Talk Track Episode 17 with Guest, Tom Madrecki, Consumer Brands Association
Rail freight is built into how consumer brands make the products in your pantry. Tom Madrecki of the Consumer Brands Association joins Talk Track to break down tariffs, freight data policy, the UP–NS merger + why shipper costs could spike in 2027.
About this Episode:
Peanuts, barley + a good deal of the brands in your pantry: plenty of what’s on your shelves rode a train to get there. In this episode of Talk Track, David sits down with Tom Madrecki, Senior Vice President for Public Affairs at the Consumer Brands Association, to unpack how America’s largest domestic manufacturing sector moves its goods by rail freight + where policy either helps or hinders.
The conversation covers how the CPG industry weathered a year of tariffs, lessons from the COVID era, the case for a national freight data portal + what shippers are watching in the UP–NS merger. Tom also makes a prediction worth coming back to: rising freight costs could hit shippers hard between March and June 2027. Listen in now, then check back next spring to see whether he called it right!
Episode Chapters
- List Item #1
- List Item #2
- List Item #3
00:07 Welcome to Talk Track
01:03 Meet Tom Madrecki + the Consumer Brands Association
02:26 How consumer brands use rail freight
05:33 A year of tariffs: how CPG brands adapted
09:09 Is trade policy finally stabilizing?
11:21 Supply chain lessons from COVID-19
16:16 An office of supply chain, FLOW + a national freight data portal
19:03 Can AI + data optimize freight networks?
20:03 Freight rail performance, safety + the UP–NS merger
22:32 Why the merger will face unprecedented data scrutiny
24:59 Above the fold: rising freight costs in 2027
27:00 The B side: the untold CPG affordability story
Key Takeaways:
Rail is built into how consumer brands manufacture
Many CPG companies have rail lines running directly into their plants. Barley + wheat arrive for beer, peanuts arrive for peanut butter, and freight rail performance decides whether those facilities can run. Other brands use rail intermodal to move goods between hubs, then rely on trucking for the last mile.
Domestic sourcing helped CPG brands weather tariffs
Up to 90% of the inputs in a CPG product come from US farms + suppliers. Tariffs still raised costs for imported inputs like coffee, cocoa + spices, and for specialty manufacturing equipment, but recognition of “unavailable natural resources” in trade policy helped the industry adapt.
Trade policy is stabilizing, transportation is not
Tom expects current tariff policies to stick around, which makes trade more predictable for businesses. Transportation is moving the other way: the shipper’s market is ending, and costs are getting harder to predict.
FAQs
Why do CPG companies use rail freight instead of trucking?
CPG products are typically affordable, low-margin + high-volume, so rail’s efficiency over long distances helps keep shipping costs down. Most brands use rail + trucking together, with trucks handling the last mile.
Will freight costs rise in 2027?
Tom Madrecki predicts shippers will see sharp freight cost increases between March and June 2027. His reasoning is that transportation costs lag behind broader inflation + energy prices, and the freight market is turning against shippers.
How could the UP–NS merger affect rail shippers?
Shippers historically worry that rail consolidation could weaken service performance or raise rates. The UP–NS merger is under heavy Surface Transportation Board review, with the largest evidentiary record of any proposed rail merger.
Full Episode Transcript
To be added.
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