Union Pacific Pocketed $91M More in Fuel Surcharges Than It Paid for Fuel in Q2

Union Pacific, the largest US freight railroad, collected $91.1 million more in fuel surcharges from customers than it actually paid for fuel during the second quarter of 2026, according to a filing with the Surface Transportation Board first reported by Reuters.

The gap dwarfs those at rival railroads: STB filings show Norfolk Southern ran a $3.6 million surplus and CSX an $8.4 million surplus over the same period, while other major carriers reported no comparable excess. Union Pacific said the surcharges added roughly 14 cents per share to second-quarter earnings, equivalent to about $83.2 million in profit.

Fuel surcharges are meant to let railroads pass rising diesel costs on to shippers without renegotiating base freight rates. Union Pacific and other carriers raised surcharges this year after fuel prices spiked amid the US and Israeli war against Iran. But the size of Union Pacific's surplus has drawn renewed criticism from shippers, who argue the fees are being used to pad profits rather than simply offset costs.

Union Pacific said fuel surcharges are "a component of the overall cost we negotiate with customers and something they take into consideration when choosing Union Pacific and the service we provide." The disclosure adds to a broader debate over fuel-surcharge transparency in the freight rail industry, with shippers and regulators increasingly scrutinizing whether the fees still track actual fuel costs or have become a quiet source of extra margin.