Partner for Chemical Manufacturers

Road Scholar Transport has developed its chemical transportation services around the specific demands of transporting specialty chemicals and hazardous materials.

We are a 100% asset-based carrier with dedicated services available, experienced drivers, specialized equipment and real-time shipment monitoring.  Road Scholar also provides 24/7 dispatch and oversight, load-to-ride services to reduce handling, freeze protection and anti-collision and anti-rollover technology.

Road Scholar's strategically located terminal network also allows us to reach a large percentage of major Northeast distribution hubs rapidly, while its broader transportation capabilities provide access to U.S., Canadian and Mexican destinations.

For chemical manufacturers evaluating their transportation strategy, the goal shouldn't simply be finding another carrier.  It should be finding a transportation partner that understands the consequences of getting chemical transportation wrong—and has the equipment, people, technology and processes to get it right.

Chemical transportation demands more than a truck.  It demands a transportation strategy.