CL

A Joint Advertising Supplement from

Inbound Logistics and Chemical Week

Delivering
Solutions For
A Complex
Chemical Logistics
06.2014
Industry

June 2014 • Inbound Logistics  77

CL A JOINT ADVERTISING SUPPLEMENT FROM

Managing Risk and

numerous inputs, and many touches
to the end consumer.”
The array of safety consider-

Reward in the Chemical ations and regulatory follow-through

needed to store and transport chem-

Supply Chain
icals makes outsourcing a popular
choice for this sector.
“Chemical companies are adept
at designing their products and
Chemical manufacturers – and the third-party logistics partners manufacturing safely, while logis-
that serve them – tackle enormous challenges to keep the tics companies offer the expertise
$770-billion industry moving. required to safely navigate trans-
porting and storing these potentially

F
dangerous products,” says Glenn
rom Tupperware to paint, third-party logistics (3PL) providers Riggs, senior vice president, North
shampoo to lawn care products, who store and transport these prod- America logistics for Danbury,
even food, chemicals are part ucts must adhere to a complex web Conn.-based Odyssey Logistics and
of nearly every product lining of ever-changing federal and state Technology, an asset-light company
home and office shelves. In their raw regulations aimed at minimizing the specializing in information and
state, the chemicals used to make hazards for workers and the general management.
these everyday products include such public who might be affected if an
diverse materials as corrosives, acids, accident occurs. Promoting Core Competencies
pesticides, and plastic pellets. Because it is a high-risk busi- 3PL providers offer chemical
The chemical supply chain com- ness, chemical logistics requires shippers a mix of services ranging
prises these and myriad other flexibility and adaptability. “The from non-asset-based logistics man-
products, many of which require chemical supply chain is long, vol- agement – which involves helping
special care in handling, transport- atile, and highly complex,” says shippers find the best carriers and
ing, and storing to prevent safety Nathan Buelt, manager of chemical managing loads – to operating truck
hazards such as combustion, con- solutions for ChemSolutions, a sub- fleets and warehouses.
tamination, and spoilage. sidiary of C.H. Robinson, an Eden Keeping all parties focused on
The manufacturers, carriers, and Prairie, Minn.-based 3PL. “There are what they do best lies at the heart

78  Inbound Logistics • June 2014

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LOGIST
least disruptive way possible?
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Dupré serves 3 Core Business Units:

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 of chemical logistics outsourcing. “A Without outsourcing, however, products using multiple modes and
manufacturer’s core competency is those companies would face fixed need help consolidating freight or
creating and manufacturing prod- warehousing costs that don’t fluctu- identifying other opportunities to
uct,’” says Sean Strane, vice president ate in accordance with profits. make transportation more efficient.
for contract logistics services for “Warehousing infrastruc-
Jacobson Companies, a Des Moines, ture is expensive to maintain for Capacity Crunch
Iowa-based 3PL. “A warehousing many reasons,” explains Michael For small and large chemical ship-
provider’s core competency is to Waring, vice president of opera- pers alike, outsourcing logistics helps
effectively store, handle, and ship tions and customer development at manage challenges and identify new
the manufacturer’s product. Ontario, Calif.-based Pacific Coast opportunities. Manufacturers and
“Outsourcing puts the responsi-
bility for recruiting, training, and
retaining employees on the logistics
provider,” Strane adds. This eases the
burden for manufacturers.
Chemical shippers who out-
source logistics entrust their 3PL
to stay on top of emerging issues
that could potentially affect trans-
portation operations, such as new
driver regulations, and mitigate
ongoing challenges, such as capac-
ity shortages. 3PLs have proprietary
processes to prevent improperly
storing chemicals, and they screen
thousands of carriers to ensure they
hire only the best – those with the
specific expertise in handling chem-
ical emergencies and adhering to
applicable regulations.

