America’s chemical distributors supply key materials supporting nearly every industry. Today, shipping delays, record-high prices, and other anti-competitive practices by major ocean shipping companies are harming distributor businesses and pushing America’s supply chain beyond its limit — causing a shortage of everything from household to sporting goods. This supply chain chaos is threatening our favorite spring traditions. Youth baseball, household cleaners, and sports drinks could be in trouble if we don’t act quickly.
One example of a chemical running critically low is sodium hydroxide. This chemical is foundational to the chemical processes for dozens of products. When used in aluminum products, it helps with the creation of baseball bats and bikes. Its function doesn’t stop there. We rely on sodium hydroxide for everything from soap to disinfectants to ice cream. Shortages of such an integral ingredient could impact our ability to have any, or all, of these things.
Sodium hydroxide isn’t the only chemical at risk. We are critically low on citric acid, and the current shipping crisis will only worsen this issue. Running out of citric acid means fewer household disinfectants, fewer soft drinks, sports drinks, and candies. Most importantly, it could threaten the production of certain medications. Grocery and pharmacy shelves are bare enough. We can’t afford for things to get worse before we act.
Ready to start spring cleaning? Think again! Chemicals for cleaning supplies are in short supply too, and many of their components aren’t produced in the United States. Not only can this impact the spring-cleaning habits of families across the country, but businesses, like your favorite local restaurant, need these products to keep their property clean and open. Additionally, these small businesses may need to pay more to get these supplies, putting them in a tough financial spot after a challenging year or two during the pandemic.
The list of essential chemicals being held up by the shipping crisis goes on and on. Water treatment plants have been running low on the chemicals used to provide safe drinking water. We’re short on key ingredients for fertilizer. Pharmaceuticals and baby formula could end up in short supply, causing prices to rise even higher than they already are.
These crises and shortages can’t be undone in an instant. It will take time, and the longer we wait to act, the less time we have available to prevent things from getting worse. Chemical distributors know what we are risking by allowing the shipping crisis to continue. We are seeing it already: long shipping delays to access products to distribute, empty shelves for consumers, and high prices for everybody.
We know how to solve this crisis. Congress can pass the Ocean Shipping Reform Act, allowing the Federal Maritime Commission (FMC) to take more effective action to protect American businesses from anti-competitive shipping practices. NACD is also asking the Surface Transportation Board (STB) and FMC to hold a joint hearing on rail and ocean carrier policies. We are asking Congress to support using infrastructure money to address intermodal freight bottlenecks and support the domestic manufacturing of shipping containers and chassis. These reforms will do more than fix the current situation, they will help safeguard against future crises.
Right now, things are dire. Chemical distributors are at risk of being driven out of business. That ripple would be felt downstream by the companies they supply and the end-users who rely on the products they produce.
Essential chemicals are in short supply. Prices continue to rise. We need to take action now to address the shipping crisis before shortages get any worse. Chemicals can’t wait.
Join us in advocating for better solutions. Find out more about NACD’s activities on the supply chain crisis here. #ChemicalsCantWait
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