3 key industry takeaways from LogiChem 23

25 May 2023

With the world moving as one towards a greener future, it is no surprise that innovation, collaboration and sustainability were the hottest topics of discussion at LogiChem 23. This year’s edition of the annual international exhibition and conference for the Chemical industry was held at the World Trade Center in Rotterdam from 14-16 March. The event served as a platform to collectively seek solutions to logistics disruptions, improve service reliability, explore ways to invest in green transportation solutions and increase transparency throughout the supply chain.

After multiple sessions, the 3-day event saw experts circle back repeatedly towards some specific points that could play a vital role both the immediate and long-term future of the chemical industry. Here are the three key takeaways that will determine the next course of action for the industry as a whole:

Achieving emissions targets

The industry must develop solutions to operationalise sustainability, especially regarding scope 3 emissions. A step-by-step approach must be initiated at the earliest to get closer to desired targets.

Sustainability and collaboration

Procurement processes will need to reflect both sustainability and collaboration requirements. There were multiple rounds of discussions on how the industry can find new ways to adjust to the new scenario.

Rising Energy Costs

The European chemical market is affected by energy costs impacting the region’s competitiveness, which highlights the need to innovate and collaborate in the supply chain. More efficient end-to-end solutions will need to be implemented to bring down costs.

With the challenges ahead clear, the question now stands: how can a logistics partner help accelerate the necessary change? Direct applicability of tools like Maersk Emissions Dashboard can give a transparent baseline of existing scope 3 emissions. Maersk’s approach with ECO Delivery, Sustainable Aviation Fuel and replacement of our fleet with green ships will have a direct impact on our scope 1 emissions and the customers’ scope 3 emissions. Our partnership with Syngenta is a great example of how Maersk can play a 4PL + 3PL collaborative role within a Lead Logistics setup. Integrating solutions like Flex Hub, Ocean, Depot and Contract Logistics can help with the flexibility and agility needed to retain/capture market share during difficult times.

Maersk delivered three presentations on key issues like developing collaborative partnerships allowing investments in green solutions, designing winning supply chains and dangerous goods logistics. Here’s a brief recap of each of the presentations and their respective outcomes.

A keynote interview in partnership with Syngenta Crop Protection

Maersk has been supporting Syngenta Crop Protection’s commitment to reducing their carbon footprint. Patrick Hore, Global Vertical Head of Chemicals at Maersk and Eladio Robles, Global Head of Supply Operations at Syngenta Crop Protection, discussed the role of trust in a strategic partnership and how it impacts the brand value of organisations.

These were the key outcomes from this session:

Despite current and expected chaos in the industry, goals still need to be achieved
Innovative partnerships are one way to achieve success
Outcomes founded in trust are sustainable over time and even help capture market share.

A Supply Chain Design masterclass by Anders Victor Konnild PhD, Global Head of SCD, Maersk

The masterclass gave insights into designing a winning supply chain, the different strategies for collaboration and understanding the archetypes that deliver for your specific commodity groups. The key notes from this session were:

Supply chain design should give you and your network a competitive edge
Your product portfolio and end-customer market have specific supply chain requirements which can be grouped into archetypes
Designing in archetypes will drive collaboration in your networks, and logistics service providers can help shippers achieve winning outcomes.

An Interactive Working Group on the topic ‘Dangerous goods Logistics’ led by Maersk and Henkel

Arvind Ambo, Global Vertical Excellence Manager, Maersk, and Sabine Schultes, Head of Dangerous Goods Transportation, Henkel, provided valuable insights into the handling of dangerous goods and how it affects property, cargo, employees, the environment and even the reputation of the companies which are involved. Here are some key takeaways from the session:

There is no sustainability without safety. Implementing safe practices is what will drive the industry forward.
Regulatory scope will increase if partners do not focus on safety.
Delivering high standards in the handling of Dangerous goods is what can give customers the ultimate peace of mind.

Through many more discussions and panels held during LogiChem 23, the next steps for the chemical industry were clearly defined. An increased demand to meet sustainability goals and the need for strategic collaborations came into sharp focus. With the challenges ahead, the right logistics partner will be key to driving faster progress across the industry.

(All photos by Richard Hadley)

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