Chemical Reactions Podcast

In this episode of Chemical Reactions, host Alex Steakley sits down with Heston Hodges, a seasoned logistics expert from Logistics Management Resources (LMR). Heston shares the fascinating origins of LMR as a family business rooted in chemical transportation, and walks us through its evolution into a trusted, relationship-driven logistics partner for chemical shippers and bulk carriers. They discuss how LMR differentiates itself in today’s competitive market through a deep understanding of the industry, strong carrier relationships, and technology-enabled services. Heston also offers insights into shifting industry trends, including carrier consolidations, technological innovations, and the expanding use of intermodal and rail logistics. Finally, he provides valuable leadership advice for logistics professionals and reflects on the unique challenges and rewards of working in the highly specialized liquid bulk chemical logistics space.

Key Topics & Insights:

LMR’s Origins and Evolution (00:01:00 – 00:05:00):

Heston recounts the founding of LMR in 1981 by his father, starting with riverfront chemical offloading in New Orleans and transitioning to brokerage services for Uniroyal Chemical. The company evolved from owning assets to focusing exclusively on chemical logistics and brokerage, leading to the adoption of the name Logistics Management Resources through a contract with DuPont.

Relationship-Driven Business Model (00:05:50 – 00:06:36):

LMR emphasizes strong, long-term customer and carrier relationships over a large-scale transactional approach. Heston shares why focusing on deep partnerships with a smaller, dedicated customer base has proven to be a core strength.

Fleet of Services & Industry Niches (00:06:42 – 00:09:00):

While focused primarily on liquid bulk chemical transport, LMR also handles pneumatic pellet shipments, rail, and transloading. They integrate multiple transportation modes based on customer needs and carrier capabilities rather than chasing unrelated markets.

Daily Operations and Carrier Performance Management (00:09:20 – 00:12:10):

Heston explains how LMR manages the logistics process end-to-end, from scheduling and tendering to freight payment and carrier scorecards. Flexibility and performance metrics such as lead times, appointment adherence, and billing accuracy are crucial.

Industry Trends and Market Volatility (00:12:15 – 00:14:15):

The chemical bulk logistics industry currently faces volatility and lack of long-term forecasting. Both shippers and carriers operate with a short-term view, making precise predictions difficult. Regional differences and shifting demand characterize the landscape.

Competitive Differentiators and Technology (00:14:20 – 00:17:20):

LMR stands apart by being “born in chemicals,” rather than adding logistics later, and by leading with logistics management rather than trucking brokerage. Their close carrier relationships and measured use of technology and platforms are key strengths.

Acquisition by Grammer and Strategic Growth (00:17:20 – 00:19:00):

The 2022 acquisition by Grammer expanded LMR’s platform to include pressurized gas logistics, transload, and rail, without changing its core DNA. This partnership added complementary services and resources, enhancing customer offerings.

Carrier Vetting and Safety Standards (00:19:00 – 00:20:30):

Comprehensive vetting processes unify varied customer requirements into a consistent standard, fostering collaboration with carriers and insurance providers to maintain high safety and compliance.

Managing Truckload vs Rail and Transload (00:20:45 – 00:22:25):

Truckload logistics requires working with diverse carrier systems, while rail shipments are more systemized with consolidated tracking software. Bulk chemical deliveries demand precise scheduling with tight delivery windows, requiring detailed coordination.

Customer Success Stories (00:22:45 – 00:24:40):

Heston shares examples where LMR has successfully transitioned accounts from competitors without disruptions, earning respect and trust even from carriers with their own brokerages.

Industry Mentors and Personal Growth (00:25:00 – 00:26:15):

Mentorship from industry veterans like John Repetto helped Heston learn to blend different leadership styles, balancing casual and assertive approaches.

Impact of Carrier Consolidations (00:26:30 – 00:29:45):

Mergers have reduced the carrier count in the bulk chemical market, but strong, terminal-specific relationships and effective communication help LMR maintain continuity and navigate any changes smoothly.

The Power of Industry Relationships (00:29:45 – 00:31:15):

This niche industry thrives on trust and personal connections, with professionals often moving between carriers and shippers while maintaining long-standing networks.

Technology and AI in Logistics (00:31:30 – 00:34:20):

LMR adopts a measured approach to AI and process improvements focusing on ROI and enhancing customer experience, recognizing the infancy but great potential of technology in the sector.

Customer Engagement and Performance Reviews (00:34:20 – 00:35:45):

Weekly calls, monthly and quarterly reporting ensure tight communication with customers around performance, staffing, and plant operations to maintain service excellence.

Leadership Philosophy and Advice (00:35:45 – 00:39:15):

Heston emphasizes hiring detail-oriented, accountable people, creating clear systems and expectations, and fostering ownership at all levels as keys to leadership success. He candidly advises newcomers on the challenges of logistics but highlights the rewarding problem-solving and relationship-building aspects.

Final Thoughts and Invitation (00:40:50 – 00:41:20):

Heston invites listeners to connect with LMR through their website and social media, highlighting their quarterly market updates and welcoming visits to their Baton Rouge office.

