Are you aware a railroad strike is looming?
If you aren’t aware of the looming railroad strike, you need to be.
Despite a cooling-off period enacted two months ago to allow time to reach a resolution, here we are.
Unless a bargaining agreement is reached, an estimated 90,000 rail workers will go on strike September 16th, this Friday.
The ripple effect to our country will be enormous.
Shipping costs will skyrocket as freight companies scramble to find alternative ways to transport goods.
Supply chains are already stretched thanks to COVID-19… Even a small disruption could cause major shortages of essential goods and emergency supplies.
And with such a large industry involved, this strike would be anything but small. The Association of American Railroads (AAR) estimates an impact of over $2 billion a day.
Here’s another sobering analysis from their report:
In the first half of 2022, more than 75,000 carloads and intermodal containers and truck trailers began their rail journey each day. … About 467,000 additional long-haul trucks per day would be needed to handle the freight. Currently, neither the trucks nor the truck drivers necessary to meet this demand are available.
If this strike happens, it will affect us all.
The Bottom Line
Earlier this year, I wrote about limited product availability. But at least we have items on the shelves, even if they aren’t always what we seek.
If rail transport comes to a halt — even for a brief period — the impacts will be longstanding. We’re already facing delays at the ports. What happens when there aren’t any trains there for offload?
And that’s only the supply side. Commuter trains that rely on tracks operated by the main railroads will be impacted, as well.
A strike by railroad engineers and conductors may seem like a minor issue, but it has the potential to impact the entire country. Let’s hope negotiations are reached before the deadline. We don’t need any more disruptions or economic upheaval in 2022.