US Regulators Scrutinize Proposed Rail Merger, Port Efficiency Measures Underway

## Regulators Weigh Risks and Benefits of Rail Merger Dozens of U.S. Senators and Representatives have urged the Surface Transportation Board (STB) to carefully review the proposed merger of Union Pacific and Norfolk Southern railways, according to FreightWaves. In a letter to the STB, the lawmakers stated that the agency should only approve the deal if it can 'find real benefits' that outweigh the potential risks to competition and service. The proposed $106 billion merger would create the second-largest freight railroad in the U.S. by revenue. However, some lawmakers have expressed concerns that it could lead to reduced competition, higher prices, and poorer service for shippers. The STB is currently evaluating the merger application and is expected to make a decision later this year. ## Port of NY/NJ Tackles Absenteeism with Stricter Policies The Port of New York and New Jersey is using its new longshore labor contract to address the issue of chronic absenteeism, reports the Journal of Commerce. Marine terminals have implemented stricter attendance policies, resulting in the first longshore worker dismissals at the port. The move is part of broader efforts to boost productivity and efficiency at the busiest port complex on the East Coast. Union leaders have supported the new measures, recognizing the need to address longstanding problems like high absenteeism that have hindered the port's performance. Improving reliability of the labor force is seen as crucial to handling growing cargo volumes. ## Winter Weather Disruptions Spike Spot Truck Rates Severe winter weather across the U.S. in recent weeks has led to a sharp spike in spot market truckload rates, according to the Journal of Commerce. The disruptions caused by snow, ice, and frigid temperatures have rivaled the impacts seen in February 2021, which kicked off a year-long surge in rates for shippers. 'The shock in spot market rates after the recent snowstorm and frigid temperatures has rivaled the severe winter weather of February 2021, which kickstarted an entire year of rising rates for shippers,' the article states, citing data from freight analytics firm Truckstop.com. The volatility underscores the vulnerability of freight transportation networks to extreme weather events, which can quickly tighten capacity and drive up costs for shippers. Industry experts say the latest disruptions highlight the need for more resilient supply chains.