An anticipated decrease in grain exports and increase in domestic biofuels production could change U.S. freight railroads’ capacity needs in the coming years.
This week in Borderlands: Houston export terminal lets Temco capitalize on grain demand; $10M FAST lanes completed at World Trade Bridge; Spearpoint Logistics to open distribution hub in Texas; and Port Houston’s terminal container yards receive upgrade.
Grain exporters have several options: paying higher transportation costs, storing grain, sending more of it to the domestic market or cutting their losses.
Officials say a proposed inland port near where the Mississippi and Ohio rivers meet will have ample capacity to serve Midwest customers seeking export access via barge, rail and truck.
As fall harvest nears, grain shippers and freight railroads are taking steps to ensure network fluidity for export-bound grain trains in and out of the Pacific Northwest.
he U.S. Department of Agriculture is forecasting lower export volumes for corn, wheat and soybeans for the 2021-2022 crop year. The agency also expects record overall U.S. farm exports for fiscal year 2021. Also, U.S. rail volumes on a weekly basis were flat to lower from the prior week.
Union Pacific is constructing a grain transload facility at its intermodal terminal near Chicago, while two U.S. senators introduce bipartisan legislation to form a grant program that aims to reduce highway-rail grade crossings.
Changes in export volumes for certain types of wheat may be reflected in changes in freight flows, according to reports from the U.S. Department of Agriculture.
Exports drive Canada grain volumes higher.
The Port of Brownsville recently received a $14.5 million grant to expand and upgrade the port’s 3 million-bushel grain elevator, including rail and road improvements.
Canadian Pacific’s and CN’s estimates of grain they expect to haul in 2020-2021 is in line with past projections.
Other factors beyond the coronavirus pandemic are weighing on U.S. rail volumes for grain.
Organizations may lobby Parliament to declare rail service an essential service so that access remains available during events such as labor strikes.
Competition from other grain-producing countries weigh on U.S. grain exports – and on U.S. rail volumes for grain.
Suspension will help drivers haul relief supplies in response to Tropical Storm Barry.
The U.S. Department of Agriculture (USDA) lowered its export projections for corn and wheat in the 2018-2019 harvest season amid slumping grain volumes and Midwest rail operations coping from last month’s record flooding.
The Grain Transport Report, a weekly publication by the Agricultural Marketing Service (a division of the U.S. Department of Agriculture) released information showing that total export inspections for grain (corn, wheat and soybeans) declined 22 percent from the previous week.
Upheaval caused by the U.S.-China trade war has some freight interests uneasy about giving Trump more tariff power.
For the first half of the year thus far, coal exports are up nearly 24% over the same period last year.
