NASHVILLE, TN – U.S. grain transportation remained active in mid-July as rail traffic, barge movements, and Gulf vessel loadings strengthened. Higher movement supports export flow, but rising ocean freight costs could reduce the value reaching producers.
Class I railroads originated 26,952 grain carloads during the week ending July 11. That was 2 percent above the previous week, 2 percent below last year, and 18 percent above the three-year average.
Barged grain movements reached 691,198 tons during the week ending July 18, up 3 percent from the previous week. A total of 453 barges moved downriver, while 530 were unloaded near New Orleans.
The Gulf loaded 24 oceangoing grain vessels, 20 percent more than last year. Another 42 vessels were expected during the following 10 days, indicating firm near-term export demand.
Shipping grain from the Gulf to Japan cost $69.50 per metric ton, compared with $36.50 per metric ton from the Pacific Northwest. Producers will watch whether strong transportation volumes offset the wider freight disadvantage facing Gulf-origin grain.
Farm-Level Takeaway: Strong grain movement supports demand, but high Gulf freight rates may limit inland cash-price gains.