US railroads to begin cutting service, ahead of possible strike

As reported by JOC.com, Friday September 9, 2022, US freight railroads will begin to reduce service effective today September 12, in fears of a possible strike on Sept. 16, 2022.

The country’s two largest rail unions have failed to agree on a new contract this week and told management they are unwilling to promise they won’t walk off the job, according to a customer advisory sent to shippers late Friday by Norfolk Southern Railway. The developments were confirmed in a statement from the Association of American Railroads.

The timing of a reduction in service ahead of a possible strike is not good as international supply chains are clogged with containers piling up at intermodal terminals in Chicago, Dallas, Memphis, Kansas City, and Ohio Valley.

Labor action would also cause disruptions in ports across the US because a sizable share of containers is moved off terminals on trains, including from the ports of Los Angeles and Long Beach, New York and New Jersey, Savannah, Seattle-Tacoma, and Virginia.

SEWW will continue to monitor the situation. Please contact with your SEWW Sales Representative to discuss potential for delays and/or alternative solutions.