Plus: Activist investors push for another rail merger, Florida's U-turn crash sparks tighter driver scrutiny from shippers, the top 10 freight brokerages flex their market grip, and more.
A&A’s Top 10 3PLs reflect a sector balancing soft freight demand, tariff trends, and urban logistics hurdles.
Subscriber reports suggest brokers and shippers are tightening driver verification after the Florida crash, with some requiring CDL uploads and even U.S. citizenship checks before booking loads.
CSX faces rising investor pressure for consolidation while launching new intermodal services with BNSF, fueling speculation of coast-to-coast rail mergers after Union Pacific’s $71.5 billion Norfolk Southern deal.
CSX is facing renewed activist investor pressure after hedge fund Toms Capital disclosed a stake in the railroad operator and requested a meeting with its board, according to Reuters. The move comes just weeks after Union Pacific announced its $71.5 billion acquisition of Norfolk Southern, the largest-ever buyout in the U.S. railroad sector.
Toms Capital, led by Benjamin Pass, is known for pushing mergers at companies such as U.S. Steel and Kenvue. While the firm often operates behind the scenes, its latest investment in CSX has raised expectations that it may push the company toward consolidation.
Another activist investor, Ancora Holdings, also urged CSX to pursue a merger or risk a proxy battle. In a letter to CSX’s independent directors, Ancora criticized CEO Joe Hinrichs for “anemic shareholder returns” and “disastrous operational performance.”
“Shareholders cannot afford more missteps as CSX plays catch-up in the rail consolidation race,” Ancora wrote.
CSX said it remains open to all avenues that enhance shareholder value, emphasizing its ongoing commitment to “profitable growth and industry-leading customer service.”
With CSX valued at $68 billion, analysts note that a merger with Warren Buffett’s BNSF, a unit of Berkshire Hathaway, would create a coast-to-coast network valued at more than $200 billion. This follows speculation that Union Pacific’s deal with Norfolk Southern could trigger a wave of industry consolidation.
Even as investors pressure CSX’s leadership, the railroad is pursuing operational expansion through a new partnership with BNSF. In a LinkedIn post, the companies announced joint intermodal services connecting western and eastern markets.
The new services include:
The collaboration expands CSX’s reach while enhancing BNSF’s access to eastern markets, providing shippers with alternatives to trucking at a time of high costs and tightening capacity.
With regulatory signals favoring efficiency and investors pressing for bold moves, rail industry observers see a growing likelihood of further consolidation. For CSX, the dual pressures of shareholder activism and competitive service expansion underscore its pivotal role in shaping the next phase of U.S. freight rail.
Union Pacific’s $85 billion Norfolk Southern merger and Hub Group’s $51.8 million Marten Intermodal deal signal major shifts in U.S. freight, raising questions on competition, costs, and capacity.
Union Pacific and Norfolk Southern are in early potential merger talks
Canadian rail operations to resume Monday amid labor dispute. Teamsters plan legal challenge despite government intervention.
9,000 railway workers locked out in Canada, risking $250M daily losses. Government orders arbitration to end dispute and restart crucial supply chains.
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