Local freight railroad companies and port authorities are preparing for the possibility of a national rail workers strike that could begin Friday after negotiations with labor unions stalled.

Certain freight shipments out of Norfolk Southern began grinding to a halt this week ahead of the potential strike, which could shut down about 30% of the country’s freight movements and freeze the flow of goods.

Preparation for logistics and supply chain disruption comes after a week of intense negotiations between the Labor Department and railway unions, which represent approximately 115,000 rail workers nationwide, the Associated Press reported. While deals have closely followed the Presidential Emergency Board’s recommendations — including 24% raises over five years, $5,000 in bonuses and one additional paid leave day a year — two unions have not come to an agreement because they want the railroads to address concerns of strict attendance policies and working conditions.

The rail industry has reached tentative agreements with 10 of 12 unions involved in current negotiations. The two holdouts could trigger a strike as early as 12:01 a.m. Friday morning, when the final scheduled cooling-off period expires.

Norfolk Southern temporarily issued embargoes for rail security-sensitive material and time-sensitive shipments Sunday after asking for a commitment from the unions not to strike, but they declined, said Ed Elkins, Norfolk Southern chief marketing officer.

“We must ensure that no hazardous material or freight that requires special security is left on an unattended train out on the network in the event of a sudden strike,” Elkins said in a Sunday news release.

Norfolk Southern announced it would stop accepting intermodal shipments Tuesday. Bulk unit trains and automotive traffic are also expected to be curtailed.

In the event of an impasse and labor stoppage, the Virginia Port Authority said it is “well prepared” to handle any disruption, whether it be short-term or long-term at the port of Hampton Roads.

Spokesperson Joseph Harris said the port can keep its existing cargo on the terminal for 2-3 weeks, and if the strike went beyond that they would move it into an off-site 20-acre storage facility where it could stay “indefinitely.” The port’s obligation to offload cargo would not be affected by the strike, Harris said.

The timeline for resuming normal operations at the port would depend on how long it takes the railroads to get back to calling for cargo at their normal pace, and how much backup accumulates, Harris explained.

A spokesperson for Transport Workers Union of America declined to comment.

The uncertainty caused by a looming strike will exacerbate lingering supply chain issues stemming from the COVID-19 pandemic, according to Robert McNab, an economics professor at Old Dominion University.

“The proverbial engine of the region economy is already struggling, and this would just add sand to the gears. An actual strike would be catastrophic,” McNab said in an email. “While the Port (of Virginia) would likely be able to store some cargo and shift other cargo to truck and barge, a prolonged strike would likely overwhelm the storage capacity of ports nationwide.”

McNab added that just the prospect of a strike will add to inflationary pressures, with retailers buying more supplies now and paying extra to move cargo to market out of fear of a disruption. If the strike goes into effect, cargo that was loaded onto rail, he said, will instead be shipped by less efficient modes of transport including truck, barge and air.

“I think both sides know the timing of this couldn’t be worse, and they’ll work to resolve it,” Harris said. “There’s never a good time for any type of labor stoppage.”

Should the unions commit to avoid a strike or come to an agreement before Friday, Elkins said Norfolk Southern will resume normal operations.

“We want a prompt resolution that allows us to continue serving customers and prevents disruption to an already fragile U.S. supply chain,” Elkins said.

Staff Writer Gavin Stone contributed to this report.

Caitlyn Burchett, 727-267-6059, caitlyn.burchett@virginiamedia.com