ACD Press Release

NACD Joins Council of Chemical Association Executives in Calling for Joint FMC/STB Hearing on Supply Chain Disruptions

Arlington, VA – Today, the National Association of Chemical Distributors (NACD) signed on to a letter by the Council of Chemical Association Executives calling for a joint hearing by the Federal Maritime Commission (FMC) and Surface Transportation Board (STB) to discuss escalating chemical supply chain disruptions. 

Over the past year, increasing port and rail congestion has led to product delays, rising costs, and inventory stock-outs that have been felt along all supply chains. Disruptions in the chemical supply chain have broad consequences. As many chemical products are no longer manufactured in the U.S., the country relies on these imported shipments to function.

The letter, which is addressed to FMC Chairman Daniel B. Maffei and STB Chairman Martin J. Oberman, calls for the FMC to vigorously enforce the prohibition against unfair demurrage and detention practices. It also calls for the STB to subject container storage charges to the Board’s demurrage rules and expand shippers’ access to alternative service, both in emergency situations and when necessary to provide competitive rail service. 

“The state of shipping as it currently stands is unsustainable, and it’s past time for the FMC and STB to leverage their respective authorities to address both the acute problems and the long-term industry trends that have exasperated them,” said NACD President and CEO Eric R. Byer. “Chemical distributors facilitate the movement of ingredients necessary for everyday life. Prolonged disruptions to the chemical supply chain will have severe effects across the entire U.S. economy, and for that very reason, it’s time to move beyond fact-finding exercises and towards concrete actions.”

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NACD and its over 400 member and Affiliate companies are vital to the chemical supply chain providing products to over 750,000 end users. NACD members are leaders in health, safety, security, and environmental performance through implementation of Responsible Distribution, established in 1991 as a condition of membership and a third party-verified management practice. NACD was established in 1971 and is celebrating its 50th anniversary this year. For more information on NACD and how the association is Celebrating 50 Years, visit www.acd-chem.com.