WASHINGTON — The American Short Line and Regional Railroad Association has joined the growing list of groups calling for Congress to intervene in the Class I rail labor dispute.
Meanwhile, the Fertilizer Institute, which already had asked Congress to intervene, renewed its call after railroads announced they would begin embargoing hazardous or security-sensitive material, which includes some fertilizers, and Norfolk Southern followed its announcement of that embargo by announcing plans to stop accepting intermodal and automotive traffic on Tuesday.
In a Saturday letter to House and Senate leaders of both parties, ASLRRA President Chuck Baker wrote that “it is imperative Congress act to avoid severe and unnecessary national economic calamity” by implementing the recommendations released last month by the Presidential Emergency Board.
“By any objective measure, the recommendations are a win for rail labor — they include a 24% compounded raise over five years, plus $1,000 bonuses for each of five years, plus no significant changes to a robust health care and retirement package,” Baker wrote. “… It seems clear that this is where the final agreement will land and that it should be a readily accepted voluntary agreement.”
Failing that, he writes, legislative action “would be a win-win result” for all parties.
Fertilizer group cites ‘negative effects of non-resolution’
Also on Saturday, Fertilizer Institute CEO Corey Rosenbusch again urged Congress to act in light of Friday’s announcement by railroads of an embargo on some commodities, as well as preparations for more general service disruptions [see “Railroads begin embargoes …,” Trains News Wire, Sept. 9, 2022]. Rosenbusch had sent Congressional leaders a letter earlier in the week asking them to be prepared to impose a settlement in the event of a work stoppage [see “AAR report says rail shutdown would cost $2 billion a day,” News Wire, Sept. 8, 2022].
“A stoppage hasn’t yet happened, but we are already feeling the negative effects of non-resolution,” Rosenbusch said in his Saturday statement. “Rail networks are complicated, and carriers must make preparations ahead of a potential stoppage to keep certain types of cargo safe and secure. Fertilizer falls into that category and is being taken off the rails. …
“This situation will get exponentially worse every day there is no resolution. Over half of all fertilizer moves by rail year-round, and there are some fertilizer products that move almost exclusively by rail. If they can’t be shipped farmers won’t have them and if they can’t move production slows down. In the end the consumer will be footing the bill for this inaction at a time when household budgets are already strained.”
NS to shut gates to intermodal, halt automotive traffic on Tuesday
In a Sunday advisory to customers, Norfolk Southern initially annouced plans to stop accepting intermodal traffic on Tuesday; it later updated that announcement to include plans for automotive traffic. The updated announcement says the railroad will close in gates for loaded or empty intermodal units at its terminals as of noon on Tuesday, and would also stop accepting traffic at on-dock port facilities and privately owned intermodal terminals. Out gates will remain open for intermodal pickup until further notice. Customers using railroad-operated EMP and TMX containers will be unable to make reservations after 12:01 a.m. on Tuesday. They will be able to return empty containers to NS terminals as normal until further notice. In gates for automotive traffic will close at 5 p.m. on Tuesday, with an embargo on auto traffic beginning at 12:01 a.m. on Wednesday.
The railroad also said it is planning “for the orderly lay down of trains in the bulk network” and will contact customers moving bulk commodities in unit trains with specific details.
CSX Transportation has also begun an embargo of “high hazardous, toxic by inhalation and poisonous by inhalation” cargo as of today.
Chemical shippers urge Congress to act as chlorine shipments stop
The American Chemistry Council, which represents major chemical producers, on Friday urged Congress to act quickly to end a strike if one should occur.
“Freight rail is critical to ACC’s members and chemical manufacturing. Our industry is one of the largest freight rail customers, shipping 2.2 million carloads in 2021. We rely on railroads to safely transport our products to customers around the United States and the world. A rail strike or work stoppage of any length would cause potentially devastating harm to our industry, the nation’s supply chains, and the economy,” ACC CEO Chris Jahn wrote.
Scott Jensen, an ACC spokesman, said today that Class I railroad embargoes on hazardous cargo are already having an effect on chemical producers and receivers.
“Several railroads have instituted a service embargo for ‘security sensitive materials,’ which include some chemical shipments – most notably chlorine. That embargo took effect today. I’m also told that Canadian National also started a embargo today for new traffic from the U.S. to Canada for any commodity,” he says.
— Updated at 10:10 a.m. CDT with NS embargo on auto traffic, CSX embargo on hazardous cargo. Updated at 2:57 p.m. CDT with American Chemistry Council comments.
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