Rail service problems continue to plague chemical shippers, according to a new survey conducted by the American Chemistry Council.
“There are signs that conditions have improved, but the transportation problems plaguing our members are far from resolved,” said Emily Sanchez, the council’s director of economics and data analysis. “Marine and truck transportation have improved while poor rail service continues to be a major concern.”
Nearly all (93%) of the companies surveyed told ACC that supply chain and freight transportation disruptions are negatively impacting their chemicals manufacturing business.
Compared to conditions in the first half of 2022 (H1), 67% of companies reported supply chain and freight transportation disruptions were generally better in the second half of last year. Compared to conditions prior to the pandemic, however, 83% of companies say they are worse.
Among respondents, a majority (86%) reported they modified operations because of supply chain issues and/or transportation disruptions and delays in H2.
In both the first and second half of 2022, about 36% of companies experienced customers canceling orders because they were concerned their order would not arrive or would not arrive on time.
In order to address the ongoing rail service issues, ACC is calling on the Surface Transportation Board to increase competition in the rail industry through reciprocal switching and holding railroads accountable for service failures by establishing minimum service standards.