A Formula for Savings

Companies may also find it less Outsourcing logistics operations to third-party transportation providers gives
expensive to outsource, particu- chemical shippers access to the specialized equipment their products require.
larly warehousing operations. “If all
companies we serve operated their
own warehouses, they would have Warehouse Company, a 3PL that logistics professionals in all industries
much higher fixed costs,” says Jim operates its own facilities. “Safety are grappling with capacity issues
Emmerling, senior vice president and security, regulatory compli- affecting the supply chain.
of business development at Weber ance, and structural requirements, Tight capacity has left some ship-
Logistics, a Santa Fe Springs, Calif.- such as in-racking sprinklers, all pers with too few transportation and
based 3PL specializing in serving add costs.” warehousing options for processing
the western United States. Outsourcing helps shippers nav- the volume of product pouring into
“Most of our customers arrange igate challenges such as short lead the market. These capacity issues
transactional pricing,” Emmerling times, frequent change orders, and are of particular concern for the
says. “Their costs can vary with the high variability, says Tracy Meetre, $770-billion chemical industry, which
activity levels they are experienc- vice president of supply chain solu- is projected to grow four percent in
ing. When sales are up, transactions tions for Logistics Management 2014, according to Chemical Week.
are up, and the amount they pay us Solutions (LMS), a St. Louis-based Adding pressure to the constraints
is likely up. But it’s in scale to their non-asset 3PL. LMS specializes in is a burgeoning natural gas indus-
increased revenues. If their reve- working with shippers that maintain try – shale oil produced through
nues go down, their transactions complex distribution networks – par- hydraulic fracturing, also known
and costs go down.” ticularly those that transport as fracking. The growing sector is

80  Inbound Logistics • June 2014

LTL
Optimization
Bulk
Rail
Truck
Truck

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Import
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Controlled
Door-Door
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The Chain that Matters ― Your Supply Chain

Leading specialty chemicals and materials companies rely on Odyssey to get

their products where they are needed; safely, timely and cost efficiently. These
companies - and over a thousand more across a range of verticals - turn to
Odyssey for solutions to their inbound and outbound logistics challenges.

Decades of Collective Expertise ― End-to-End Solutions

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39 Old Ridgebury Rd., Danbury, CT 06810 t. 1.866.486.7481 www.odysseylogistics.com
©2014 Odyssey Logistics & Technology Corporation. All Rights Reserved.
 absorbing capacity, overloading an Chemical shipment drivers are Administration (FMCSA) issued
infrastructure still catching up from more experienced and skilled, and Hours-of-Service (HOS) regulations
a recession-induced pause. Throw into must pass rigorous background limiting the number of hours a driver
the mix increasing government reg- checks, undergo federally certified can spend behind the wheel.
ulations, and you get a sense of the training, and complete in-house The rules cap driving time to
challenges facing chemical shippers. training with the company they 11 hours, and work days to 14 hours.
Consider driver capacity issues. work for. Not all drivers meet these The Department of Transportation
High turnover industry-wide, and an high standards, leaving the chemical (DOT) says the changes impact only
aging workforce, have reduced the vertical with a very small slice of a the most extreme schedules – about
number of truckers on the road. The dwindling pie of available drivers. 15 percent of all drivers.
average age of truckers is 47, accord- Despite industry-wide turnover, Mike Hogan, vice president of sales
ing to the Bureau of Labor Statistics, carriers and 3PLs work to minimize and marketing at Elgin, Ill.-based
and not enough new drivers are churn. “Recruiting and training new transportation and warehousing pro-
entering the industry to replace drivers is expensive,” says Earnie vider A&R Logistics, says the HOS
those who are retiring. Seibert, vice president of sales and rules resulted in a six-percent produc-
tivity drop at A&R, although the 3PL’s
safety rating increased. “In theory, we
have to hire six to 10 percent more
drivers,” he says.
For many carriers, the HOS rules
have both positive and negative
aspects. “We support the new limits
because they promote safety on the
roads,” Meetre says. “But they also
affect our ability to recruit drivers,
some of whom view the rules as the
government’s attempt to limit their
ability to make money.”
The federal rules could also lead to
new technology – electronic logging
devices (ELD) – being installed in
A&R Logistics serves domestic and international shippers of bulk plastic, as well trucks. The logs track hours for each
as dry, flowable, and liquid commodities. driver, monitoring time behind the
wheel and at rest to ensure compli-
ance with the HOS rules. Historically,
Meanwhile, truck driver turn- marketing for Dupré. “3PLs and car- those hours have been recorded in
over hovered above 90 percent in riers have to ensure employees are a logbook, but that method is being
the fourth quarter of 2013, although up to speed on proper procedures.” left behind as some companies,
2012 and 2013 saw rates as high as 98 Meanwhile, drivers are able to including A&R Transport, adopt the
percent, according to the American cherry-pick the types of work they new technology.
Trucking Associations. Turnover want to do. “Many drivers would
exposes the supply chain to risk, choose to haul a less-dangerous ELDs: Intrusive or Efficient?
which 3PL providers must work to product than chemicals,” Seibert A new sweeping federal trans-
mitigate – particularly in chemical says. “Employers must provide incen- portation bill, Moving Ahead for
logistics, which requires specialized tives for dealing with this complex, Progress in the 21st Century, could
drivers. difficult environment.” mandate the use of ELDs. This pos-
“Companies don’t hire average sibility generates mixed reactions
drivers for chemical operations – they The Hours-of-Service Impact from drivers.
require a higher grade,” says Jim Additional regulations coming “Some drivers who were drawn to
Barnett, vice president of operations down the line could shrink the num- the field because it allows them to be
for Lafayette, La.-based Dupré ber of available drivers even further. independent view ELDs as intrusive,”
Logistics, an asset-based logistics A big change came in 2013 when Riggs says. “Other drivers appreciate
provider. the Federal Motor Carrier Safety that they no longer have to deal with

