Chemicals

SINGAPORE (ICIS)–Malaysian state energy giant PETRONAS is shedding 10% of its workforce by the end of the year to navigate challenging operating conditions, primarily driven by falling crude prices. Some 5,000 staff to be affected by the ongoing "right-sizing" process will be notified by the end of this year, PETRONAS president and CEO Tengku Muhammad Taufik Tengku Aziz was quoted as saying by state media Bernama. The company chief held a press briefing in Kuala Lumpur on 5 June to make the announcement. "PETRONAS 2.0 will be run differently, organized differently, will have different work processes, and to move towards that, we will have to correct the work process," he said. The company did not immediately respond to ICIS’ queries on the job cuts. PETRONAS aims for a lean and nimble operation, even if oil prices were to reach $100 per barrel, Muhammad Taufik said. "There is a logic, an assumption set, and a projection that backs it up. Over time, we have seen this—those who have tracked our history will know that when the fields were easier, our profit before tax margin was around 35 to 40 per cent," he said. "Today, it is [between] 25% and 38%. These margins are going to shrink further … So the value-added (PETRONAS) 2.0 has to transform into an organization that monetizes molecules commercially and competitively, not just at home, but also abroad," he said. In 2024, PETRONAS reported a 32% year-on-year decline in its after-tax profit to Malaysian ringgit (M$) 55.1 billion ($13 billion), as revenue fell by 7% due to lower average realized prices. Its petrochemicals arm – PETRONAS Chemicals Group – had a 30.7% slump in net profit over the same period to M$1.18 billion, despite a 7% increase in sales to M$30.7 billion. PETRONAS' budget is predicated on Brent crude trading between $75/barrel and $80/barrel. Currently, the crude benchmark is hovering near $65/barrel, marking a roughly 13% decrease year on year, influenced by global trade tensions and increased output by OPEC and its allies (OPEC+). ($1 = M$4.23) Thumbnail image: PETRONAS Twin Towers in Kuala Lumpur, Malaysia – 15 March 2025 (Md Rafayat Haque Khan/ZUMA Press Wire/Shutterstock)

