Union Pacific turns fuel surcharges into profits as rivals lag
UNP•Union Pacific collected $131.8 million more in fuel surcharges than it paid for fuel in the third quarter, adding 15 cents per share to earnings. In the first nine months of 2026, its surcharge collections exceeded fuel costs by $188.1 million, while BNSF’s trailed costs by $922.4 million.
1. Quarterly surcharge surplus
Union Pacific collected $131.8 million more in fuel surcharges than it paid for fuel in the third quarter, boosting earnings by 15 cents per share. It had collected $91.1 million more than fuel costs in the prior quarter, adding 14 cents per share to earnings.
2. Nine-month comparison
From January through September, Union Pacific collected $2.81 billion in fuel surcharges, exceeding its fuel costs by $188.1 million. BNSF’s surcharge collections fell $922.4 million short of its fuel costs over the same period.
3. Different surcharge thresholds
The US Department of Agriculture said Union Pacific starts recovering fuel costs through surcharges when fuel reaches $2.30 per gallon, compared with $3.25 for BNSF. Its November 2026 surcharge was 84 cents per mile, versus 61 cents for BNSF.
