The pandemic-fueled sense of urgency means long-standing supply chain woes may be in line for reform.
Though logistics challenges predate the pandemic, the sense of urgency around current supply chain woes may spur legislators to adopt reforms for decades-old provisions, according to an article from ICIS. Several chemical companies cited problems with supply chains in their fourth quarter earnings reports – problems that are likely to persist in the first months of 2022.
Demand is not the factor limiting growth as in the previous economic recovery, says ICIS. Logistical challenges are preventing companies from meeting demand as supply constraints worsen due to long-standing problems with U.S. freight. According to the article, the American Chemistry Council (ACC) and other trade groups are working together to push through updates that would relieve some of the restrictions, including a bipartisan bill that would increase the gross weight for commercial trucks on federal highways, the bipartisan Ocean Shipping Reform Act (the first overhaul of maritime shipping since 1998) and the ability to request reciprocal switching for rail transport.
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