A weekly publication of the Transportation and Marketing Programs/Transportation Services Division www.ams.usda.gov/GTR September 25, 2014 Contents Article/ Calendar Grain Transportation Indicators Rail Barge Truck Exports Ocean Brazil Mexico Grain Truck/Ocean Rate Advisory Data Links Specialists Subscription Information -------------- The next release is October 2, 2014 Preferred citation: U.S. Dept. of Agriculture, Agricultural Marketing Service. Grain Transportation Report. September 25, 2014. Web: http://dx.doi.org/10.9752/TS056.09-25-2014 Grain Transportation Report Contact Us WEEKLY HIGHLIGHTS Grain Inspections Highest Since May For the week ending September 18, total inspections of grain (corn, wheat, soybeans) from all major export regions reached 1.98 million metric tons (mmt), up 17 percent from the last week, down 5 percent from last year, and 26 percent above the 3-year average. Total corn inspections increased 30 percent from the previous week and soybeans jumped 85 percent, helping push total grain inspections to the highest level since May 8. Corn and soybean exports were shipped primarily to Asia and Latin America. The jump in corn and soybean inspections also boosted Mississippi Gulf grain inspections 46 percent above the last week. Wheat inspections, however, were down 23 percent from last week, as shipments to Asia decreased. Outstanding export sales (shipped) of corn and wheat were below the previous week, but outstanding sales of soybeans increased. Diesel Fuel Prices Fall in Response to Falling Crude Oil Prices and Strong Stocks Diesel fuel prices have fallen 14 cents over the past 12 weeks to 3.78 per gallon during the week ending September 22. In fact, it has been more than 2 years since diesel prices have been this low (July 2012). The Energy Information Administration reports in its most recent Short-Term Energy Outlook that crude oil prices have fallen in June and July, causing the decrease in fuel prices. Additionally, diesel refineries have been working at more than 90 percent of capacity this summer, increasing stock piles to more than 127 million barrels, 15 percent higher than the low point in March 2014 and adding downward pressure on fuel prices. Grain Barge Rates Leap in Anticipation of Harvest With only 7 percent of corn crop and 3 percent of the soybeans harvested, grain barge freight rates escalated in anticipation of a widespread harvest of a possible record corn and soybean crop. The lower Illinois River barge rate for September 23 was 825 percent of tariff ($38.28 per ton), up 30 percent from last week. Other river segments saw 30 to 42 percent weekly increases ( Table 9). Barge service for October shipments from the lower Illinois River are at 900 percent of tariff ($41.76 per ton), 66 percent higher than the 5-year average. Secretary of Agriculture Highlights U.S. DOT Rail Grant to South Dakota Secretary Vilsack recently expressed his approval of a U.S. Department of Transportation (U.S. DOT) TIGER grant (Transportation Investments Generating Economic Recovery) awarded to a State-owned railroad in South Dakota. U.S. DOT awarded $12.6 million to upgrade 42 miles of railway between Chamberlain and Presho, SD. Secretary Vilsack expressed recent transportation issues have negatively affected the value of grain received by producers in the region. Although he does not believe the grant will immediately fix the transportation problems, it is an important step in ensuring grain can reach ethanol facilities, as well as other domestic and foreign markets. Secretary Vilsack stated investment in transportation infrastructure is important in retaining a competitive advantage for U.S. agricultural producers. Snapshots by Sector Rail U.S. railroads originated 17,126 carloads of grain during the week ending September 13, almost the same as last week, down 4 percent from last year, and up 2 percent from the 3-year average. During the week ending September 18, average October shuttle secondary railcar bids/offers per car were $3,425 above tariff, down $200 from last week and $2,813 higher than last year. There were no non-shuttle secondary railcar bids/offers. Barge During the week ending September 20, barge grain movements totaled 343,563 tons—38.2 percent higher than the previous week and 21.3 percent higher than the same period last year. During the week ending September 20, 225 grain barges moved down river, up 41.5 percent from last week; 699 grain barges were unloaded in New Orleans, up 9.6 percent from the previous week. Ocean During the week ending September 18, 29 ocean-going grain vessels were loaded in the Gulf, 33 percent less than the same period last year. Sixty vessels are expected to be loaded within the next 10 days, 8 percent less than the same period last year. During the week ending September 19, the ocean freight rate for shipping bulk grain from the Gulf to Japan was $45.50 per mt, down 2 percent from the previous week. The cost of shipping from the PNW to Japan was $25.50 per mt, down 2 percent from the previous week. Fuel During the week ending September 22, U.S. average diesel fuel prices decreased 2 cent from the previous week to $3.78 per gallon— down 17 cents from the same week last year.
