Morgan Stanley spots a new productivity catalyst for Union Pacific (UNP). Published November 8, 2026 at 9:38 am EST We just published a list of the 10 Stocks to Watch from Morgan Stanley's Ultra-Selective Tailwinds Strategy, and Union Pacific Corporation (NYSE:UNP) ranked 6th on this list. Artificial intelligence is rapidly reshaping the current corporate landscape. However, the next phase of its economic impact may extend well beyond the companies developing AI models, semiconductors, and data centers.

Upswing in domestic demand gives railfreight operators a revenue boost. Photo: David Johnson 3 November 2026 Union Pacific led the way on the North American containerised rail freight front over the three months to October, amid all the noise surrounding its pending acquisition of Norfolk Southern - but it was not alone in enjoying a bountiful summer. In general, North American intermodal operators benefited from an upswing in domestic freight demand and a continuing tightening in the trucking market, with revenues up for all four of the major carriers. Boasting a 27% year-on-year revenue increase, Union Pacific took home some $1.52bn over the quarter, with volumes up 11%, to 956,000 carloads, and pointing specifically to reduced trucking capacity as behind the gains. EVP marketing and sales Kenny Rocker said: "Domestic delivered its fifth consecutive record quarter in volume and revenue. Its foundation of service, combined with strong business development and deployment of buffer resources enabled volume growth. "International intermodal volumes improved 8%, driven by west coast import volumes and business wins. In automotive, business wins offset continued market softness. We saw strength in auto parts driven by growth with our current OEMs." EVP operations Eric Gehringer added that its intermodal service performance index finished the quarter at 92%, despite volumes increasing 11%, noting it responded to the improving freight market by "unstacking containers and utilising our buffer of resources". Sharing the positivity, CSX also boasted a strong third quarter, with intermodal revenue increasing 20%, to $634m, while volumes climbed 7%, to 820,000 units, attributing gains to landing key customers, new service offerings, and the tighter trucking environment. Chief commercial officer Maryclare Kenney said: "Conversions from the highway remain strong, and the new service offerings through Birmingham, Myrtlewood, Baltimore, and other areas are performing well and attracting new business." She noted that international volumes had been relatively flat, particularly during the latest quarter, but pointed to the completion of full double-stack clearances through the Howard Street Tunnel in Baltimore as another opportunity to attract traffic. "We're very optimistic about the opportunities as we close this year and go into next on the domestic intermodal side," she told investors, adding that the tightening in trucking could prove a boost when yields come up for renewal. Not one to miss out, Canadian Pacific Kansas City (CPKC) also reported double-digit revenue growth in intermodal, up 22% year on year to $583m, as volumes rose 9%, to 489,800 carloads. Together with the increased traffic, stronger pricing likely played its part in driving the improvement for the Canadian operator that saw its revenue per carload increase 12% year on year, to $1,190. There was another CPKC performance in the build-up to those results being released, namely its latest effort to derail Union Pacific's proposed purchase of Norfolk Southern, an intervention described by Premium as "extraordinary". In a 30 October submission to the US Surface Transportation Board, the carrier urged the regulator to terminate its review of the deal, alleging UP's campaign for approval "had intimidated shippers and compromised the integrity of the proceeding". The argument is not whether a coast-to-coast network would raise rates or eliminate competitive routes, but "whether the STB can reach a trustworthy decision if the people who depend on the applicants for rail service are reluctant to testify against them". Meanwhile, Canadian National was the only one of the big four railroads to record a decline in box volumes, as they fell 6% on the same period last year, to 542,000 teu, despite recording a 9% year on year revenue bounce, to $765m. Explaining the drop-off, CN pointing to the decline in international shipments through the ports of Halifax and Prince Rupert, with the upturn in Vancouver traffic insufficient to offset those losses. As to why this did not eat into revenues, it seems the higher income per RTM - 12% up on 2025 to a little over $6 - likely offset the reduction in volumes - although not doing enough to see a clean sweep of revenue and volume growth across all big four operators.

27 companies showed interest in the Istanbul Northern Railway Project tender. RMS Team, which was attacked by a drone, passed through the Istanbul Strait. The Barbados-flagged container ship RMS Team, which was attacked by a Ukrainian drone in the Black Sea on August 21 while sailing from Türkiye's Gemlik Port to Russia's Novorossiysk Port, was passed through the Istanbul Strait. The ship suffered heavy damage in the attack, with fires breaking out in its living quarters, engine room, and deck, and holes forming in sections near the waterline. Eleven of the twelve crew members on board were rescued by the crew of the container ship Lider Perihan, which was sailing nearby, and handed over to the Turkish Coast Guard. One crew member was reported missing. RMS Team's passage through the Bosphorus Strait in Istanbul was filmed. Following the attack, RMS Team, escorted by rescue and support vessels, was first taken to Samsun Port. After the necessary procedures there, it was brought to the entrance of the Istanbul Strait by the Kazım Bey tugboat belonging to PGE Tug Salvage Maritime company. The container ship, towed by tugboats belonging to the General Directorate of Coastal Safety, was escorted through the Istanbul Strait. During the passage, ship traffic in the strait was temporarily suspended. The passage of the RMS Team, which is 146.39 meters long and 23 meters wide, through the strait was filmed from the air by a drone. Discover more Railway News Transportation News Railway Tariff Changes Railway headlines. The Island Line railway line on the Isle of Wight in England was completely closed on October 31st for track refurbishment and infrastructure improvement works. Less than a year after the investment of approximately £3.5 million, it has reopened. Canadian railroad company CPKC has filed a complaint with the U.S. Surface Transportation Board (STB) alleging that statements made by Union Pacific (UP) CEO Jim Vena to transporters undermined the fairness of the merger process regarding the Union Pacific-Norfolk Southern merger. Amtrak Cascades' Seattle-Vancouver time adjustments, effective November 1st, will change the journey times indicated on tickets. Northbound journeys will be five hours, while southbound journeys will be three hours 15 minutes and three hours 15 minutes. Dutch railway infrastructure operator ProRail has moved the historic 1868 station building in Vught, including its basement, 13.6 meters to the east. The operation, carried out on October 30th, marked the return of the station building from its original location after more than 150 years. Rail passenger transport in European Union (EU) countries reached its highest level ever in 2025, totaling 457 billion passenger-kilometers. According to Eurostat data, this represents a 2.6% increase compared to 2024. RailStock Finland, Finland's state-owned railway company, has ordered 21 more Stadler Sm7 electric trains for use in publicly funded passenger transport. The new order is worth approximately €240 million. Indian Railways is launching the new Vande Bharat Sleeper train between Varanasi and New Delhi on October 31, 2026. Designed for overnight journeys, the sleeper train offers two-way travel compared to the existing Shiv Ganga Express. The companies that have shown interest in the tender for the design and construction of infrastructure and superstructure works, including electrification, to be carried out by the General Directorate of Infrastructure Investments (AYGM) within the scope of the Istanbul Northern Railway Crossing Project, approximately 127 kilometers long, have been announced. Minister of Transport and Infrastructure Abdulkadir Uraloğlu inaugurated the Dallıkavak Tunnel and Connecting Roads, as well as the Dadaşkent-Yıldızkent New Generation Interchange, in Erzurum. The 3,105-meter-long twin-tube tunnel bypasses eight sharp bends. Eskişehir Metropolitan Municipality's ESTRAM (Tramway and Rail Road) continues its training programs to strengthen its preparedness for potential accidents and emergencies. Firefighters are receiving technical training on responding to tram accidents, while ESTRAM personnel are also receiving training on occupational safety.