Norfolk Southern expects rising fuel prices to weigh significantly on its third-quarter results, with CFO Jason Zampi estimating a roughly 250-basis-point headwind to the company’s operating ratio versus expectations two months earlier. The railroad had expected fuel prices to peak around May, but continued increases have changed that outlook, and executives project third-quarter performance to be slightly worse than normal seasonal trends. Norfolk Southern nevertheless continues to gain incremental freight share from trucks and identifies next year’s intermodal contract bidding season as its next major opportunity to move freight from highways to rail. Zampi said customers are “mostly past” tariff uncertainty, which he described as largely a one-time event with no significant ongoing effect on markets such as automotive. He said the conflict in the Middle East remains a greater concern because of its effect on fuel prices and global shipping routes. The proposed merger with Union Pacific is undergoing regulatory review broadly in line with expectations, with the current schedule offering greater visibility into the process.