22
Embed
Table 9 Illinois River barge rate Grain Barge Rates Leap ... · Ocean Brazil Mexico Grain Truck/Ocean ... and truck transportation costs increa sing, but ocean rates remaining low.
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A weekly publication of the Transportation and Marketing Programs/Transportation Services Division
www.ams.usda.gov/GTR
September 25, 2014
Contents
Article/
Calendar
Grain
Transportation
Indicators
Rail
Barge
Truck
Exports
Ocean
Brazil
Mexico
Grain Truck/Ocean
Rate Advisory
Data Links
Specialists
Subscription
Information
--------------
The next
release is October 2, 2014
Preferred citation: U.S. Dept. of Agriculture, Agricultural Marketing Service. Grain Transportation Report. September 25, 2014.
Web: http://dx.doi.org/10.9752/TS056.09-25-2014
Grain Transportation Report
Contact Us
WEEKLY HIGHLIGHTS
Grain Inspections Highest Since May
For the week ending September 18, total inspections of grain (corn, wheat, soybeans) from all major export regions reached 1.98
million metric tons (mmt), up 17 percent from the last week, down 5 percent from last year, and 26 percent above the 3-year average.
Total corn inspections increased 30 percent from the previous week and soybeans jumped 85 percent, helping push total grain
inspections to the highest level since May 8. Corn and soybean exports were shipped primarily to Asia and Latin America. The jump
in corn and soybean inspections also boosted Mississippi Gulf grain inspections 46 percent above the last week. Wheat inspections,
however, were down 23 percent from last week, as shipments to Asia decreased. Outstanding export sales (shipped) of corn and
wheat were below the previous week, but outstanding sales of soybeans increased.
Diesel Fuel Prices Fall in Response to Falling Crude Oil Prices and Strong Stocks
Diesel fuel prices have fallen 14 cents over the past 12 weeks to 3.78 per gallon during the week ending September 22. In fact, it has
been more than 2 years since diesel prices have been this low (July 2012). The Energy Information Administration reports in its most
recent Short-Term Energy Outlook that crude oil prices have fallen in June and July, causing the decrease in fuel prices. Additionally,
diesel refineries have been working at more than 90 percent of capacity this summer, increasing stock piles to more than 127 million
barrels, 15 percent higher than the low point in March 2014 and adding downward pressure on fuel prices.
Grain Barge Rates Leap in Anticipation of Harvest
With only 7 percent of corn crop and 3 percent of the soybeans harvested, grain barge freight rates escalated in anticipation of a
widespread harvest of a possible record corn and soybean crop. The lower Illinois River barge rate for September 23 was 825
percent of tariff ($38.28 per ton), up 30 percent from last week. Other river segments saw 30 to 42 percent weekly increases (Table 9).
Barge service for October shipments from the lower Illinois River are at 900 percent of tariff ($41.76 per ton), 66 percent higher than
the 5-year average.
Secretary of Agriculture Highlights U.S. DOT Rail Grant to South Dakota
Secretary Vilsack recently expressed his approval of a U.S. Department of Transportation (U.S. DOT) TIGER grant (Transportation
Investments Generating Economic Recovery) awarded to a State-owned railroad in South Dakota. U.S. DOT awarded $12.6 million
to upgrade 42 miles of railway between Chamberlain and Presho, SD. Secretary Vilsack expressed recent transportation issues have
negatively affected the value of grain received by producers in the region. Although he does not believe the grant will immediately fix
the transportation problems, it is an important step in ensuring grain can reach ethanol facilities, as well as other domestic and foreign
markets. Secretary Vilsack stated investment in transportation infrastructure is important in retaining a competitive advantage for U.S.
agricultural producers.
