The potential merger between Union Pacific and Norfolk Southern has put a spotlight on the future of intermodal transportation in the United States. While mergers of this scale often promise network efficiencies and expanded service footprints, they also bring serious questions about competition, service reliability, and long-term impacts on port operations. These questions are now front and center for many organizations connected to the ocean freight and drayage ecosystem.

One group that has stepped forward with detailed concerns is the National Association of Waterfront Employers, also known as NAWE. Representing marine terminals and stevedoring companies across the country, NAWE argues that consolidating two of the nation’s largest railroads could risk creating a less competitive environment and ultimately weaken intermodal service at ports that already feel the weight of growing cargo volumes.

At Century Express Virginia, we follow developments like this closely because upstream rail decisions eventually shape what happens on the ground at the ports we serve. Reliable intermodal performance is a cornerstone of an effective supply chain. When rail service becomes inconsistent, delayed, or insufficiently integrated with terminal operations, it affects every link in the chain from ocean carriers to truckers to shippers. Understanding the implications of a Class I merger is critical for any business that depends on efficient cargo movement.

In this analysis, we break down what NAWE is saying, why the concerns matter for ports of all sizes, and how the stakes could influence the future of intermodal service at gateways including the Port of Virginia. We also offer perspective on what shippers and logistics partners should watch closely as the Surface Transportation Board reviews the merger proposal.

Why NAWE is Sounding the Alarm About the UP–NS Merger

In its letter to the Surface Transportation Board, NAWE outlines a central concern. Reducing the number of Class I railroads through this merger could limit choices for shippers and reduce competitive pressure to maintain strong intermodal service at ports. The United States has already consolidated significantly compared to past decades when many more railroads operated nationwide. Less competition often leads to fewer incentives for improvement across service reliability, infrastructure investments, and network flexibility.

Ports depend heavily on rail partners to help maintain the flow of containers inland. When rail service falters, terminals experience mounting congestion, vessel schedules slip, and trucking operations become less predictable. NAWE argues that many marine terminals already face inconsistent intermodal support. They say railroads often operate on a best-efforts basis rather than providing the integrated, predictable service levels that terminals require.

Their letter highlights that precision scheduled railroading and an emphasis on high operating ratios have increased financial efficiency for railroads but may have reduced operational responsiveness. Marine terminals that handle rising trade volumes need rail partners who can adjust to conditions, both planned and unplanned.

Challenges Facing Marine Terminals When Rail Commitment Is Limited

A significant portion of NAWE’s concerns focuses on the imbalance in investment responsibilities. Marine terminals have invested heavily in building and expanding on dock rail infrastructure. These projects cost millions of dollars and require long term planning. Terminals build rail yards, staging tracks, crane infrastructure, and technology systems designed to streamline intermodal movement. Once these assets are in place, terminals rely on railroads to operate consistently so the investment delivers value.

NAWE states that the railroads sometimes take an approach similar to: if you build it, the railroad might use it when convenient. This approach puts an unfair burden on terminal operators who are expected to finance, maintain, and operate the infrastructure without receiving guaranteed levels of service.

This imbalance affects not only ports but also the logistics companies that work within port ecosystems. Century Express Virginia supports port fluidity every day through services such as port drayage, reefer drayage, rail drayage, transloading, yard facility storage, and specialized equipment solutions. When rail service is inconsistent, every other connection in the chain must work harder to keep cargo moving. NAWE’s position highlights how vital it is for railroads to participate as true partners in port operations.

What the Merger Could Mean for Medium and Smaller Ports

One of the most important points in NAWE’s statement is the need to grow intermodal capacity at medium sized ports. Much of the national freight volume runs through major gateways like Los Angeles, Long Beach, New York, and Savannah. However, medium sized ports across the country offer strong opportunities for growth and allow shippers to diversify routing decisions. The Port of Virginia is an example of how fluid operations and strong inland connectivity can compete with the largest coastal gateways.

According to NAWE, an UP–NS merger could concentrate more international intermodal cargo at already busy ports. If a combined railroad prioritizes established high volume corridors, smaller and medium sized ports may see fewer opportunities to attract inland cargo. Instead of increasing competition, the merger could funnel freight into fewer channels, weakening supply chain resiliency.

At Century Express Virginia, we understand the importance of balanced freight distribution. The Port of Virginia has grown into a national supply chain leader because of its operational fluidity, forward looking investments, and commitment to efficiency. Rail connectivity is a crucial part of that success. Any shifts in the competitive landscape that reduce flexibility for port partners or limit market reach can shape outcomes for shippers across the region.

