News
USA potential rail strike +Typhoon Mufia in China
Attention: Shipping Manager
- USA Potential Rail Strike
We have been advised of a possible national rail strike by conductors and engineers working for Class 1 rail operators BNSF, CSX, Norfolk Southern, CN, CP and Union Pacific to commence on Friday 16th September 2022. Consequently, the railroads have begun to reduce service since Monday 12th September 2022.
Negotiations took place over the past weekend between two rail unions, which represent 57,000 rail workers and their employers to avert a strike. However, an agreement has not been made with other remaining unions. Friday 16th September marks the end of a 60-day cooling off period and rail union workers have the option of striking. President Biden does not have the authority to prevent the strike on Friday 16th September. Only Congress can act to prevent a national work stoppage by imposing a deal on the two sides or extend the current cooling off period.
Most rail operators are implementing contingency plans this week, which include stopping the acceptance of on-dock rail at port container terminals and closing gates to intermodal traffic. They are also keeping out gates open to enable the pickup of containers by truckers until further notice.
The latest update we received from our US partner was Norfolk Southern announced all gates will be closed to intermodal traffic effective 17:00 local time, Wednesday 14th September.
In addition, West Coast Longshoreman have not yet signed an agreement for the employment contract.
Even if an agreement is made by Friday, major rail service disruptions and delays are still expected due to the announced service reductions by the railroads.
- China’s ports and airports suspend operations due to Typhoon Mufia
China’s largest seaports such as Shanghai and Ningbo are preparing for Typhoon Mufia, which is expected to make landfall near these ports. The typhoon has prompted the ports of Shanghai and Ningbo to suspend operations. These ports have already been experiencing delays and the severe weather conditions could further disrupt the operations for several days both at the ports and inland transportation.
Major delays and congestion are expected due to the typhoon’s impact and this will further disrupt shipping schedules from Asia, where ports are already dealing with increased berth congestion and backlogs caused by Typhoon Hinnamor earlier this month.
Furthermore, flights are being suspended in and out of Shanghai’s airport and some train services are also expected to be cancelled.
We will keep you updated with any further information.
