Mr. Biden and his economic team had increasingly inserted themselves in the talks over the past week, hoping to avoid a work stoppage that would have snarled the distribution of food, chemicals for water treatment plants and other critical goods across the country. Such a stoppage also risked creating shortages on store shelves that could have sent consumer prices soaring, further adding to an inflation rate that reached a four-decade high this summer.
Unions and the freight rail industry were negotiating ahead of a Friday deadline, when a federally imposed “cooling-off period” was set to end and workers would have been free to strike if no deal had been reached. That possibility had already shaken both freight and passenger rail companies.
Nearly a third of U.S. freight moves by rail, second only to trucking. The Association of American Railroads estimated that a nationwide rail service interruption would have idled more than 7,000 trains daily and cost the economy more than $2 billion a day.
Railroads began warning their customers last week that they would prepare for a strike by cutting back some services. Union Pacific, CSX and BNSF all said that they would begin securing hazardous and toxic materials on Monday to try to ensure that dangerous goods would not be left unguarded in the event of a strike. Norfolk Southern closed its gates to shipping containers coming off trucks and ships on Tuesday, and said it planned to begin shutting down its network entirely at midnight on Thursday.
Administration officials had begun making contingency plans for trying to minimize disruptions for critical shipments in the event of a strike. Those plans included working with trucking companies, ocean shippers and other alternative forms of transportation to ensure some supplies could still get to their destinations.
Niraj Chokshi and Ana Swanson contributed reporting.
Source Article from https://www.nytimes.com/2022/09/15/business/rail-strike.html
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