U.S. Class I railroads originated 31,705 grain carloads during the week ending May 30, an 11-percent increase from the previous week and 32 percent more than last year, according to the latest Grain Transportation Report from the Agricultural Marketing Service.
The weekly total was also 37 percent more than the 3-year average, marking a significant upswing in rail grain movements.
Secondary railcar market shows mixed trends
Average June shuttle secondary railcar bids and offers were $167 above tariff per car for the week ending June 4. This was $96 less than the previous week but $221 more than the same week last year.
Average non-shuttle secondary railcar bids and offers were $50 above tariff per car, up $6 from the previous week and $75 more than the same week last year.
Barge and ocean traffic
Barged grain movements totaled 667,860 tons for the week ending June 6, a 10-percent increase from the previous week but 8 percent less than the same week last year. For the same week, 446 barges moved down river, 42 more than the previous week.
For the week ending June 4, 36 oceangoing grain vessels were loaded in the Gulf, 13 percent more than the same period last year. However, within the next 10 days starting June 5, only 29 vessels were expected to be loaded, 34 percent fewer than the same period last year.
Shipping rates and fuel costs
As of June 4, the rate for shipping a metric ton of grain from the U.S. Gulf to Japan was $71.75, down 1 percent from the previous week. The rate from the Pacific Northwest to Japan was $37.25 per metric ton, unchanged from the previous week.
For the week ending June 8, the U.S. average diesel fuel price decreased 14.0 cents from the previous week to $5.21 per gallon. Despite the weekly decline, prices remained 173.9 cents above the same week last year, significantly affecting transportation costs across all modes.
