It appears that the US freight rail strike planned for tomorrow has been averted, thanks to a last minute agreement between railroad representatives and the unions.
This will come as welcome news to US ports because last week the American Association of Port Authorities (AAPA) warned that a potential rail strike could cost as much as $2 billion per day.
AAPA president and CEO Kurt Nagle said to Port Strategy: “Our nation, including the more than 13 million Americans whose jobs are supported by seaport activities, can breathe a little easier thanks to the voluntary settlement agreements reached.
“A major rail service disruption, especially during the busy holiday season, would upset our nation’s fragile economic recovery, create product shortages for consumers and make it difficult for exporters to get their goods to their overseas markets.
He added: “About one-third of all U.S. exports move to America’s seaports by train and any disruption in rail service could cause overseas buyers to look elsewhere for their goods.”
The National Carriers’ Conference Committee (NCCC), who represent more than 30 railroads in the States, has been bargaining with the unions over the proposed strikes during recent weeks.
In a statement released on its website, the organisation said that tentative agreements had been reached with 12 out of 13 unions.
The last union without a settlement – the Brotherhood of Maintenance of Way Employees (BNWE), has agreed to a ‘cooling off’ period until 8 February 2012.