82  Inbound Logistics • June 2014

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 the hassle of keeping a paper log.” to obtain it,” Buelt says. “The employees and transportation com-
While driver shortage issues endorsement may not add significant panies are becoming scarce,” Seibert
impact all logistics operations, other value for carriers if they can’t charge notes. “More chemical shippers are
regulations directly affect chemical a premium for a certified driver. considering longer-term logistics
shipments. In 2011, FMCSA passed “Increased regulation will further partnerships, and more creative ways
new rules that changed the defi- tighten the market,” he adds. to operate differently.”
nition of a tank vehicle to include Instead of working with carriers
intermediate bulk containers, also Working Within Limitations and drivers in a transactional rela-
known as totes, which are used to Shippers will feel the effects of tionship, Seibert says developing
transport chemicals. the driver shortage in other ways. partnerships, and focusing on cre-
The change requires drivers to “As regulations tighten, the driver ating good working conditions, can
apply for tank vehicle endorsements. pool decreases, resulting in less stor- help chemical shippers secure capac-
Originally, states had until July 2014 age capacity and delayed shipments ity in today’s tight market.
to comply with the new rule; how- to end customers,” explains Sean “Shippers are learning that provid-
ever, the FMCSA extended the O’Laughlin, director of warehouse ing dedicated business attracts more
deadline until 2015. operations for Jacobson Companies. drivers,” Barnett says. “The dedicated
Some states have already imple- Waring agrees. “The cost of environment allows us to recruit
mented the new rules, which transporting chemical goods is ris- more effectively.”
has led to inconsistent enforce- ing because there aren’t as many Other ways of creating a good
ment. Although the idea behind qualified DOT/hazmat-compliant work environment include offering
the regulation – ensuring drivers transportation companies or drivers.” hourly wages as opposed to mile- or
have appropriate endorsements to The tight environment has load-based pay, and incentives based
promote safety – is sound, the uncer- prompted Dupré to develop stron- on productivity.
tainty of the new regulation’s timing ger partnerships with carriers The driver shortage has led some
and impact is hurting the industry, and its own drivers. “Qualified carriers to reexamine scheduling.
C.H. Robinson’s Buelt says. “All customers want their load deliv-
“The cost of the endorsement is Chemical shipment drivers must ered Monday morning,” says Hogan.
not the issue – it’s the time required pass rigorous background checks and “That’s physically impossible.”
complete federally certified training.

