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
For producers, the next proof will be actual export sales, shipment pace, and buyer breakdowns.
Ethanol production climbed to a four-week high while inventories fell to their lowest level since early October, according to energy data analyzed by the RFA.
Potato growers now have a fresh benchmark for comparing fertilizer, pesticide, and pest-management practices across major production states.
The latest Meat Demand Monitor shows strong retail demand for beef products like ribeye steaks and ground beef.
Corey Rosenbusch, President & CEO of The Fertilizer Institute, discusses fertilizer markets transparency efforts and the steps to ensure long-term stability for farmers and the ag economy.
Analysts say poor crop conditions seen on the annual Hard Red Winter Wheat Tour, combined with cheaper overseas grain supplies, are weighing on the industry as the annual tour wraps up.

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:

U.S. grain export inspections stayed solid for the week ending May 7, with corn still leading the export pace and soybeans posting a strong weekly rebound.
U.S. beef imports are running at a record pace while exports are falling, reflecting tight domestic cattle supplies and high U.S. beef prices.
ASFMRA’s Chad Hertz joins us to discuss farmland trends, economic pressures facing producers, and how outside influences are shaping today’s land market.
Cattle analysts say the U.S. beef cattle herd rebuild still faces major hurdles despite some minor positive signals noted in certain regions.
USDA’s first 2026/27 outlook shows tighter supplies across several markets, led by wheat, corn, cotton, rice, beef, and sugar.
Strong export demand is supportive, but higher freight costs may pressure basis and grain movement margins.