STB Member Calls UP-Norfolk Southern Merger Application "Shallow" as Board Rejects Dismissal Bid

Surface Transportation Board member Richard Kloster issued a concurring opinion calling the Union Pacific-Norfolk Southern merger application "shallow," lacking detail on competition remedies and offering no meaningful concessions. The full board voted Friday, September 18, 2026, to reject a dismissal request from BNSF, CSX, and shipper groups. The rejection was widely expected, as the case marks the first application of the STB's stricter 2001 merger review rules. Kloster, a Trump appointee, said he was not prejudging the merits, but his skepticism undercuts expectations that the administration would pressure the STB to approve the deal. Separately, North American rail volume rose 4.6% year-over-year in week 37, per Association of American Railroads data. U.S. carloads gained 2.4% and intermodal jumped 6.9%. J.B. Hunt flagged high fuel costs and a drayage driver shortage as headwinds.