84  Inbound Logistics • June 2014

 Supply Chain Solutions
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service at every level of the supply chain. Contact us today to learn more about each
of our services.

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 A&R Logistics works with chemi- or other inputs associated with the imports,” says Rick McIlveen, vice
cal shippers to expand their delivery process. Despite limited local ware- president of business development
windows, so instead of expecting house availability, the demand is for Jacobson Companies. “This is
deliveries at 7 a.m. each day, ship- higher than ever, creating an indus- creating a need for more warehouse
ments might be received later in the trial vacancy rate of about five space, and the supply of ready-to-
day, or even at night. percent. Demand is finally driving a use buildings is tight – especially
Even if a company has enough large amount of new construction in buildings already retrofitted to store
drivers to meet demand, it might this market, but space will remain chemicals. Lease rates and term
not have enough trucks. Chemical tight for some time. requirements are starting to climb.
“Warehouse capacity shortages
are caused, in part, by developers’
reluctance to build on speculation
“Chemical shippers are considering longer-term of future need, and, in some cases,
an inability to secure financing,”
logistics partnerships, and more creative ways to McIlveen adds.
operate differently.”  ­
Feeling the Pinch
– Earnie Seibert, Dupré Logistics
In areas such as Houston, on
the edge of South Texas’ Eagle Ford
Shale, petrochemical has tapped
shipments often require specialized “Finally, abundant energy has out available space. But Los Angeles
equipment, and availability can be fueled a huge resurgence in man- and other commerce centers are also
an issue. ufacturing in the United States, feeling the pinch. “The Los Angeles
The large investment required to especially in the Midwest,” Kriewaldt warehousing market is very tight,”
put more trucks on the road – around says. Products such as industrial Kriewaldt says. “New construction
$250,000 for a tractor- machinery, iron castings, and car hasn’t caught up with demand yet.”
trailer – means businesses will need parts are consuming warehouse When the economy first started
to make serious investments before space, putting capacity at a premium. to rebound, construction was
the capacity issues abate. Increasing numbers of new chemi- delayed until available space was
Transportation isn’t the only link cal plants are taking advantage of absorbed. In robust economies such
in the supply chain under strain. affordable energy. as Houston, real estate develop-
Warehouse space suitable for stor- “For the first time in years, manu- ers were taken by surprise when the
ing chemical products is also at a facturers are growing their domestic energy market quickly surged. New
premium. production volumes and reducing buildings take 18 to 24 months to
“I attribute the tight capacity to
three causes,” says Rob Kriewaldt,
director of client solutions for WSI,
an Appleton, Wisc.-based logistics
provider. “First, construction vir-
tually stopped in 2008 because of
the recession. It is just now start-
ing to pick up, but investors are still
cautious.” Recently, industrial real
estate absorption has been occurring
at two to three times the rate of con-
struction nationally.
Second, regional U.S. economic
growth is creating scarcity in cer-
tain areas. For example, the booming
Houston energy market is consum-
ing capacity there, with industrial
real estate being used to store prod-
Petrochemical industry growth has generated significant transportation demand,
ucts made from oil and natural gas, creating capacity shortages in other sectors.

