August 15, 2025 (Des Plaines, Ill.) – The International Warehouse Logistics Association (IWLA), which represents third-party logistics (3PL) warehouse operators across North America, holds significant concerns about the proposed merger between Union Pacific (UP) and Norfolk Southern (NS). The association warns that the transaction could harm shippers, reduce service reliability, and further erode competition in the already consolidated U.S. freight rail market.
This merger would mark the second major consolidation of Class I railroads in just a few years, following the 2023 combination of Canadian Pacific and Kansas City Southern (CP-KCS). That merger — the first of its kind in more than two decades — resulted in widespread service disruptions reported by IWLA-member warehouse operators and other supply chain stakeholders. Many of these service issues persist to this day.
“Rail service is a foundation of the warehouse-based supply chain,†said IWLA President & CEO Jay Strother. “Unfortunately, our members experienced firsthand the operational fallout from the CP-KCS merger. There is every reason to believe this larger transaction could create even more disruption — with fewer alternatives available to shippers.â€
The proposed UP-NS merger would reduce the number of Class I railroads from six to five, concentrating nearly 90 percent of all U.S. rail freight with just four carriers. This would leave many 3PL warehouses and their customers with fewer choices, less leverage, and diminished service quality — particularly for “captive shippers†who rely on a single rail carrier to move goods in and out of their facilities.
“The U.S. Surface Transportation Board has a clear responsibility to ensure that any merger enhances competition and serves the public interest,†Strother added. “This proposal, as it stands, appears to satisfy neither.â€
IWLA urges the STB to subject the transaction to rigorous review and to reject the merger unless the applicants can clearly demonstrate improved real outcomes and improvements for the shippers and the supply chains they support — not just theoretical efficiencies.
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Note: Photos are available on request. For more information, please send your requests to blinderman@IWLA.com or call 847.813.4698.
About IWLA: Founded in 1891, the International Warehouse Logistics Association is been the resource for warehouse logistics, advocacy, and education. For more information, visit www.IWLA.com. IWLA, formerly the American Warehouse Association, serves nearly 600 corporate members representing more than 3,000 warehousing locations. IWLA members are integral to the global supply chain, providing expertise in storage, distribution, transportation, and logistics management. IWLA advocates for fair working conditions, secure supply chains, and efficient trade practices to benefit both the logistics industry and consumers.