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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Food fearsIt would take about a week for customers to notice shortages of foodstuffs such as cereal, peanut butter and even beer at the grocery store, said Tom Madrecki, vice-president of supply chain for the Consumer Brands Association. About 30% of all packaged foods in the US are moved by rail, he said.
“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.
A rail strike could have frozen almost 30% of U.S. cargo shipments by weight, stoked already surging inflation, cost the American economy as much as $2 billion a day, and stranded millions of rail passengers.
The railroad unions are asking freight and railway companies for a pay increase, as well as better working conditions, including paid time off and a more flexible schedule.
Widespread economic impactAmong 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.
The rail unions are headed toward a strike over pay and ongoing grievances from members that the working conditions are grueling, and not conducive to a life off the job.
Yes, most rail operators will offer compensation if you are affected by the rail strikes, however, it will depend on the type of ticket you have and whether the rail operator runs a compensation scheme, most commonly referred to as a 'Delay repay' scheme.