Understanding Chemical Logistics

Logistics has been around for centuries. Initially associated with the Greek and Roman military for the movement and support of their armies, it eventually represented the organized movement of goods and materials in business.

Logistics involves the movement of goods from A to B using an array of services and service providers, using multiple modes of transportation supported by required documentation.

Logistics also includes the movement of specialized goods like chemical goods. Significant quantities of chemicals and other potentially hazardous products are used in various industries globally.

As technical and production advancements have progressed, the transportation and storage of dangerous chemicals and goods have also increased giving rise to a specialized field within logistics “Chemical Logistics”.

What is Chemical Logistics?

As per Deloitte, the world’s chemicals industry represents one of the largest interacting industries globally, employing more than 20 million people with annual sales of almost $5 trillion, delivering materials and substances to sectors such as agriculture, automotive, construction, and nutrition.

Chemical logistics has since become a crucial and specialized field within the broader logistics and supply chain management industry. It focuses on the meticulous movement, safe storage, handling, and transportation of a wide range of chemicals, from everyday substances to those classified as highly hazardous.

The sector’s complexity is driven by the need to adhere to strict safety protocols, specialized handling and safety equipment, and regulatory compliance to protect human health, property, and the environment.

In our first blog post, we provide a comprehensive overview of chemical logistics, detailing how it is handled, especially with hazardous chemicals, and what services shippers should look for in chemical logistics service providers.

Process of Chemical Logistics

The process of chemical logistics is multistage including stages such as procurement, supply planning, storage, warehousing and distribution and transportation. Each of these stages requires specific knowledge, proper handling equipment to handle the unique properties of chemicals and to mitigate associated risks.

The process begins with the identification of reliable suppliers, managing orders, and ensuring  that there is a consistent supply of raw materials to produce the required finished chemical products.

Chemical goods require specialized storage facilities as the warehouses need to be able to handle chemicals with different chemical properties in relation to the flammable, reactionary and toxic nature of the goods.

Temperature control and proper ventilation are critical metrics to avoid unwanted chemical reactions that could lead to dangerous situations and due care needs to be taken to ensure that the chemicals are segregated. If incompatible goods are stored together, it can give rise to chemical reactions that could result in fires, explosions, toxic and harmful fumes.

The transportation of the chemical related products whether in raw material form or finished form is a crucial aspect of chemical logistics involving the use of properly certified drivers, and trucks designed to handle these goods safely.

This usually includes using trucks that are equipped with features like temperature control, pressure regulation, and spill containment systems and should follow the correct regulations relating to packaging, labeling, and documentation for safe transit.

Examples would be regulations for chemical shipments set forth by the Department of Transportation’s (DOT) Hazardous Materials Regulations in the United States and the European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR) in Europe.

Services Shippers Should Look For

There are several service providers offering services in this specialized area, but for an efficient, effective, safe and secure service, shippers should consider below critical factors before deciding.

1) Choose specialist chemical logistics providers who have and demonstrate a deep understanding and adherence to both local and international regulations governing the transport of chemical goods (hazardous or otherwise). This is critical as otherwise you as the shipper could be exposed to compliance risks leading to costs, damages, fines and delays and not to mention action by authorities.

2) Always go with providers who have implemented  and follow robust safety protocols, including regular training for their staff/vendors including use of  state-of-the-art equipment, and well-documented emergency response plans.

3) Choose providers who have access to specialized transportation and storage solutions tailored to handle the unique nature of chemicals being handled. This could include warehousing, storage equipment, and vehicles equipped with spill containment systems.

4) Look for service providers who have the option of advanced real-time tracking capabilities as this and associated monitoring systems are essential to ensure the integrity and safety of your chemical shipments.

5) The service provider should also have end-to-end visibility and effective and open communication channels from procurement to delivery. Given the nature of the cargo being handled, this requirement is extremely important.

6) Proper packaging and labeling of chemical goods are critical as it needs to withstand the rigors of the various modes of transportation used. Use a service provider who has sufficient experience and knowledge in dealing with these issues and can guide you suitably in terms of the transportation and documentation requirements.

7) Last but not least, experience is critical in chemical logistics and therefore choose a provider who has deep knowledge of the various chemicals that they handle, the packaging, documentation and safety requirements.

Conclusion

Chemical logistics is a complex and specialized field requiring specialist companies and service providers to handle it in the most efficient and effective way for customers. There are regulatory compliance regimens, safety protocols, specialized transportation, training and knowledge to handle these goods.

As the global logistics industry and the chemical logistics industry moves towards the future, customers need to adopt digital means and methods to handle these shipments and pay special attention to sustainability in addition to the safe and efficient movement of these specialized goods.

Contact us today to find out how our team of specialists can assist you in all of the above aspects. Together let us ensure the safe and efficient movement of your chemical products.