Washington (April 27, 2022) - US chemical manufacturers have reported worsening supply chain problems this year. According to the results of a follow-up survey released by the American Chemistry Council (ACC), transportation-related supply chain issues have escalated and led to significant disruptions in manufacturing operations.

Last year's survey found that more than a third of companies experienced or declared force majeure due to supply chain issues, and two-thirds reported lost production.

In addition to manufacturing losses and increased costs, companies have reported this year that ongoing supply chain problems have led to price increases, led to customer defections, and hurt employee morale and loyalty.

Major discovery

The follow-up survey was conducted to see if the situation had changed since the third quarter of last year when Coordination Committee reported to its members. The survey covers the fourth quarter of 2021 through the first quarter of 2022. Key findings of the survey include:

Fifty-five percent of companies reported greater port and maritime problems this year compared to the third quarter of last year.

Nearly 40 percent of companies reported worse rail problems this year compared to the third quarter of last year.

More than 50 percent of companies reported more severe trucking problems this year compared to the third quarter of last year.

Seventy-five percent have switched some freight from rail to trucks because of rates and service issues.

A faltering trend

The company says problems with each mode of transport hurt the others. Delays and service scarcity in one model put pressure on others to fill the gap.

For example, as problems with freight rail service mount, many companies have been forced to look for alternative modes of transportation in an already tight transportation market.

"One of the more troubling findings of the survey is that freight rail problems are spreading to other modes, making it nearly impossible to get truck service," said Emily Sanchez, ACC's director of economics and data analysis. "Rail companies are directing customers to find alternative modes of transportation, which is forcing our members to find alternative modes of transportation or reduce production."

More action is needed

President Biden and Congress have taken some important steps to help move more goods, but policymakers need to do more to address basic transportation issues.

ECHEMI --- The name originated from the abbreviation of “E-commerce of chemical”.