On Tuesday, the White House made contingency plans to ensure critical goods deliveries during the US rail system shutdown. However, the White House also reiterated that railroads and unions must agree to a deal to prevent any impact on freight and passenger service.

Congress is under pressure to step in to avert a labour disruption which could occur as early as Friday if no deal is reached. Notably, the shutdown could cost the US economy $2 billion a day. On Tuesday, US passenger railroad Amtrak started cancelling trains on four long-distance routes and warned of further service cuts. Meanwhile, the White House negotiates with other transportation modes, including truckers and air shippers.

It is to be noted that Unions have already been offered significant pay increases after a presidential board recommendation. However, these are further pushing back on work rules that require employees to be on-call and available to work most days.

The White House has said that a shutdown is unacceptable and would adversely hurt workers, families and businesses. Shutdown-induced widespread railroad disruptions could possibly choke food and fuel supplies, spawn transportation chaos and stoke inflation.