Grain rail traffic dips as fuel costs surge

Rail carloads fell 3% while diesel prices jumped nearly 29 cents to hit $5.64 per gallon, according to the latest federal transportation data.

Railroad Track Pixabay Lewickistudio
Pixabay

The U.S. grain transportation system experienced mixed performance last week as rising fuel costs pressured logistics operators, according to the Agricultural Marketing Service’s weekly Grain Transportation Report released May 7. The federal data tracked movements across rail, barge  and ocean shipping modes through early May.

Rail movements show mixed signals

U.S. Class I railroads originated 29,743 grain carloads during the week ending April 25, marking a 3-percent decrease from the previous week. Despite the weekly decline, rail traffic remained 2 percent above last year’s levels and 15 percent higher than the 3-year average.

Secondary railcar markets reflected tight capacity conditions. Average May shuttle bids reached $454 above tariff for the week ending April 30, climbing $85 from the previous week and $609 above the same period last year. Non-shuttle railcar bids averaged $31 above tariff, down $10 from the prior week but $50 below last year.

Barge traffic increases despite fuel surge

Barged grain movements totaled 708,700 tons for the week ending May 2, representing an 11 percent increase from the previous week but 9 percent below last year. River traffic showed 471 barges moving downstream, up 49 from the prior week. The New Orleans region unloaded 600 grain barges, down 23 percent from the previous week.

Ocean shipping rates climb

Gulf ports loaded 29 oceangoing grain vessels during the week ending April 30, unchanged from last year. However, the next 10 days showed stronger booking activity with 40 vessels expected to load, representing a 54 percent increase over the same period last year.

Shipping rates to Japan increased across both coasts. Gulf-to-Japan rates reached $67.25 per metric ton, up 1 percent weekly, while Pacific Northwest-to-Japan rates hit $35.75 per metric ton, climbing 2 percent.

Export sales decline across commodities

Net export sales weakened across major grain categories for marketing year 2025/26. Corn sales dropped 15 percent to 1.36 million metric tons, soybeans fell 45 percent to 0.14 million metric tons, and wheat declined 65 percent to 0.08 million metric tons.

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