The global chemical industry landscape is being reshaped—supply chain transformation amid the 'East Rising, West Falling' trend

Global chemical industry investment reached €284 billion in 2024, with China contributing 47%. China’s capital expenditure in the chemical sector amounted to €127 billion—46.6% of the global total—while the EU accounted for only 10.4% and the U.S. for 9.0%. China’s R&D investment stood at €18 billion, representing 31% of the global total, making it the world’s largest investor in chemical R&D. ・ World’s top sales revenue In 2024, China’s chemical sales revenue reached €2.25 trillion, accounting for 46% of global sales. Deloitte partner Xiaobo Guo noted that “86% of all new global chemical production capacity will come from China in the future,” confirming China’s status as the core growth engine of the global chemical industry. ・ Strong corporate growth momentum Product categories benefiting from capacity relocation include ethylene, polypropylene, PTA, organic silicon, and TDI. In the first half of 2026, net profits of multiple A-share chemical enterprises are projected to more than double year-on-year. For example, Sanyou Chemical’s net profit surged approximately 129%, while Huachang Chemical’s rose by as much as 1,026%. China: Global Center of the Chemical Industry 03 Logistics Transformation of the Chemical Supply Chain As the global chemical landscape is reshaped and the ‘East Rising, West Falling’ trend becomes irreversible, procurement logic is changing—and so must the chemical transportation industry. Logistics not only bears the most direct impact but also faces comprehensive development opportunities. ・ Global trade routes are undergoing major transformation The core growth axis of chemical shipping is shifting away from traditional transatlantic and transpacific routes between Europe and the U.S., toward new structures—including intra-Asian trade, Middle East-to-Asia routes, and U.S.-to-Asia flows. Beyond finished chemical products, this includes equipment, re-exports, and raw materials. Chinese chemical export orders are already booked through year-end—and even into next year. International maritime routes have been extensively adjusted, transit times extended, and freight rates highly volatile. ・ Strategic realignment of chemical logistics providers Disruptions at the Strait of Hormuz, the Rhine River’s “drought,” and permanent shutdowns of traditional European chemical plants have created irreversible supply gaps—impacting markets for weeks or even months. Losses cannot be offset by multimodal transport alternatives. Shortages and sharp price spikes have occurred for key products such as MDI, methanol, and refrigerants due to European plant closures. Amid these multiple pressures, the chemical market is shifting from a singular focus on cost advantage to a balanced emphasis on price competitiveness, logistics stability, and supply security. Enterprises are transitioning from Just-in-Time (JIT) to Just-in-Case (JIC) inventory strategies. ・ Global chemical shipping: cargo volumes unchanged—but capacity feels tighter than ever Considering route adjustments and geopolitical factors, the Chief Commercial Officer of the Port of Houston observed a “sharp short-term surge” in containerized chemical shipments—including liquids, resins, and plastics. Asian polypropylene prices jumped 12% within one week; European styrene contract prices face substantial upward pressure; and soaring aviation fuel costs are directly straining the chemical logistics system. In summary, global supply chain priorities are being reordered: resilience and security are replacing efficiency as the core principle. Stable sourcing, reliable logistics corridors, and controllable risk costs have become central decision-making criteria. Changing Logistics Needs of Chemical Enterprises 04 Opportunities New Opportunities for JiaShunDa Chemical Logistics Global chemical trade is undergoing a dual transformation—gradual adjustment alongside deep structural reshaping. Domestically, China’s chemical industry is relocating from eastern to central and western regions, dramatically increasing demand for inter-regional logistics coordination.

Has U.S.–Mexico rail freight volume declined? While North America’s overall freight market rose, why did Mexico’s U.S.–Mexico rail transport lag behind?

Against the backdrop of deep integration across global supply chains, this decline stands in stark contrast to the growth trends seen elsewhere in North America—indeed, cross-border rail trade between Mexico and the U.S. faced severe challenges last year. | 2025 Freight Market Overview: Only Multimodal Transport and Automotive Sectors Survived Amid an overall downward trend, only a handful of sectors maintained growth—resulting in an extremely imbalanced freight structure. Support from existing volumes: Multimodal transport and automotive parts ・ Multimodal transport (Transporte Intermodal): up 0.04%. Though nearly flat, multimodal transport remained the backbone sustaining cross-border logistics flow amid broad-based declines. ・ Automotive parts transportation: up 2.8%. This growth reflects the rigid demand of North America’s automotive supply chain and made it the strongest-performing segment in Mexican rail freight last year. Widespread decline: All other sectors contracted Beyond these two segments, every other category of Mexican rail freight declined. This indicates clear shrinkage in cross-border rail transport of traditional bulk commodities—including agricultural products, energy resources, and industrial raw materials. | North American comparison: Mexico’s freight decline in context When placed within the broader North American rail network, Mexico’s downturn appears especially pronounced. Canada and North America’s growth trends ・ Canadian railways: cumulative freight volume in 2025 reached 8,387,041 units—a 2% increase over 2024. ・ North America overall: Total rail freight volume across the U.S., Canada, and Mexico reached 35,187,052 units last year—an aggregate growth of 1.4%.

North American Weekly Chemical Rail Traffic Trends Down Seasonally

2 days ago

New data from the Association of American Railroads shows North American weekly chemical rail traffic trending down seasonally in line with 2025 volumes for the week ended Sept. 12.

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North American Chemical Rail Traffic Softens Slightly