Ask Ahab 85

Issue 85

Dear Ahab:

I’ve been reading the news on the announced merger between Norfolk Southern and Union Pacific railroads. What will this deal mean for me? Should I be worried, or excited?

– Merger Minded

Dear Merger Minded:

For starters, service should be more reliable as cargo won’t have to transfer between the two railroads at crucial, congested chokepoints like Chicago, Kansas City, Memphis, or St. Louis. In some cases, your cargo will travel cross-country on a single line.

While everyone is anxious to see how this deal changes rail freight rates, the reality is we won’t know that answer for quite some time. However, even if the merger does not result in any discernable drop-in rates, there still may be some money-saving opportunities that you may be able to take advantage of thanks to a more seamless rail system.

Nevertheless, while it is good to be thinking about how this merger will benefit you, understand that it may take a few years before you experience any benefits because the governing body that is responsible for reviewing and approving this merger, the Surface Transportation Board, is not fully staffed.

Dear Ahab:

I recently read that there was a 45% increase in emissions from E.U. container ships last year. How’d emissions increase this much in one year, and how does the shipping industry rebound from this gassy year to get its ecological goals back on track?

– Green is Good

Dear Green is Good:

I’ll begin by saying that emissions went up last year due to the increased length of many maritime voyages. The attacks by the Houthi Rebels forced commercial vessels to traverse a longer route, around the Cape of Good Hope, which helped cause global container vessel emissions to increase by a whopping 14% in 2024. This increase in CO2 emissions surpassed that of 2021.

However, the thing about any disruption to the supply chain is that it eventually ends. When this disruption ends, it will most-likely bring the shipping industry’s number back down to 2023 levels. Additionally, with carriers also taking steps to further reduce emissions by purchasing vessels that use cleaner fuels, such as liquified natural gas, it seems like it is only a matter of time before industry’s ecological goals get back on track.