The Union Pacific Corporation and Norfolk Southern Corporation’s (UP-NS) merger proposal, filed in December, could impact supply chain operations for the commercial cleaning industry. According to Progressive Railroading, the Alliance for Chemical Distribution (ACD) expressed concerns regarding the potential impact the merger will have on chemical distribution countrywide. As freight rail remains a secure method in transporting cleaning chemicals, the Association of American Railroads reports nearly 100 percent of hazmat shipments arrive safely via rail; any changes to the transportation industry have implications for distribution.

A key criticism is that the merger centralizes control, impeding consumer choice in how to export products, FreightWaves shares. In a statement given by the American Chemistry Council (ACC), the proposal eliminates the existing limited, competitive options for shipping by rail. Additionally, economic, trade, and policy changes have adversely affected the chemical industry, Energy & Industrials says, resulting in increased operational costs for commercial cleaning executives, a LinkedIn article by Stephen Ashkin adds.

Currently, the Surface Transportation Board (STB) is inviting the public to comment on the UP-NS application. While UP-NS believes the merger will streamline pricing for customers, others worry about increased rates and service disruptions, MSN states. In a letter of dissent, 40 chemical companies shared their opposition to the proposal, as affirmed by BNSF Railway.