Trains, Trucks, and Supply Chains

But back to the strike and its potential impact. Note that this is, of course, related to the fact that there are two supply chains: one efficient, one responsive. Rail is “efficient,” and truck is “responsive.” If the efficient one goes on strike, the responsive one has to increase its price to accommodate the excess demand, making it even more costly for the products that tend to require cost efficiency —and supply chains have not fully recovered from COVID— so a 30% decrease in the “cost-efficient” capacity can be devastating.