06-Jun-2025

HOUSTON (ICIS)–Rates for shipping containers from Asia to the US spiked again this week – and have almost doubled over the past four weeks – as demand has surged ahead of the possible reinstatement of tariffs while capacity remains tight. Supply chain advisors Drewry said the latest sudden, short-term strengthening in supply-demand balance in global container shipping has reversed the trend of declining rates which had started in January. Rates from Shanghai to Los Angeles spiked by 57% this week while rates from Shanghai to New York jumped by 39%, according to Drewry and as shown in the following chart. The drastic increases are seen from other shipping analysts as well. On the Shanghai Containerized Freight Index (SCFI), the Shanghai-USWC rate rose by 58% to $5,172/FEU (40-foot equivalent unit), the largest week-on-week percentage gain since 2016 as strong demand has coincided with tight supply, though capacity is increasing as carriers resume previously suspended services and reinstate blank sailings. Sea-Intelligence CEO Alan Murphy said almost 400,000 TEUs (20-foot equivalent units) are coming back online in the near term. “If we aggregate it across June/July for Asia-USWC, then in June, the lines are increasing capacity 12.8% compared to before the tariff pause, and in July, the capacity injection is increasing to 16.5% compared to the pre-pause situation,” Murphy said. “Capacity has also ramped up sharply compared to just a week ago, with this injection of capacity equaling 397,000 TEU across the two months.” The growth in capacity is shown in the following chart from Sea-Intelligence. Peter Sand, chief analyst at ocean and freight rate analytics firm Xeneta, said the spike is likely because shippers are so concerned about getting goods moving during the 90-day window that they are willing to pay more. “Right now, it seems carriers are telling shippers to jump, and some are replying ‘how high?’,” Sand said. “This will not last because capacity is heading back to the transpacific and the desperation of shippers to get supply chains moving again will ease once boxes are on the water and inventories begin to build up,” Sand said. “Spot rates are expected to peak in June before downward pressure returns.” Rates from online freight shipping marketplace and platform provider Freightos have yet to capture the dramatic increase, but Judah Levine, head of research at the company, said 1 June general rate increases (GRIs) are starting to push daily prices up sharply. “Rates have spiked 72% to the West Coast since last week to $4,765/FEU and 44% to the East Coast to $5,721/FEU, with more increases likely and additional hikes announced for mid-month,” Levine said. Analysts at US logistics platform provider Flexport said they expect a further rush of cargo from southeast Asia to the US West Coast toward the end of June. Flexport analysts expect carriers to be back to full capacity on the transpacific eastbound trade lane by the end of June, noting that week 23 capacity is 11% below standard levels but is expected to exceed standard levels by 3% by week 25. Container ships and costs for shipping containers are relevant to the chemical industry because while most chemicals are liquids and are shipped in tankers, container ships transport polymers, such as polyethylene (PE) and polypropylene (PP), are shipped in pellets. Titanium dioxide (TiO2) is also shipped in containers. They also transport liquid chemicals in isotanks. LIQUID TANKER RATES US chemical tanker freight rates assessed by ICIS were mostly unchanged. However, rates decreased from the US Gulf to Europe. The USG to Rotterdam route is overall steady as weaker demand is being offset by limited availability, particularly for larger parcels. Larger requirements are well represented, with several larger lots of methanol, methyl tertiary butyl ether (MTBE) and caustic soda fixed or indicated to the ARA. There was also some interest in sending some smaller lots of glycols and styrene. From the USG to Asia, the uptick in interest to rush glycols to beat the deadline to China seems to have all but ended as the market saw only a few new inquiries. On the other hand, several larger parcels of methanol were either fixed or quoted to the region. As contract of affreightment (COA) volumes are being firmed, and due to the absence of market participants, freight rates have eased some, with more downward pressure on smaller parcels. On the USG to Brazil trade lane, the market has been steady, leading rates to remain unchanged week on week. There was a stable level of spot activity with only a handful of new requirements. Overall, the market remains slow despite several cargoes being quoted and fixed. Despite the uptick in inquiries there is not enough significant activity that would suggest any increase in demand, with caustic soda, glycols and styrene the most active. The regular owners have space remaining and are trying to fill space while supporting current freight levels. Activity typically picks up during summer months, but this is not currently being seen. As a result, freight rates are now expected to remain steady for the time being. Focus story by Adam Yanelli Additional reporting by Kevin Callahan Visit the US tariffs, policy – impact on chemicals and energy topic page Visit the Logistics: Impact on chemicals and energy topic page

