The U.S. Department of Agriculture’s Agricultural Marketing Service has significantly upgraded its corn, soybean, and wheat rail tariff collection, as reported in the latest issue of the Grain Transportation Report (GTR). This expansion, the first major update since 2010, nearly doubles the number of published rates from 38 to 70 origin-destination-railroad combinations.
The enhanced data collection aims to provide farmers, shippers, receivers, and other stakeholders with more comprehensive information on rail shipping costs for grain. This information is crucial for making informed decisions about where, when, and how much to ship.
Key highlights of the report include:
- Expanded coverage: The GTR now features 31 rates for wheat shipments, 24 for corn, and 15 for soybeans, offering a more detailed view of the grain transportation landscape.
- Regional variations: The report reveals differences in shipping practices across regions. Western Class I railroads primarily use tariff rates for domestic grain movements, while eastern railroads more commonly employ contract rates.
- Competition insights: The data demonstrates the effects of competition on rates. For example, in eastern Washington, rail rates closely match barge shipment costs along the Columbia-Snake River System.
- Domestic vs. export shipments: The report highlights distinct patterns in rail tariff rates for domestically used corn compared to exported corn, reflecting the influence of global competition.
- Upcoming changes: Class I railroads typically update grain rail tariffs to align with new marketing years. Wheat tariffs are expected to change in June, while corn and soybean tariffs will likely update in the fall.
This expansion of the GTR’s rail tariff collection underscores the USDA’s commitment to providing the grain industry with valuable market intelligence. By offering a more comprehensive view of transportation costs, the report aims to enhance decision-making processes throughout the supply chain.
The USDA encourages industry stakeholders to utilize this expanded dataset, available on AgTransport, to gain deeper insights into grain transportation costs and market dynamics.