The Need for Stronger Partnerships Between Ports and Railroads

NAWE emphasizes that intermodal growth will not be achieved by infrastructure alone. It requires commitment, collaboration, and a shared understanding of service expectations. Ports that invest in rail yards, cranes, staging tracks, and gate technology need assurance that their rail partners will utilize those assets to their fullest potential.

When railroads operate without firm commitments to service levels, terminals face uncertainty. That uncertainty can ripple outward, affecting steamship schedules, trucking operations, and inland distribution centers. Medium sized ports in particular continue to struggle to secure meaningful commitments from the railroads. Yet these ports offer tremendous untapped potential for shippers who want access to less congested gateways with strong inland reach.

For true intermodal growth, ports need rail partners who share both responsibility and vision. A merger that shifts market power without reinforcing partnership structures could slow progress where it matters most.

What This Means for the Broader Supply Chain

A merger between Union Pacific and Norfolk Southern is not just a rail industry story. It affects ocean carriers, marine terminals, drayage companies, trucking partners, warehouses, and shippers. Every stakeholder relies on predictable inland movement. Rail is a vital connector between port complexes and inland markets. Any decrease in reliability, capacity, or competitive tension could create bottlenecks throughout the supply chain.

Shippers already face volatility in freight costs, inventory planning, and global market trends. A disruption or degradation in intermodal reliability could intensify those challenges. NAWE’s concerns represent an effort to ensure that the Surface Transportation Board evaluates the long-term implications of merging two major railroads with the necessary scrutiny.

A Century Express Virginia Perspective

From our position in the drayage and freight handling ecosystem, we understand how critical rail performance is to the fluidity of port operations. The Port of Virginia relies on consistent inland connections and maintaining that performance will depend on competitive rail service, modernization, and cross industry collaboration.

Shippers depend on supply chain partners who can deliver predictable results. Rail service reliability is essential for maintaining those expectations. As the industry watches the UP–NS merger review unfold, shippers should stay informed about potential impacts on inland routing options, intermodal schedules, and capacity planning.

Century Express Virginia remains committed to helping customers navigate changes across the logistics landscape. Whether through drayage, transloading, equipment services, or storage solutions, our focus is on providing stability, responsiveness, and expertise in a supply chain that continues to evolve.

The national drayage market may look loose on the surface right now , plenty of trucks available, softer import volumes, and rates still well below the highs of 2021 and 2022. But that picture is misleading. Capacity that looks available today can disappear very quickly once regulatory enforcement shifts from “on paper” to “in practice.” We’ve seen this happen before, especially in port environments where drayage capacity is more fragile than many shippers realize.

The latest federal action around non-domiciled CDLs and English-language proficiency requirements is a real wildcard. West Coast carriers will feel it first, but the ripple effect will travel inland and eventually to the East Coast, including the Mid-Atlantic and Virginia.

Here in the Port of Virginia, importers tend to see stability and assume drayage will always be available when they need it. But the math can change quickly when large chunks of driver workforce are suddenly removed from the road.

At Century Express, we operate daily inside port environments, we hear the concern from drivers, terminal operators, and shippers first-hand. We’re not speculating; we’re watching the shift develop in real time.

A Quick Breakdown of What’s Changing

Federal regulators are now enforcing:

• A halt on issuing non-domiciled CDLs in California
• A review of existing non-domiciled licenses
• English-language proficiency enforcement tied to CDL eligibility

For years, these rules were technically “on the books” but not strongly enforced. Now enforcement is active, and that’s the difference.

Historically, when enforcement tightens:

1. Small fleets suffer first
2. Owner-operators exit faster than expected
3. Container movement slows at the terminal level
4. Reliability disappears before price increases

These changes don’t hit capacity evenly. They hit ports first, because port trucking is the most compliance-sensitive portion of the trucking industry. When you remove dray drivers, you don’t just lose trucks, you lose terminal familiarity, appointment reliability, and chassis efficiency.

This is exactly why we believe drayage can’t be treated as an afterthought anymore.

Why This Matters to Importers in Virginia , Even Though the Rule Started in California

It’s easy to assume “that’s a West Coast issue.” But when drayage gets tight in Los Angeles/Long Beach, the carriers who would normally reposition assets eastward, don’t. And carriers who normally service multiple ports prioritize whichever market tightens first.

