U.S. rail volumes for grain are facing ongoing headwinds in both the international and domestic markets, with factors such as a strong U.S. dollar and competition from other grain-producing countries weighing on export-bound volumes, while the coronavirus pandemic is putting pressure on domestic volumes, according to grain industry observers.
According to a report at FreightWaves, on the export side, U.S. grain exports are facing fierce competition from South America and the Black Sea region, as well as disrupted trade with China, according to agricultural consultant Jay O’Neil.
These factors are hurting agricultural grain prices and railroads’ profitability.
Read the full report here.