The National Retail Federation today issued the following statement from president and CEO Matthew Shay regarding the potential for a system-wide disruption of rail cargo should negotiations between freight railroads and rail labor organizations remain unresolved by the September 15 deadline.
“Freight rail is critical to the retail supply chain, and retailers of every size rely on it to move cargo every day. Retailers are deeply concerned about the situation and the impact that a disruption would have on business operations throughout the country.
“The timing coincides directly with peak shipping season for the winter holidays, and a rail strike at this juncture would be just one more significant, an inflationary shock to an economy that is already reeling from historically high inflation. Smooth and stable operations on the rails are crucial as we enter the busy holiday season.
“Should the negotiating parties fail to reach an agreement, Congress must act quickly to intervene and implement the Presidential Emergency Board’s recommendations to avoid a rail strike and a catastrophic shutdown of the freight rail system.”
According to a recent report from the American Association of Railroads, a nationwide rail shutdown could halt nearly 7,000 freight trains and cost more than $2 billion a day.
Last week, NRF sent a letter to Congress expressing concern about the potential for U.S. freight rail disruptions.
