As previously advised in September, rail workers at the Norfolk Southern, CSX, BNSF, Union Pacific, and KCS railroads had planned to strike on September 16th, which would impact the entire rail network in the United States. That strike had been averted after the current presidential administration stepped in to mediate a tentative agreement ahead of the strike deadline. This interim solution also delayed the possibility of a strike by rail workers until mid-November. Since that time, the tentative arrangement allowed the twelve (12) unions representing rail workers across the nation to vote for ratification of the agreement. The following is the voting status for ratification of the agreement as of October 28th:

• Agreement ratified (6)
• Tentative agreement pending ratification (4)
• Not ratified / status quo maintained (2)

The remaining four (4) unions are due to vote on ratification between November 5th and November 21st.

On Thursday, October 27th, a broad coalition of over 300 industry groups in the United States, including retailers, farmers, and chemical exporters with fears of a strike in Mid-November, urged the current administration to engage with Class I railroads and unions after a second union rejected the tentative contract arrangement. It is yet to be determined how the administration will act to the mounting industry pressure to intervene in brokering a rail agreement, which, if unsuccessful, would lead to a national strike by at least six (6) of the rail unions. This action would ultimately shut down the US rail network. Labor and management remain in a “status quo” period until November 19th; however, a strike is possible to occur after voting for ratification of the tentative agreement is completed on November 21st. Clients should be prepared for a potential nationwide rail strike at that time and prepare now to route cargo around any possible rail issues. Canadian Railroads are not impacted at this time; however, they can expect additional congestion and delays in the event of a rail strike in the United States.

If you have elected to move freight intermodally with RIM, it is advisable in the near-term to consider routing alternatives such as transloading cargo at port locations which includes utilizing domestic all truck haulage services between the port and inland location or explore air freight options for time sensitive cargo. Any cargo booked to or from interior intermodal locations within the United States utilizing rail services at this time is subject to potential significant delays.

Here are some things you can consider to mitigate additional delays:

• What can you do if you are booking cargo now? We suggest booking cargo to port destinations only. RIM can provide transload and truck load delivery services from port to door. Our sales and operations teams are ready to assist with quoting, transload, and direct delivery options. In anticipation of this rail event, RIM has strategically aligned with five (5) major transload facilities in the Los Angeles area which are capable of handling an estimated 1000 transloads/long distance deliveries per week. We are currently handling hundreds of transloads weekly, bringing average transit times to the Midwest to under thirty days from ports in Asia. The additional costs for these services, depending on your final destination, can result in an approximate 10-20% increase in your overall transportation costs. On a positive note, you will also experience reduced transit times and, in most cases, a complete elimination of detention and demurrage related fees.
• What can you do if you have freight in transit with a common carrier scheduled to go on rail? If you already have intermodal freight in transit and it is five (5) days off the coast, RIM can work with our carriers to divert the cargo to terminate at the Los Angeles pier complex. There may be AMS implications that should be discussed with the RIM Compliance team or RIM Customer Service teams prior to execution. Please contact your local account manager or sales representative so they can assist and/or discuss the possible diversion of your cargo.  There is a fee for diversion, so please make sure that you understand all of the costs associated with this activity. Additionally, the carrier may refuse the diversion at their discretion.
• What if I am on RIM’s Charter Service and have elected to move my freight on the rail? Simply contact your sales or operational account manager at RIM and they will cancel the intermodal rail move at no cost to your company.  We will stop the freight in Los Angeles, transload the freight, and move it by truck to your door. Quotes for these services will be provided independently, as requested.
• What if I need my freight but it cannot be transloaded? RIM can arrange long distance deliveries via our Long Beach drayage providers.

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.