Union Pacific and Norfolk Southern reported increased freight volumes and revenue for the third quarter of 2026, with both major railroads recording growth in shipments compared with the same period last year.

Union Pacific reported quarterly operating revenue of $7.2 billion, a 15% increase, while freight carloads rose 6%. Freight revenue excluding fuel surcharges increased 6%, reflecting higher shipment volumes and pricing gains. The railroad reported net income of $2.1 billion, up 16% from the third quarter of 2025.

Norfolk Southern reported record quarterly revenue of $3.5 billion, an increase of 14%, while freight volume grew 3%. Higher fuel surcharges accounted for eight percentage points of the revenue increase. The railroad reported an adjusted operating ratio of 65.4%, compared with 63.3% a year earlier, indicating that operating expenses consumed a larger percentage of revenue despite the increase in shipments.

Norfolk Southern President and CEO Mark George specifically identified tighter trucking market conditions as a factor contributing to increased demand for rail transportation during the quarter. The results provide a measure of freight activity across two major railroad networks, although the companies' financial reports do not establish how much additional rail volume resulted directly from freight shifting away from trucks.

Kodiak AI says Dallas–Houston will be the first corridor where it removes the safety driver from long-haul freight operations, targeting launch by the end of 2026. The company says recent end-to-end runs on the corridor were completed with the autonomous system doing all driving and the safety observer never touching the wheel or pedals.

Source: Kodiak AI

California requires developers to accumulate at least 1 million autonomous miles before operating a heavy truck driverlessly in the state, but as many as 800,000 miles can be accumulated elsewhere. That means extensive testing in Texas and Arizona can count toward eventual California driverless deployment. 

Source: California DMV

Lowe’s is taking direct control of a distribution center in Plant City, Florida, previously operated by Saddle Creek Logistics Services, affecting 178 positions as the home improvement retailer brings warehouse operations in-house.

The transition affects 128 forklift operator positions, along with 50 other positions at the facility located at 771 S. County Line Road. Employees were given the opportunity to apply for open positions directly with Lowe’s, although the number who applied, received offers or were hired remains unknown. The employment transition was scheduled for October 15.

The Florida transition follows similar changes involving Saddle Creek facilities in other states. In Newnan, Georgia, a customer takeover of warehouse operations included recruitment of existing Saddle Creek employees at a facility identified as a Lowe’s distribution center. A separate customer takeover of a Saddle Creek warehouse has also been reported in Texas. Saddle Creek has stated that the Plant City transition was not related to seasonal demand or declining business levels. The full extent of Lowe’s warehouse insourcing activities remains unclear.

Parallel Systems has raised $100 million in Series C funding to scale production of its third-generation Panther autonomous rail vehicle and push toward full commercial deployment. Founded by former SpaceX engineers, the company is developing battery-electric rail vehicles capable of moving freight containers without conventional locomotives or onboard operators. Parallel says the technology is aimed in part at shorter-haul freight lanes under 500 miles, where trucking currently handles much of the market. The company is already testing the system in Georgia under Federal Railroad Administration oversight and says the new funding will support manufacturing growth and commercial expansion. 

Source: Parallel Systems company announcement / TechCrunch — Oct. 7, 2026.