Last updated 4:30 p.m. (ET), May 24, 2022
From the beginning of the COVID-19 pandemic, there has been an immense strain on the chemical distribution supply chain. Ports across the U.S. continue to suffer from severe congestion causing cargo ships to experience significant delays in unloading cargo and, ultimately, delivering product in a reasonable time.
While the supply chain snapped, ocean carriers had their best year yet. How are ocean carriers achieving record-breaking profits? By taking advantage of small businesses amid a global pandemic.
When NACD surveyed our members to understand the severity of this crisis better, we were shocked to uncover the anti-competitive practices and skyrocketing prices for shipping chemicals. In addition to soaring costs, NACD members and Affiliates are experiencing more difficulty while negotiating contracts and shipping hazardous materials than ever before. All these delays have compounded into a life-or-death situation. Critical chemicals are experiencing shortages—meaning clean water, ventilators, & vaccines are at risk of running out. We need to act now.
The Ocean Shipping Reform Act passed in the U.S. House of Representatives with overwhelming bipartisan support but has not been introduced in the U.S. Senate. We need senators to act swiftly lest we risk even more chemical shortages of products our infrastructure relies on. Tell your senators that chemicals can’t wait.
The message can’t stop at Congress. We need to establish a multi-faceted solution to the shipping crisis. Since discovering how these shady business practices impact our membership, NACD has called on the Federal Maritime Commission (FMC) to hold ocean carriers accountable for their unethical action. Additionally, NACD wrote to the World Shipping Council asking them to urge their members to cease these abusive actions immediately.
Here are action items you can complete to take back control of the supply chain:
If you have been affected by excessive shipping delays, please let NACD know the extent of the impact by contacting NACD Director of Communications Aileen Smith at firstname.lastname@example.org.
Ask Your Senator to Support the Ocean Shipping Reform Act.