That’s exactly how East Coast congestion built up in 2022: not because volume spiked, but because chassis, drivers, and equipment got trapped upstream.

Once drayage gets squeezed, the slowdown cascades into every other part of the supply chain.

This is why we invest heavily in stable, local drayage operations here in Virginia. We don’t rely on transient labor or repositioned drivers from other states. When enforcement wipes out marginal capacity in other regions, the carriers with consistent, locally rooted port drayage are the ones who remain unaffected.

What Happens When Enforcement Tightens

The early warning signs start long before shippers see a missed pickup:

By the time shippers feel the shortage, the scramble has already started.

The importers who secure stable drayage capacity before the tightening are the ones who avoid storage, demurrage, and delivery delays.

Local Strategy: Why We Maintain Integrated Port Operations

Because the chokepoint begins at the port, true resilience comes from more than having a truck and a driver. You need control of the process from vessel discharge through final delivery.

That’s why we don’t treat drayage as a standalone service. Our approach integrate

• Port Drayage
• Transloading
• Heavy Cargo Permitting 
• Specialized Equipment
• Yard Storage

When capacity tightens, importers with end-to-end coverage avoid congestion because cargo keeps moving even if another link in the chain is under pressure.

Transloading and Warehousing: The Pressure Valve When Drayage Tightens

When we see early capacity strain, one of the first strategies we activate is transloading. By pulling containers off terminal property and moving freight into short-term or strategic storage, shippers regain control of timing.

This is why our transloading services are critical to uptime in any high-regulation environment.

Transloading dramatically reduces exposure to:

• Port dwell fees
• Demurrage
• Missed appointments
• Lost driver allocation

When drayage gets tight, importers who transload early keep their freight moving while others wait for trucks that no longer exist.

Container Storage Protects You During Sudden Regulatory Bottlenecks

Even when freight doesn’t need to move immediately, containers need to leave the port before fees begin stacking. That’s where container storage becomes a strategic shield. Storage plus transloading equals flexibility, which is the exact opposite of the vulnerability created by a shrinking driver pool.

When drayage capacity is restricted, flexibility is what separates “protected freight” from “trapped freight.”

What We Expect Through 2026

We don’t believe the fallout will be felt all at once. Instead, we anticipate a slow tightening followed by a sudden drop , much like 2021. The difference this time is the cause isn’t volume; it’s regulation.

As import volumes normalize, those who haven’t secured reliable partnerships will be the first to feel the shortage. There won’t be time to react after capacity disappears.

That’s why we are preparing now, not when headlines start appearing around port slowdowns.

What Shippers Should Be Doing Today (Practical Checklist)

• Identify which freight is most vulnerable to port delays
• Secure a dedicated drayage allocation before enforcement accelerates
• Use transloading to get boxes off terminal property faster
• Stage freight close to port or inland delivery points
• Keep buffer capacity through container storage
• Partner with a provider that can handle final mile execution, not just port pulls 

How Century Express is Preparing Proactively

We are already:

• Maintaining stable local driver capacity, not dependent on transient CDL pools
• Strengthening terminal familiarity and dispatch continuity
• Expanding integrated port + inland solutions
• Protecting customers with inland storage and off port transloading capacity

Because we’re a Virginia-based operation built inside the port ecosystem, we’re insulated from the high-attrition shock other regions will face. Our reliability is rooted in locality, not contingency.

The Bottom Line

Today, it still feels like there’s “plenty of capacity.” But compliance-based capacity loss doesn’t show up on a rate sheet , it shows up in service failures. By the time a shipper notices it, the available buffer is already gone. The importers who treat drayage as a strategic function  not a last-minute transaction, will be the ones who stay ahead of the enforcement curve.

And we’ll be here to keep freight flowing when the tightening begins.

To learn more about how we’re preparing and how we protect shippers during volatility, visit our About Us page or reach out to our operations team.

Virginia is solidifying its position as a critical logistics hub on the East Coast, and at Century Express Virginia, we’re not just watching — we’re deeply involved. With our full suite of services, from port drayage to specialized equipment and yard storage, we’re helping shape how goods move in this rapidly evolving ecosystem.

