But as we move into 2026, "steady" is being replaced by structural shifts. For example, AI is no longer a "nice-to-have." This technology will define 2026 and beyond, but the adoption in our industry seems light so far. What problems can AI solve in the rail industry? Feel free to chip in with your comments below.
And then there is the once in a century move: The UP-NS Merger
The most seismic shift on the rail horizon is the pending Union Pacific (UP) and Norfolk Southern (NS) merger. This isn’t just a corporate deal; it is the creation of the first transcontinental railroad in U.S. history with the high probability to cause a domino effect of future mergers.
Union Pacific (UP) and Norfolk Southern (NS) have touted the benefits of Coast-to-Coast Seamlessness. By linking the West Coast, Midwest, and Eastern Seaboard under one banner, the merger aims to eliminate the notorious "interchange delays" in hubs like Chicago and New Orleans. A 50,000-Mile Network that spans 43 states and connects ~100 ports, this unified network is expected to shave days off transit times and potentially pull 400 million tons of freight per year away from long-haul trucking.
Whether these and other public interest benefits presented in the 6,700 page merger applications will materialize, remains to be seen after a lengthy STB review. The Competitive Response will force a total rethink of North American logistics, likely triggering a competitive response from BNSF, CSX, and possibly CN and CPKC.
How is your rail supply chain adapting to the new reality? We look forward to your thoughts in the comments.