ACC Hails Rail Agreement, Says More Needed To Resolve Freight Rail Problems

Sept. 23, 2022
New agreement averts potential shutdown of the rail network.

ACC and its member companies say they welcome the announcement of a new agreement between railroads and rail labor, which averts a potential catastrophic shutdown of the rail network.

“We commend the railroads and the unions for staying at the table to reach an agreement that satisfies both parties and congratulate them on this important agreement,” says Chris Jahn, president and chief executive officer of the American Chemistry Council, in a press release from the organization. “We also thank the White House for understanding a shutdown of the rail network was unacceptable and appreciate the Administration’s commitment to facilitating a solution.”

He continues, “This agreement helps put one major problem to rest, but we’re certainly not out of the woods yet. The fact remains that Congress and the Surface Transportation Board have more work to do to resolve the freight rail problems that are continuing to put the brakes on the U.S. economy and prolonging the supply chain crisis.”

Freight rail is critical to chemical manufacturing, according to the ACC. About 2.2 million carloads of chemicals reportedly were shipped in 2021 alone – representing 20% of the total volume of chemicals transported in the U.S., supporting jobs and economic activity in industries that depend on chemical products that move by rail.

Over the past year ACC conducted several member surveys to track supply chain and freight rail-related service problems. The results of those surveys find that freight rail service has continued to worsen, which has forced chemical manufacturers to curtail production and shipments, explore other modes of transportation – and in some cases add rail cars to their fleets.

Read the press release at: www.americanchemistry.com

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