Proposed rail merger targeting 2 million truckloads of freight annually takes big step

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Updated Jun 4, 2026

Trucking news and briefs for Friday, May 29, 2026:

Major rail merger closer to completion

Federal regulators have accepted a merger application from Union Pacific Corp. and Norfolk Southern Corp., a major step toward creating a transcontinental railroad that seeks to sap 2 million truckloads of freight annually.

The Surface Transportation Board’s (STB) decision moves the proposal into a 12-month merits-based review. While the board requested additional information on the amended application, both companies reiterated their commitment to work with regulators and expect to finalize the transaction in mid-2027.

STB turned down the railroads' proposal in January, ruling that the $85 billion deal lacked sufficient proof of public benefit. Though Union Pacific and Norfolk Southern submitted a revised plan on April 30, the Surface Transportation Board found parts of it remain vague and gave the companies until July 27 to provide more details.

Rail executives say the combined network will lower costs and improve reliability for American businesses.

"We are confident this merger will deliver more reliable and lower-cost transportation options for American businesses," Union Pacific CEO Jim Vena said, adding that the proposal is backed by a detailed integration plan.

[Related: Knight-Swift backs rail mega merger]

According to the application, which used traffic data from all six North American Class I railroads, the merger would remove an estimated 2.1 million truckloads from roads annually by offering a stronger alternative to long-haul trucking. The companies project the shift from truck to rail will save shippers $3.5 billion annually.

To address regulatory concerns, the companies are offering "Committed Gateway Pricing" to maintain competitive options for customers who do not directly benefit from the new single-line service.

The companies also project the merged network will create roughly 1,200 net new union jobs by its third year. The plan includes a "jobs-for-life" guarantee, ensuring all union workers employed at the time of the merger retain their positions.

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The application has drawn support from more than 2,000 stakeholders, including customers, ports, and labor organizations. The board has one year from its acceptance publication date to complete evidentiary proceedings.

[Related: Rail merger targets 2 million truckloads of freight annually]

DHL eCommerce, USPS enter $10 billion linehaul agreement

DHL eCommerce and the U.S. Postal Service have signed an unprecedented, multi-year contract for last-mile parcel delivery services valued at more than $10 billion, the companies announced Thursday. 

The exclusive agreement marks the largest deal in the 25-year relationship between DHL eCommerce and USPS. It aims to position both organizations for long-term growth amid accelerating e-commerce trends.

Under the partnership, DHL eCommerce handles nationwide pickup, sorting across its 19 automated hubs, and transport via its air and ground network. USPS then completes the final mile of delivery, leveraging a network that reaches more than 167 million delivery points across 41,550 ZIP codes six days a week.

Executives said the collaboration creates a stable platform for retailers while promoting sustainability by reducing the number of delivery vehicles on the road.

"Working with USPS allows us to serve communities nationwide in a highly efficient way, minimizing additional vehicles on the road and supporting our commitment to reducing emissions," said Scott Ashbaugh, CEO of DHL eCommerce Americas.

The deal comes as the Postal Service undergoes a broader network modernization.

"By aligning more closely with our transformed network, we are creating a stronger, more efficient last-mile solution that expands customers’ access to the Postal Service’s unmatched reach," Postmaster General David Steiner said.

DHL eCommerce, a division of Germany-based DHL Group, focuses on shipping for medium- to high-volume business-to-consumer online retailers. 

Shell Starship participates in Indy 500 parade

The natural gas-powered Shell Starship over Memorial Day weekend took part in the 500 Festival Parade prior to the running of the Indianapolis 500, showcasing real-world applications of fuel efficiency technologies.

The rig appeared alongside floats, marching bands, giant balloons and all 33 Indy 500 drivers in a nationally recognized parade in downtown Indianapolis that attracts more than 200,000 spectators each year.The rig appeared alongside floats, marching bands, giant balloons and all 33 Indy 500 drivers in a nationally recognized parade in downtown Indianapolis that attracts more than 200,000 spectators each year. 500 Festival

Shell Starship is part of the NTT IndyCar Series and has traveled more than 10,000 miles transporting the IndyCar Administrative Trailer since the race season began in early March.

Powered by natural gas and lubricated with Shell Rotella engine oil, Shell Starship stands as a real-world example of how advanced, lower-emission freight technology can show what is possible in commercial trucking efficiency.

[Related: Ride along in Shell's third generation Starship]

20 illegal immigrants discovered in truck’s sleeper

The Texas Department of Public Safety (DPS) recently recovered 20 illegal immigrants hidden inside the sleeper compartment of a semi-truck during an Operation Lone Star traffic stop in Webb County near Laredo.

On Monday, May 18, just after 6 p.m., a DPS Trooper conducted a traffic stop on a white Volvo tractor-trailer on I-35 near mile marker 28.

During the stop, the driver attempted to flee on foot but was immediately arrested.

A search of the Volvo revealed 20 illegal immigrants concealed in the sleeper.

The driver, Miguel Angel Velazquez Chavez, 25, a Mexican national, was charged with evading arrest and smuggling of persons. He was booked into the Webb County Jail. The 20 immigrants, including four minors, from Mexico and Guatemala, were referred to the United States Border Patrol.

Texas DPS’ Criminal Investigations Division (CID) continues to investigate the case.