Train
There’s growing concern for how the supply chain will be impacted by a looming rail strike.
Senator Tommy Tuberville said, “we won’t have a Country, we have to get this rectified.”
Contracts for conductors and engineers need to be negotiated by Friday for a strike not to take place.
Tuberville said the supply chain is already in trouble due to the pandemic, but now he fears shutting down rail will have dire impacts and could shatter the country’s economy.
“I think this is something people don’t think about much because it doesn’t affect them as we speak,” said Tuberville.
Tuberville said they’re waiting on two more unions to complete negotiations.
“I think they’re close to having 10 unions agree with the terms that have been laid forward, but all of them have to agree,” said Tuberville.
The cost on not reaching an agreement could pose issues on an already damaged supply chain.
“With this group going down with the train system, it would cost our farmers in Alabama a tremendous amount of money,” said Tuberville.
Distribution for gravel and grain, for starters, could be halted.
“We can’t handle a four or five or six days of this, this can’t be one of those 30 days strikes,” said Tuberville.
Although farmers aren’t the only supply freights carry, the owner of Yellowhammer Logistics Services, Nick Beaty, said the shut down will impact all consumers and distributors.
“It’ll be harder to find the consumer goods you’re used to, I mean think of all the stuff that’s coming from overseas that comes into ports, usually that touches rail at some-point and all of that is being halted.
If rails are shut down, Tuberville said there’s not enough truck drivers to even help the shutdown. Beaty, agrees.
He said the trucking industry is already 75,000 to 100,000 drivers short. He said they would need thousands of more trucks and drivers to hit the road to even slightly help the railroad services. Plus, some trucks don’t have the qualifications to go in and out of ports.
Deals made in the next 24 hours could be crucial in keeping the supply chain running and keeping costs down.
“We’ve got to make sure the workers are taken care of but also got to make sure that our country continues to run,” said Tuberville.
Tuberville said the President has the power to make an executive order if rail workers go on strike.
TVA could also be impacted by the raid shut down. The utility company said they’re making plans now for implications that could impact its coal supply.
“While we assess the factors and possible outcomes, it’s important to remember that coal is only one of many ways TVA can generate power. This diversity in our system better positions us to weather any potential supply chain challenges.”
