How a railroad strike could send food prices soaring?
How a railroad strike could send food prices soaring? Many grain processors would shut down, raising the price of bread and other common items, while farmers would be saddled with huge crop quantities and lower commodity prices.
What products will be impacted by rail strike?
Makers of food, fuel, cars and chemicals would all feel the squeeze, as would their customers. That's not to mention the commuters who would be left stranded because many passenger railroads use tracks owned by the freight railroads.
How will a rail strike affect grocery stores?
Food fears It would take about a week for customers to notice shortages of foodstuffs such as cereal, peanut butter and even beer at the grocery store, said Tom Madrecki, vice-president of supply chain for the Consumer Brands Association. About 30% of all packaged foods in the US are moved by rail, he said.
How would a railroad strike affect the economy?
Rail is critical to the entire goods side of the economy, including manufacturing, warehousing, retail and agriculture. If a rail strike lasts more than three to four weeks, the prices of goods would likely jump again, further exacerbating inflation, according to economist Mark Zandi.
How can a railroad strike lead to higher inflation?
A railroad strike would likely force other transportation sectors such as trucks and barges to pick up the slack, but that could overburden them. Trucks already transport close to 70 percent of all grain, according to the U.S. Department of Agriculture.
How much would the railroad strike cost?
The railroads estimated that a rail strike would cost the economy $2 billion a day in a report issued earlier this fall.
Which railroad makes the most money?
BNSF Railway leads the market The railroad focuses on transporting freight commodities such as coal, industrial or agricultural products. In 2022, the company generated some 24.49 billion U.S. dollars in freight revenue and hauled more than 10 million carloads across the country.
How will the railroad strike affect food?
A prolonged rail strike could create all types of shortages, from gasoline to food to automobiles, and cause a spike in the prices of all types of consumer goods.
What is one effect of the railroad strike?
Another recent report put together by a chemical industry trade group projected that if a strike drags on for a month some 700,000 jobs would be lost as manufacturers who rely on railroads shut down, prices of nearly everything increase even more and the economy is potentially thrust into a recession.