🎣 UP-NS Merger Hits Wall

Happy MLK Day. Union Pacific’s proposed merger with Norfolk Southern has been rejected by the STB, forcing the railroads back to the drawing board.

Plus:

• FMCSA Broker Pay Rule Takes Effect
• USA Truck Returns to Private Ownership
• Global Trade Slows; Costs Stay High

🍳 What's Cookin' In Freight

⏰ FMCSA Broker Pay Rule Takes Effect. FMCSA's broker financial responsibility rule took effect Jan. 16, giving the agency power to suspend brokers who fail to maintain the $75,000 bond. FMCSA said the rule targets brokers who withhold carrier payments and allows immediate suspension if funds are not restored within seven days. Owner-Operator Independent Drivers Association President Todd Spencer said it helps ensure truckers “get paid what they’re owed.”

💼 USA Truck Returns to Private Ownership. USA Truck is operating again as a privately held company following its sale by DSV to Arkansas-based UTA, LLC. CEO George Henry said the move restores USA Truck’s U.S.-based identity and allows faster, more flexible decision-making. “The extensive knowledge and global supply chain insights gained…are now a permanent part of our operational DNA,” Henry said. Founded in 1983, USA Truck runs about 1,800 trucks and serves more than 20% of the Fortune 100.

🌎 Global Trade Slows; Costs Stay High. UNCTAD said global trade growth will slow in 2026, citing weak economic expansion, rising tariffs, and shifting supply chains. The agency pegged global growth at 2.6% and warned policy uncertainty is discouraging investment. Echoing the strain, Suzanne Clark said the U.S. outlook “feels expensive,” pointing to inflation, regulation, and economic uncertainty. UNCTAD flagged tariffs and national trade policies as key forces reshaping trade flows this year.

Together With Chain

50+ brokerages use Chain instead of growing nearshore tracking teams

Not testing.
Not piloting.
AI that actually works.

Chain does what your tracking reps do today:

• Check calls
• TMS updates
• POD collection
• And more

It just doesn’t sleep.

It doesn’t churn.
And it doesn’t grow your cost to serve.

UP-NS Merger Hits Wall

The Surface Transportation Board (STB) unanimously rejected the Union Pacific–Norfolk Southern merger application, ruling it incomplete under federal regulations.

The decision does not block the merger outright, but it resets the regulatory process.

UP and NS must revise the filing and resubmit it before any substantive review can begin.

Why the STB Rejected It

In its press release, the STB said the application failed to include information required under 49 C.F.R. Part 1180, including:

• Projected post-merger market share data, not just historical figures
• A full system impact analysis showing competitive effects beyond closing
• The complete merger agreement, including schedules and exhibits

One missing document, known as Schedule 5.8, defines conditions that would allow Union Pacific to walk away from the deal if regulators impose burdensome requirements.

The STB said those materials are mandatory because they may affect competition analysis.

Union Pacific’s Position

Union Pacific CEO Jim Vena continues to argue the merger benefits customers.

Speaking to shippers, Vena said the combined network would:

• Reduce switching and handoffs
• Speed coast-to-coast freight
• Simplify billing and customer service
• Enable growth by shifting truck freight to rail

Creating America’s First Transcontinental Railroad

Discover how Union Pacific & Norfolk Southern transaction builds a transcontinental rail network, driving growth across 43 states & 100 ports.

Union pacific and norfolk southern combination

Union Pacific said it will provide the additional information requested by the STB and plans to refile.

The Response

Rival railroads welcomed the decision. Zak Andersen, Chief of Staff and Vice President of Communications at BNSF, said in an email to FreightCaviar:

“We applaud the STB's decision to reject the UP/NS merger application based on the application lacking core information critical to determining the proposed merger’s impact on competition."

What’s Next

The STB directed Union Pacific and Norfolk Southern to notify the Board by February 17, 2026, whether and when they intend to refile.

Any revised application will trigger a new completeness review, restarting the regulatory clock.

The bottom line: The merger remains alive for now, but regulators are demanding a fuller, more detailed case before it moves forward.

Together With OTR Solutions

Free yourself from back-office chaos.

With OTR Solutions, brokers get true automation and access to working capital, so you can focus on moving freight, not managing paperwork.

• Access your margin within 24 hours
• Outsource billing, AP, and AR
• Leverage flexible working capital

Powerful back-office solutions that scale with your brokerage.

 🌎 Around The Freight Web

❌ Texas CDL Revocations. Texas has revoked roughly 6,400 commercial licenses since Nov 2025 in its bid to follow current immigration policy changes.

🤖 Driverless TMS. Aurora and McLeod has delivered the industry’s first direct connection between driverless trucks and a TMS.

📦 FedEx Freight Split. FedEx set financing plans and named a board for its FedEx Freight spinoff, advancing preparations to separate the LTL business from the parent company.

📈 December Spot Lift. Spot truckload activity rose in December, helping end 2025 on a firmer note as capacity tightened and seasonal freight moved through year-end networks.

🚢 Imports Edge Up. Descartes reported U.S.-bound container imports finished 2% higher in 2025 YoY.

🎣 THE FREIGHT CAVIAR CORNER

• FreightCaviar Podcast: We sat down with David Spencer, VP of Market Intelligence at Arrive Logistics, to discuss navigating a volatile freight market, his outlook for Q1, and how AI is shaping freight strategy. Catch the episode on YouTube, Spotify, or Apple Podcasts.
• Now Hiring: Western Reserve Logistics Group is looking for a remote Logistics Account Manager.

FREIGHT HUMOR