Union Pacific posts $91.1 million fuel surcharge surplus, outpacing CSX and Norfolk Southern

August 17, 2026 at 03:03 PM2 min

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Union Pacific collected $91.1 million more in fuel surcharges than it paid for fuel in the second quarter, according to a filing with the Surface Transportation Board. The excess surcharges boosted the railroad's profit, underlining criticism from shippers that surcharges meant to recoup rising petroleum costs from the U.S. and Israeli war on Iran are sometimes excessive.

Key Facts

Union Pacific collected $91.1 million more in fuel surcharges than it paid for fuel in the second quarter, compared with surpluses of $8.4 million at CSX and $3.6 million at Norfolk Southern.
Union Pacific said fuel surcharges added 14 cents per share to second-quarter earnings, equivalent to about $83.2 million in profit based on shares outstanding.
Union Pacific is seeking regulatory approval for an $85 billion acquisition of Norfolk Southern to create the first railroad operator spanning the continental United States.
BNSF, owned by Berkshire Hathaway, said in an STB filing this month that only Union Pacific and Norfolk Southern would benefit from the proposed merger.
The Stop the Rail Merger Coalition, which includes six state attorneys general, rival railroads, labor unions and agricultural and chemical industry groups, says the combined railroad would hold 50% market share of domestic rail freight.

Fuel Surcharge Surplus

Union Pacific collected $91.1 million more in fuel surcharges than it paid for fuel during the second quarter, according to a filing with the Surface Transportation Board first reported by Reuters. Only Norfolk Southern and CSX also had surpluses, of $3.6 million and $8.4 million respectively, during the quarter. Union Pacific said fuel surcharges added 14 cents per share to second-quarter earnings, equivalent to about $83.2 million in profit based on shares outstanding. The company said its year-over-year percentage fuel surcharge increase is in line with the industry, and that surcharge terms are negotiated within overall customer pricing. Some shippers have criticized the surcharges, which are meant to recoup rising petroleum costs due to the U.S. and Israeli war on Iran, as sometimes excessive.

Norfolk Southern Merger

Union Pacific is seeking regulatory approval for an $85 billion acquisition of Norfolk Southern to create the first railroad operator spanning the continental United States. The Stop the Rail Merger Coalition, which includes six state attorneys general, rival railroads, labor unions and agricultural and chemical industry groups, says the combined railroad would have 50% market share of domestic rail freight. The coalition says that concentration would reduce competition and boost shipping costs that consumers ultimately pay. Berkshire Hathaway-owned BNSF said in an STB filing this month that only Union Pacific and Norfolk Southern would benefit from the merger. BNSF added that the resulting company 'will have every incentive and opportunity to apply UP’s longstanding high-price strategies on a national scale,' according to the filing.