April 13, 2023
(press release)
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WASHINGTON (April 13, 2023) — Chemical manufacturers report that despite improving conditions, supply chain challenges and freight transportation disruptions continue to be a major problem for the U.S. business of chemistry and the broader economy. According to the results of a new survey released by the American Chemistry Council (ACC), transportation-related supply chain issues moderated during the second half of 2022 but continue to be worse than conditions prior to the pandemic. For two years, ACC member companies have reported that supply chain and freight transportation problems are disrupting their U.S. manufacturing operations. In addition to lost manufacturing and customer orders, companies once again reported that higher shipping rates were compounded by costly workarounds, including increased inventories. ACC has surveyed chemical companies four times since late 2021 to better understand the persistent challenges to moving freight in the U.S. by rail, truck, and water. The latest survey focused on business impacts through the second half of 2022 (H2) compared to conditions in the first half of 2022 and compared to conditions prior to the pandemic. Chemical manufacturers observed some unwinding in supply chain kinks, but they report that conditions remain worse compared to pre-pandemic: The latest survey findings provide further evidence that the problems within the U.S. transportation supply chain are entrenched and that companies believe that further action by policymakers on solutions would help. Regarding specific policy reforms, the survey found: Specifically, ACC is calling on the Surface Transportation Board to increase competition in the rail industry through reciprocal switching and to hold railroads accountable for service failures by establishing minimum service standards. Furthermore, we urge Congress to pass the bipartisan Safer Highways and Increased Performance for Interstate Trucking (SHIP IT) Act, which among other things will improve truck capacity by increasing the Gross Vehicle Weight (GVW).
There are signs that conditions have improved, but the transportation problems plaguing our members are far from resolved. Marine and truck transportation have improved while poor rail service continues to be a major concern.
Key Findings
Policymakers Must Act
Hoping things will improve on their own is not a strategy. There are several sensible policy reforms that are ready to go that could help address these major transportation problems now and into the future.
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