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“ As we move into the next chapter of our industry , we must have the tools needed to compete in an ever-changing transportation landscape and the ability to utilize technology to build a safer , stronger railroad .”
Jim Vena
“ As the industry continues to face these market headwinds in 2025 , companies must zero in on factors they can control — optimizing costs , enhancing cash flow and meeting shipper needs with flexible , efficient solutions .”
Derek Leathers
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Union Pacific
Jim Vena
CEO www . up . com
The railroad industry and our entire sector must continue to lean into innovation and review developing technologies to examine if they will further our goal to improve safety and provide customers with the best , most efficient and cost-competitive products and solutions .
The history of our industry is one of growth and evolution . That history is reflected in the significant advancements made over the decades to improve safety , strengthen our infrastructure and build a highly skilled workforce . I am excited for the future and the promise new technologies hold to enhance safety , make our industry even more sustainable , and improve reliability and ease of doing business for our customers .
priorities and change regulations . Notwithstanding that impact , let ’ s focus on sustainability .
Relaxed or eliminated federal policies on emissions will be welcomed by the industry , yet globally and here at home , consumers and shippers still mandate cleaner Scope 3 emissions and net-zero targets . Freight , cars and buses emit nearly 30 % of greenhouse gases in the US , so there will be friction , uncertainty and fewer solutions for shippers .
The US freight industry is expected to reach $ 1.67 trillion by 2030 , with trucks handling 80 % of that . Globally , freight demand is expected to double by 2050 .
Significant friction is likely to exist between Trump administration efforts , global corporations , states such as California and New Jersey ,
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Seventy-five years ago , diesel locomotives replaced steam locomotives , enhancing safety and customer experience . Today , emerging technologies — some powered by artificial intelligence — hold the potential to revolutionize our industry once again .
As we move into the next chapter of our industry , we must have the tools needed to compete in an ever-changing transportation landscape and the ability to utilize technology to build a safer , stronger railroad . We must continue innovating how we work , using technology and new processes to provide great opportunities to our workforce while getting the most out of the infrastructure and assets that make up our networks and systems .
If our long history has taught us anything , it ’ s that you can ’ t — or shouldn ’ t — hold back progress or stifle innovation , no matter how much you love the sight and sound of a steam locomotive .
the EU , and other mandates impacting vehicle manufacturing and usage of cleaner fuels .
How will manufacturers , truckers and shippers navigate the “ climate ” of Trump 2.0 ? Might Elon Musk ’ s new closeness with the presidentelect — and a potential Musk role in the Trump administration — soften this impact ?
Will the oil industry see a boost in demand ? Will the push for sustainability under Trump slow the shift toward cleaner emission vehicles , such as biodiesel , electric vehicles , hydrogen fuel cells and alternative fuels ? Or will the market for these technologies and the many billions of dollars of investment in them continue to drive up demand ?
Carbon dioxide reductions can be achieved through a comprehensive
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approach to freight service procurement and technological advances . Shippers have just begun using and experimenting with some of the tools in our belts to reduce emissions .
These big questions regarding sustainability initiatives within freight will keep investors , the oil industry , Wall Street , shippers , manufacturers , truckers , cargo lines and other transport providers on the edge of their seats , and with a close eye on their investment strategies .
Werner Enterprises
Derek Leathers
Chairman and CEO www . werner . com
The biggest challenge facing US surface transportation in 2025 will be navigating the lingering effects of the unprecedented freight downturn , which has reshaped market dynamics and pressured operating margins across the industry .
To stay resilient , companies must adapt by focusing on cost efficiency and strategic investment . For Werner , this has meant implementing structural changes that reduce operating expenses while positioning us for sustainable growth .
Our emphasis on a diverse set of high-performing solutions — such as dedicated , one-way and cross-border services — has demonstrated adaptability and durability and allowed us to strengthen our position in a challenging market .
As the industry continues to face these market headwinds in 2025 , companies must zero in on factors they can control — optimizing costs , enhancing cash flow and meeting shipper needs with flexible , efficient solutions . By staying the course with proven strategies and prioritizing investments that yield operational savings , we are not only prepared to weather the storm but to drive growth and secure our competitive advantage amid the evolving freight landscape .
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