Notable Quotes:

• “The long-term strength in a business like this is relationships.” (00:06:15)
• “We’re not selling a service; we’re using the platform and giving you the results of the platform.” (00:15:20)
• “There’s no windows out there in the world where you can just load when you feel like it. You’ve gotta meet a fifteen minute window crossing 500 miles.” (00:21:27)
• “If you can get into the niche that we’re in…the relationships just never go anywhere if you treat it right and cultivate it.” (00:39:20)
• “You need talent, but you really need a system that they can be successful and accountable in.” (00:36:18)
• “It can be pretty thankless because when things are good, you’re not reaping any benefits, but when it’s bad, you always got the bad.” (00:38:20)

Timestamps for Quick Reference:

• 00:01:00 – History and founding of LMR
• 00:05:50 – Business philosophy: relationships over volume
• 00:06:42 – Services and modes of transport
• 00:09:20 – Day-to-day operations and carrier management
• 00:12:15 – Market trends and forecasting challenges
• 00:14:20 – Differentiators in a crowded 3PL market
• 00:17:20 – Grammer acquisition and strategic growth
• 00:20:45 – Integration of truckload, rail, and transload
• 00:22:45 – Customer success and industry trust
• 00:25:00 – Mentorship and leadership style
• 00:26:30 – Carrier consolidation effects
• 00:29:45 – Importance of industry relationships
• 00:31:30 – Use of AI and technology trends
• 00:34:20 – Customer communication rhythms
• 00:35:45 – Leadership advice and team culture
• 00:40:50 – Closing and contact info

Relevant Links & Resources:

LMR Website & Market Updates:

Check out LMR’s website and social media channels for quarterly market updates and insights into chemical logistics. (Specific URL not provided in transcript; listeners encouraged to search “Logistics Management Resources”)

Matlack Leasing:

Special thanks to Matlak Leasing, your expert partner for liquid bulk trailer leasing solutions. Visit matlackleasing.com for more information.

Call to Action:

If you enjoyed today’s episode, don’t forget to subscribe to Chemical Reactions for more expert insights on chemical logistics and bulk transportation. Share this episode with colleagues and friends in the industry, and please leave us a review to help others discover the show. Join the conversation on social media and let us know your thoughts or questions for future episodes!

Thank you for tuning in to Chemical Reactions, presented by Matlak Leasing — your trusted resource in liquid bulk transportation solutions.

In this episode of Chemical Reactions, Alex Steakley has a candid conversation with Patrick Maher, Chief Commercial Officer for Grammer Logistics. They dive into Patrick's extensive background in transportation, share key insights about the current state and future of liquid bulk shipping, and discuss the evolving challenges and opportunities in the chemical transport industry.

• Career Journey: Patrick shares how he stumbled into transportation after studying finance, starting at Knight Transportation, and his progression to leadership roles.
• Sales and Operations Integration: The discussion emphasizes the importance of having operational knowledge for effective sales strategies in transportation.
• Market Insights: Patrick provides his perspective on current market conditions in liquid bulk transportation, discussing capacity issues and future projections.
• Customer Relationships: The duo discusses the importance of building trust with customers and the strategies used to maintain long-term partnerships.
• Grammer Logistics: Patrick details the company's transition into chemical transport post-COVID and how they are working to expand their services.

• Operations-Driven Sales: Patrick stresses that operational experience is crucial for sales success in transportation, allowing salespeople to effectively solve clients’ problems.
• Flexibility in Business Operations: Grammer's dynamic approach allows them to adapt to customer needs quickly, enhancing their market competitiveness.
• Building Trust and Credibility: Developing strong relationships with customers takes patience and dedication, especially for younger sales professionals in the industry.
• Industry Adjustments: Acknowledging that the transportation industry is seeing shifts and that remaining proactive about capacity and customer needs will be key in navigating challenges.

• "Selling is about trust and credibility. It’s not just about developing relationships, but finding solutions." – Patrick Maher
• "Patience is key. Things don’t happen overnight, especially in an industry like ours that really values experience." – Patrick Maher
• "We go out of our way to take the time to recommend other people to them. People really, really appreciate that." – Patrick Maher

• 00:00 Welcome and Introduction to the Podcast
• 02:25 Patrick's Journey into Transportation
• 07:00 Overcoming Early Challenges in Sales
• 12:10 Overview of Grammer Logistics
• 22:19 Current Market Conditions in Bulk Transportation
• 30:45 Differentiating Factors in the Industry
• 36:35 The Importance of Face-to-Face Interactions
• 40:25 Advice for Newcomers to the Industry
• 49:10 Celebrating Industry Achievements (Mark Schroyer's Award)
• 51:10 Closing Thoughts and Call to Action

• Grammer Logistics Website
• Matlack Leasing

If you enjoyed today’s episode, be sure to subscribe, share with a friend, and leave us a review! Join the conversation on our social media platforms, and stay tuned for future episodes as we continue to explore the dynamic world of chemical transportation.

