Market Letters

09.13.22 Client Advisory – Freight Railroads Brace for Strike Friday, Sept. 16

A strike at USA Railroads has been called to begin starting 0001 hrs. Friday September 16.

There are a total of 12 unions currently negotiating with the nation’s Class I railroads and not all have reached agreement yet on new contracts. Eight out of a dozen railroad unions have accepted tentative agreements with carriers, while the remaining unions would be able to legally strike after a cooling-off period ends Sep 16. The strike, if implemented, will impact all railroads including CN, Norfolk Southern, CSX, CP, BNSF, and UP. Sources indicate that the unions are preparing to strike, starting at midnight on Friday, Sept. 16, if new contracts are not completed and approved.

As of Sep 12, several major Class I railroads have begun curtailing shipments of hazardous materials and temperature-controlled freight ahead of this week’s looming strike deadline. Containerized imports arriving at marine terminals will likely be held up if they do not reach the rail terminal before the strike commences.

Summary of Railroad Pre-Strike Status and Pre-emptive Activity

 

Railroad FAK Reefer HAZ Outgates LALB ODR
BN NO stop service unless strike occurs Embargoed 0001 Wed Possibly tomorrow Remain Open Operate based on crews
CSX NO stop service unless strike occurs No Updates No Updates TBD NA
CP No impact to Cosco NA No Updates Remain Open NA
CN 9/14/2022, remove all allocations Embargoed Embargoed Remain Open NA
NS Full Embargo 1200 Wed Full Embargo 1200 Wed Full Embargo 1200 Wed Remain Open Embargoed Wed 1200
UP NO stop service unless strike occurs NO stop service unless strike occurs NO stop service unless strike occurs Remain Open TBD

 

While we do not know if the strike will begin on Friday, or for how long, it is not anticipated that a strike would be long lasting.

We will keep you updated on any new developments regarding this issue. In the meantime, please continue to check out our INSIGHTS and NEWS pages for the latest information.

Should you need further information or have any concerns or queries, please contact your Laufer sales or customer service representative.