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
Freight volatility increasingly determines export margins, making logistics costs as important as price in marketing decisions.
China’s beef policy risk stems from domestic volatility, making export demand inherently unstable. Jake Charleston with Specialty Risk Insurance offers his perspective on cattle markets, risk management, and producer sentiment.
USDA flash corn sales, Cattle on Feed and Inventory reports, and beef packer antitrust concerns dominate January agricultural market news.
Larger grain stocks increase supply pressure, but strong fall disappearance — especially for corn and sorghum — suggests demand remains an important offset.
Record corn and sorghum crops boost feed grain supplies, while reduced soybean and cotton production tighten outlooks for oilseeds and fiber markets.
Food prices increased in December, but not as much as expected, according to the latest Consumer Price Index from the U.S. Bureau of Labor and Statistics.

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:

Prompt removal of Christmas trees and careful handling of decorations reduce winter fire risk during an already high-demand season for emergency services.
Reduced winter placements indicate tighter fed cattle supplies and greater leverage during peak-demand months.
Federal nutrition policy is signaling a stronger demand for whole foods produced by U.S. farmers and ranchers. Consumer-facing guidance favors animal protein, but institutional demand may change little under existing saturated fat limits.
Farmer Bridge payments are being used primarily to reduce debt and protect cash flow, not drive new spending. Curt Blades with the Association of Equipment Manufacturers joined us to provide insight into the ag equipment market and the factors influencing sales.
Retail pricing confirms tight cattle supplies and supports continued leverage for producers, reinforcing the need for disciplined risk management.
Higher ethanol blend rates translate directly into stronger, more durable corn demand if regulatory momentum holds.