The American economy could be disrupted due to the crisis in railroad transport. Unions and freight railroads transport about 40% of all long-haul cargo in the US. This could, however, come to an end if Washington fails to agree to a labor deal. If they fail, thousands of railroad workers could leave the job, paralyzing a significant portion of the country's supply chain.
Businesses and manufacturers are working on plans to move goods by truck or air. But with such a strike, the effects are havoc, and nobody will be spared, costing the country about $2 billion daily.
Consequently, more containers could pile up at prominent seaports without trains to haul away the cargo. Raw materials wouldn't flow to manufacturing units, and production will be halted.
As a revolt, railroads have already stopped taking some products for shipments, including bulk commodities, automobiles, and hazardous chemicals.
Products and Sectors affected by the Rail Strike:
· Plastic: Plastic is used to produce various everyday goods ranging from diapers to menstrual care products, bottles, food packaging containers, shopping bags, and more. Trains carry about 100 billion pounds (45 billion kilograms) of plastic granules produced annually in the US. Plastic is essential in the packaging industry.
· Manufacturers: Automakers were among the first companies affected by the rail strike after the railways began refusing to accept newly built vehicles for shipment. Many companies are drawing up plans to ship more cars by truck because of this.
· Electricity: A long rail strike would cut the coal flow, making it harder for power companies to keep the lights on.
· Food: The shipment of agricultural products saw a significant blow in the supply chain. A rail car carries enough wheat to produce 260,000 loaves of bread or enough corn for 480,000 bags of Fritos. Processed foods that rely heavily on raw materials, like peanuts for peanut butter and oats for cereal, could be among the first to be in short supply on store shelves.
The American Bakers Association said, “even a temporary interruption would create a devastating ripple effect” that would create a shortage of materials and ingredients.
Even with all the difficulties, Rapid Food Solutions, LLC (RFS) has not stopped working and offering food supply chain services that are rapid, comprehensive, and healthful. We are one of the best ingredient suppliers and provide premium ingredients, flexible packaging design, and co-manufacturing services—all with ultra-fast lead times. Contact us to learn more!