Analog/Mixed Signal

From rail to trucks: How tech is dealing with the railway strike

01 December 2022

With a looming railway strike on the horizon, technology companies, including semiconductor suppliers, are turning to trucks to avoid any supply chain disruptions.

According to a report from CNBC, tech companies have already started shifting cargo to trucks in pre-strike preparations. The cargo being sent to trucks include semiconductors that are used in virtually everything from automobiles to data servers to consumer electronics and everything in between.

DHL Global Forwarding told CNBC that the rail strike, which could begin on Dec. 9, could have impacts on operations including delays and related detention and demurrage charges. DHL is looking at container locations and moving import boxes out of rail yards as a contingency.

Logistical hot spots of rail congestion may take place in Dallas and Fort Worth where cargo from the East and West coasts collate. As well as El Paso, Texas, which is a big destination for cargo going in and out of Mexico.

The rail strike may happen if no agreement is reached between unions and rail companies. Congress could intervene to introduce legislation to stop the strike or lockout as well as to set terms of the agreements between the parties.

The bigger issue is that the supply chain is already dealing with impacts from geopolitical issues, lingering inflation, weakening economy and a potential oversupply of semiconductors after years of a chip shortage hindering companies’ ability to get enough parts. A rail strike would be one more thing to add to this list of problems impacting the global electronics value chain.

To contact the author of this article, email PBrown@globalspec.com


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