The chemical industry faces one of its most transformative eras, and the importance of collaboration, innovation, and readiness couldn’t be clearer. This year’s Chemical Summit 2024 brought together top leaders to share their expertise and dig deep into the forces reshaping the chemicals and materials industries. Held in The Woodlands, Texas, and organized in association with The Chemical Show Podcast, the summit offered a platform for discussing critical issues—from resilient supply chains to digital transformation and the evolving role of leadership.
I had the privilege of moderating the maritime panel “Navigating Uncertain Seas: Strategies for Building Resiliency into Your Maritime Supply Chain,” where we tackled how to future-proof marine operations in an unpredictable world. Here are some key takeaways from the panel and beyond, highlighting the insights that left an impression on me—and I believe, hold great value for our industry as a whole:
Building Resilience: Lessons from the Maritime Panel
Our panel comprised Eric Carrero, Chairman of the Greater Houston Port Bureau; Nuno Vendeirinho, Chemical Market Manager America’s for RightShip; Ayodele Fashakin, Global Head of Solution Consulting for Veson Nautical; and me. We focused our discussion on three critical types of risk that companies in the chemical sector need to address to achieve resilient supply chains:
- Physical and Infrastructure Risks: Port congestion and infrastructure limitations are top of mind for many. With increasing cargo volumes on the Gulf Coast, we explored the need for investments in port infrastructure to reduce bottlenecks. The Greater Houston Port Bureau, represented by Eric Carrero, is leading initiatives in this area, and there’s value in supporting and engaging with such advocacy efforts.
- Vessel Safety and Technical Risks: An aging chemical tanker fleet, combined with the complexities of handling chemicals in bulk and containerized forms, calls for a renewed focus on vessel maintenance and safety protocols. We discussed the need to ensure these vessels meet high safety standards as they navigate complex global routes.
- Regulatory and Business Risks: With evolving regulations like the EU’s Emissions Trading System (ETS) and FuelEU initiatives, companies face pressures to comply with environmental standards. This, along with volatile costs of demurrage and fuel, emphasizes the need for adaptable business models.
At the end of our session, each panelist shared a practical recommendation to businesses looking to build resilience to risk:
- Advocate for Infrastructure Initiatives: Eric Carrero urged industry leaders to engage with port advocacy groups to support programs such as port expansion and risk-based controls.
- Understand Your Risk Profile: Nuno Vendeirinho emphasized that each company has a unique risk tolerance and profile, making it essential to map out risks and establish contingency plans.
- Collaborate with Marine Teams: Ayodele Fashakin encouraged leaders to connect with their marine teams and support them in managing risk exposure. Understanding the risks they manage daily can be invaluable for organizational resilience.
Insights Beyond Maritime: Digital Transformation and Leadership for a Changing Industry
Beyond maritime affairs, The Chemical Summit tackled some other themes that resonate across our industry, especially around digital transformation, leadership, and crisis readiness. Here are some highlights that stood out:
The Digital Transformation Journey
One of the key insights from the summit is the industry’s complex relationship with digitization. A survey conducted by the organizers found that 57% of attendees agree that their companies are engaged in digital transformation and AI initiatives, but the pace varies widely, from “slow” to “aggressive.” In the panel “From Data to Decisions: Unlocking Growth through Digitization and AI,” Tom Jackson from Datacor, Inc. captured the essence of what’s needed for success: “If you can’t get from balance sheet to income statement in one hop, it won’t work in this industry.” It’s a reminder that any digital initiative needs a clear, measurable business case to drive change.
Charlie Laurie from Palmer Holland shared a tip on employee engagement in digital initiatives, noting that digital tools should add value to employees’ daily roles. Lawrence Moreaux from LyondellBasell emphasized the importance of aligning digital tools with operational and commercial strategies.
Leadership as a Driver of Transformation
Leadership emerged as a core theme, with speakers addressing the need to guide organizations through change. Leon de Bruyn, CEO of Lummus Technology, stressed that any transformation must keep the customer at the center. His advice? “Stay close to the customer, understand their business and how to make them successful, and shape your company around this north star.” It’s a reminder that meaningful transformation is always rooted in customer value.
Bonnie Tully, COO of Evonic, discussed fostering cohesion in large, multi-generational teams through employee resource groups. By establishing structured groups with clear charters, organizations can create spaces for inclusion and engagement, enhancing collaboration across the board.
Preparing for Crisis Scenarios
Chris Scott, Crisis Services Manager at Chemtrec and a UK Special Forces veteran, gave an impactful presentation on crisis readiness. He recommended that companies conduct regular mock press conferences to prepare for high-stakes events, from environmental incidents to cyber-attacks. This practice can be extended to software companies as well, equipping them with tools to respond quickly and effectively when challenges arise.
Leveraging Psychology in Customer Experience
Melina Palmer, host of The Brainy Business Podcast, introduced the idea of “thoughtful sludge”—designing processes that subtly nudge people toward positive behavior. She shared examples like the “slow-close” elevator doors, which encourage people to take the stairs. These insights into behavioral psychology have applications for improving customer experience (CX) and user experience (UX), both of which are critical in today’s digital world.
Shelly Linkerhof from Clariant Corporation and Jeanine Hurry from XenonArc expanded on CX, underscoring the importance of mapping the customer journey with the same rigor we apply to UX. By systematically identifying the touchpoints that matter most, companies can improve interactions and foster lasting relationships with their customers.
Find out why the Veson IMOS Platform is the chemical industry’s leading platform for commercial marine tanker management here and if you liked this article, you should also see this must-read article by my colleague Capt. Caspar Lavall, explaining how Milbros UV graphs are revolutionizing chemical tanker cleaning. Lastly, be sure to listen to my colleague, Veson’s President and COO, Sean Riley, in conversation with the Chemical Show Podcast, exploring the nuances of regulatory compliance, risk management, and data integration as essential elements driving competitive advantage in today’s maritime logistics sector.