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Supply Chain & Distribution

Economic Elements of Chemistry — Last Updated Oct. 30, 2024

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Scott Jensen
CONTACT US

Although ten states account for around two-thirds of U.S. chemical production, the business of chemistry has customers located throughout the United States and around the world. Chemicals are transported over the road, by rail, by water and by air within the U.S. and to foreign destinations.  

Because each individual chemical has its own unique physical properties, the transport of chemicals can present unique challenges. Some chemicals, such as chlorine, are gases at normal temperatures and must be liquefied under pressure for transportation. Others, such as hydrochloric acid, are corrosive and require special materials to construct the shipping containers. Chemicals that require special handling tend to be shipped shorter distances, generally in large containers and high volumes.

39%
Exported between companies & subsidiaries

Distribution by Mode

Trade Semi-Truck on Highway at Sunset

Truck

Over-the-road transportation is the most common method of domestic chemical transportation, accounting for around three-fifths of the volume shipped. Truck transportation has a typically lower cost than other modes, and offers more flexibility (e.g., less reliant on set schedules, like trains or airplanes). Some companies in the business of chemistry have their own fleet of trucks while others use for-hire carriers.

Rail

According to the U.S. Department of Transportation Federal Railroad Administration, rail transportation is “recognized to be the safest method of moving large quantities of chemicals over long distances.” Around one-fifth (by volume) of chemicals are transported via rail. Chemicals are generally shipped in tank cars (liquids and liquefied gases), hopper cars (dry commodities); and some boxcars (dry bulk or packaged chemical products).

Waterborne

Domestic waterborne transport includes coastal, lake; and inland waterway transportation of goods. The vast majority of domestic waterborne transport is via towed barges. Inland waterways include the Mississippi (by far the largest), Tennessee, Ohio and Missouri waterway systems, among others. The Ohio system and intra-coastal system along the Gulf Coast are also major domestic water routes used to transport chemicals.

Other  

Other modes of transportation include pipeline, air and intermodal transportation (the use of multiple modes of transportation). More than three-quarters of this category includes pipeline transportation of ethylene and oxygen, usually for short distances. Small volumes of consumer products are shipped via air transportation.

Total Chemicals Traffic in Major U.S. Ports