05-Jun-2025

COLORADO SPRINGS, Colorado (ICIS)–A new regulatory threat for the US chemical industry is emerging from the alignment of two wings of the nation's main political parties, which could use what critics describe as pseudoscience to adopt restrictive and unneeded policies. The two wings are what the American Chemistry Council (ACC) described as the one in the Democratic party aligned with nongovernmental organizations (NGOs) and the one in the Republican party aligned with the MAHA movement. MAHA stands for Make American Healthy Again, and it is a motto coined by Robert Kennedy Jr, the secretary of the US Department of Health and Human Services. Short term, any new policies will likely arise in states because the current federal administration has imposed a high threshold for new regulations. POSSIBLE STATE-LEVEL THREATS FROM NEW HEALTH REGULATIONSWhile new regulations could arise on the state level, those policies could draw some inspiration from the federal government through the so-called MAHA Report issued by the US Department of Health and Human Services. The first pages of the report highlight "aggregation of environmental chemicals" as one of the four areas that could address what it described as a rise in childhood chronic diseases. The report includes a 12-page section entitled "the cumulative load of chemicals in our environment". Instead of recommending policy, the MAHA report calls for more research in the following chemistries: Per-and polyfluoroalkyl substances (PFAS). These are used to make fluorochemicals and fluoropolymers Microplastics Fluoride salt added to water to prevent tooth decay Phthalates that are used to make plasticizers Bisphenols that are used to make polycarbonate (PC) and epoxy resins Pesticides, herbicides and insecticides. The report mentioned glyphosate and atrazine The report also singled out the following classes of chemicals, as shown in the following table: Heavy Metals Waterborne Contaminants Air Pollutants Industrial Residues Pesticides Persistent Organic Pollutants Endocrine-Disrupting Chemicals Physical Agents Source: US Department of Health and Human Services It must be noted that the report explicitly rejects the EU's REACH regulatory system. Even if the report did propose new regulations, they would have to reach a high threshold. The administration of US President Donald Trump said it will require 10 federal regulations to be removed for every new one introduced. However, a new administration could adopt regulations based on the report after Trump's term of office ends in four years. US states do not have to wait for Trump to leave office to adopt regulation that address the issues raised in the report. Already, the states of Florida and Utah have banned fluoride from public water. CHEM INDUSTRY ALREADY RESEARCHING CONCERNS RAISED BY REPORTThe ACC stressed that it supports making the nation healthy. "Everyone supports that. We support it," American Chemistry Council (ACC) CEO Chris Jahn said. He made his comments on the sidelines of the ACC Annual Meeting. With that in mind, the two share the same goals. "We look forward to working with them to make sure that we keep everyone safe, especially children," Jahn said. Moreover, he said the ACC has conducted research on many of the report's concerns, and research is its main call for action. The ACC said its Long-Range Research Initiative (LRI) is focused on ways to assess chemicals for safety. It has also invested in research in microplastics, Jahn said. The federal government already addresses many of the report's concerns under its agencies, such as the Environmental Protection Agency (EPA), Jahn said. The Food and Drug Administration (FDA) regulates food contact and food contamination. As it stands, Jahn said the chemical industry is the most heavily regulated manufacturing sector, and its regulatory burden has doubled in the past 20 years. Regulation is appropriate, but it must be risk-based, science-based and fact-based, Jahn said. "Sound science and sound process leads to sound regulation." NEW REGULATIONS ON HOLD WITH NEW PRESIDENTThe surge of new regulations that characterized the term of the previous president has ended with Trump's inauguration, but that was expected because it happens every time a new president takes office, Jahn said. "They freeze everything in place so they can evaluate what's in the queue, so there's nothing new there. Every president does that." As the administration gets settled in, it may need to adopt new regulations to achieve policy goals. If the administration does propose new regulations, the ACC has proposed existing rules it could purge and that would count multiple times in meeting the 10-rule threshold. One such regulation is the plastics significant new use rule (SNUR), Jahn said. "We've given them a list of over 30 regulations that they could take a fresh look at," Jahn said. "We have plenty of suggestions and opportunities for them to address the 10 for one." The ACC Annual Meeting ran through Wednesday. Insight article by Al Greenwood Thumbnail image: Texas flag. (Source: Westlight)

