Union Pacific and Norfolk Southern propose a merger that could enhance carload shipment efficiency by potentially cutting transit times by up to two days at key gateways like Chicago and New Orleans. This could make rail transport more competitive with trucking, reduce costs, and minimize inventory expenses for shippers. However, skepticism remains among shippers due to past merger disappointments regarding service improvements. Challenges such as congestion and crew availability at interchange points may hinder these proposed benefits, reflecting a history of unmet service promises in the industry.

Source: https://www.supplychaindive.com/news/up-ns-merger-cut-carload-transit-times-shippers-not-convinced/802684/