LUBBOCK, TEXAS (RFD NEWS) — U.S. grain transportation showed mixed signals late in February as rail volumes softened while barge activity and export shipping remained firm, reflecting shifting logistics demand across export corridors.
Rail traffic weakened week-to-week but remained strong overall. U.S. Class I railroads originated 28,838 grain carloads for the week ending February 21 — down 15 percent from the previous week but up 46 percent year over year and 22 percent above the three-year average. Secondary railcar markets tightened modestly, with March shuttle bids averaging $350 above tariff and non-shuttle bids averaging $29 above tariff.
Farm-Level Takeaway: Logistics remain firm, but freight costs continue to rise.
Tony St. James, RFD NEWS Markets Specialist
River movements strengthened. Barged grain shipments totaled 579,122 tons for the week ending February 28, rising 16 percent from the previous week and 37 percent from last year. Downriver traffic also increased, with 406 barges moving south and unloadings in the New Orleans region up 8 percent.
Ocean demand stayed solid. Gulf exporters loaded 34 oceangoing vessels for the week ending February 26 — up 26 percent year over year — with 48 vessels scheduled in the following 10 days. Shipping rates to Japan were steady from the Gulf and slightly higher from the Pacific Northwest.
Fuel costs rose, with average diesel climbing to $3.897 per gallon, adding pressure to freight margins.
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