Creating efficiencies in the Chemical industry with Flex Hub

21 November 2023

Jannick Seiero Head of Flexibility Products

Maersk offers a first-in-class product that not only provides end-to-end flexibility to your supply chain, but also adds efficiency to your bottom line: Flex Hub.

Coping with supply/demand fluctuations while keeping agility high and cost low is a challenge for suppliers across the Chemical industry. In addition to facing unforeseen events that disrupt supply chains regionally or globally, logistics planners need to navigate a landscape of irregular supply patterns and fluctuating demand. This can lead to missed revenue opportunities, unsatisfied end buyers or holding costly inventory - all of which negatively impact the company’s P&L.

With Flex Hub, you can inject physical efficiency into your business planning and supply chain while keeping costs at bay. Maybe the cargo is sold already, and the delivery shipment needs to be slowed down. Or deals need to be closed on short notice with limited foresight and short lead times, like in the case of a push production model. In any case, Flex Hub enables you to keep inventory in containers, postpone delivery, position goods closer to key markets, or change the destination at will.

How it works:

Access to our global hubs

Contract Flex Hub to get access to 9 of our hubs across the globe, which also serve as strategic nodes in the Ocean network. We are constantly growing our geographical coverage to new key markets that are strategically important to our chemical customers.

Cargo management flexibility

Request Flex Hub online via self-service on maersk.com to select, hold in bond and later release/dispatch cargo from the Hub.

Meet customer demands

With up to 30% lower costs than traditional warehousing, with no cargo re-handling, additional import/export fees, working capital or binding volume conditions, you can wait until you find the right customer for your products.

Enhanced reliability in cargo delivery

When the booking is placed, the shipper can choose the destination and resume the journey, with guaranteed loading from the hub. Delivery is fulfilled with up to 70% reduced order-to-delivery lead time and unmatched reliability.

Throughout the cargo journey, we support our chemical customers through a single point of contact. A live digital visibility dashboard will also provide full control of the cargo from origin, while en route and to destination.

Our chemical customers have already realised the added value of Flex Hub. On the structural need for increased supply chain efficiency in the chemical industry, Patrick Hore, Maersk Global Vertical Head of Chemicals says:

“With changing production and supply strategies, having the ability to place containerized inventory into domestic markets from overseas is a key supply-chain efficiency. Take for example, reduced polymer production in Europe due to energy costs. Demand still needs to be fulfilled with competitive lead times. Flex Hub enables shippers to do exactly that."

What’s more? If you are not ready to contract Flex Hub yet, our pay-as-you-go version of Flex Hub is available online. It offers you the ability to change the expected time of arrival (ETA) via maersk.com, with instant pricing and confirmation.

In summary, Flex Hub offers a first-in-class solution for your chemical supply chain with the market’s lowest landed cost and added efficiency. This will sharpen your edge in the market and enable you to stay ahead of the competition.

For more information about the advantages of Flex Hub, click the button below.

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