News

USALCO is informing its customers of the potential for supply disruptions from a possible labor strike that may impact U.S. Railroads as early as September 16. A strike or lockout would significantly affect USALCO’s ability to procure raw materials, produce, and deliver our products to our customers nationwide. While the outcome of the potential strike is outside of our control, we are preparing by increasing our raw material inventory and engaging with Legislators and Industry Trade Groups to urge immediate government intervention to avoid a work stoppage. Key points of consideration:

1. Embargoes and safety measures are already underway from multiple Railroad lines to secure and reduce the amount of Safety Sensitive Materials like Hydrochloric and Sulfuric Acid in their network that would be unattended during a work stoppage. This will reduce the amount of material available to USALCO.
2. 10 out of 12 unions have agreed to new labor contracts, but two have not reached an agreement. This impacts 90,000 rail employees across the major Rail providers.
3. If a strike occurs, the transportation industry will not be able to support the absorption of the rail movements within the industry. One day of train movements would equate to additional 480,000 additional trucks to move these goods.
4. If a strike occurs, this will create a significant impact on the economy at a projected cost of $2 billion per day.

USALCO is committed to our customer’s success, and we continue to pursue all avenues that might result in reducing any customer supply disruptions. If you have any questions, please reach out to your Sales Representative.