NASHVILLE, TN – Farmers are moving harvest grain through a transportation system where diesel costs remain sharply above last year and rail shuttle premiums are climbing.
USDA says Class I railroads originated 26,643 grain carloads during the week ending October 3, down 11% from the previous week and 3% from a year earlier. October shuttle railcar bids averaged $488 above tariff, up $138 from the prior week.
Barge movements improved, rising 20% to 399,450 tons for the week ending October 10, although volume remained 18% below last year. Grain barges unloaded in the New Orleans region increased 3%.
Ocean freight also moved higher. Shipping grain from the Gulf to Japan rose to $76.25 per metric ton, while the Pacific Northwest rate increased to $37.50. Gulf vessel loadings were 7% below last year.
Diesel averaged $6.179 per gallon, down 2 cents for the week but $2.514 above a year ago, keeping transportation costs elevated during harvest.
Farm-Level Takeaway: Elevated diesel and rail costs continue to pressure grain movement even as barge traffic improves.