Shipping and Logistics
Rejection of Rail Agreement Reignites Potential for Strike
Written by Becca Moczygemba
October 11, 2022
Nearly a month after reaching a tentative labor agreement, the possibility of a rail strike is back on the table, as the Brotherhood of Maintenance of Way Employees Division (BMWED) of the International Brotherhood of Teamsters union announced on Oct. 10 the rejection of its deal with the freight rail lines.
Union members voted in record numbers and have expressed feelings of being undervalued. “They resent the fact that management holds no regard for their quality of life, illustrated by their stubborn reluctance to provide a higher quantity of paid time off, especially for sickness. The result of this vote indicates that there is a lot of work to do to establish goodwill and improve the morale that has been broken by the railroads’ executives and Wall Street hedge fund managers,” said BMWED president Tony D. Cardwell.
While four of the 12 unions, representing 115,000 rail workers, have already approved their agreements, all 12 must confirm to avoid a strike. BMWED is currently under a status quo period where it will reenter negotiations with the rail lines. The period will extend to five days after Congress reconvenes on Nov. 14.
During the September negotiations with the Association of American Railroads, intervention from Congress aided in averting a strike. As rail plays a significant role in the transportation of steel goods, a strike would have a substantial impact.
By Becca Moczygemba, Becca@SteelMarketUpdate.com
Becca Moczygemba
Read more from Becca MoczygembaLatest in Shipping and Logistics
Reibus logistics update: Inflation makes a comeback
As we navigate through the first half of 2024, we are seeing early signs of an inflationary rate environment for flatbed shipping, albeit slightly later than anticipated. Excess supply has persisted longer than expected for both flatbed and dry van, resulting in rates remaining lower than for longer than anticipated.
SMU Community Chat: Posner talks state of global logistics
While shipping and supply chains have always been subject to wars, pirates, privateers, geopolitical issues, and natural disasters, it seems that “it’s been busier lately when it comes to dealing with significant supply chain disruptions,” according to logistics expert Anton Posner.
CRU: Baltimore bridge collapse affects more than half of US thermal coal exports
A container ship collided with the Francis Scott Key Bridge in Baltimore on March 26, causing it to collapse. This has blocked sea lanes into and out of Baltimore port, which is the largest source of US seaborne thermal coal exports. The port usually exports 1–1.5 million metric tons (mt) of thermal coal per month. It is uncertain when sea shipping will be restored. But it could be several weeks or more. There are coal export terminals in Virginia, though diversion to these ports would raise costs.
USW reaches tentative pact with CN Rail
United Steelworkers (USW) union members in Canada have reached a tentative labor agreement with CN Rail.
SMU Community Chat: Feb. 21 with Anton Posner, CEO of Mercury Resources
Mercury Resources CEO Anton Posner will be the featured speaker on SMU’s next Community Chat webinar on Wednesday, Feb. 21, at 11 am ET. The live webinar is free for all. A recording of the webinar and the slide deck are free for SMU members.