Grain Transportation Mixed As Rail Slows, Barges Surge

Logistics capacity remains available, but winter volatility favors flexible delivery and marketing plans. NGFA President Mike Seyfert provides insight into grain transportation trends, trade policy, and priorities for the year ahead.

NASHVILLE, Tenn. (RFD NEWS) — U.S. grain transportation showed sharply mixed signals heading into early January, with rail volumes retreating while barge movement rebounded strongly after late-December weakness. The pattern reflects seasonal volatility rather than a breakdown in logistics capacity, according to the latest USDA Grain Transportation Report (PDF Version).

U.S. Class I railroads originated 24,757 grain carloads during the week ending December 27, down 14 percent from the previous week. Despite the decline, rail volumes remained 7 percent above last year and 16 percent above the three-year average, signaling underlying demand for rail service remains intact. Secondary shuttle railcar premiums dropped sharply to $526 per car above tariff, easing more than $300 week over week, while non-shuttle premiums fell to $19 above tariff — a sign of improving near-term rail availability.

Barge traffic moved in the opposite direction. Grain movements totaled 757,876 tons for the week ending January 3, up 87 percent from the prior week and 8 percent above last year. More barges moved downriver, and unloadings in the New Orleans region surged, reflecting renewed export flow.

Ocean shipping remained softer, though freight rates to Japan declined, offering some cost relief.

Farm-Level Takeaway: Logistics capacity remains available, but winter volatility favors flexible delivery and marketing plans.
Tony St. James, RFD News Markets Specialist

Grain transportation networks are sending mixed signals as the new year begins, with rail and barge traffic moving in opposite directions. Rail carloads fell 14 percent in late December, while barge grain movement surged, up 87 percent last week and running eight percent ahead of the same time last year.

At the same time, the upcoming review of the U.S.-Mexico-Canada Agreement (USMCA) is drawing increased attention from farm groups, particularly those involved in the grain and oilseed supply chain.

Mike Seyfert, president of the National Grain and Feed Association (NGFA), joined us on Monday’s Market Day Report to discuss the importance of the agreement and current industry issues.

In his interview with RFD-TV News, Seyfert explained the impact of the U.S.-M-C-A on the grain and feed sector and why access to cross-border trade markets is critical for the industry. He also shared his perspective on whether the renewal process presents an opportunity to strengthen grain trade between the three countries.

Seyfert also weighed in on the recent reintroduction of the HAULS Act, which Senator Deb Fischer discussed on the program last week, and outlined how the legislation could benefit agriculture and the broader supply chain. Looking ahead, he discussed other top issues facing the grain industry as the year progresses, and previewed NGFA’s annual convention, which will be held in Nashville in March 2026, and highlighted what attendees can expect at the event.

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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.

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