September 13, 2022
POSSIBLE U.S. RAILROAD STRIKE THREAT
President Biden issued an Executive Order effective July 18, 2022 to help resolve an ongoing dispute between major freight rail carriers and their unions, triggering a “cooling off” period intended to keep all parties working toward a negotiated settlement and ends on Friday, September 16.
As of Tuesday, unionized workers for several of the nation's largest railroad companies have been unable to reach a unanimous agreement with all rail union representatives. As a result, an estimated 116,000 rail workers may go on strike after negotiations reach the expiration of the key deadline on Friday.
Both Brotherhood of Locomotive Engineers and Trainmen (BLET) and International Association of Sheet Metal, Air, Rail and Transportation Workers (SMART Transportation Divisions), representing approximately half of the nation's rail workers—had declined to accept a deal, citing that it fell short of workers' demands.
With this possibility looming ahead, contingency plans are being put into action. Officials began issuing embargos for certain types of shipments, including rail-sensitive material (RSSM) to ensure that hazardous materials or relevant cargo isn’t left unattended in the event of a strike. Other freight customers may also start to experience delayed or suspended service over the course of this week, as the railroads prepare for the possibility that current labor negotiations do not result in a resolution and are forced to substantially reduce operations.
The following changes have been announced by BNSF and Norfolk Southern:
BNSF
NS
Effective17:00 local time on Wednesday, September 14, 2022, Norfolk Southern will close all gates to Intermodal traffic. This will be an adjustment of 5 hours later than what was stated on Service Alert 09122022 – 124
General Guidelines
EMP and TMX
Customers using EMP and TMX containers should note the following:
Customers will be able to return empty EMP and TMX containers to NS terminals as normal until further notice. This process may be modified as terminal conditions require.
Please contact us if you have any questions about this or any other trade matter.
As of Tuesday, unionized workers for several of the nation's largest railroad companies have been unable to reach a unanimous agreement with all rail union representatives. As a result, an estimated 116,000 rail workers may go on strike after negotiations reach the expiration of the key deadline on Friday.
Both Brotherhood of Locomotive Engineers and Trainmen (BLET) and International Association of Sheet Metal, Air, Rail and Transportation Workers (SMART Transportation Divisions), representing approximately half of the nation's rail workers—had declined to accept a deal, citing that it fell short of workers' demands.
With this possibility looming ahead, contingency plans are being put into action. Officials began issuing embargos for certain types of shipments, including rail-sensitive material (RSSM) to ensure that hazardous materials or relevant cargo isn’t left unattended in the event of a strike. Other freight customers may also start to experience delayed or suspended service over the course of this week, as the railroads prepare for the possibility that current labor negotiations do not result in a resolution and are forced to substantially reduce operations.
The following changes have been announced by BNSF and Norfolk Southern:
BNSF
- Effective Wednesday, September 14 at 12:01 am, BNSF will not allow Temperature Controlled Intermodal (TCI) units to in-gate at any of its intermodal facilities.
- Customers are encouraged to pick up their TCI units that have reached their final destination and units at origin that have not been loaded onto a train.
- Non-running TCI units used for dry bulk shipments may still be in-gated.
NS
Effective17:00 local time on Wednesday, September 14, 2022, Norfolk Southern will close all gates to Intermodal traffic. This will be an adjustment of 5 hours later than what was stated on Service Alert 09122022 – 124
General Guidelines
- In-gates for loaded or empty intermodal units for rail movement will close at all NS Intermodal terminals
- Traffic originating at on-dock port facilities and privately owned intermodal terminals will not be accepted
- Customers with eastbound interline shipments should contact the originating rail carrier regarding guidelines for the acceptance of traffic at origin
- Until further notice, out-gates will remain open at all NS Intermodal terminals during normal business hours for customers to pick up units
EMP and TMX
Customers using EMP and TMX containers should note the following:
- We will discontinue filling reservations on equipment effective at 00:01 local time Wednesday, September 14
- Any empty units out-gated after 12:00 (noon) local time Sunday, September 11 and until further notice will be charged according to normal per diem schedules
Customers will be able to return empty EMP and TMX containers to NS terminals as normal until further notice. This process may be modified as terminal conditions require.
Please contact us if you have any questions about this or any other trade matter.