05-Jun-2025

SAO PAULO (ICIS)–Logistical mayhem at Mexico’s largest port of Manzanillo is hitting imports of chemicals and industrial goods after a strike in May by customs personnel worsened an already poor performance. Players in the distribution sector have said practically all products coming to Manzanillo in Colima state, the port of entry for Asian imports into Mexico with around 40% of the country’s container cargo, are affected as queues are extending to days and affecting the related road and rail transport. The situation has become so dysfunctional that many companies are opting to change their logistical plans and opting to send cargo to the Lazaro Cardenas Port, 350km south in the state of Michoacan. “We're paying a fortune in delays. It is taking days to get a date to make your shipments, and when they give you a date, it keeps moving forward several times, adding to the increasing costs we are facing. We are reducing as much as we can any operation involving Manzanillo,” a chemical's distributor source said. Due to chemicals trade’s safety requirements, the source added the company’s logistical woes had been widened by the implementation of a new Administrative and Customs Matter Proceeding (PAMA in its Spanish acronym) system introduced in 2024, which has increased the checks and costs for many of the shipments. In a written statement to ICIS, a spokesperson for logistical firm Logistica de Mexico (LDM) said the company is turning increasingly pessimistic about the port’s crisis, adding it now expects the crisis could take up three months to normalize. In a letter to customers seen by ICIS, one of the operators at the port of Manzanillo, SSA Marine Mexico, said the crisis “continues without significant improvement” because the resumption of operations after the strike at the end of May had been “partial and with insufficient” staff. The Port of Manzanillo is the largest containerized port in Mexico, with 70% of cargo coming from Asia entering Mexico through it. It handles around 35 million tonnes/year of cargo. STRIKE WORSENS POOR PERFORMANCEUp to May, the Port of Manzanillo already suffered performance problems, attributed by trade unions representing workers at Mexico’s National Customs Agency of Mexico (ANAM) to the lack of staff compounded by poor working conditions for workers. Internal protests escalated during May, with the government increasing presence of military personnel from the Navy (Secretaria de Marina) and deepening the rift. By mid-May, the crisis reached boiling point and protestors “completely blocked” access, the Navy said in a statement on 15 May. An intermittent strike followed, with hours-long stoppages, which practically paralyzed the port up to the week commencing on 23 May. Talks between the government and trade unions continue, with the latest round held on Thursday, but progress has been slow. As well as salary demands, trade unions have said customs workers at the facility have faced workplace harassment, exploitation and unjustified dismissal. The Association of Terminals and Operators of Manzanillo (ASTOM) has been quoted on Mexican news outlets this week saying it expects a resolution the crisis to be found as soon as this week or early next week. ASTOM had not responded to a request for comment at the time of writing. “Right now, Manzanillo is saturated, with congestion at all the port’s terminals. Even if you get customs clearance after making the payment, you will be given an appointment for the actual shipment one week later. It’s become completely dysfunctional,” said the source at the chemicals distributor. “It’s hard to have an estimate for when the delays will be cleared. This is a situation now affecting all importing and exporting companies using this important facility. Because of the location of our facilities, Lazaro Cardenas port does not work so well for us – otherwise we would have already diverted to that port.” UP TO 12 WEEKS RESOLUTION – ALL GOING WELLIn its written statement to ICIS, the spokesperson for LDM confirmed what the company’s CEO, Jose Ambe, said earlier this week in an interview with Mexican news outlet El Mañana in which he gave the most pessimistic assessment of how long the crisis could linger: three months. "Although we see that the authorities are taking some measures to restore operations and partially resume activities, to be honest, the port's full normalization will take between eight and 12 weeks. This is based on the flow we are seeing, the containers that are delayed, and the lack of personnel," Ambe said. "The port has been opened but a bottleneck was created, which meant it couldn't be moved, and there is a lack of personnel to address this. There are still protests from port and customs workers, who continue to protest amid the lack of personnel.” Ambe concluded saying that unjustifiably dismissed personnel will likely have to be reinstated and authorities may need to meaningfully improve the customs employees’ working conditions for the crisis to overcome the impasse. In its letter to customers dated 30 May, SSA Marine Mexico gave a hint of how the crisis deepened in May, a month when 45% of import containers had not been delivered and 32% of export containers had not been shipped, while 40% of scheduled empty containers have not been received and shipped. The letter went on to say that, as a response to the crisis, ANAM had adjusted the issuance of appointments, according to the operational capacity of Manzanillo’s customs office, which caused SSA Marine Mexico's  capacity to fall from 1,800 import appointments/day to 1,100/day. “This backlog has limited operational capacity at both terminals. If the scheduled appointments for 2 June [the letter was dated 30 May] are not met, the terminals will be severely affected, increasing the utilization of our yards, generating delays of more than two days in the berthing of upcoming vessels, and affecting our operations in general,” said the company. SSA Marine Mexico had not responded to a request for comment at the time of writing. The crisis now affects the entire supply chain – from the large terminal operators with more financial muscle to individual truck drivers for whom one day delay upend tight finances. A representative for the Manzanillo Freight Transporters Union (UTCM) said in a TV interview this week that costs for truck drivers are shooting up as the crisis extends. “For a typical carrier, it costs between [Mexican pesos (Ps)] 2,500-2,800/day ($130-146/day) if the truck is waiting, not able to load and has to wait. And, if you manage to get the load, the process of entering the port and then re-route to leave the port can take between eight and 12 hours,” they stated. UTCM was contacted for further comment but had not responded at the time of writing. AND THEN, THERE IS PAMAIn 2024, the Mexican government implemented the PAMA regulations aiming to improve the clearance of goods at customs facilities and the seizing of illegal goods. In practice, the detailed regulation has added costs in the form of bureaucracy and, in the case of chemicals, sharply slowed down the entry of imports into Mexico. PAMA entails companies now must give more information about the load. For example, if the declared weight of the load deviates in the slightest from the weight showed on the customs scale, this can be a reason to send the load back to square one, with a fine potentially also imposed, according to the source in chemicals distribution. “Right now, we have a container which has held for 45 days, and we can't release it. There was a mismatch in the weight: it was missing two decimal places. We paid a fine, and corrected the error, but to no avail: today [4 June] we are still battling to release that container,” said the source. “It is a very serious problem – many of our loads get stuck because of PAMA-related issues, and becomes a burdensome, time-consuming process. Moreover, the fines are disproportionate, ranging from 70% to 100% of the value of the merchandise. And, since May, this problem has been compounded by Manzanillo’s crisis.” Insight by Jonathan Lopez  Thumbnail image: One of Manzanillo Port's terminal. (Image source: Manzanillo's port authority (ASIPONA Manzanillo))