Snapshots by Sector
Rail
U.S. railroads originated 17,126 carloads of grain during the week ending September 13, almost the same as last week, down 4
percent from last year, and up 2 percent from the 3-year average.
During the week ending September 18, average October shuttle secondary railcar bids/offers per car were $3,425 above tariff,
down $200 from last week and $2,813 higher than last year. There were no non-shuttle secondary railcar bids/offers.
Barge
During the week ending September 20, barge grain movements totaled 343,563 tons—38.2 percent higher than the previous week
and 21.3 percent higher than the same period last year.
During the week ending September 20, 225 grain barges moved down river, up 41.5 percent from last week; 699 grain barges were
unloaded in New Orleans, up 9.6 percent from the previous week.
Ocean
During the week ending September 18, 29 ocean-going grain vessels were loaded in the Gulf, 33 percent less than the same period
last year. Sixty vessels are expected to be loaded within the next 10 days, 8 percent less than the same period last year.
During the week ending September 19, the ocean freight rate for shipping bulk grain from the Gulf to Japan was $45.50 per mt, down
2 percent from the previous week. The cost of shipping from the PNW to Japan was $25.50 per mt, down 2 percent from the previous
week.
Fuel During the week ending September 22, U.S. average diesel fuel prices decreased 2 cent from the previous week to $3.78 per gallon—
2014 YTD as % of 2013 YTD 216 114 178 183 160 % change YTD 160
Last 4 weeks as % of 20132
315 64 127 451 106 Last 4wks % 2013 166
Last 4 weeks as % of 4-year avg.2
89 88 137 331 121 Last 4wks % 4 yr 146
Total 2013 31,646 71,388 168,826 25,176 297,036 Total 2013 70,298
Total 2012 22,604 40,780 199,419 24,659 287,462 Total 2012 92,0081
Data is incomplete as it is voluntarily provided2 Compared with same 4-weeks in 2013 and prior 4-year average.
3 Cross- border weekly data is aproximately 15 percent below the Association of American Railroads reported weekly carloads received by Mexican railroads
to reflect switching between KCSM and FerroMex.
YTD = year-to-date; p = preliminary data; r = revised data; n/a = not available
2014 YTD as % of 2013 YTD 131 121 101 155 145 118 138 104
Last 4 weeks as % of 2013 125 149 94 95 118 106 117 114
Last 4 weeks as % of 3-yr avg.1
146 109 91 115 111 102 119 108
Total 2013 86,466 137,915 454,262 34,412 222,258 935,313 190,125 272,753 1As a percent of the same period in 2009 and the prior 3-year average. YTD = year-to-date.
Source: Association of American Railroads (www.aar.org)
East West Canada
Figure 3
Total Weekly U.S. Class I Railroad Grain Car Loadings
Source: Association of American Railroads
15,000
17,000
19,000
21,000
23,000
25,000
27,000
29,000
10/1
2/1
3
11/0
9/1
3
12/0
7/1
3
01/0
4/1
4
02/0
1/1
4
03/0
1/1
4
03/2
9/1
4
04/2
6/1
4
05/2
4/1
4
06/2
1/1
4
07/1
9/1
4
08/1
6/1
4
09/1
3/1
4
10/1
1/1
4
Carl
oad
s -
4-w
ee
k r
un
nin
g a
vg
.
4-week period endingCurrent year 3-year average
For 4 weeks ending Sept. 13: down 1.1 percent from last
week; up 6 percent from last year; and up 4 percent from
the 3-year average.
September 25, 2014
Grain Transportation Report 7
The secondary rail market information reflects trade values for service that was originally purchased from the railroad carrier
as some form of guaranteed freight. The auction and secondary rail values are indicators of rail service quality and demand/
supply.
