Grain Transportation Improves as Rail Surges, Diesel Falls

Stronger rail movement and lower fuel prices are easing logistics, even as export pace and river conditions remain uneven.

NASHVILLE, Tenn. (RFD-TV) — U.S. grain transportation showed mixed but generally supportive signals in early December as rail volumes strengthened, barge movement rebounded, and fuel costs eased. Higher rail originations and lower diesel prices are helping offset seasonal logistical challenges for producers and shippers.

Class I railroads originated more than 30,700 grain carloads for the week ending December 6, up 20 percent from the prior week and well above both last year and the three-year average. Shuttle railcar premiums declined from the previous week but remain elevated compared with a year ago, while non-shuttle markets softened below tariff levels, signaling improved near-term availability.

Barge traffic also recovered sharply. Grain movements totaled nearly 888,000 tons, up 62 percent week over week, as more barges moved downriver. However, unloadings in the New Orleans region fell, reflecting lingering river and weather-related constraints.

Export loading remained slower than last year, with fewer vessels scheduled at Gulf terminals, though ocean freight rates to Japan edged lower from both Gulf and Pacific Northwest origins. Diesel prices declined nearly six cents per gallon, offering modest cost relief.

Related Stories
The review signals renewed scrutiny of China’s agricultural trade pledges and could reshape farm export opportunities depending on its outcome.
Export volumes remain positive year-to-date, but weaker soybean loadings and slowing wheat movement hint at early bottlenecks in global demand or river logistics. Farmers should watch basis levels and freight conditions as export competition heats up.
John Appel with the Farmers Business Network (FBN) joins us for a closer look at the 2026 Crop Protection Market Outlook Report.
Industry leaders representing more than 40 nations gathered to discuss the future of ethanol and other corn-based products.
Farmers display a unique optimism — planting with the expectation that weather, basis, and prices will improve by harvest — asserting that the profession is an identity, not just a job.
A fast-moving series of trade signals from the White House and key partners is resetting the near-term outlook for U.S. agriculture.
Stay alert for trade announcements—especially border reopening timelines, tariff threats, and developments in Brazil’s export flows.
Margin Protection and the new MCO add county-level margin tools — with earlier price discovery, input cost triggers, and high subsidy rates — to complement on-farm risk plans for 2026.
Set targets and use forwards, futures, or options to manage downside while preserving room for rallies.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Strong U.S. yields and steady demand leave most major crops well supplied, keeping price pressure in place unless usage strengthens or weather shifts outlooks.
Retail competition and improved supplies are helping offset food inflation, pushing Thanksgiving meal costs modestly lower despite higher prices for beef, eggs, and dairy.
While agriculture doesn’t predict every recession, the sector’s long history of turning down before the broader economy
The ACRE Act modestly reduces farmland borrowing costs now, with more savings possible once federal guidance clarifies which loans qualify.
ARC-CO delivers the bulk of 2024 support, offering key margin relief as producers manage tight operating conditions.
Higher menu prices and tax-free tips are reshaping restaurant economics, sharply lifting server take-home pay even as diners face higher out-the-door costs.