LUBBOCK, Texas (RFD News) — Strong grain demand is moving record volumes, but rising rail, barge, and ocean freight costs could limit how much value reaches producers. USDA’s Grain Transportation Report says elevated corn stocks and export commitments are keeping transportation networks busy ahead of harvest.
Year-to-date grain rail carloads reached a record for the available series, rising 16 percent from last year and 24 percent above the three-year average. Weekly Class I grain carloads were also 26 percent above average.
July rail fuel surcharges reached a record 61 cents per mile. August costs may ease, but recent diesel increases could lift September charges as harvest shipments accelerate.
Barge rates remain elevated despite stronger river movement. St. Louis spot rates reached $25.62 per ton, while Gulf-to-Japan ocean freight climbed to $69.75 per metric ton.
Producers will watch railcar availability, diesel prices, barge capacity, and export demand. Strong movement supports basis, but transportation costs may absorb a larger share of grain value.