Figure 5
Bids/Offers for Railcars to be Delivered in November 2014, Secondary Market
Non-shuttle bids include unit-train and single-car bids. n/a = not available.
Grand Forks, ND Portland, OR $5,159 $532 $56.51 $1.54 0
Grand Forks, ND Galveston-Houston, TX $6,084 $554 $65.92 $1.79 0
Northwest KS Portland, OR $5,260 $576 $57.95 $1.58 4
Corn Minneapolis, MN Portland, OR $5,000 $648 $56.09 $1.42 4
Sioux Falls, SD Tacoma, WA $4,960 $593 $55.15 $1.40 4
Champaign-Urbana, IL New Orleans, LA $3,011 $362 $33.50 $0.85 2
Lincoln, NE Galveston-Houston, TX $3,510 $346 $38.29 $0.97 5
Des Moines, IA Amarillo, TX $3,590 $283 $38.46 $0.98 2
Minneapolis, MN Tacoma, WA $5,000 $643 $56.03 $1.42 4
Council Bluffs, IA Stockton, CA $4,400 $665 $50.29 $1.28 4
Soybeans Sioux Falls, SD Tacoma, WA $5,520 $593 $60.71 $1.65 3
Minneapolis, MN Portland, OR $5,530 $648 $61.35 $1.67 3
Fargo, ND Tacoma, WA $5,430 $527 $59.16 $1.61 3
Council Bluffs, IA New Orleans, LA $4,175 $418 $45.61 $1.24 5
Toledo, OH Huntsville, AL $2,862 $295 $31.35 $0.85 4
Grand Island, NE Portland, OR $5,110 $589 $56.60 $1.54 31A unit train refers to shipments of at least 25 cars. Shuttle train rates are available for qualified shipments of
75-120 cars that meet railroad efficiency requirements.
2Approximate load per car = 111 short tons (100.7 metric tons): corn 56 lbs./bu., wheat & soybeans 60 lbs./bu.
3Percentage change year over year calculated using tariff rate plus fuel surchage
Soybeans MO Bojay (Tula), HG $7,916 $655 $87.58 $2.38 4
NE Guadalajara, JA $8,447 $749 $93.96 $2.55 4
IA El Castillo, JA $8,855 $732 $97.95 $2.66 3
KS Torreon, CU $6,864 $465 $74.88 $2.04 3
Sorghum TX Guadalajara, JA $6,953 $479 $75.94 $1.93 7
NE Celaya, GJ $7,212 $669 $80.51 $2.04 3
KS Queretaro, QA $6,650 $420 $72.24 $1.83 -2
NE Salinas Victoria, NL $5,368 $492 $59.87 $1.52 -1
NE Torreon, CU $6,243 $549 $69.40 $1.76 11Rates are based upon published tariff rates for high-capacity shuttle trains. Shuttle trains are available for qualified
shipments of 75--110 cars that meet railroad efficiency requirements.2Fuel surcharge adjusted to reflect the change in Ferrocarril Mexicano, S.A. de C.V railroad fuel surcharge policy as of 10/01/2009
3Approximate load per car = 97.87 metric tons: Corn & Sorghum 56 lbs/bu, Wheat & Soybeans 60 lbs/bu
4Percentage change year over year calculated using tariff rate plus fuel surchage
Barge Movements on the Mississippi River1 (Locks 27 - Granite City, IL)
