NASHVILLE, TENN. (RFD NEWS) — Transportation pressure is building across several key farm freight channels, from the Panama Canal to the U.S.-Mexico border. The latest developments point to shifting export routes, higher congestion risk, and continuing cost pressure for grain, fertilizer, and energy shipments.
The Surface Transportation Board approved a proposed short line and bridge project at Eagle Pass, Texas, where Green Eagle Railroad wants to build a second rail crossing to Mexico. Eagle Pass is the top gateway for overland soybean exports to Mexico, but the project still depends on Union Pacific and BNSF agreeing to move traffic onto the new line.
Waterborne shipping is also being reshaped. The Jones Act waiver for fertilizer and energy cargoes was extended for another 90 days, while the Strait of Hormuz closure pushed more energy demand toward the U.S. Gulf and increased congestion at the Panama Canal. Southbound non-reserved waits reached 10.8 days, and Panamax auction prices surged.
At the same time, grain transportation signals stayed mixed. Rail grain carloads rose 8 percent from the previous week, but barge movements fell 11 percent. Ocean grain loadings and expected Gulf vessel traffic both increased from last year.
Diesel prices eased again, but at $5.351 per gallon, they remained well above last year’s levels, leaving transportation costs elevated across the farm economy.
Farm-Level Takeaway: Grain and input movement is still working, but congestion, fuel costs, and route shifts are raising logistics risk.
Tony St. James, RFD News Markets Specialist
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