Union Pacific and Norfolk Southern’s merger proposal aims to streamline rail networks, significantly impacting supply chains by minimizing truck transfers in Chicago. Currently, approximately one million shipments annually rely on trucking due to inefficiencies in lower-volume routes. The merger, pending regulatory approval, could create a coast-to-coast rail service that bypasses Chicago, reducing delays and costs associated with drayage. While some intermodal challenges may persist, the merger is expected to enhance service and potentially increase intermodal traffic by up to 25%, as single-line services become more favored.

Source: https://www.supplychaindive.com/news/union-pacific-norfolk-southern-transcontinental-rail-merger-speed-intermodal-shipments-chicago/759083/