1 The 3-year average is a 4-week moving average.
Source: U.S. Army Corps of Engineers
0
100
200
300
400
500
600
700
800
900
09/0
7/1
3
09/2
1/1
3
10/0
5/1
3
10/1
9/1
3
11/0
2/1
3
11/1
6/1
3
11/3
0/1
3
12/1
4/1
3
12/2
8/1
3
01/1
1/1
4
01/2
5/1
4
02/0
8/1
4
02/2
2/1
4
03/0
8/1
4
03/2
2/1
4
04/0
5/1
4
04/1
9/1
4
05/0
3/1
4
05/1
7/1
4
05/3
1/1
4
06/1
4/1
4
06/2
8/1
4
07/1
2/1
4
07/2
6/1
4
08/0
9/1
4
08/2
3/1
4
09/0
6/1
4
09/2
0/1
4
10/0
4/1
4
10/1
8/1
4
1,0
00
to
ns
Soybeans
Wheat
Corn
3-Year Average
Week ending September 20: Up 70.4% from last year, and 8.6%
higher than the 3-yr avg
Table 10
Barge Grain Movements (1,000 tons)
Week ending 9/20/2014 Corn Wheat Soybeans Other Total
Mississippi River
Rock Island, IL (L15) 27 5 0 0 32
Winfield, MO (L25) 45 6 0 0 51
Alton, IL (L26) 97 6 0 0 103
Granite City, IL (L27) 130 6 2 0 138
Illinois River (L8) 21 0 0 0 21
Ohio River (L52) 112 0 5 7 125
Arkansas River (L1) 3 45 31 3 81
Weekly total - 2014 245 51 38 10 344
Weekly total - 2013 138 109 36 0 283
2014 YTD1
16,549 2,004 5,285 165 24,003
2013 YTD 5,558 3,712 4,641 143 14,054
2014 as % of 2013 YTD 298 54 114 115 171
Last 4 weeks as % of 20132
370 54 98 952 179
Total 2013 9,504 4,111 10,065 255 23,9351 Weekly total, YTD (year-to-date) and calendar year total includes Miss/27, Ohio/52, and Ark/1; "Other" refers to oats, barley, sorghum, and rye.
2 As a percent of same period in 2013.
Source: U.S. Army Corps of Engineers
Note: Total may not add exactly, due to rounding
September 25, 2014
Grain Transportation Report 13
Figure 11
Source: U.S. Army Corps of Engineers
Upbound Empty Barges Transiting Mississippi River Locks 27, Arkansas River Lock and
Dam 1, and Ohio River Locks and Dam 52
0
100
200
300
400
500
5/2
4/1
4
5/3
1/1
4
6/7
/14
6/1
4/1
4
6/2
1/1
4
6/2
8/1
4
7/5
/14
7/1
2/1
4
7/1
9/1
4
7/2
6/1
4
8/2
/14
8/9
/14
8/1
6/1
4
8/2
3/1
4
8/3
0/1
4
9/6
/14
9/1
3/1
4
9/2
0/1
4
Nu
mbe
r of
Bar
ges
Locks 27 Lock 1 Locks 52
Week ending September 20: 384 total barges, up 177 barges from the previous week, but 8.6 percent below the 3-year avg.
Figure 12
Grain Barges for Export in New Orleans Region
Source: U.S. Army Corps of Engineers and GIPSA
0
100
200
300
400
500
600
700
800
900
1000
3/2
2/1
4
3/2
9/1
4
4/5
/14
4/1
2/1
4
4/1
9/1
4
4/2
6/1
4
5/3
/14
5/1
0/1
4
5/1
7/1
4
5/2
4/1
4
5/3
1/1
4
6/7
/14
6/1
4/1
4
6/2
1/1
4
6/2
8/1
4
7/5
/14
7/1
2/1
4
7/1
9/1
4
7/2
6/1
4
8/2
/14
8/9
/14
8/1
6/1
4
8/2
3/1
4
8/3
0/1
4
9/6
/14
9/1
3/1
4
9/2
0/1
4
Downbound Grain Barges Locks 27, 1, and 52
Grain Barges Unloaded in New Orleans
Nu
mber
of
barg
es
Week ending September 20: 225 grain barges moved down river, up 41.5 percent from the previous week, 699 grain barges were unloaded in New Orleans, up 9.6 percent from the previous week.
September 25, 2014
Grain Transportation Report 14
The weekly diesel price provides a proxy for trends in U.S. truck rates as diesel fuel is a significant expense for truck grain move-
ments.
