This article has been reprinted from the Jan. 2, 2020 USDA Grain Transportation Report.
Synopsis of Agricultural Transportation in 2019
• Low grain inspections.
Total grain exports were lower in 2019 than in 2018, including a major drop in corn inspections of 43 percent.
Corn exports faced challenges from large harvests in South America and Ukraine and a strong U.S. dollar. U.S. corn export prices were high, amid concerns of planting delays and flooding in the Midwest, while Brazil and Argentina had lower export prices due to higher crop output and competitive transportation rates.
Corn inspections fell 65 percent in the Pacific Northwest and 38 percent in the Mississippi Gulf, compared to last year.
Year-to-date soybean inspections rose 14 percent from last year, mainly because of increased exports to China, while wheat inspections were up 21 percent.
• Low volumes for barged grain.
From late 2018 through August 2019, poor navigation conditions due to flooding slowed barge traffic, particularly through the locking portions of the Mississippi River.
By August, the flooding was replaced by a rapid drop in water levels, causing low water and shoaling.
Although volumes recovered in November and December, the yearly total for barged grain was 23 percent lower than in 2018 and 28 percent lower than the average of the previous 3 years, mainly as a result of low volumes of barged corn.
Rates fluctuated throughout the year, hitting lows for early fall because of delayed harvests, but rolling 4-week averages tended to exceed the 3-year averages for corresponding periods when service was available.
• Low demand for grain by rail.
Affected by low export demand, grain carloads were below the prior 3-year average for most of the year, with only a few exceptions.
Volumes spiked in April and July, likely resulting from pent-up demand after heavy flooding in March and June, but since July, carload volumes have been below average.
Likewise, bids for rail cars in the secondary auction markets were low for most of the year.
Given the low demand, rail service throughout the year was mostly strong.
Grain train origin dwell times showed the significant effect of flooding in March and June.
However, since July, grain train speeds, terminal dwell times, and grain origin dwell times have all improved significantly.
In December, grain train speeds reached the highest they had been since 2016.
Recent terminal and grain origin dwell times were also significantly lower than recent years.
• Fuel prices lower than 2018.
Although diesel fuel prices were above the prior 3-year average throughout the year, they have been below 2018 levels since May.
During the summer, prices came down, falling to just under $3 per gallon by the end of August, and have since averaged around $3.05.