Union Pacific and Norfolk Southern confirmed that they are in “advanced” merger talks that would create a single U.S railroad with service stretching from the East to the West Coast. The Associated Press reported last week that the companies were discussing a tie-up but neither company acknowledged that until Thursday morning.

Stagnant volumes that have shifted to the trucking sector over the years appear to support the arguments for railroad consolidation.

Norfolk Southern (NSC) has experienced a noticeable price increase of 25% over the last quarter. This robust upward movement is largely linked to the ongoing merger discussions with Union Pacific Corporation,