Truck Transportation
Table 11
Change from
Region Location Price Week ago Year ago
I East Coast 3.804 -0.021 -0.152
New England 3.886 -0.025 -0.185
Central Atlantic 3.886 -0.019 -0.129
Lower Atlantic 3.722 -0.022 -0.168
II Midwest2 3.713 -0.030 -0.216
III Gulf Coast3
3.696 -0.010 -0.166
IV Rocky Mountain 3.841 -0.017 -0.102
V West Coast 3.990 -0.029 -0.121
West Coast less California 3.929 -0.038 -0.066
California 4.041 -0.021 -0.168
Total U.S. 3.778 -0.023 -0.1711Diesel fuel prices include all taxes. Prices represent an average of all types of diesel fuel.
2Same as North Central
3Same as South Central
Source: Energy Information Administration/U.S. Department of Energy (www.eia.doe.gov)
Total 1,982 1,697 117 76,636 52,713 145 111 117 92,3731 Data includes revisions from prior weeks; some regional totals may not add exactly due to rounding.
Source: Grain Inspection, Packers and Stockyards Administration/USDA (www.gipsa.usda.gov); YTD= year-to-date; n/a = not applicable
Last 4-weeks as % of
September 25, 2014
Grain Transportation Report 18
Figure 14
U.S. grain inspected for export (wheat, corn, and soybeans)
Source: Grain Inspection, Packers and Stockyards Administration/USDA (www.gipsa.usda.gov)
Note: 3-year average consists of 4-week running average
0
20
40
60
80
100
120
140
160
180
01/
03/
13
01/
31/
13
02/
28/
13
03/
28/
13
04/
25/
13
05/
23/
13
06/
20/
13
07/
18/
13
08/
15/
13
09/
12/
13
10/
10/
13
11/
07/
13
12/
05/
13
01/
02/
14
01/
30/
14
02/2
7/1
4
03/2
7/1
4
04/2
4/1
4
05/2
2/1
4
06/1
9/1
4
07/1
7/1
4
08/1
4/1
4
09/1
1/1
4
10/0
9/1
4
Mil
lion
bu
sh
els
(m
bu
)
Current week 3-year average
For the week ending Sep. 18: 75.2 mbu, up 17% from the previous week,
down 3 %from same week last year, and 28% above the 3-year average
Figure 15
U.S. Grain Inspections: U.S. Gulf and PNW1 (wheat, corn, and soybeans)
0
10
20
30
40
50
60
70
80
90
100
8/2
/12
9/2
/12
10/2
/12
11/2
/12
12/2
/12
1/2
/13
2/2
/13
3/2
/13
4/2
/13
5/2
/13
6/2
/13
7/2
/13
8/2
/13
9/2
/13
10/2
/13
11/2
/13
12/2
/13
1/2
/14
2/2
/14
3/2
/14
4/2
/14
5/2
/14
6/2
/14
7/2
/14
8/2
/14
9/2
/14
10/2
/14
11/2
/14
12/2
/14
1/2
/15
2/2
/15
3/2
/15
Mil
lio
n b
ush
els
(m
bu
)
Miss. Gulf 3-Year avg - Miss. Gulf
PNW 3-Year avg - PNW
Texas Gulf 3-Year avg - TX Gulf
5.9*
44.5*
12.5*
Source: Grain Inspection, Packers and Stockyards Administration/USDA (www.gipsa.usda.gov); *mbu, this week.
Sep 18 : % change from: MS Gulf TX Gulf U.S. Gulf PNWLast week up 46 up 37 up 45 down 23
Last year (same week) up 3 down 38 down 5 down 26
3-yr avg. (4-wk mov. avg.) up 58 down 16 up 43 down 17
September 25, 2014
Grain Transportation Report 19
Ocean Transportation
Table 17
Weekly Port Region Grain Ocean Vessel Activity (number of vessels)
Subscription Information: Send relevant information to [email protected] for an electronic copy
(printed copies are also available upon request).
Preferred citation: U.S. Dept. of Agriculture, Agricultural Marketing Service. Grain Transportation Report.
September 25, 2014. Web: http://dx.doi.org/10.9752/TS056.09-25-2014
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