Smarter Chemical Shipments: Reducing Exposure Through Partial Truckload & Consolidation Strategies

With supply chain uncertainties now the new “normal,” it’s more important than ever for the chemical distribution industry to understand the latest tactics for managing and safely delivering chemical shipments used in nearly every U.S. industry. Last month, Alliance for Chemical Distribution hosted a webinar with Uber Freight to explore how to reduce handling-related exposure in chemical logistics and introduce the latest practices for partial truckload (PTL) and other consolidation strategies.

During the webinar, Uber Freight demonstrated that members could improve routing, consolidation, and coordination across the supply chain by reducing shipment touches and exposure. Uber Freight noted that every touchpoint increases risk, and by cutting down this exposure, members of the chemical distribution supply chain can enhance efficiency, manage risk, and support safer, more streamlined chemical transportation operations.

In contrast to the traditional less-than-truckload (LTL) carrier network, which involves multiple touchpoints for a single-origin, multistep truckload, a PTL network uses shared or fractional trailers, requiring minimal handling points and point-to-point routing.

The chemical distribution supply chain is well-suited to PTL networks. From the “closed-loop ecosystem,” in which shippers often buy and sell within the same network, to the high freight compatibility and handling requirements, to the predictable production schedules, the industry lends itself to consolidated shipping practices.

LTL shipping practices are likely here to stay, and the industries that have implemented collaborative, co-loading shipping practices have experienced transportation savings, reduced empty miles, improved asset utilization, and fewer risky touchpoints.

Greg Umstead and Mike O’Neill of Uber Freight broke down four main takeaways that prove the value of practical PTL and consolidation strategies for chemical shipments:

1. Increased Handling Equals Greater Exposure. As a shipment moves through the supply chain, every new touchpoint introduces new risk to a chemical shipment. Not only do hazmat compatibility constraints arise, but also regulatory scrutiny increases. More handling means higher damage risk. More transfers mean greater compliance and routing risks.
2. Optimization Reduces Touchpoints. Direct point-to-point routing, reduced handling, and improved shipment integrity and visibility can be achieved through a well-designed network.
3. Consolidation Drives Efficiency. By implementing higher trailer utilization, using fewer trucks, reducing empty miles, and lowering carbon and diesel fuel consumption per shipment, these efficiency measures deliver key cost savings.
4. Optimization Is Continuous. When it comes to improving the efficiency of chemical shipments, it’s not a one-time optimization event. Instead, optimal efficiency requires ongoing shipment design and review that is driven by data, discipline, and network alignment.

The goal: reduce touchpoints and risk to improve control and optimization. Instead of adding multiple stops to chemical deliveries, PTL enables direct, controlled delivery with faster transit, financial savings, and improved security. Fewer touches. Smarter design. Lower risk.