Skip to content

Thoughts on the Impending Rail Strike

Tim Murphy – Industry Thought Leader

I had a troubling call with Sal Guasto, SME this morning about the ongoing railroad union negotiations. US railroads are currently negotiating with their unions but BLET and SMART TD who represent approximately half of all rail workers have not yet reached agreement. The current “cooling off” period between the parties expires this Friday, opening the possibility for a strike at the end of the week.

In the US, roughly 40% of all freight moves via rail transport including a lot of bulk materials like grain, silicate, and metal ore. Sal believes that if a rail strike occurs it will make the pandemic disruptions to freight lanes look like child’s play compared to this potential freight crisis in the US. Economists are estimating that a rail strike could cost the US Economy up to $2B per day.

How is your organization planning for this potential disruption and protecting your operations from future disruptions?