86  Inbound Logistics • June 2014

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 complete, and the lag time has made because it is difficult to get the nec- to the U.S. Senate Committee
warehouse space difficult to find. essary permits. And if you locate an on Commerce, Science, and
In Houston, for example, less existing facility with enough space, Transportation. “It holds the promise
than three million square feet are completing all the required modifi- of a renaissance of chemical manu-
under construction in a market that cations is expensive.” facturing in the United States, and
has more than one billion square will dramatically improve our com-
feet already occupied. Nationally, Energy Boom Fuels Growth petitiveness globally.”
warehouse availability is approach- One factor that has greatly Although it may help promote
ing 10 percent, down from a peak of impacted the chemical supply chain U.S. economic growth, the boon is
more than 14 percent at the height of in recent years is the shale oil market. a significant factor in constricting
the recession. Since 2010, more than $100 billion transportation capacity, with shale
“Accommodating growth is our in U.S. shale-related chemical man- oil and fracking materials consum-
major challenge right now,” Waring ufacturing investment has been ing space in rail cars and tank trucks,
says. “The demand exists, but planned, according to the American as well as attracting drivers.
finding facilities suitable for stor- Chemistry Council (ACC). “Transportation capacity is the
ing chemical products is difficult, Much of this investment lies biggest issue currently impact-
because many facilities must be ret- along the Gulf Coast, with South ing chemical logistics,” says
rofitted or custom-built to handle Texas’ Eagle Ford Shale region pro- Mike Skinner, vice president of
chemical goods.” jected to yield more than seven ChemLogix, a Blue Bell, Pa.-based
Warehouse capacity in the chem- million cubic feet of gas per day 3PL. “Rail car capacity is being con-
ical industry is even more complex in July 2014, according to the U.S. sumed by materials going in and
than in other industries. “Available Energy Information Administration coming out of the expanding frack-
buildings that have all the appropri- (EIA). By 2040, shale gas will account ing industry.”
ate hazard classifications are rare,” for 50 percent of domestic natural Shale product that can’t fit on
says John Rantz, a distribution cen- gas production, EIA predicts. the rails moves on bulk tank trucks.
ter manager for Weber. “It is even “Shale gas is a game changer for Space is limited, however, because
harder to do a complete startup the chemistry industry,” reported bulk trucks are also being used to
of a chemical facility in California, the ACC in a written statement move products related to fracking.

At Weber Logistics’ 300,000-square-foot chemical warehouse facility in Southern California, maintaining the correct
temperature in each zone helps ensure products are stored safely.

88  Inbound Logistics • June 2014

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 Increased output due to lower energy In 2013, a train carrying tank intermodal container volume has
prices, combined with equipment cars full of oil from North Dakota’s doubled in the past 10 years.
and driver shortages, has resulted in Bakken Oil Field derailed in Quebec Although infrastructure has
a difficult squeeze. and exploded. After the crash, improved, speed is still a factor
The rebounding U.S. economy and Canada announced orders to phase for companies opting to combine
growing petrochemical market are out or retrofit older rail cars clas- transportation modes. “Intermodal
forcing chemical shippers and logis- sified as DOT-111 – a type that is generally takes longer, so transit
tics providers to get creative, says particularly vulnerable to damage times are an important service fac-
Kriewaldt. During the recession, during a crash – by 2017. tor,” Riggs says. “Some operations
companies stopped building rail cars can’t accept adding an extra day or
because of a lack of demand for addi- two to their schedule.”
tional capacity. If companies can afford the
As the economy picked up, man- extra time, however, using rail for
ufacturing resumed. The long lead a portion of the journey can reduce
time for rail cars, however, makes it shipping costs from 15 to 40 per-
difficult to keep pace with demand, cent, according to a Weber Logistics
especially for the specialty equipment whitepaper.
needed to ship chemicals. As a result,
transportation costs are rising. Safe and Secure From Start to End
“In 2009, you could lease a tanker Complex safety needs impact
car to haul petrochemical prod- every facet of chemical warehouses,
ucts for $500 per month,” Kriewaldt from design to operation. When
Intermodal solutions offer chemical
says. “In May 2014, prices hovered shippers an opportunity to cut shipments arrive at the warehouse,
around $2,400 per month to lease a transportation costs. workers verify each product’s stock-
car. That’s a good indication of rail keeping unit number, then confirm
car demand.” that the correct hazards are listed.
The higher prices are not only “The accidents prompted a review Each chemical carries unique
inflating costs overall, but also push- of existing rail car infrastructure,” storage requirements, so safety pro-
ing companies to turn cars around Riggs says. tocols and conditions vary from
faster. The amount of time it takes While a boon to safety, phasing product to product. For example,
to unload a car and return it to the out older cars will strain capacity some chemicals must be stored in
plant isn’t fixed, so companies are even more. temperature-controlled rooms, while
focusing on what they can change. While big changes in rail trans- others shouldn’t be stored next to
“It comes down to working extra portation of oil and natural gas may one another because the vapors can
hours and shifts,” Kriewaldt says. be coming, overall usage of rail com- interact and cause problems such as
“Companies have extended their bined with trucks  is on the rise. harmful fumes.
receiving hours to expand capac- “We review every potential chem-
ity without an increased number of Intermodal Leads the Way ical customer’s safety data sheet to
tanks.” Improved infrastructure has ensure the hazards indicated are
A locomotive shortage is also a boosted the use of intermodal in suitable for our systems and facility,”
factor. The railroads have been using chemical logistics, with the mix of Weber’s Emmerling says.
the power units to move petroleum, rail and truck reducing carbon foot- Weber’s 220,000-square-foot
rather than grain and fertilizer, to prints and easing capacity issues. Southern California chemical ware-
the detriment of U.S. and Canadian “Intermodal transport is growing house facility includes 13 storage
farmers. in popularity,” Riggs says. “It reduces rooms with temperatures ranging
the number of trucks on the highway, from 45 to 90 degrees. Maintaining
Regulations for Rail and it’s greener.” the proper temperature is critical.
Because shale production With nearly 25 million contain- “If temperature control is breached,
growth is relatively new, state and ers moved annually, intermodal’s the product may be compromised,”
federal regulations are still tak- growth rates outpace those of all Emmerling says.
ing shape – particularly related to other transportation modes, accord- To mitigate risk from spills, the
transportation, in the aftermath of ing to the Intermodal Association rooms are cordoned off by ramps
several high-profile accidents. of North America. Domestic that act as dikes to contain spills or

