US rail worker strike could curb container movement

More than 60,000 US freight rail workers have threatened to hold an indefinite strike from Friday. Strike action will depend on whether rail operators and unions reach a consensus on pay and work schedule disputes.

PHOTO: US railroad company Union Pacific rail car. Union Pacific

Sources expect a rail worker strike to impact the flow of containers across US ports and possibly trigger congestion and delays.

It is unlikely to impact crude flows significantly, as only 300,000 b/d of crude is transported on rail cars. But some US refiners and petrochemicals firms have voiced concerns, as critical feedstocks, chemicals and additives are delivered by rail and a strike could limit transport.

In July, US President Joe Biden averted a rail workers’ strike by setting out a 60-day cooling-off period which is due to end this Friday.

The US administration has prepared contingency plans to allow the transport of key good items if union workers proceed with a strike, White House press secretary Karine Jean-Pierre said yesterday.

Major rail operators in the US, meanwhile, have already begun to reduce their services this week.

By Nithin Chandran

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