Strategic Location and Infrastructure: Virginia’s Natural Advantage

Virginia’s geographic assets are making it one of the most attractive supply chain nodes in the U.S. With direct Atlantic access, deepwater ports, improved rail connectivity that reaches into the Midwest, and quickly growing warehousing capacity, the state is drawing major investment in distribution. These assets reduce transit times and costs, making Virginia a preferred gateway for both domestic and international freight.

At Century Express Virginia, we leverage all of this. Our port drayage service ensures that containers arriving at ports are moved efficiently to rail or road transport. Our rail drayage capabilities connect inland rail ramps with key origin and destination points. Because we operate year‑round and often 24/7, improvements in Virginia’s infrastructure directly support our ability to deliver faster, more reliably.

Distribution Center Growth: More Square Feet Means More Movement

In 2025 alone, multiple large-scale distribution and fulfillment centers are coming online in Virginia — spanning locations such as Suffolk, Chesterfield, and Virginia Beach. These facilities bring millions of square feet of warehouse space, robotics automation, and fulfillment operations.

That’s critical for Century Express Virginia because as warehousing expands, so does the demand for downstream services like transloading, yard storage, and specialized equipment. Whether it’s moving full containers or breaking them down, storing freight temporarily, or using forklifts, lifts, or other gear, our flexible equipment and facility options let us adapt to varying cargo types and seasonal demand.

Infrastructure Investments: Enabling Efficiency

Virginia is pushing ahead with channel deepening at its ports, new cranes and gateway investment programs, expansions at the Virginia Inland Port, improvements in truck staging and rail linkages, and better permitting for heavy loads. These upgrades help reduce congestion and container dwell times — the delays that can ripple across the entire supply chain.

For us at Century Express, those improvements mean smoother port drayage flows, fewer bottlenecks when picking up or dropping off near terminals, and better turnaround times. This allows our clients to rely on consistent scheduling for time‑sensitive freight, particularly for refrigerated or hazardous loads, which cannot tolerate delays.

Workforce, Policy & Collaboration

Virginia isn’t only investing in concrete and steel; it’s investing in people, planning, and coordination. Grants for site readiness, workforce training programs, and closer coordination among state agencies and local governments are helping create a predictable policy and regulatory environment.

This matters to Century Express Virginia because services like hazmat drayage, heavy cargo permitting, and specialized equipment are deeply regulated. Having a workforce trained in safety and compliance — and regulatory clarity — means fewer delays, fewer surprises, and better service integrity.

What Century Express Virginia Offers in Today’s Supply Chain Landscape

Virginia’s logistics growth offers many opportunities — and many challenges. Here’s how we provide value and how our specific services fit into the picture:

Port Drayage – Moving containers from the Port of Virginia to rail yards or warehouses with speed and reliability, reducing wait times at terminals.

Rail Drayage – Bridging the gap between rail ramps and final destinations; crucial as rail capacity and demand increase.

Refrigerated Drayage – Keeping cold chain intact when moving perishables from port or rail to distribution centers, especially with food‑distribution facilities expanding.

HAZMAT Drayage – Safely transporting hazardous materials requires expertise and compliance, critical in regulated environments.

Heavy Cargo Permitting – As large, heavy, or over‑dimensional loads move through the system (machinery, equipment, large containers), having robust permitting processes helps avoid delays.

Specialized Equipment – The ability to use the right gear (like lift‑gates, chassis types, power units) means adaptability — we can handle many cargo types.

Transloading – Relieving capacity issues by moving goods across modes (rail to truck, etc.), allowing clients to minimize dwell time and storage costs.

Yard Storage – Buffer space when goods arrive earlier than needed, or to stage freight during peak periods or during infrastructure delays. A key flexibility tool.

Looking Forward: What this Means for Shippers & Manufacturers

With Virginia’s enhanced infrastructure, rising warehouse capacity, and supportive regulations, the state is becoming more than just a corridor — it’s a destination and launching point for goods flowing across North America.

For businesses planning supply chains, that means better options: more reliable timing, closer proximity to markets (especially on the East Coast), and multiple modal choices (sea, rail, road). Century Express Virginia is positioned to help make those supply chains smoother: we combine the services above with deep local expertise, 24/7 availability, and the flexibility to scale as demand shifts.

Virginia’s strategy is clear: build the capacity; improve the connections; ensure compliance and efficiency. At Century Express Virginia, we’re ready to move with it, helping clients benefit from every improvement. If you’re exploring expansion plans, cold chain logistics, or heavy cargo movement, we’re here — from port to rail, with the right equipment and permits, around the clock.