US rail-strike threat puts critical fertilizer shipments on hold

A looming US railway strike has already halted shipments of a critical fertilizer ingredient at a time when American farmers need it the most. 

Rail officials are no longer shipping ammonia, an important component of about three quarters of all fertilizer, because it would be dangerous if the hazardous material was stranded during a potential rail strike, according to the Association of American Railroads. Ammonia is used in explosives as well as being an essential nutrient for plants.

While the average consumer rarely thinks about fertilizer, it can make or break crop production. Global food prices have touched records in recent months as inflation ripples through economies and hunger levels rise. The cost of growing food in the US is set to rise by the most ever in 2022.

Any rail disruptions would come at a time of peak demand. After the latest crop is harvested, North American farmers will need to apply fertilizer to replenish nutrients in the soil that are lost during the growing season. The chemicals are already scarce because plants have shut down in Europe due to the energy crisis there, and the war in Ukraine is hampering shipments. 

“The fertilizer industry is dependent on rail service, which is an integrated transportation system in North America, and disruptions can have outsized impacts,” said Kayla FitzPatrick, a spokeswoman for Fertilizer Canada, which represents distributors, retailers and manufacturers that also serve the US. “It is crucial North American fertilizer supply does not face supply chain disruptions and add to a tight market.”

Fertilizer companies expect slowdowns will impact shipments starting this week, FitzPatrick said.