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ACC Rail Merger Policy: Competition and Service Reliability

Scott Jensen

Official Policy Position

ACC opposes any freight rail merger that fails to significantly enhance competition. We call on the Surface Transportation Board to uphold the principles of fair competition and reliable service and to strictly adhere to STB regulations in evaluating any proposed mergers. Producing and moving more chemistry here at home is key to growing the economy. We need a competitive and reliable freight rail system that supports American innovation, manufacturing, and global leadership.

Transportation & Infrastructure Pages

ACC opposes any freight rail merger that further harms rail-to-rail competition and service reliability for U.S. manufacturers.

This policy page explains ACC’s position on potential transcontinental rail mergers, the expected impacts on competition, service, and shipping costs, and what regulators should do.

Freight Rail Consolidation and Competition

The American Chemistry Council (ACC) and its members are deeply concerned about the impact of further consolidation in the U.S. freight rail industry. We urge policymakers and regulators to reject any rail merger that does not clearly enhance competition and improve service.

What are the downsides of freight rail mergers?

Monopoly power and loss of rail-to-rail competition: Four mega-railroads now control over 90% of U.S. rail traffic. Many rail customers are already only served by one railroad. A transcontinental merger would all but erase rail-to-rail competition, leaving farmers, manufacturers, and energy producers with even fewer choices.
Service declines after mergers: Past mergers have triggered chronic delays and resulted in diminished service quality and fewer service offerings - disrupting supply chains and hurting the U.S. economy.
Inflated shipping prices from consolidation: The number Class I railroads have collapsed from 23 in 1983 to just 6 today - a more than 70% consolidation that stands among the most sweeping in U.S. transportation history. With competition gutted, shipping costs for farmers, manufacturers, and energy producers have surged. Rail rates have jumped more than 40%, rising twice as fast as trucking and overall inflation, and far outpacing demand or operating costs.

What’s the bottom line?

If policymakers are serious about bringing jobs back to America, fixing broken supply chains, and beating foreign competitors, then we need a rail system that delivers for U.S. manufacturers. That means more rail-to-rail competition, not less. Sustained rail-to-rail competition is essential for U.S. freight rail performance and domestic manufacturing growth.

We urge policymakers to protect competition and ensure reliable freight rail service for American industry.

Frequently Asked Questions

Four mega-railroads now control over 90% of U.S. rail traffic. A transcontinental merger would all but erase rail-to-rail competition, leaving farmers, manufacturers, and energy producers with even fewer choices.

The number Class I railroads have collapsed from 23 in 1983 to just 6 today—a more than 70% consolidation that stands among the most sweeping in U.S. transportation history. With competition gutted, shipping costs for farmers, manufacturers, and energy producers have surged. Rail rates have jumped more than 40%, rising twice as fast as trucking and overall inflation, and far outpacing demand or operating costs.

Producing and moving more chemistry here at home is key to growing the economy. We need a competitive and reliable freight rail system that supports American innovation, manufacturing, and global leadership.

Monopoly power and loss of rail-to-rail competition: Four mega-railroads now control over 90% of U.S. rail traffic. Many rail customers are already only served by one railroad. A transcontinental merger would all but erase rail-to-rail competition, leaving farmers, manufacturers, and energy producers with even fewer choices.
Service declines after mergers: Past mergers have triggered chronic delays and resulted in reduced service quality and fewer service offerings - disrupting supply chains and hurting the U.S. economy.
Inflated shipping prices from consolidation: The number Class I railroads have collapsed from 23 in 1983 to just 6 today - a more than 70% consolidation that stands among the most sweeping in U.S. transportation history. With competition gutted, shipping costs for farmers, manufacturers, and energy producers have surged. Rail rates have jumped more than 40%, rising twice as fast as trucking and overall inflation, and far outpacing demand or operating costs.

The number Class I railroads have collapsed from 23 in 1983 to just 6 today—a more than 70% consolidation that stands among the most sweeping in U.S. transportation history.

Latest News

American Chemistry Council Comments on Union Pacific and Norfolk Southern Merger Announcement Jul 30, 2025

ACC Statement Regarding Impact of Canadian Freight Rail Service Shutdown on Chemical Shipments Aug 22, 2024

ACC Statement Regarding Impact of Canadian Freight Rail Service Shutdown on Chemical Shipments

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