Episode Overview:

In this episode of Chemical Reactions, host Alex Steakley is joined by Carl Gerken, owner of Portage Trading Company. Tune in as they discuss Carl's journey through the chemical industry, discussing his background, the intricacies of chemical trading, and the importance of networking and relationships. The conversation demystifies strategic sourcing, dealing with freight logistics, and understanding market dynamics within the chemical sector. Carl shares valuable insights into the entrepreneurial spirit necessary for success and the evolving landscape of the chemical trade.

Key Insights:

Background in Chemicals: Carl reflects on his early career in oil field chemicals and his transition to contract manufacturing, giving him a comprehensive understanding of various chemical applications and markets.

Entrepreneurial Journey: He discusses his shift from employee to business owner, emphasizing the importance of mentorship and having a clear vision for one’s career.

Roles in Chemical Trading: Carl elaborates on the unique position of Portage Trading, focusing on strategic sourcing and the ability to meet specific customer needs through a network of suppliers.

Importance of Networking: The discussion highlights how cultivating relationships can lead to opportunities for collaboration and mutual benefit in the industry.

Logistics and Transportation: Carl shares the challenges and nuances of working with freight companies, stressing the critical role of transportation in the success of a chemical trading business.

Future Outlook: The duo discusses potential shifts in the chemical industry, including emerging trends and the importance of adapting to market changes.

Notable Quotes:

“If four or five different people tell you about the same idea, there’s probably a business behind it.” - Carl Gerken

“People do business with people still. Picking up the phone, sitting down with people face to face still goes a long way.” - Carl Gerken

“There’s a lot of things out there in the world. There’s a lot of different ways to make money.” - Carl Gerken

Timestamps:

00:00 - Introduction to the episode and guest

00:22 - Carl Gerken’s career background in the chemical industry

02:28 - Transitioning from employee to entrepreneur

04:11 - Overview of Portage Trading Company

05:35 - The importance of supply chain relationships

12:43 - Connecting people to enhance business and trust

20:58 - Navigating logistics and transportation challenges

30:03 - Looking ahead: future of the chemical industry

40:38 - Carl’s insights on entrepreneurship and business growth

50:11 - Closing remarks and where to contact Portage Trading

Resources:

Visit Portage Trading Company's website

Follow Alex Steakley and the show on social media for updates.

Check out Matlack Leasing to learn more about leasing or purchase high-quality tank trailers, chassis, and storage solutions for your industrial, chemical, or logistics needs. Streamline your fleet today at MatlackLeasing.com!

Call to Action:

If you enjoyed this episode, please subscribe to Chemical Reactions, leave us a review, and share the podcast with your friends in the industry! Engage with us on social media for the latest news and discussions in the chemical world.

Tune in next episode for more insights and conversations from the heart of the chemical industry!

In this inaugural episode of Chemical Reactions, host Alex Steakely welcomes Jason McDaniel from Bulk Transporter to discuss the current landscape of the chemical transport industry. Listen in as they touch on the challenges and opportunities in tank trucking, the impact of technology, the importance of fostering new talent in the sector, and insights on industry trends, making it a must-listen for professionals in the chemical and trucking fields.

• Introduction to Jason McDaniel and his background in bulk transportation journalism.
• Current state of the chemical transport industry post-COVID.
• Resilience of the tank truck sector compared to other trucking segments.
• Innovations in the industry, including smart trailer technology and improved safety measures.
• The influence of tariffs and economic uncertainties on transportation logistics.
• Discussion of driver shortages and the importance of attracting younger talent to the industry.
• Future outlook for chemical transport and emerging practices in trailer leasing.

• Resilience of the Tank Truck Sector: Despite economic challenges, the chemical transport market is expected to fare better due to the continual need for essential goods such as fuel and chemicals (00:11:00).
• Importance of Technology: New technologies such as the Airbox One communication system and the SafeHeat system for heated products showcase advancements aimed at improving safety and efficiency (00:19:00, 00:20:33).
• Driver Recruitment: Efforts to attract younger drivers are crucial, with campaigns targeting younger generations to embrace the rewarding opportunities within the tank truck industry (00:49:08).
• Impact of Tariffs: The ongoing shift in tariffs is expected to create new lanes for U.S. manufacturers, potentially boosting the demand for chemical transport services (00:15:25).

• "It's about building relationships… The people in this industry are great." – Jason McDaniel (00:52:20).
• “The tank truck sector has a much lower turnover than general trucking, and the pay is traditionally better.” – Jason McDaniel (00:50:05).

• 00:00 - Introduction to the Podcast
• 00:22 - Alex welcomes Jason McDaniel
• 03:43 - Jason discusses his background and role at Bulk Transporter
• 10:13 - Analysis of current industry challenges
• 19:09 - Innovations in trailer technology
• 27:03 - Conversations around tariffs and economic uncertainty
• 35:48 - Driver recruitment efforts and challenges
• 48:45 - Future outlook on the industry

• Bulk Transporter
• Matlack Leasing

If you enjoyed the discussion, please subscribe, share with a friend, and leave us a review. Stay connected with us for future episodes featuring insights from the chemical transport industry! Follow Jason McDaniel on LinkedIn and connect with Alex Steakely for more engaging conversations.