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
Crop producers face tightening credit and lower incomes, while strong cattle markets continue to stabilize finances in livestock-heavy regions.
Row crop losses in 2025 are outpacing last year. With no disaster aid yet approved, many operations face a tough financial bridge to 2026 even as Farm Bill improvements remain a year away.
Experts say farmers and ethanol producers would benefit from a risk-based ILUC system that protects forests without relying on speculative modeling.
Bangladesh recently pledged to purchase 700,000 tons of U.S. wheat and has also become a new buyer of American soybeans.
Ethanol exports are expanding on strong demand from Canada and Europe, while DDGS shipments remain broad-based and supportive for feed markets.
Dalton Henry, with U.S. Wheat Associates, joined RFD-TV to provide insight on what the pending trade frameworks may mean for American wheat growers.

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:

The Environmental Protection Agency confirms that new single-fluorinated pesticides are not PFAS and remain fully compliant with current safety standards.
Strong demand supports sweet potatoes, but grading challenges and rising costs weigh on returns for Southeastern growers.
Pressure on grain storage capacity and stronger export positioning are pushing more grain onto railroads, highways, and river systems as logistics become a key bottleneck this fall.
The Cotton-4 are pushing hard for new value chain investments. Still, many U.S. cotton producers face unsustainable losses, and weakened regional textile capacity threatens the survival of the Carolina “dirt-to-shirt” supply chain.
Late harvest and tight supplies shape crop progress and agribusiness this week. Here is a regional snapshot of harvest pace, crop conditions, logistics, and livestock economics across U.S. agriculture for the week of Dec. 1, 2025.
Cargill’s commitment to keep plants open helps preserve competition as Tyson removes capacity amid historically tight cattle supplies.