STB Emergency Petition Filed as Supply Chain Faces Disruption

BNSF Railway has escalated a brewing dispute with Union Pacific(UP) by filing an emergency petition with the U.S. Surface Transportation Board (STB), alleging UP is obstructing the launch of a critical new double-stack intermodal service between the Port of Oakland and Salt Lake City.

With the first containers already at origin and CMA CGM depending on the service, the rail standoff has triggered real concerns over immediate cargo delays and long-term market access.

🚆 What's at Stake: Strategic Rail Corridor to Utah

BNSF aims to operate a high-volume intermodal route along the Northern Route, which traverses Northern California and Nevada. However, UP insists the service must use the Southern Route over Donner Pass, where it invested heavily in double-stack infrastructure upgrades back in 2009.

The selected route carries major financial consequences:

• Northern Route: Lower costs for BNSF (crew, dispatching, track access).
• Southern Route: Potentially tens of millions in cost reimbursements to UP.

At the center is not only route preference but control: while BNSF has trackage rights, UP manages the dispatching and supplies traincrews—without which BNSF’s intermodal launch stalls.

🌐 CMA CGM Sounds the Alarm

Ocean carrier CMA CGM, a major stakeholder, warned the STB that the stalemate risks undermining customer trust and commercial investments.

“Our supply chain will be disrupted… including potentially a loss of business,”
– Bob Basila, SVP, CMA CGM

The service was scheduled to begin this week, with freight already delivered to Oakland and the first outbound train prepared to depart Salt Lake City.

🔄 He-Said, She-Said: Timeline Disputes &Allegations

The rail giants are now trading accusations:

• BNSF Claims: UP is retaliating over BNSF’s deals with CMA CGM and another former UP client.
• UP Responds: BNSF failed to give enough notice for proper staffing and operations (only alerting them June 20 for a July launch). BNSF counters it made contact as early as May 2.

UP also raised operational concerns about bi-directional train flow on the Northern Route, noting it primarily supports westbound traffic and that adjusting for full bi-directional service would disrupt existing schedules.

📉 Market Context: A Declining but Vital Corridor

TEU volume between Oakland and Salt Lake City has dropped sharply—from 52,000 in 2020 to just 16,600 in 2024.Still, a rebound to previous levels could justify multiple weekly roundtrips, especially with renewed investment and intermodal service from key players like CMA CGM.

⚖️ What Happens Next?

While BNSF seeks immediate emergency relief, UP argues the matter should follow the standard resolution process under their 2002agreement—meetings, escalation, and mediation, a path that could delay resolution for months.

For now, the logistics community watches closely as the STB weigh surgency against protocol. Shippers, ocean carriers, and intermodal planners are bracing for the potential fallout—because in freight, even short delays ripple far across global supply chains.

🧭 Key Takeaways for Logistics Professionals:

• Expect potential rerouting or delays for West Coast–Intermountain Region cargo in the short term.
• Monitor STB decisions closely—this ruling could shape future Class I rail interactions over shared corridors.
• Assess risk exposure if your cargo moves via Oakland–Salt Lake, especially with CMA CGM.

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