As previously advised, the Norfolk Southern, CSX, BNSF, Union Pacific, and KCS railroads had provided announcements about potential strike action effective September 16th, which would impact the entire rail network in the United States. That announcement included information on immediate restrictions that the railroads began placing on cargo in the event of a full strike.

As of last night, the above mentioned freight rail companies and the unions representing the  workers reached a tentative agreement after late night talks, that were brokered by the U.S. Secretary of Labor, to avoid what would have been an economically damaging strike. This is positive news, given the ongoing challenges to the supply chain within the United States, is expected to be ratified today by union members.

While the tentative agreement is important to ensure the stability of the supply chain in the United States, the agreement is subject to ratification by union members. The agreement will now head to union members for a ratification vote, which is a standard procedure in labor talks. While the vote is tallied the workers have agreed not to strike.

Additionally, as railroads had already started enacting contingency processes and embargoes, these limited operational measures will likely not be immediately reversed. Because of this, we can expect residual delays even in the event the union members approve the agreement later today.

RIM logistics, ltd. will continue to closely monitor the situation and keep you advised of any updates as they become known. Please contact your RIM representative should you have any questions or need additional information.