05-Jun-2025

MUMBAI (ICIS)–Indian specialty chemicals producer Black Rose Industries and Japan's Koei Chemical are conducting a joint feasibility study on building a specialty amines project in India. As part of the project, Black Rose will set up manufacturing facilities for the amine products while Koei Chemical will provide its proprietary technology for the production facilities, the company said in a bourse filing on 30 May. “The parties are expecting to enter into definitive agreements and will proceed with the construction and installation of plant facilities once the overall feasibility is established,” it added. Black Rose plans to set up the amine manufacturing facility at its chemicals complex at Jhagadia in the western Gujarat state, a company source said, but did not provide information regarding the product mix at the new plant or the project cost. “We are excited to enter the field of specialty amines which play an important role for the future growth of the chemical industry in India,” Black Rose chairman Anup Jatia said. Black Rose currently operates acrylamide and polyacrylamide plants at its Jhagadia complex. Acrylamide is used in the production of polymers, wastewater treatment, and food processing while polyacrylamide is used in pulp and paper production, agriculture, food processing, mining, among others.

05-Jun-2025

SINGAPORE (ICIS)–South Korea’s revised real GDP shrank by 0.2% on-quarter, unchanged from advanced estimates in April, the first on-quarter contraction in nine months, central bank data showed on Thursday. Exports fall 0.6% on drop in chemical products GDP growth forecasted at 1.0% – OECD US trade negotiations, economic policy on new president Lee’s agenda Real GDP growth shrank 0.1% year-on-year in January-March 2025 amid political turmoil from a martial law declaration as well as US tariffs, the Bank of Korea (BoK) said in a statement. Both manufacturing and exports decreased by 0.6% quarter on quarter, mainly on drops in production and export of chemical products as well as machinery and equipment. Private consumption decreased by 0.1% as consumers spent less on services such as recreation, sport, and culture, while government consumption remained at the same level as the previous quarter. South Korea elected its new president Lee Jae-myung on 4 June, ending six months of chaos wrought by former President Yoon Suk Yeol’s declaration of martial law, Singapore-based UOB Global Economics & Market Research said in a note on 4 June. His immediate goals will be to boost the economy and “restore livelihoods” while balancing US trade negotiations with China relations, as the two world’s largest economies continue talks towards ending a trade war. Lee has until 8 July, when a 90-day suspension on 25% “reciprocal” tariffs imposed by US President Donald Trump will be lifted, to negotiate a US trade deal. A supplementary spending package worth 0.1% of GDP, or won (W) 13.8 trillion ($10 billion), was approved by the government in May, while Lee has announced an economic task force to boost growth. Talks have been ongoing since April but with no definitive result due to South Korea’s presidential void. The country announced a snap election on 8 April after Yoon was impeached and removed from office. “Despite external uncertainties, the domestic outlook may start to pick up after the presidential election,” UOB said, forecasting a 1.0% GDP growth for 2025. The Organisation for Economic Co-operation and Development (OECD) expects the South Korean economy to recover in 2026, projecting growth by 2.2% in 2026, it said in a report on 3 June. However, the BoK sharply lowered its GDP forecast for 2025 to 0.8% from 1.5% previously, warning that tariffs and economic uncertainty would lead to weaker exports. “Going forward, domestic demand is expected to recover modestly but at a slower pace, while exports are expected to slow further due to the impact of US tariffs,” the BoK said on 29 May. Focus article by Jonathan Yee Thumbnail image: Mandatory Credit: Aerial view of a container pier in South Korea's southeastern port city of Busan (Source: YONHAP/EPA-EFE/Shutterstock) Visit the US tariffs, policy – impact on chemicals and energy topic page

