BNSF Railway chief Katie Farmer cautioned that the proposed $85 billion merger between Union Pacific and Norfolk Southern would trim competition and lift freight rates. The rail titan warned that a single carrier dominating the Midwest could squeeze shippers.

Farmer said the consolidation would curtail service options for shippers that rely on competitive pricing across the Great Lakes corridor. She cited past rate hikes triggered by limited carrier choices, noting that a monopoly could replicate the 2018 spike when a single operator raised prices by 10% in key hubs.

Industry analysts estimate the deal would create a network covering 47,000 miles of track, giving the merged entity control over 60% of east‑west freight traffic. Investors worry that higher rates could squeeze margins for manufacturers and increase costs for consumers who depend on rail for raw materials.

Regulators will weigh Farmer’s warning against the potential efficiency gains cited by the carriers, such as streamlined operations and lower capital costs. The U.S. Department of Transportation must finalize its antitrust opinion before the merger can close, adding a deadline that may reshape the rail industry's competitive landscape.