President Joe Biden is encouraging Congress to act in order to avoid a “potentially crippling” rail strike. A variety of industry groups have also been calling for federal intervention to prevent a shutdown of rail freight. The deadline for railroads and workers to meet an agreement is December 9. Up to a week prior to the deadline, railroads would stop hauling perishables and fertilizers in preparation for a strike. There is significant concern that a shutdown would be catastrophic for the overall supply chain and would be immensely costly.
“Our coalition members are already struggling to cope with historically poor and costly freight rail service with no relief in sight. The nation’s supply chain is at a breaking point, and it cannot take another disruption from a rail strike,” Deputy Director of the Shippers Coalition, Alexis Oberg said in a press release. “We need all parties to come together and find a solution that prevents a strike from shutting down the economy.”
In a statement, Biden noted that “a rail shutdown would devastate our economy. Without freight rail, many U.S. industries would shut down.” Biden is calling for legislation that would put the Tentative Agreement into effect between railroad workers and operators. Industry groups including the North American Meat Institute, International Dairy Foods Association, and The Fertilizer Institute expressed appreciation for Biden’s call on Congress.
“We appreciate President Biden for recognizing the damaging impact a strike would have, and we urge Congress to act now,” said American Farm Bureau Federation President Zippy Duvall. “America’s economy is driven, in large part, on its rail system, which makes the smooth operation of the railroads crucial. Farmers not only rely on trains to transport food and feed, they also rely on rails to bring important supplies like fertilizer to the farm. A shutdown or slowdown would have devastating consequences to our national and global food security.”
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