05-Jun-2025

LONDON (ICIS)–The European Commission has confirmed to ICIS that only recycled polyethylene terephthalate (R-PET) produced using plastic waste in the EU can currently count towards the 25% recycled content target set out under the Single Use Plastics Directive (SUPD). In an email to ICIS, a spokesperson for the Directorate-General for Environment (DG-ENV) stated that the 25% target laid out in the SUPD can ‘only be achieved using post-consumer plastic waste generated from plastic products that have been placed on the EU market’. This expands on Point 4 of Implementing Decision 2023/2683 having regard to Directive (EU) 2019/904 (the SUPD), which states: 'Post-consumer plastic waste needs to be understood as waste generated from plastic products that have been placed on the market.'  The confirmation from the Commission clarifies what many R-PET market participants had already assumed – but not necessarily confirmed – that the 25% target can only be reached by using waste that has come from within the EU. It therefore rules out the use of plastic waste or material produced from plastic waste that has been placed on a market outside the EU. FUTURE CHANGESThe Commission confirmed that it is currently preparing an implementing act, planned for Q4 2025, that will extend the calculation, verification and reporting methodology to cover all recycling technologies, including chemical recycling. This will repeal and replace the existing act and contains a broader definition of ‘recycled plastic’ which will be the same as the Packaging and Packaging Waste Regulation (PPWR) and will cover recyclates ‘stemming from post-consumer plastic waste generated from plastic products that have been placed on markets outside of the EU’. Article 7 of the PPWR sets out the 30% recycled content target for PET bottles by 2030, in which paragraph 3(a), among other things, states that recycled content shall be recovered from post-consumer plastic waste that: “…has been collected within the Union pursuant to this Regulation or the national rules transposing Directives 2008/98/EC and (EU) 2019/904, as relevant, or that has been collected in a third country in accordance with standards for separate collection to promote high-quality recycling equivalent to those referred to in this Regulation and Directives 2008/98/EC and (EU) 2019/904, as relevant.” R-PET market participants have welcomed the clarification although there are concerns that bringing the SUPD in line with the PPWR – in terms of allowing recycled produced from waste placed on markets outside of the EU – will open up the European market to cheaper imports of recycled material. The Commission is currently drafting the methodology for calculation and verification of the PPWR’s recycled content targets due in December 2026.

