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Chain partners focus on data, sustainability and collaboration

The port of Rotterdam is the beating heart of the European economy. As a key container hub and petrochemical cluster, Rotterdam stands as a reliable and robust link in the global supply chain of chemical freight, with well-established rail, road and pipeline connections to both the extensive port cluster and the major chemical regions in the hinterland. To ensure reliable, efficient and sustainable routes via Rotterdam in the future, we are fully committed to fostering resilient supply chains. Digitalisation, sustainability and collaboration are the principles guiding this.

Geopolitical turmoil, economic developments, disruptions and climate change can significantly impact supply chains, including within the chemical sector. The Port of Rotterdam Authority is therefore fully committed to resilience in partnership with players in that sector. Broekman Logistics, Neele-Vat and Royal Den Hartogh Logistics are three such partners. Safety, sustainability and innovation are central to service providers. Through close collaboration with clients, suppliers, and amongst themselves, they are able to develop intelligent logistics solutions that contribute to a more efficient, transparent, and resilient chain.

Shifts in the market

‘We are witnessing significant shifts in this market, characterised by increasing and evolving demands, rising inventory levels and escalating raw material prices. These current market developments pose considerable challenges for the chemical industry,’ says Ron Kuijpers, Vice President Business Development at Broekman Logistics.

‘The chemical sector is undergoing change due to import duties and geopolitical turmoil, as well as rising costs on the continent,’ says Joost Mooijweer, responsible for business development at Neele-Vat. ‘Ten years ago, the typical client was a European producer purchasing from China, now, it is increasingly a Chinese producer selling to Europe.’

In addition, an increasing number of chemical companies are restructuring their intra-European supply chains, often in response to declining European demand expectations or the downsizing of production volumes and capacities, Jacco van Holten, Director Commerce at Royal Den Hartogh Logistics comments. He continues, ‘We are seeing growing logistic flows from the Rotterdam chemical cluster and Rotterdam, as an import port, to more long-distance hinterlands, such as Poland and Hungary.’

Resilience more than a catch-all concept

‘Given the stringent safety requirements in the chemical sector, as well as the significant costs associated with any production failures, maintaining a stable and predictable supply chain is of paramount importance,’ Mooijweer notes. Following the considerable disruptions during the COVID-19 period, the chemical sector has now entered a new phase marked by increased volatility and uncertainty. ‘At the same time, considerable efforts have been made to create more resilient chains, to prevent further disruptions and to ensure efficient and sustainable logistics. Flexible and scalable logistics services are essential in this regard,’ says Van Holten.

‘For us, this means that we must carefully consider multiple scenarios and always have a plan B and a plan C ready. To achieve this, we need to train our people, ensure our network is in order and maintain a deep understanding of the market,’ Mooijweer continues.

Van Holten adds, ‘For us, resilience is more than just a catch-all concept. It is fundamentally embedded in our mission. We strive to continuously adapt, whether to changing client needs, new legislation or our networks.’

'Lack of capacity'

According to Kuijpers, the biggest challenge in the chemical sector is available storage capacity – or rather, the lack of it. ‘Legislation and regulations are tightened every year, which, in itself, is a positive development. However, stricter regulations are leading to the exit of smaller players and a reduction in the availability of specialised storage for hazardous substances and chemicals. Supply is scarcer, especially because demand is growing.’

With the EDC on the Maasvlakte, among others, the service provider operates its own warehouse, which sets the standard for accuracy, safety and efficiency in chemical logistics according to Kuijpers. Situated at a strategic maritime hub: ‘Rotterdam boasts the densest deep-sea and short-sea network of all European seaports. In the provision of services to Asia, the most important market for containerised chemicals, Rotterdam is even a leader. And thanks to extensive multimodal connections, the most important chemical clusters in the European hinterland are easily and sustainably accessible.’

Qualified personnel, knowledge and innovations

Good, qualified personnel are and will remain the foundation of the industry, yet the logistics sector is increasingly facing challenges in both recruiting skilled professionals and retaining them on a long-term basis. At the same time, processes are becoming more complex, requiring even higher levels of expertise. Consequently, industry players are firmly devoted to training and development programmes, as well as the continuous advancement of knowledge. ‘Chemistry-specific knowledge is essential to ensuring quality,’ says Mooijweer.

The search for innovative solutions to secure efficient logistics processes is ongoing. For example, Broekman uses various programs, including 3-D animation, to identify bottlenecks in processes. ‘Innovation also involves thinking outside the box and implementing smart solutions, such as our On-Site Logistics service, where we take over tanker truck loading from our clients and other carriers. This reduces waiting times across the supply chain and enhances safety, as our employees have an in-depth understanding of the locality and operational requirements,’ says Van Holten.

