Enhancing mobility of people and goods in rural America. WHEAT MARKET TRANSPORTATION COMPETITIVENESS Prepared for North Dakota Wheat Commission December 2010 Kimberly Vachal, PhD Agricultural and Industrial Freight Center Upper Great Plains Transportation Institute, NDSU April 2010
Wheat Market Transportation Competitiveness. Kimberly Vachal, PhD Agricultural and Industrial Freight Center Upper Great Plains Transportation Institute, NDSU. Prepared for North Dakota Wheat Commission December 2010. April 2010. Overview. Background Market Flows Characteristics Trends - PowerPoint PPT Presentation
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Enhancing mobility of people and goods in rural America.
Shift East to West: Grand Forks BEA, 8% to 44% Minot BEA, 23% to 42% Fargo BEA, 10% to 52%
Enhancing mobility of people and goods in rural America.
Rail Industry Rate Trends
Source: Association of American Railroads, Freight Commodity Statistics. Adapted from USDA, 2010
Enhancing mobility of people and goods in rural America.
Grain and Oilseed Revenue per Ton
Source: USDA, 2010 from STB Waybill Summary.FCS, car premiums/discounts not included in tariff revenue.
Enhancing mobility of people and goods in rural America.
Grain and Oilseed Nominal RPTM, by Shipment Size
Source: USDA, 2010 from STB Waybill Summary.FCS, car premiums/discounts not included in tariff revenue.Approximately 37 bushels/ton and 3,333 bushels per car.
Enhancing mobility of people and goods in rural America.
Wheat – Average Shipping Rate Compared to Average Farm Price
Source: STB and NASS adapted from USDA, 2010 FCS, car premiums/discounts not included in tariff revenue.Approximately 37 bushels/ton and 3,333 bushels per car.
Enhancing mobility of people and goods in rural America.
Local Tariff Rate Trends, Wheat
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2008
2009
$1,500
$1,700
$1,900
$2,100
$2,300
$2,500
$2,700
$2,900
$3,100
SingleMultiUnit/DET
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2008
2009
$3,000
$3,200
$3,400
$3,600
$3,800
$4,000
$4,200
$4,400
$4,600
$4,800
SingleMultiUnitShuttle
Minneapolis Portland
Source: BNSF Published TariffFCS, car premiums/discounts not included in tariff rate.Approximately 37 bushels/ton and 3,333 bushels per car.
$ pe
r Car
$ pe
r Car
Enhancing mobility of people and goods in rural America.
Summary Points The data reveal shifts in some of the origin-
destination corridors Concentration v. diversification in US and Canadian
origin-destination patterns A spike and non-traditional patterns in deliveries to
the Duluth market is identified for the most recent marketing year as well as an increasing trend in durum imports for the U.S. consumer market.
Narrowing in rail rate spreads among shipment sizes Lower expenditures per bushel mile in rail wheat
markets, but unclear regarding implications related to competitiveness in rail alternatives and market access
Enhancing mobility of people and goods in rural America.
Future Research• Factors for Focusing Efforts in Supply
Chain Opportunities/Transport Competitiveness
• Expand Descriptive Analysis• Modeling
• Wheat Supply Chain Scenarios & Sensitivity• Optimization – Partial Equilibrium Model for
HRS and Durum Market Flows• Factorial Analysis – Role of Intramodal and
Intermodal Competition (1999, 2005, 2009)
Enhancing mobility of people and goods in rural America.