Congress is under pressure to pass legislation that would end the threat of a nationwide rail strike. Time is running out. A walkout could occur as early as next week, with disruptions to the supply chain set to begin in days.
One thing that is not up for debate is whether the economy would be crippled if trains stop running, as lawmakers prepare their arguments for or against intervening in the stalled labor negotiations between the major freight railroads and four hold-out unions.
765,000 Americans could be put out of work in the first two weeks if rail work stops, according to President Joe Biden. The Association of American Railroads, which represents giant carriers including BNSF, CSX, Norfolk Southern and Union Pacific, estimates that a rail shutdown would cost the U.S. economy $2 billion a day and every American would feel it.
BIDEN: The US rail system moves cargo equivalent to 467,000 long-haul trucks each day, transporting hazardous chemicals, fertilizers, apparel, household and perishable goods. With the trucking industry already short-handed, currently lacking an estimated 80,000 drivers, it would be impossible for other shipping options to fill the void if a shutdown occurs.
Stopping the rail system would be destructive to the economy during normal times but is anticipated to be catastrophic in today's economic environment. Supply chains still recovering from the COVID 19 pandemic would be decimated, with an ongoing labor shortage and lack of alternatives leaving little room for contingency plans. The price of everyday goods would go up as inflation continued to hover near a four-decade high.
The country is facing a potential strike in the middle of the holiday shopping season, which is a cause of the economic woes and affects both retailers and customers alike.
The AAR states that UPS may be the largest rail customer in the nation, and shutting down a single train carrying 100 UPS containers would keep 200,000 packages from reaching customers' doorsteps.
Amtrak and other commuter trains that use the major rail companies' tracks would be parked, causing a halt to the travel of some 7 million passengers a day.
The railway industry's far-reaching impact on the economy is the reason Congress passed the Railway Labor Act in 1926 in the first place, giving it the power to step in and impose terms to prevent a strike.
The intervention is already being met with opposition from both sides of the political aisle, setting the stage for a possible gridlock in Congress that could carry on past the Dec. 9 strike deadline.