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
Strong land values continue masking tighter farm finances.
Tight supplies continue supporting strong cull values.
Vive’s Art Graves shared insights on the new Phobos FC 360 foliar fungicide, its advantages for Canadian growers, early performance results, and the company’s ongoing commitment to advanced crop protection solutions.
Kentucky Firefighters Jonathan and Lonny Epley and Extension Agent Leann Martin tell us about a new portable grain bin rescue tool, and its potential to enhance safety for farmers and first responders nationwide.
China’s stricter inspection rules prompt Cargill to pause soybean exports from Brazil, briefly lifting U.S. soybean prices as traders anticipate potential shifts in global trade, as export demand remains supportive across all major U.S. commodities.
Suderman joins Tony St. James in the RFD Studios to discuss how geopolitical tensions are triggering global transport disruptions, new inflation pressures, and other challenges for agriculture to navigate.

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:

Farm CPA Paul Nieffer explains the Farmer Bridge Assistance payment limits, provides clarity on new legislation, and offers advice for producers considering business structure adjustments.
Dr. David Anderson with Texas A&M University AgriLife Extension discusses how geopolitical tensions and the Middle East, along with export disruptions in the Chinese market, will shape cattle markets in the months ahead.
Refining shifts could influence fuel and input costs.
Energy shifts influence diesel and fertilizer costs.
ASFMRA’s Craig Thompson shares insights for American farmers who are navigating farmland markets amid agricultural uncertainty.
Ben Kurtzman with American Farmland Trust discusses the growing pressure on farmland and ranchland and the steps being taken to help conserve farms and ranches across the country ,as unrest in the Middle East adds more obstacles for producers.