Rail strike would affect businesses, consumers alike

Sep. 14—Consumers could play the pivotal role in ending a possible rail strike set for Friday, Joe Joseph said.

"If you see a head of lettuce going for $6 that's when you'll begin seeing people with pitch forks and torches demanding that the government act," said Joseph, general counsel and senior executive vice president of international trade and customs for Dalko Resources in Sharpsville.

Eight of 12 railroad unions have reached tentative deals with railroad companies. But two of the biggest unions, the Brotherhood Of Locomotive Engineers and Trainmen and the International Association of Sheet Metal, Air, Rail and Transportation Workers haven't reached agreements yet.

The two groups represent about half of union railroad workers. A smaller union, the International Association of Machinists and Aerospace workers voted against a deal on Wednesday.

Local transportation brokers such as Dalko have been warning their customers for months about a pending rail strike. But there are limited alternatives.

And it's not like trucking companies can pick up the slack. Haulers such as Yourga Trucking in West Middlesex are already stretched thin, Marc Buskirk, Yourga's vice president of sales said.

"There's not enough truck capacity to overcome the loss of rail," Buskirk said. "Everyone in trucking is running at or near capacity now because of the labor shortage."

Yourga works with the rail industry on goods such as steel coil. Rail cars are delivered by rail to the company's rail yard which are then driven by truck to nearby customers.

Railroads are used for long delivery routes.

"The longer the distance the more efficient the rail service can be," Buskirk said. "We make the last mile for delivery."

Most people think railroads just carry coal and iron ore but that isn't the case," said Nate Clark, a Hempfield Township-based transportation specialist.

"Train containers move a lot of consumer goods like furniture, clothes, cameras, televisions and cell phones," Clark said.

Along with food, trains carry other vital supplies such as chemicals used in water treatment and sewage plants.

"Without those chemicals treating water and sewage will stop," Clark said.

Joseph estimates that around 43% of what Americans consume or use is imported and lands on coastal ports. and a large chunk of that is railed inland.

Supply chains are still digging out from the COVID-19 pandemic which was on the verge of collapse.

"The supply chain is still fragile," Joseph said. "Any small ripple in the chain has catastrophic consequences to it."

Among the recommendations given to Dalko customers was to build up inventories before the strike hit. But that has risks.

"Businesses don't want to get stuck with inventory they can't sell," Joseph said.

Air transportation is an alternative. But it comes with sticker shock — it costs five times as much as rail, he said.

Like Joseph, Buskirk said preventing or halting a strike could come down to government intervention.

"It may take an act of Congress or a declaration by somebody to stop the strike," he said.