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Over the past year, the chemical logistics industry has continued to face significant challenges, from rising energy costs and geopolitical conflicts to disruptions in global supply chains. Despite these headwinds, Suttons International has remained resilient, adapting to the evolving landscape while staying committed to customer service, sustainability, and operational excellence.
In this Q&A, Carla Schuster, Head of Region and Commercial – The Americas reflects on the current state of the industry, how Suttons has weathered the storm, and what lies ahead for 2025. With over 30 years of experience in the ISO tank industry, Carla offers valuable insights into the key trends, strategic adaptations, and the role of technology in shaping the future of chemical logistics.
Q: Over the past year, how have the challenges and trends evolved? Were there any surprises or unexpected shifts in the chemical logistics market?
Carla Schuster: I took over as Head of Region and Commercial for the Americas in April 2024. With over 30 years in the ISO tank industry, I’ve seen my share of ups and downs, so the recent shifts haven’t been a surprise. Challenges are ever-present, but they’re part of the cyclical nature of this industry.
Market Dynamics and Demand
Q: Global demand and factors like energy costs and inflation were significant challenges last year. How have these factors played out in 2024, and what is the current demand landscape?
Carla Schuster: These issues are still very much in play, especially energy costs in Europe and ongoing global conflicts, like the situation in the Red Sea. These factors have led to considerable supply chain challenges, with vessel availability being one of the biggest. Despite our strong partnerships, securing space on vessels remains difficult, and the reduced imports into the U.S. are driving up demand for tanks, creating an even tighter market.
Economic Outlook
Q: With hindsight, how would you evaluate the performance of the North American chemical logistics market in 2024? What is your outlook for 2025?
Carla Schuster: 2024 saw an increase in demand, but with vessel space constraints and global issues, this has driven up prices. However, the rebound was expected, as the industry is highly cyclical. Despite various adverse components such as port congestions, rail strike in Canada and the still impending ILA labour strike, all overshadowed by the typical election year behaviour, the market showed robustness. Once some of these uncertainties are behind us, I see a strong year for the chemical and specialty chemical industries, especially in regions like LATAM and India, although geopolitical uncertainties will persist.
Resilience and Strategic Adaptations
Q: How has Suttons International continued to demonstrate resilience in 2024? Have there been any new strategic adaptations or partnerships that have proven particularly effective?
Carla Schuster: Resilience is key for us, and we always forecast market trends through our Network Planning and Commercial teams. Strategic partnerships with vendors, especially steamship lines and depots, remain crucial in providing reliable logistics services.
Operational Improvements
Q: Last year, we discussed enhancements to the Sales Process and First Load procedures. What results have these initiatives produced, and are there any new operational improvements that customers can look forward to?
Carla Schuster: Our First Load Procedure (FLP) continues to identify areas for improvement, allowing us to set high operational standards and aim for first-time accuracy. We’ve also strengthened our presence in Latin America, expanding our team at our office in Brazil and geographic reach to include Chile and Peru, ensuring we can offer enhanced services in this growing region.
Sustainability and Environmental Considerations
Q: How is Suttons International integrating environmentally friendly practices into its operations? Has there been a shift in customer expectations regarding sustainability?
Carla Schuster: Sustainability is more important than ever. We’ve updated our slogan to “Delivering life’s essentials safely & sustainably,” reflecting our commitment. We earned the EcoVadis Silver award and are focused on ESG projects, continually improving safety and sustainability. Our safety culture remains a core value, with regular training ensuring all staff are committed to these principles.
Customer Feedback and Satisfaction
Q: What feedback have you received from Net Promoter Surveys, and how has it influenced your approach to customer service?
Carla Schuster: The feedback we receive is always valuable, with positive comments reinforcing what we do well, and constructive criticism helping us improve. We recognize that it’s not easy for customers to take time for surveys, but the insights they provide allow us to enhance customer satisfaction and operational excellence, which is always our goal.
Global Impacts on North American Operations
Q: Considering global conflicts and other international issues, how have these influenced your North American operations over the past year? Are there any new strategies in place to mitigate these global impacts?
Carla Schuster: Global conflicts, including issues in the Red Sea, have added pressure to supply chains and vessel availability. We’re continuously adjusting our strategies to navigate these global challenges by focusing on strategic partnerships and forward planning to maintain service reliability in the region. We are monitoring ever closer what routing and port pairs are the most reliable, influenced by geopolitical issues and if feasible adjusting our service portfolio in a manner that leads to reliability and with that customer satisfaction.
Future Trends
Q: What emerging trends do you see shaping the chemical logistics industry in the next few years? How is Suttons International preparing to stay ahead of these trends?
Carla Schuster: One of the major trends is the rise of AI. We need to embrace it to drive innovation while ensuring it doesn’t compromise our personal service. Sustainability will continue to dominate – with a strong market desire for sustainable energy and a growing EV market, this brings with it shifting demands and plenty of opportunities for improvement across the supply chain, from producers to logistics providers like ourselves.