U.S. RAIL SERVICE EMBARGOES AND LABOR NEGOTIATIONS UPDATE
The two largest rail unions representing roughly 90,000 U.S. rail workers (SMART-TD, Brotherhood of Locomotive Engineers and Trainmen) and representatives for the Class 1 Railroads remain deadlocked over contract renewals while President Biden’s July executive order that prescribed a “cooling off” period preventing labor unions from striking until September 16 is quickly nearing its end. The American Association of Railroads (AAR) instructed all Class 1 freight railroads to secure HAZMAT and security-sensitive commodities in preparation for the possibility of a nationwide rail labor strike.
BURLINGTON NORTHERN SANTA FE (BNSF)
BNSF will begin to manage and secure hazardous materials and security-sensitive freight today, Monday, September 12.
CSX
CSX issued an embargo effective Monday, September 12, 2022, on the following commodities:
- High hazardous materials
- Toxic by inhalation materials (TIH)
- Poisonous by inhalation materials (PIH)
- Safety-sensitive shipments
KANSAS CITY SOUTHERN
As of press time, Kansas City Southern has not released embargoes or updated service times for freight.
NORFOLK SOUTHERN (NS)
Beginning on Friday, September 9, NS began embargoes for certain types of shipments:
- Hazardous materials (chemicals, fertilizer, etc.)
- Rail security-sensitive material (RSSM)
- Time-sensitive shipments outlined in their embargo
- Customers in certain markets will see a curtailment of service up to 72 hours before the end of the cooling-off period to prepare for a safe stoppage of freight in the event of a labor strike including:
- Bulk unit trains
- Intermodal
- Automotive
UNION PACIFIC (UP)
On Monday, September 12, Union Pacific will begin securing hazardous and other security-sensitive materials on their property. UP will also embargo new shipments of hazardous materials until they can be safely delivered to their destination.
- Hazardous materials (chemicals, fertilizer, etc.)
- Rail security-sensitive material (RSSM)
Three unions reached tentative agreements in August and an additional 6 unions reached tentative contract renewal agreements last week. Workers from the remaining 2 unions could strike as early as September 16 if talks continue to stall.
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