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.
Traders say that shift could eventually prompt the USDA to scale back soybean export projections, noting the outlook differs greatly for other grain commodities.
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Mike Steenhoek of the Soy Transportation Coalition shares how extreme winter weather is affecting the ag transportation network and what producers should keep in mind as conditions slowly improve.
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