There’s growing concern for how the supply chain will be impacted by a looming rail strike.
U.S. Sen. Tommy Tuberville of Alabama said this Wednesday when asked about the possibility: “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.
Negotiations are ongoing with some unions.
“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 four or five or six days of this. This can’t be one of those 30-day strikes,” said Tuberville.
Farmers won’t be the only people impacted in Alabama. Nick Beaty, owner of Yellowhammer Logistics Services, said a shutdown will impact all consumers and distributors.
“It’ll be harder to find the consumer goods you’re used to,” he said. “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 aren’t enough truck drivers to help cover 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 costs down.
TVA could also be impacted by the rail shutdown. The utility company said it is making plans now for implications that could impact the 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,” according to a statement.
“This diversity in our system better positions us to weather any potential supply chain challenges.”
