Rail Strength Partially Offsets Seasonal Grain Transportation Slowdown

Rail strength is helping stabilize grain movement, but river and export slowdowns continue to limit overall logistics momentum.

NASHVILLE, Tenn. (RFD-TV) — Grain transportation ended December with mixed signals as strong rail performance partially countered sharply weaker river and ocean movement. The latest Grain Transportation Report from the U>S. The Department of Agriculture (USDA) reports capacity remains available, but usage continues to shift by mode as winter conditions and export timing influence flows.

U.S. Class I railroads originated 28,750 grain carloads during the week ending December 20, up 1 percent from the prior week and 8 percent higher than a year ago. Rail volumes were also 10 percent above the three-year average, reflecting continued demand for rail service even as overall grain movement softens late in the year. Shuttle rail car premiums declined to $863 per car above tariff, down $202 from the previous week, while non-shuttle premiums eased to $38 above tariff, signaling modest short-term capacity relief.

Barge movement weakened further. Grain shipments totaled 404,341 tons, down 20 percent from the prior week and 57 percent below the same period last year. Fewer barges moved downriver, and unloadings in the New Orleans region dropped sharply, reflecting reduced export demand and winter river constraints.

Ocean shipping also slowed, with fewer vessels loaded and scheduled compared with last year. Diesel prices fell to $3.50 per gallon, offering limited but welcome cost relief.

Farm-Level Takeaway: Rail strength is helping stabilize grain movement, but river and export slowdowns continue to limit overall logistics momentum.
Tony St. James, RFD-TV Markets Specialist
Related Stories
Restored base acres strengthen cotton risk protection.
Record Choice grading levels are changing how beef quality premiums are valued.
The closure of Lubbock Feeders highlights mounting pressure on the U.S. cattle supply, according to the Texas Cattle Feeders Association, as border restrictions and costs strain feedyards.
U.S.-Mexico agricultural trade faces uncertainty in 2026 as tariffs and cartel violence threaten farmers and ranchers. Congressman Henry Cuellar and Texas leaders weigh in on impacts and risks.
Food demand is stable but price-sensitive across rural markets. For agriculture and rural communities, the important signal is not optimism — it is stability.
Stable blending demand continues to underpin corn use despite export volatility.

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:

Crop value concentration keeps farm income tied closely to commodity price cycles.
High fertilizer costs and global risks threaten spring margins for growers.
Heightened Chinese inspections increase trade volatility for U.S. livestock exporters.
Rail logistics remain supportive, with access to Mexico improving
Strong land values contrast with mounting credit pressure.
Agriculture Freedom Zones reflect rising concern that data center growth must not strain rural grids or displace productive farmland.