90  Inbound Logistics • June 2014

 water used in fighting a fire. In-rack launched in Canada in 1988. The take their business just as seriously
sprinkler systems also help to ACC oversees the U.S. portion of the as they do.”
quickly diffuse any incidents. program. Core methods for ensuring safety
Pacific Coast Warehouse Belonging to Responsible Care include the Plan-Do-Check-Act sys-
Company’s 75,000-square-foot helps ensure logistics providers’ tem, which requires companies to
Chino, Calif., facility stores chemi- processes are aligned with both cli- plan for hazards, enact the plans,
cals including flammables, poisons, ents – many of whom belong to the check progress, and correct any
and aerosols, among others. The ACC – and carriers. issues. The Act portion requires buy-
rooms are separated by several auto- For C.H. Robinson, adher- in from senior management, who are
matic closing fire-rated doors, and ing to the standardized protocols required to review the system and
floor-to-ceiling aerosol cages. All affirms communication between share results with stakeholders.
staff, including janitors, customer
service representatives, and man-
agers undergo routine training
sessions. In addition to the training,
flowcharts located throughout the
warehouse spell out the protocol to
follow if a spill occurs.
Chemical warehouses also
use special equipment, including
EE-rated forklifts, which are spark-
proof to protect against fire. “All
of the electronic components are
housed separately,” Waring explains.

Authorized Personnel Only

Tracking who has access to the
facility represents an important com-
ponent of product safety. “Check-in
and check-out procedures are in
place,” Waring says. “When a driver
arrives for a pickup or delivery, we
use an identification verification
process to authenticate the pur-
chase orders or delivery numbers.”
Responsible Care program participants follow strict protocols to standardize
Warehouse staff also check driver procedures for labeling and handling chemical products, planning for hazards,
identification before they load or monitoring processes, and correcting any issues. Periodic audits ensure program
unload product onto the trailer. compliance.
Safety precautions continue on the
road. Trucks must be labeled accu-
rately with the type of chemical being its ChemSolutions division, carri- Participating companies undergo
transported, and the level of haz- ers, and shippers so all parties know audits to ensure they are adhering to
ard associated with it. “If an accident exactly the types of chemicals in Responsible Care standards.
occurs, drivers need to know what transit, and the precautions needed “LMS customers know our man-
they are dealing with – for example, to ensure safety. agement systems and all of our
whether there is a safety issue if, say, a “The program conveys trust that processes are audited every other
gallon of material escapes,” says Riggs. we’re accurately communicating year, and they know if an issue arises
“The labeling is critical.” shipment requirements,” Buelt says. with any of their shipments, we are
To demonstrate their com- LMS also views Responsible Care required to handle it as they would
mitment to safely storing and as an important tool to build con- handle it,” Meetre says. “It gives
transporting chemicals, many 3PLs fidence. “We’re a non-asset-based them peace of mind that their pro-
have joined the Responsible Care company,” Meetre notes. “But we vider knows the chemical industry,
initiative, an industry program want chemical shippers to know we and is prepared if a problem occurs.”

