Are We On The Verge Of A Rail Strike?
Many businesses and consumers are still feeling the weight of supply and demand issues across the globe. As the crisis continues, companies are also dealing with shipping logistical issues, including intermodal rail. Recently, chemical shippers threatened a rail strike, which could mean more damage to the economy.
What Is Happening With the Rail Strike?
For years, many businesses have experienced issues with unionizing among workers. Whether they want better pay, more health benefits, or vacation time, a workers’ strike is tough for any company to handle. That is exactly what is happening with the recent rail strike. The strike on the freight railroads may not directly affect consumers, but both consumers and businesses will feel the effects in different ways.
According to economic sources, like the American Chemistry Council (ACC), the economy could experience a recession if these workers follow through with this strike. Approximately 700,000 workers could lose as the economy loses billions of dollars. The longer the strike continues, the more the economy will suffer in a recession. As the economy tries to recover from the long-term pandemic effects, a rail strike could mean severe damage if we enter a recession. The ACC is working with Congress to prevent a strike, however; they are still working on labor agreements.
How Will This Strike Affect Other Companies?
This is not the first time companies have dealt with the effects of a strike. However, it doesn’t mean they will not struggle through this one. In fact, this rail strike will cause a severe dip in the economy the longer it continues. Although the railroads are working on new negotiations and deals with workers, nothing has changed yet. If the workers and the rail companies do not reach a deal soon, the results will affect many areas.
Gasoline supply and pricing are major areas that will feel the effects of a strike. Rail cars play a major role in transporting the ethanol required for gasoline. If rail cars aren’t traveling to pick up ethanol or the other products for gasoline and crude oil, production will slow down.
Manufacturing is another area that will feel the effects of a rail strike. Since many parts and tools travel by rail, factories will have to shut down production without their necessary parts. This will also affect appliance and transportation manufacturing.
This disruption from the railroad line will cause several industries to stop production, impacting both international and domestic markets.
What Does This Strike Mean For Your Business?
Does your company ship goods? Learning more about this strike and its effects can help you learn more about how to help your business. When you’re waiting on freight shipping, air freight, or other shipping methods, it feels frustrating. Partnering with another company who can help you navigate time critical shipping logistics can give you peace of mind and keep your business thriving.
Trifecta Transport Can Help With Shipping Logistics
If you need help to navigate shipping, booking, scheduling, or other business logistics, Trifecta Transport can help you. We are an experienced team of professionals that provides all-in-one solutions for your business so you can take care of your customers. Our team helps businesses navigate shipping options to find you the best solution that is cost-effective and arrives on time. Whether you need intermodal rail, truckload, or less than a truckload, we have you covered. We partner with top leaders in the industry to deliver exceptional services for our customers.
Contact Our Team Today
You don’t have to struggle with shipping issues on your own. Contact the Trifecta Transport team today and we will give you a quote on our services. We look forward to partnering with you and your business needs.