04-Jun-2025

SINGAPORE (ICIS)–Click here to see the latest blog post on Asian Chemical Connections by John Richardson. Is the petrochemicals industry really a free market? Or have we been telling ourselves a comforting fiction? As we sift through margins, P&Ls, and operating rates to predict a recovery, we might be asking the wrong questions. Let’s rewind to 2014. While China’s state media signalled a major push toward self-sufficiency in petrochemicals, many Western analysts dismissed it — seeing China through the lens of profit maximisation. But I was told way back in 2000 that China’s strategy had just as much to do with jobs and economic value creation as with profits. Fast forward to today: polyester fibres, , polyethylene terephthalate (PET) film and bottle grade resins, purified terephthalic acid (PTA), styrene and polypropylene (PP),— China is nearly or completely self-sufficient in these markets. The drivers? National security, supply certainty, and industrial policy. And it’s not just China. Middle East investments — underpinned by cheap feedstocks, state ownership, and now oil demand substitution — follow similar, non-market logic. If key players haven’t been led by market signals alone, what happens next? Despite the deepest downturn in petrochemical history — likely to stretch into 2028 — new capacities keep rising. Not from those chasing short-term profit, but from those with long-term, state-backed agendas. Just a modest rise in China’s PP operating rates above the ICIS base case assumption could flip China into being a net exporter by 2027. The trade war may play a role here, as it has increased supply security concerns. True, there are more private petrochemical companies in China than ten years ago. But this latest wave of investment is more state-owned-enterprise-led than the previous one. And private companies can also benefit from local and central government support Saudi investments in refinery-to-petrochemicals will persist. More ethane crackers in the Middle East will be built. China’s plant-build costs are often 50%+ lower than the U.S., thanks to relentless innovation support. So… what does this mean for producers operating on pure market terms? Can they survive, let alone thrive, in a landscape shaped by strategic ambition rather than shareholder return? Your thoughts are welcome. Let’s start the conversation. Editor’s note: This blog post is an opinion piece. The views expressed are those of the author, and do not necessarily represent those of ICIS.

04-Jun-2025

SAO PAULO (ICIS)–Brazil's customs auditors have announced a new five-day "zero clearance period" at the Port of Santos on 2-6 June in which no physical inspections will be carried out, according to a letter to customers by logistics company Unimar seen by ICIS. The action at Santos – Latin America’s largest port – extends a strike started in 2024 which has disrupted logistics for months. The port is a key exit and entry point for some chemicals and a wide range of industrial goods, as well as of fertilizers imports feeding Brazil’s powerful agricultural sector. “Brazil’s Superior Courts have ruled that industrial action cannot entirely paralyze essential public services, such as the clearance of perishable cargo. Judicial intervention may be required to ensure the continuity of critical operations, assessed on a case-by-case basis,” said Unimar’s letter. “Currently, marine terminals at major ports have reported that most cargo is cleared automatically via the system, except for those not classified under the ‘Green Channel.’ Therefore, the strike is expected to primarily impact cargo that requires physical inspections.” Under normal conditions, average clearance times at Santos are five to seven days for imports and one to two days for exports – the action plan up to 6 June may cause delays for cargo requiring physical inspection, while clearance of vessel spare parts at major airports typically takes three to five days. Brazil's Superior Courts have ruled that industrial action cannot entirely paralyze essential public services, such as clearance of perishable cargo. Judicial intervention may be required to ensure continuity of critical operations on a case-by-case basis. A YEAR-LONG STRIKEThe strike by customs workers, with no sign of resolution in sight, is about to reach one year of duration, some of the longest strikes by civil servants ever seen in Brazil. Smaller strikes started to take place in mid-2024 but then escalated into a comprehensive two-month stoppage. Several rounds of talks between the union representing tax auditors and the government have failed to reach agreement. The union is demanding salary increases and better working conditions, including maintenance and upgrades at ageing customs points across Brazil. President Luiz Inácio Lula da Silva's government is attempting to control spending amid investor concerns about the fiscal deficit. Chemicals players have said to ICIS they are increasingly concerned about rising logistics costs, in part due to the strike. The trade group Brazilian Association of Distributors of Chemical and Petrochemical Products (Associquim) warned that companies handling perishable goods or materials requiring quick delivery – pharmaceuticals, food products – are facing particular difficulties. "We have chemical products that have to have a special place for storage, and if too much accumulates in those special storage places, then it will filter down to the end-user, and create a safety problem," said Associquim president Rubens Medrano earlier this year. NEW SYSTEM DEPLOYMENT AT RISKSomething most logistics players have mentioned and remain a key concern is how the strike could threaten the implementation of Brazil's New Import Process on the Single Foreign Trade Portal, approved in 2023 to reduce delivery times and costs. The system's third and most critical phase is due in the second half of 2025. Trade group the Brazilian Machinery Builders' Association (Abimaq) estimated the new system could save companies Brazilian reais (R) 40bn ($7.07bn) annually when fully implemented, nearly halving delivery times from nine days to five days through increased electronic processing. Meanwhile, the trade group representing chemicals producers Abiquim has equally warned that prolonged strike action could negatively impact the current implementation phase of the import system designed to simplify processes and reduce logistics costs. The Santos Port Authority had not responded to a request for comment at the time of writing. Front page picture: The Port of Santos in Sao Paulo state Picture source: Santos Port Authority  Additional reporting by Sylvia Traganida