92  Inbound Logistics • June 2014

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 The next evolution under-
way for Responsible Care is the
Product Safety Code, a measure
being implemented in phases from
2014 through 2017. The code seeks
to heighten safety protocols sur-
rounding chemical production and
handling, including transportation
and warehousing. For example, par-
ticipating companies must work to
create a culture that values safety
and accountability. The ACC provides
auditors to check compliance.

Protective Measures
In the wake of the Sept. 11 terror-
ist attacks, new security measures
affecting chemical shippers have
been implemented. For exam-
ple, Congress passed the Chemical
Facility Anti-Terrorism Standards
(CFATS) to buttress security.
“Different chemicals require dif-
fering levels of security based on
government and agency require-
ments,” Emmerling says. “Certain
chemicals are of interest to various
government entities because of the
products’ characteristics and what
they might be used for.”
Special protections for sensitive
chemicals might include caging them
to prevent unauthorized access.
The Department of Homeland
Security (DHS) outlines three mea-
sures that constitute risk: the
severity of consequence if an attack
occurs, the vulnerability of a facility
to attack, and the level of threat that
exists against a facility.
To comply with CFATS, facilities Improved rail infrastructure and
must meet DHS-set performance enhanced safety measures have led prepared daily for these types of
standards that vary depending on many chemical shippers to switch audits is a necessity. Since 2012, one
bulk shipments from truck to rail.
the warehouse. “Security measures of our operations has been visited
that differ from facility to facility by various compliance agencies more
mean that each presents a new and chemical production and storage than 20 times.”
unique problem for the adversary to facilities. Managing security issues is all in
solve,” DHS documentation states. “As safety regulations evolve, a day’s work for warehouse providers.
A slew of government agencies government agencies continually
in addition to DHS – including the monitor compliance. Scheduled and Technology Causes a Reaction
Environmental Protection Agency unscheduled audits have become The improved technology and
and the Occupational Safety and common in some parts of the coun- tracking abilities that come along
Health Administration – oversee try,” says Jacobson’s Strane. “Being with centralized planning systems is

