Trucking

Proposed Rail Merger Faces Scrutiny Over Shipper Relations as Officials Weigh Network Benefits

A major freight rail combination under regulatory review could eliminate 2.1 billion long-haul truck miles annually from U.S. highways, according to analysis of the proposed deal's potential impact on cross-country logistics networks.

The merger aims to eliminate cross-country handoffs and reduce millions of long-haul truck miles for American exporters and temperature-controlled cargo operators.

However, the Surface Transportation Board is investigating whether company executives made statements discouraging shippers from opposing the transaction. The railroad has characterized remarks about rate adjustments as informal comments rather than formal policy.

Backlogs at major West Coast ports underscore capacity constraints in the current system. Nearly 35,700 import containers awaited on-dock rail service at Los Angeles and Long Beach recently, with railcar shortages hampering inland cargo movement despite record volumes.