UP+NS merger reshapes U.S. freight rail dominance

The UP+NS merger creates a powerhouse in U.S. freight rail, with combined 2024 data showing unmatched control across multiple commodity categories. This is reported by the railway transport news portal Railway Supply.

The analysis uses carload data sourced from this report, aggregating volumes for all six Class I U.S. railroads. Canadian Pacific and Kansas City Southern were grouped as CPKC. Results were ranked by total commodity volume to reveal competitive advantages.

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UP+NS merger leads in intermodal and chemical transport

The UP+NS merger gives the new entity 46% of the intermodal container market, far surpassing BNSF’s 30%. In chemicals, UP+NS controls 49%, with CSX trailing at 18%.

This pattern continues across other sectors. The merged railroad holds 47% of the market for motor vehicles and equipment, while CSX captures only 23%. It also dominates in crushed stone, grain mill products, food, and industrial commodities like metals and clay.

UP+NS merger pressures industry rivals to consolidate

Altogether, UP+NS would control 43% of total U.S. carload volume, leaving BNSF at just 27%. This imbalance could force BNSF and CSX to consider their own merger to stay competitive.

Because of its scale, the UP+NS merger will likely face scrutiny from the Surface Transportation Board. Shippers may raise concerns about service diversity, pricing power, and network access.

The ripple effects could reshape North American logistics. Agricultural exporters, automakers, and chemical producers will closely monitor this shift. The industry may soon face fewer, but far larger, players.

This potential consolidation wave raises key strategic questions. Will regulators allow such dominance? And will rivals act fast enough to match UP+NS?

Source, photo: www.railwayage.com

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