94  Inbound Logistics • June 2014

 GO
© 2014 C.H. Robinson Worldwide, Inc. All Rights Reserved. www.chrobinson.com

AN TO
D IN
VO B
T OU
AS E F ND
YO OR LO
UR C. GI
H S
TO . R TIC
P OB S.
3P IN CO
L SO M
N

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Tested processes for exceptional execution, unmatched bulk equipment
options when you need them, and the first global technology platform that
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services offered by ChemSolutions®. Secure the delivery assurance and
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 opening the door to new opportuni- ship products from the East Coast to
ties for chemical shippers. the West Coast.
“With the increased use of tech- “We encounter occasional prob-
nology to follow shipments in lems sending full truckloads to the
transit, it is no longer a novelty for West Coast, especially during the
our orders to be tracked from the agricultural growing season,” says
time we place them to the moment David Docherty, North American
they are delivered,” ChemLogix’s supply chain and logistics manager
Skinner says. The sensitive nature of for Bluestar Silicones USA. “LMS has
the materials being shipped makes been extremely proactive helping us
robust tracking critical. work around those issues.”
Benefits of adopting technol-
ogy include the ability to automate Can’t Stand the Heat
freight execution and payment, When Bluestar had to move a
receive notifications for important special type of insulation used on
events along the way, and access deep-sea pumps from Ventura, Calif.,
centralized information, which facil- to Houston, the company needed to
itates tracking. ensure temperate conditions during
LMS operates centralized transport.
command centers that track “The product could not exceed
the movement of all containers. 90 degrees, but it had to travel
“Command centers help integrate through the U.S. Southwest and
data, staff, decision-making, and vis- New Mexico,” Docherty says. “LMS
ibility,” Meetre says. worked with us on getting reefers to
In addition to stationing per- ensure the product was kept at the
sonnel at customer sites around the right temperature.”
country, LMS runs a central hub in Also of concern was ensuring the
St. Louis. “The workers who staff that shipment didn’t idle at a desert rest
hub review all customer activity to stop, where the temperature could
identify opportunities to combine potentially rise and ruin the product.
shipments and manage truck capac- Maintaining inventory visibility “LMS employed a team of drivers to
allows chemical shippers to respond
ity,” Meetre says. to time-sensitive orders. ensure the door-to-door move was
For example, if a truck is half-full made uninterrupted,” Docherty says.
with a load from one company, LMS “There was no stopover.”
can fill the rest of the truck with opportunities to our collaborative “Managing chemical logistics is
another company’s load bound for command centers,” Meetre says. “It’s all about centralizing freight, opti-
the same destination, provided the a holistic, centralized approach to mizing it safely, adhering to all the
products are compatible. freight management in the chemical regulations and equipment require-
The practice is particularly help- industry.” ments, and providing shippers with
ful in the age of tightened truck LMS has adopted other tech- 100-percent visibility,” Meetre says.
capacity. It also lowers a company’s niques to mitigate capacity issues, LMS also promotes safety by
shipping costs and reduces its car- particularly with regard to refrig- ensuring carriers have accept-
bon footprint. “This effort requires erated trucks, needed to securely able safety ratings and appropriate
centralized visibility of client freight transport temperature-sensitive insurance levels. The company uses
throughout North America,” Meetre materials. To find capacity, LMS has a real-time feed to monitor carrier
says. leased a dedicated fleet of refriger- Compliance, Safety, Accountability
Customers also have the option of ated and hazmat certified trucks, scores, which weigh factors such as
using their own transportation man- managing the freight while a partner safe driving, vehicle maintenance,
agement system to take advantage of runs the trucks. and insurance status.
the information LMS gathers. For example, Bluestar Silicones, a When sensitive, potentially dan-
“If they’re using another sys- France-based silicone manufactur- gerous chemicals are traveling across
tem, our planners on-site have the ing company with U.S. offices in East the supply chain, putting safety first
capability to send those shipment Brunswick, N.J., frequently needs to is the only way to do business. CL

96  Inbound Logistics • June 2014

 When safety, security, and compliance
matter most, you need a reliable partner
with a proven track record.

You need Pacific Coast Warehouse Company.

PCW provides chemical manufacturers with
safe, secure, and compliant storage and
transportation of products within the western U.S.
As NACD members, PCW utilizes Responsible
Distribution Processes (RDP) and industry best
practices to warehouse, store and deliver a
full range of chemicals, flammables, oxidizers,
corrosives, gases, and non-regulated materials.

DISTRIBUTION TRANSPORTATION ON-SITE FULFILLMENT TECHNOLOGY BENEFITS

• Public Warehousing • Separate Hazardous • In-house Drayage • Co-pack & Packaging • Client Specific Solutions
• Inventory Management Material and Chemicals • Freight Consolidation • UCC Labeling • EDI Services
• Food Grade DC’s DC (NACD Members) • Direct Store Delivery • Custom wrapping • RF Inventory Systems
• Alcohol Permitted (ABC) • Extensive Retail/Import, (DSD) • Carton Packaging • Web Based Reporting
• FDA & ASI regulated Apparel & Electronics • Floor displays • E-Commerce
experience • WMS

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