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How will rail strike affect supply chain?

“It would be pretty impactful for the supply chain,” she said. “The backup into ports could reignite acute port congestion that we've seen. The parcel market, like UPS [which relies in part on the rails], you'll have that impacted, as well. There would be a lot of pressure on the truck market.



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WASHINGTON, Dec 2 (Reuters) - President Joe Biden signed legislation Friday to block a national U.S. railroad strike that could have devastated the American economy.

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It wouldn't take long for the effects of a rail strike to trickle through the economy. Many businesses have only a few days' worth of raw materials and space for finished goods. Makers of food, fuel, cars and chemicals would all feel the squeeze, as would their customers.

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The nation's supply of food could take a hit if railroad workers go on strike, driving up prices at the grocery store and limiting U.S. grain exports to countries facing famine.

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Widespread economic impact Among the problems could be: Gasoline: Without freight railroads, oil refineries would have trouble producing their current volumes of gasoline, which could send gas prices higher, ending a string of three months of falling prices at the pump.

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A railroad strike would likely force other transportation sectors such as trucks and barges to pick up the slack, but that could overburden them. Trucks already transport close to 70 percent of all grain, according to the U.S. Department of Agriculture.

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Railroads are roughly four times more fuel efficient than trucks. Shipping freight via rail limits greenhouse gas emissions and increases fuel efficiency, reducing the transportation carbon footprint. In fact, moving freight by rail instead of truck lowers greenhouse gas emissions by 75%.

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The schedules are of particular concern with rail workers citing a lack of sick leave, inability to routinely visit the doctor or tend to family emergencies, and weekslong stretches of being on call.

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