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CHEMICALS CAN’T WAIT USA • NACD PRESIDENT ERIC R BYER APPLAUDS THE PASSAGE OF THE OCEAN SHIPPING REFORM ACT BUT WARNS THAT THERE IS PLENTY MORE TO BE DONE TO FIX THE US’S TRANSPORT SYSTEM IN FEBRUARY 2021, the cracks in the US supply chain became an issue of concern for more than just the American importers and exporters who were already struggling with ocean cargo delays and rising costs. A polar wave that swept through North America hit Texas particularly hard, resulting in immense strain on the power grid, frozen pipelines and deaths, and forcing many businesses to shut down. Businesses did what they could to face the
nation’s supply chain infrastructure. Still reeling from the Covid-19 pandemic and shutdowns, this new threat meant inventories of chemicals began falling for the first time since the great recession and that shipping delays could soon lead to shortages. Chemical distributors process, formulate, blend, re-package, warehouse, transport and market chemical products for over 750,000 customers and were among the industries considered essential during the Covid-19
disruption, with many preparing for a challenging quarter. But by March, chemical distributors realised that what began as a shortage of shipping containers and labour at certain West Coast ports, exacerbated by weather, was quickly morphing into a dangerous and long-term breakdown of the
crisis. Any shipping delays distributors experience have broad implications for the entire supply chain. It immediately became apparent that continued lengthy delays in glycerine, a common ingredient in pharmaceutical drugs, including Covid-19 vaccines and other medications, as well as
HCB MONTHLY | JULY-AUGUST 2022
chemicals needed for soaps, detergents, household and industrial cleaners, could not only slow economic recovery but also jeopardise public health. The National Association of Chemical Distributors (NACD) and other shippers in the US called on the Biden administration and lawmakers on Capitol Hill to immediately take action to clear the intermodal freight bottlenecks that were slowing the import and export of goods, straining American businesses, and threatening serious shortages for consumers. More than a year later, on 16 June 2022, President Biden signed S.3580, the Ocean Shipping Reform Act of 2022, into law, empowering the Federal Maritime Commission (FMC) to hold ocean carriers accountable for high shipping rates, anti-competitive practices and arbitrary decision-making. A PERFECT STORM Before the shipping crisis emerged, long port delays were not common in the US. But labour shortages and increased demand for goods resulting from coronavirus shutdowns and government spending, severe weather, antiquated port infrastructure, and rail and
