Railroads, Tariffs, And Exports Highlight Grain Transport Trends

Higher domestic rail tariffs and mixed capacity shifts will influence grain movement this harvest. Strong corn exports provide momentum, but logistics costs remain a critical factor.

NASHVILLE, Tenn. (RFD-TV) — U.S. grain transportation developments this September span policy, rail tariffs, and export activity. Six industry associations are urging the Surface Transportation Board (STB) to clarify its federal preemption authority under the Interstate Commerce Commission Termination Act, citing growing uncertainty and conflicting state regulations. The STB said it may issue a formal policy statement by the end of the year.

On the rail side, CSX announced higher tariffs for 2025/26 corn and wheat shipments to domestic destinations, effective October 1. Export rates remain essentially unchanged. Meanwhile, STB harvest plan filings show that western carriers, such as BNSF, UP, and CPKC, are increasing grain capacity, while eastern carriers, including CSX and Norfolk Southern, anticipate slightly fewer grain trains during peak harvest.

USDA reported export sales for the new marketing year at 36.27 million metric tons—up 11 percent from last year. Weekly corn sales totaled 1.23 mmt, soybeans 0.92 mmt, and wheat 0.38 mmt. Grain rail traffic rose 9 percent week-over-week, while barge shipments increased modestly but remain 48 percent below last year. Ocean freight rates to Japan edged up from the Gulf but held steady from the Pacific Northwest. Diesel fuel averaged $3.75 per gallon, 21 cents higher than a year ago.

Tony’s Farm-Level Takeaway: Higher domestic rail tariffs and mixed capacity shifts will influence grain movement this harvest. Strong corn exports provide momentum, but logistics costs remain a critical factor.
Related Stories
Lewis Williamson with HTS Commodities discusses how tensions in the Middle East are impacting producer’s spring planting decisions.
Mike Steenhoek with the Soy Transportation Coalition discusses supply chain disruptions, rising costs, and the potential impact on agriculture as farmers navigate ongoing global uncertainty.
Strong exports support ethanol margins and corn demand.
Export competition remains heavy despite solid trade.
American Soybean Association President Scott Metzger discusses his recent testimony before the Senate Ag Committee, key priorities for soy growers, and his outlook for farmers into spring planting.
Strong exports support cattle and hog market fundamentals.

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:

Higher prices are bringing relief to markets, but rising input costs are putting pressure on the producers.
Regulatory changes may influence farm costs and operations.
Lower hop stocks may support prices in the near term.
Biofuel policy decisions may influence planting economics. Today, March 18, is also National Biodiesel Day.
President Trump issues a 60-day Jones Act waiver to ease fuel shipments amid Middle East tensions disrupting energy markets, while biofuel policy gains focus.
Acreage shifts could influence spring marketing decisions.