Last updated October 23, 2025 at 9:33 am ET
In August 2025, Union Pacific and Norfolk Southern – two of the largest Class I freight railroad companies – announced an $85 billion merger.
As one of the largest customers of freight rail in both volume and revenue, the chemical industry relies on the rail system to transport products essential to Americans’ health and safety. Freight rail is still – by far – the safest method of shipping, with 99.9% of hazmat chemicals shipped by rail arriving at their destination safely. Unfortunately, ACD members are typically serviced by only a single rail carrier, subjecting them to high freight rates, capacity constraints, and ongoing service issues. Despite deteriorating service, railroads are rarely held accountable for supply chain disruptions caused by extensive monopolies and an outdated regulatory system.
This needs to change. It’s time to make American rail accountable.
ACD remains deeply concerned that approval of this rail merger would only exacerbate existing challenges and further expand the rail industry’s market power and profit margins to the detriment of its customers.
The Surface Transportation Board (STB) will play an important role in approving or rejecting the rail merger agreement. ACD encourages the STB to ensure freight rail customers have access to competitive, efficient, and reliable rail service. The board must uphold its high bar of merger review rules, which requires an agreement “enhance competition” and serve the “public interest.” Given that the rail industry is already highly concentrated and the continued failure around improving service, this merger is unlikely to meet either of these standards.
If you have questions or would like to get involved in ACD’s advocacy around this issue, please reach out to Nicholas Breslin at nbreslin@acd-chem.com.
File Your Letter with the STB
File Your Letter through ACD
The resources on this webpage are intended for member education. If you’re interested in using this information for media coverage or want to learn more about the impact of the NS-UP rail merger on the chemical distribution industry, please reach out to ACD Public Affairs Manager, Susannah Williams at swilliams@acd-chem.com.