03-Jun-2025

COLORADO SPRINGS, Colorado (ICIS)–US-based chemical distributor Univar Solutions has better positioned itself for growth and resilience with a sharper focus on key industries, said the head of its Ingredients + Specialties (I+S) business. More than a decade earlier when the specialties business was underperforming, Univar undertook a major shift in strategy by setting up four focus industries – food ingredients, pharmaceuticals, coatings and beauty care – to run them as standalone business units, recalled Nick Powell, CEO of Global I+S. “Everybody in each of those business units, that's all they did – focus on those industries. Prior to that, any seller, product manager or technical person may have served an oil refinery in the morning, and in the afternoon a food customer – no differentiation, no ability to sell our value,” said Powell in an interview with ICIS. Powell spoke to ICIS on the sidelines of the American Chemistry Council (ACC) Annual Meeting) This new business model worked well in Europe where Powell led the changes, and was then replicated in the Americas and Asia-Pacific but with different leadership for each region, he said. Then Univar CEO David Jukes, who assumed the role in 2019, decided to globalize all of the distributor’s businesses into six focus industries – each of them under a single leader, said Powell. SIX FOCUS INDUSTRIESThese six focus industries now fall under two segments. The I+S division now has three focus industries – CARE (beauty & personal care, homecare & industrial cleaning), Health & Nutrition (food ingredients, pharmaceutical ingredients) and Performance Materials (coatings, adhesives, sealants and elastomers (CASE), lubricants and metalworking). The Chemical Distribution & Services (CD&S) division also has three focus industries – General Industrial, Refining & Chemical Processing, and Service Solutions. Univar’s online platform ChemPoint is its third division, focused on demand creation and multi-channel digital marketing campaigns for a wide range of chemicals and ingredients. “In essence, we’re able to adjust to the very specific needs of suppliers who are producing products that go into those spaces, or our customers who want to be treated differently, depending on their market,” said Powell. And in each of the focus businesses, Univar has specialists that can connect the value the supplier has in its product portfolio to the value it can generate for a customer, typically by helping solve a technical problem or producing a new product from its globalized network of laboratories that goes to market, he pointed out. The strategy has been “extremely successful” for Univar, allowing it to outperform its peers, he noted. GLOBALIZATION AND CUSTOMER WINSWith the globalization of the focus industries, Univar is able to provide suppliers the same type and level of service in any region, adding local nuance when appropriate, said the executive. “That gives them confidence that we can deliver for them. We found that suppliers have really liked that business model, and a number of them have been awarding us large pieces of new business in geographies where we've not dealt with them in those product portfolios,” said Powell. In February 2025, Univar announced an expanded distribution partnership with BASF, securing the exclusive right to serve as a distributor of LuquaSorb Superabsorbent Polymers (SAPs) in the US and Canada in industrial applications. In January 2025, Univar Solutions announced an exclusive distribution agreement for the US, Canada and Puerto Rico with dsm-firmenich, adding its skin actives and bioactive skin care ingredients including synthetic peptides, organically grown plant extracts and other natural ingredients. In November 2024, Univar announced a new exclusive distribution agreement with Syensqo to become, effective 1 January 2025, the sole distributor of its beauty care ingredients across the US and Canada. “We are able to demonstrate to them that we have this large specialty and ingredients business inside the portfolio that’s staffed by technical people who are able to take their products to market and gain value for them,” said Powell. “They were able to do that in conjunction with our solution centers (labs), helping customers solve problems or create new products to go and take more share in their marketplaces,” he added, calling the strategy a game changer of growth” for Univar. The ACC Annual Meeting runs through Wednesday. Interview article by Joseph Chang

03-Jun-2025