Digitalisation indispensable

Data and data analysis play a unique role. ‘Sometimes I feel like I’m not working for a transport company, but in a data centre,’ Van Holten jokes. ‘We can track processes down to the minute and often pinpoint our clients’ freight to the exact metre within the supply chain. And data is only becoming more important. The demand for accurate and reliable data continues to grow, and the market depends on us to provide it.’ Digital tools are indispensable here. Van Holten explains, ‘The expanding possibilities of digitalisation contribute to a seamless and efficient supply chain. This not only provides our clients with greater insight and predictability but also gives our employees more control and fewer unexpected disruptions in their work.’

Kuiper explains, ‘We use a Business Intelligence tool to analyse the data from our warehouse management and transport management systems. We then collaborate with our clients to explore how we can better manage safety stocks, optimise re-export shipments from our warehouse on the Maasvlakte, or reduce the number of SKUs through value-added activities.’

Neele-Vat also links data back to the client, for example when it comes to gas measurements. ‘Clients can then adjust their packaging based on the data we provide,’ says Mooijweer. ‘The market expects even more data and knowledge to be shared. To maintain a resilient supply chain, we must engage in open dialogue with our clients and ensure we share the right data.’

Sustainability continues

Moreover, service providers note the continuous advancement of sustainability within the sector. Clients are producing more sustainably and are requesting the same level of commitment from their supply chain partners. ‘There is a growing need for sustainable transport,’ says Van Holten. ‘However, the pace at which steps are being taken towards sustainable logistics varies significantly across subsectors of the chemical industry and even among individual clients. Leading organisations are taking the initiative and actively investing in sustainable logistics with us.’

Here too, the accurate recording and sharing of data plays a crucial role. Den Hartogh is now able to indicate the emissions in its quotes and for the transport orders actually carried out, actively sharing this information with clients. The service provider also offers options to reduce emissions, which helps clients meet their reporting obligations and can be incorporated into quotes. In the transport of liquids, Den Hartogh is one of the first to offer this option. ‘An additional advantage is that it motivates clients to join us in making our operations more sustainable,’ says Van Holten. ‘We certainly can’t do it alone.’

Den Hartogh aims to achieve global carbon neutrality in its operations by 2050. This year, the company is targeting a 25% reduction in its carbon emissions. Trucks are increasingly being run on HVO biodiesel or electricity, with a strong focus on expanding intermodal transport options. ‘The biggest challenge lies in greening our entire fleet of more than 800 trucks, as this accounts for the majority of emissions within our European organisation,’ Van Holten states.

Neele-Vat is rapidly making its warehousing facilities more sustainable. The internal transport equipment is already almost entirely electric, and an increasing proportion of warehouse roofs are being fitted with solar panels. The most recent facility in Botlek is equipped with 7,500, while the Neele-Vat warehouse on the Maasvlakte boasts an impressive 8,000 solar panels.

Broekman is also transitioning to electric cranes and terminal handling equipment. In addition, the service provider is working on shore power, and Broekman has been offering rail and barge solutions from the Rotterdam terminals for years. ‘Where possible, we also advise our clients on selecting more sustainable connections with the hinterland, providing them with insights into total costs, lead times, CO₂ emissions, and other crucial data for each modality,’ Kuijpers explains.

‘Sustainability is a serious part of the selection process for every client,’ says Mooijweer. ‘However, not everyone is prepared to pay (extra) for this. We are on the right track, but we still have a long way to go.’ Furthermore, sustainability is not necessarily a top priority for some clients in the current economic climate. Van Holten notes, ‘That has a delaying effect on what we can achieve together as a supply chain.’ According to them, European legislation could play a pivotal role, for example through obligations or cost-increasing measures for polluting transport.

Unique collaboration

To provide maximum flexibility and mitigate risks as much as possible, the service providers collaborate closely, sometimes even with direct competitors. Mooijweer explains: ‘There may be instances when Broekman stores goods for us, and we arrange transport or gas measurements for them. One time they help us – the next time we help them. That is truly unique to Rotterdam: we know how to find and reinforce each other. And we know we can trust each other.’

‘Rotterdam is definitely leading the way in this regard,’ Van Holten also notes. ‘Whereas elsewhere chain partners are viewed with suspicion, here there is a much greater willingness to collaborate in the interest of the supply chain.’ According to him, large-scale collaboration is essential: ‘Supply chains are becoming longer. More links are required to complete a full order and guarantee the security of supply.’ Den Hartogh highlights the importance of forward stocking, where freight is 'sent ahead' and stored as a buffer at depots or terminals, so they can be delivered quickly if necessary.

This approach offers an effective response to the growing demand for resilient supply chains, particularly as logistical challenges intensify due to geopolitical developments, a looming trade war, or – on another level – the numerous planned maintenance works on the European rail network. It also adds a new asset in the already robust position of the Rotterdam chemical cluster.