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Railroad Merger Hits Snag; DHL, USPS Sign Multiyear Delivery Deal; Stellantis Plans New Vans, Trucks By Mark R. Long | WSJ Logistics Report

The Surface Transportation Board is hitting pause on its review of the proposed merger between Union Pacific and Norfolk Southern, imperiling the timetable of a $71.5 billion deal

that would create a transcontinental rail giant.

The STB said it needed more information to "thoroughly evaluate" the railroads' revised application . The board said it accepted the application but paused the merger review, including an environmental review, and will later publish a schedule for the rest of the proceeding.

Customers and rivals have argued the tie-up, announced in July, would raise freight prices and curb competition. The companies say marrying the two networks

would speed up shipping, make supply chains more efficient and reduce bottlenecks at interchange terminals.

The board ordered the two railroads to submit more details in the next 60 days, such as how competition would be enhanced and what would change for shippers that have fewer railroads to choose from.

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Last-Mile Delivery

DHL eCommerce, a unit of DHL Group, signed a multiyear deal with the U.S. Postal Service to have the agency deliver its last-mile parcels. They previously signed single-year contracts, but the Postal Service has been looking to be more accommodating

to its large customers, in part by signing multi-year deals, the Journal's Esther Fung writes.

The stability of the longer-term agreement will help DHL eCommerce expand in the U.S., while USPS says the deal will bring in more than $10 billion in revenue. DHL eCommerce directs hundreds of millions of parcels to USPS every year for final-mile delivery, since it doesn't have its own ground network in the country-and doesn't plan to build one. The yellow DHL planes and trucks handle faster, international deliveries for DHL Express.

Commercial Vehicles

Jeep maker Stellantis said it will launch 11 new commercial vehicles by 2030 as part of a strategic plan to strengthen its position in the sector, the WSJ's Dominic Chopping writes. The plan includes the rollout of new midsize and large van platforms that will provide different powertrain options , including battery electric, hybrid and combustion engine technologies.

As part of the model refreshes, the Stellantis Pro One unit will launch an updated small van, renew a compact van, and introduce two new battery-electric powertrains across the lineup. It is also renewing the Fiat Strada and Fiat Toro small and compact pickups in South America, and plans to introduce the new Ram Rampage to North America, as well as renew that region's full-size pickup line.

Number of the Day In Other News The U.S. economy grew at a 1.6% annual rate

in the first quarter, revised down from 2%, the Commerce Department said. (WSJ) Orders for durable goods grew by 7.9% in April

to $346 billion, after a 1.3% increase in March, a second consecutive monthly increase, the Commerce Department said. (WSJ) The Federal Reserve's preferred gauge of monthly price increases-the personal-consumption expenditures price index -climbed by 0.4% in April from March, with core PCE prices rising by 0.2%. (WSJ) The European Union fined Temu $232.5 million, saying consumers in the bloc were very likely to come across illegal items

on the Chinese e-commerce company's platform. (WSJ) The EU opened a foreign-subsidies probe

into Chinese e-commerce giant JD.com's planned $2.6 billion takeover of German retail company Ceconomy. (WSJ) Uber Technologies increased its stake

in Delivery Hero, bolstering its position in the German food-delivery company days after making an $11.63 billion takeover approach. (WSJ) Averitt is planning to invest an estimated $313 million to open new facilities in Kentucky and North Carolina

in 2028. (TruckingDive) Atlas Air Worldwide agreed to acquire a 49% equity stake

in Iceland-based Air Atlanta, a provider of aircraft, crew, maintenance and insurance leasing services. (Air Cargo News)

In this week's podcast: The escalating fight over prediction markets after Minnesota moved to criminalize many operations; plus the enormous water demands of data centers in an increasingly drought-stressed America. New episodes every Friday on Apple Podcasts , Spotify

and Amazon .

About Us

Mark R. Long is editor of WSJ Logistics Report. Reach him at [mark.long@wsj.com]. Follow the WSJ Logistics Report team on LinkedIn: Mark R. Long , Liz Young and Paul Berger .

This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

May 29, 2026 07:02 ET (11:02 GMT)

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