US rail fuel surcharges on grain hit record highs, squeezing farmers in harvest season
Rail carriers are passing higher fuel costs to grain shippers, with average surcharges up 133% and transportation costs rising during harvest.
- Railroad fuel surcharges on U.S. grain shipments have more than doubled in the past year, increasing transportation costs amid rising production expenses for farmers.
- The average fuel surcharge for grain shipments reached 48 cents per mile per rail car in early September, marking a 153% increase from the previous year, according to USDA data.
- Fuel surcharges now constitute 11% of total rail costs for shipping corn and soybeans, up from 5% a year earlier, per a USDA report.
- Higher diesel surcharges coincide with the corn and soybean harvest season, squeezing farmers as railroads pass on excess fuel costs to grain elevators, which lowers the prices growers receive.
31 Articles
31 Articles
US rail fuel surcharges on grain hit record highs, squeezing farmers in harvest season
Railroad fuel surcharges on U.S. grain shipments have more than doubled over the past year, rippling through the farm belt and raising transportation costs as many farmers also struggle with higher production costs.
Fuel surcharges for rail grain transportation in the United States rose sharply ahead of the active corn and soybean harvesting phase. According to USDA data, in the second week of September, the average increase was $0.48 per mile per car, up 153% from a year earlier. Because of this, the share of fuel surcharge in the total cost of rail transportation of corn and soybeans increased to [...] The post Railroad fuel surcharges in the US put press…
Diesel prices, which surged due to the Iran war, have hit grain transportation in the US. Railroad fuel surcharges increased by 153 percent in a year to 48 cents per railmile; the share of corn and soybean transportation costs rose to 11 percent.
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