Cowen sees rising risk of rail strike

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Cowen analysts said Wednesday that the likelihood of the first US rail strike since 1991 is about 30% following statements from union members earlier this week. “Channel checks suggest customers are already moving freight off the rails as strike risk rises,” analyst Jason Seidl said in a research note. Back in September, when a possible work stoppage ahead of the midterm elections loomed, Seidl estimated a roughly 15% chance of a rail strike. While Congress appears motivated to intervene when the strike occurs, Seidl said he is seeing “obvious dogma on both sides that is fueling animosity” and that strike sentiment is growing and shippers are taking action. The president of the Association of American Railroads said Monday that “the window is narrowing as the deadline rapidly approaches” and that the companies are open to negotiating new agreements with the unions. Association members Warren Buffett’s BNSF, Union Pacific Corp. Worked at UNP
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Credit: www.marketwatch.com /

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