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
Jed Bower, the incoming president of the National Corn Growers Association, joined us for his sector’s perspective on the ongoing government shutdown.
Treasury Secretary Scott Bessent last week said an announcement would be made on Tuesday. However, that self-imposed deadline has now passed.
Plan for a cooler global trade market in 2026 with tighter margins on exports, potential rate shifts, and premiums for reliable deliveries into Asian and African growth markets.
George Baird, with the American Society of Farm Managers and Rural Appraisers (ASFMRA), joins us with updates on how this year’s rice harvest is shaping up.
Dr. Todd Davis, Chief Economist with the Indiana Farm Bureau, shares a snapshot of his state’s harvest conditions and insights from producers.

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:

Lewis Williamson with HTS Commodities joined RFD-TV’s Market Day Report to share insight into what’s happening on the ground and in the markets.
Expect choppier basis and wider bids — hedge earlier, keep logistics flexible, and watch Argentina and India headlines for near-term opportunities.
Even in this strong market, some beef producers are leaving money on the table by not following proven marketing practices.
Treat storage as risk management and logistics, and budget to break even since export growth is unlikely to absorb bigger U.S. corn and soybean crops.
For rural borrowers, freeing up community-bank balance sheets could mean steadier home loans, operating lines, and ag real-estate financing as winter planning ramps up.
The American Farm Bureau Federation (AFBF) is urging Congress and the Trump Administration to act quickly on behalf of American agriculture.