While officials have been closely monitoring developments — and have been directly involved in an effort to find a solution — for several weeks, accelerated efforts to plan for a worst-case scenario underscore the stakes of an outcome that would lead to a massive supply chain of disruptions and political bickering and financial risk.
“The White House is working with other modes of transportation (including trucks, vans, air) to see how they can step in and maintain their freight in the event of a rail disruption,” a White House official told CNN on Tuesday.
The official added that the administration is “also working with relevant agencies to assess which supply chains and commodities are most likely to experience severe disruption and the emergency authorities available to keep goods moving.”
About 60,000 union members who work for the railway are to go on strike, including engineers and conductors who make up the two-man crews on each train. Although 45,000 other union members belong to unions that have reached tentative agreements with the railroads, an engineer and pipeline strike would bring the freight rail system, which carries nearly 30 percent of the nation’s freight, to a standstill.
Stakeholders are already warning that the situation is dire, with the US Chamber of Commerce detailing some of the pressing issues in a letter to congressional leadership on Monday.
“A shutdown of the nation’s rail service would have enormous national consequences,” the chamber’s executive vice president and chief policy officer Neil L. Bradley said in the letter.
He continued: “It would cause perishable foods such as dairy, fruits and vegetables to spoil at their point of origin, halt Amtrak service for approximately 12.2 million daily riders in 46 states, prevent the delivery of materials and goods to factories and ports. and would prevent the transportation of heating fuels and other important fuels and chemicals. These are just a few examples of the damage caused by rail closures.”
Biden continues to receive regular updates on the high-stakes negotiations, including updates on the matter Monday night and Tuesday morning. Senior-level engagements were expected to resume on Tuesday. There are conversations with industry leaders and also “multiple interagency meetings” taking place daily with the Departments of Transportation, Defense, Agriculture, Health and Human Services and Energy, as well as the Federal Emergency Management Agency, the official said, with efforts to the direction “the determination of the sectors and goods that will be most directly and significantly affected by the disruption of the railways”.
One area of key concern is hazardous materials transported by rail.
“We are paying special attention to hazardous materials transported by rail to protect the safety of workers and communities and to support the continued distribution of vital hazardous materials that depend on rail transportation, such as chlorine for water treatment facilities,” the official said. . who added that “all tools are on the table and will be deployed as appropriate.”
While concern about a strike has grown in the White House in recent days, the administration remains hopeful that the matter will be resolved. The President does not have the power to stop a strike, but Congress can act to prevent a work stoppage.
“We hope that this planning and preparation will prove unnecessary and that the negotiating parties will agree to a resolution and not allow American workers, families and businesses to be hurt by the rail disruption. We have been clear in all our communications with the negotiating parties that a shutdown is unacceptable and will hurt American workers, families and businesses, and they must take steps to prevent it,” the official said.
CNN’s Maegan Vazquez contributed to this report.