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Railroad Strike Averted: What Does This Mean for Trucking?

Railroad Impact on Trucking Industry

The broader transportation industry has mixed reactions to President Biden’s decision to sign legislation into law that requires unions and railroads to adopt September’s labor contract negotiated in September.

The railroad and trucking industries are interlinked with both playing major roles in keeping goods moving throughout the country. Here’s what else you need to know about the potential strike situation:

  • The September labor deal was adopted without the additional seven days of paid sick leave that the four unions involved supported for their members.
  • A rail strike would have impacted the U.S. economy as a whole, but especially industries that rely heavily on rail like agriculture and firms that rely on chemicals.
  • Players in the trucking industry were relieved the strike was averted for several reasons
    • Trucking owner-operators are not equipped to handle the additional volume that couldn’t be moved via rail systems and would have strained the entire trucking industry.
    • Much of the diesel needed by freight drivers is moved throughout the country by train. A major disruption could have idled thousands of trucks and fleets.

Read the original article here: FreightWaves – Unions, shippers, railroads express mixed reactions to averted strike.

Regardless of current events across different transportation industries, we’ll make sure you have the funds you need to keep moving. Contact the Transcap team to apply for funding and put cash back into your pocket.