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What is the problem with a rail strike?

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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Here are some of the expected impacts of a rail strike:
  • $2 BILLION A DAY. Railroads haul about 40 percent of the nation's freight each year. ...
  • CHEMICALS RUN DRY. ...
  • PASSENGER PROBLEMS. ...
  • FOOD FEARS. ...
  • HUNGRY HERDS. ...
  • RETAIL RISKS. ...
  • AUTOMOBILE ANGST.


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Freight railroads are responsible for carrying 40% of the nation's long-haul freight and a work stoppage could jeopardize these shipments. The artery of the U.S. economy is the rail system. It's one of the ways we get everything around. One third of everything gets around this way.

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The 2022 United States railroad labor dispute was a labor dispute between freight railroads and workers in the United States. Rail companies and unions had tentatively agreed to a deal in September 2022, but it was rejected by a majority of the unions' rank-and-file members.

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Another recent report put together by a chemical industry trade group projected that if a strike drags on for a month some 700,000 jobs would be lost as manufacturers who rely on railroads shut down, prices of nearly everything increase even more and the economy is potentially thrust into a recession.

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Another recent report put together by a chemical industry trade group projected that if a strike drags on for a month some 700,000 jobs would be lost as manufacturers who rely on railroads shut down, prices of nearly everything would increase even more and the economy could be thrust into a recession.

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Railroad workers and unions are ramping up pressure on the US Congress and Joe Biden to address poor working conditions in the wake of the recent move to block a strike when Congress voted to impose a contract agreement.

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Railroads have slashed labor and other costs to bolster profits in recent years, and have been fiercely opposed to adding paid sick time that would require them to hire more staff.

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“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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The Great Railroad Strike of 1877 was the country's first major rail strike and witnessed the first general strike in the nation's history. The strikes and the violence it spawned briefly paralyzed the country's commerce and led governors in ten states to mobilize 60,000 militia members to reopen rail traffic.

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The railroads, which haul about 40% of the nation's freight each year, estimated that a rail strike would cost the economy $2bn a day in a report issued earlier this fall.

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Last fall, many union railroad workers in the United States did not have paid sick days. Now, more than sixty percent of them do, Reuters reports. It has been a process of slow, piecemeal wins over many months—and a testament to the continued push of high-profile politicians like Sen. Bernie Sanders (I-Vermont).

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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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Leave as much time as possible during a rail strike Despite what some operators claim, strike days usually aren't extremely busy (unless there are lots of strike days in a row), so you won't find yourself struggling to board every single train. However, it's a good idea to check where your train starts from.

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