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Florida industries prepare for the fallout from a potential railroad strike

Railroad labor strike could send shockwaves through economy
Train tracks
Posted at 3:56 PM, Sep 14, 2022
and last updated 2022-09-15 05:51:29-04

TAMPA, Fla. — As negotiations to avert a significant supply chain crisis continue, leaders in Floria are preparing for potential impacts to rail service and supply chain lines.

A labor strike by railroad workers could have "catastrophic" impacts on the economy.

Many people don't realize how interconnected railroad freight lines are with the trucking industry, and there are simply not enough trucks or truck drivers to pick up the slack.

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"It's estimated that if there is the rail stop, nationally, we'll need 460,000 more trucks to pick up that slack, which is just not practical or feasible by any stretch of the imagination," President and CEO of the Florida Trucking Association Alix Miller said.

Miller even stated that "it could have dire consequences to the entire supply chain."

"We do not produce coal in Florida; it's imported from other states for our electricity, food, vegetables, corn syrup, chemicals, and even the chemicals that we use to clean water for, for it to be potable, for drinking," he continued. "All these things come by rail and then are picked up by trucks to be delivered and used."

The American Trucking Associations also warned of dire consequences for the U.S. supply chain if a strike were to go into effect.

"Idling all 7,000 long-distance daily freight trains in the U.S. would require more than 460,000 additional long-haul trucks every day, which is not possible based on equipment availability and an existing shortage of 80,000 drivers," ATA President and CEO Chris Spear said in a letter. "As such, any rail service disruption will create havoc in the supply chain and fuel inflationary pressures across the board."

According to the Florida Department of Transportation (FDOT), they are monitoring potential impacts on SunRail.

"The Florida Department of Transportation is aware of ongoing negotiations between rail carriers and rail unions," VP of Community Outreach for GLOBAL-5 assisting FDOT media requests David Parks wrote in an email. "The Department continues to monitor the situation as a labor strike could impact SunRail service. More information will be available as developments occur."

Amtrak released a statement on Wednesday that they "will be pre-emptively canceling trips over an additional seven Long Distance routes to avoid possible passenger disruptions while en route on Wednesday, September 14, 2022."

Amtrak officials said, "these initial adjustments include canceling some Long Distance routes starting on Tuesday, September 13, 2022, and could be followed by impacts to all Long Distance and most State-Supported routes. These adjustments are necessary to ensure trains can reach their terminals before freight railroad service interruption if a resolution in negotiations is not reached."

Despite concerns over supply chain issues, a spokesperson for the Florida Ports Authority said the strike will likely have more of an impact on "domestic rail travel in Florida than it will have on seaports."

"While a railroad strike will impact all of the nation's seaports, in Florida, the impact will be very mild," President of Yellow Finch Strategies Edie Ousley said. "In fact, we'll be more indirectly impacted than most other states because of Florida's dynamic highway and interstate system and our ability to move goods from ship to shelf via truck transport."

"There are certain segments and certain industries that will be catastrophically impacted by us. And we'll just hope for a short strike if it happens," Miller said.