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Freight Crisis Turns into a Nightmare as Massive Rail Disruptions Spark Chaos at Ports! - Epic Economist

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In the next few days, all U.S. supply chains could be stopped by a looming rail strike
that is threatening to halt shipments of critical materials to the industry sector, worsening
shortages, exacerbating inflationary pressures, and even more alarmingly, affecting you – the
end consumer. If a deal isn’t reached by tomorrow, over a hundred thousand rail workers
could walk off their jobs, sparking enormous disruptions all across the country, and plunging
U.S. ports into total chaos right as we approach the busiest shipping season of the year.
Executives say that we’re on the verge of a full-blown crisis that will not only be catastrophic
for businesses and shoppers but have serious repercussions for the entire economy.
Just as we thought things were finally getting calmer on supply chains, a perfect storm
begins. A potentially disastrous rail strike with dire consequences that will cascade through the
entire economy is about to burst as Congress and unions face a stalemate in the negotiations
of working contracts for 125,000 freight and rail workers, according to Business Roundtable
Chief Executive Officer Joshua Bolten. “Supply-chain issues would be geometrically magnified
by the rail strike, and that’s not just the occasional Amazon box showing up two days later
than it should – these are critical materials,” he emphasized.

The stoppage could halt the delivery of a wide range of essential supplies – including
chlorine to keep the water we use and consume daily clean. The trains also carry everything
from the food on your dinner table to this year’s Halloween costume, metals for the industry,
auto parts, chemicals, fertilizers, and a series of other commodities – and if a deal isn’t closed,
we could witness the largest strike of such kind since 1992. It would also cause travel chaos for
thousands of commuters while sending transportation costs through the roof.
Industry executives say that the workers’ walkout could cost the world’s biggest
economy more than $2 billion a day. In a  letter to Congress , American Trucking Associations
President Chris Spear said “if all 7,000 long-distance freight trains available in the US stopped
running, the country would need an extra 460,000 long-haul trucks daily to make up for the
lost capacity, which isn’t possible because of equipment availability and driver shortages. The
trucking industry – dealing with labor issues of its own – faces a deficit of 80,000 drivers
nationwide,” he wrote.

Efficient rail operations are also critical to the Port of Los Angeles; highlighted Gene
Seroka, the port’s executive director. “With two-thirds of our cargo leaving California by rail,
the supply chain and the US economy need all of us working at maximum effort.” The peak
shipping season for imported goods heading to major U.S. retailers ahead of the holiday
shopping period is now. Earlier this week, the National Retail Federation stressed it is
“extremely concerned about shortages later this year if the stoppage starts tomorrow”. “
And while the impasse persists, port congestion continues to intensify on both coasts.
At this point, congestion is spreading everywhere. The latest analysis of CNBC’s Supply Chain
Heat Map shows that the number of ships waiting outside East, West and Gulf coast ports is
rising by the dozens every day. Delivery delays and disruptions in our transportation system
are likely to push hour vulnerable supply chains over the edge. In a couple of days, a whole lot
of chaos is likely to emerge all over the country. Our food supply chain, our power grid, our
domestic production, and our economy are hanging by a thread. The railroad strike may be the
black swan event to push everything off the rails. This is not a drill. A major crisis is about to
burst and many of us have never experienced something like this ever before. Our nation is
about to change in wild and unpredictable ways. So buckle up, because the ride ahead is going
to be extremely turbulent.

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Total 2 comments
  • GJ

    Totally organic in origin. Not planned at all what so ever! Wake up sheep you are being played by these psychopaths. Time to just start hanging them all on sight. Then again after almost 4 generations of fluoride in the water supply no one is capable of any independent thought or critical thinking. Reduced to being a parrot. Tell Lie Vision is their only reality.

  • Anonymous
    There is absolutely NO reason why this year should be any worse in shipping than 10 yrs ago or any other year.

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