Union Pacific collected $91.1 million more in fuel surcharges than it spent on fuel during the second quarter. This surplus contributed approximately 14 cents per share to the railroad's earnings. A Reuters report based on a Surface Transportation Board filing disclosed the excess charges.
Shippers argue the surcharges are excessive and do not accurately reflect rising fuel costs. Union Pacific stated its surcharge increases align with industry standards. The company views these charges as a negotiated component of total customer costs.
The revelation comes as Union Pacific seeks regulatory approval for an $85 billion acquisition of Norfolk Southern. Opponents of the deal cite concerns regarding reduced competition and higher shipping rates.