NASHVILLE, Tenn. (RFD NEWS) — Grain transportation activity delivered mixed signals late in January, with rail demand remaining historically strong, barge movements rebounding week to week, and ocean freight rates continuing to firm. The combination points to steady export demand but rising logistical and cost pressures for shippers.
U.S. Class I railroads originated 31,877 grain carloads during the week ending January 17, down 1 percent from the prior week but still 31 percent higher than a year ago and 26 percent above the three-year average. Railcar availability tightened sharply, with February shuttle secondary bids averaging $750 per car above tariff — $200 higher than the previous week and nearly $600 above last year. Non-shuttle bids remained near tariff, underscoring stronger demand for guaranteed shuttle service.
Barge traffic improved as weather disruptions eased. Grain movements totaled 567,800 tons for the week ending January 24, up 27 percent from the previous week, though still 13 percent below last year. Downbound traffic increased, but unloads at the Gulf declined.
Ocean activity stayed firm, while diesel prices climbed to $3.624 per gallon, adding cost pressure.
Farm-Level Takeaway: Strong rail demand and higher fuel costs raise transportation risk even as barge and export flows stabilize.
Tony St. James, RFD NEWS Markets Specialist
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