U.S. Rail Fuel Surcharges on Grain Hit Record Highs, Squeezing Farmers in Harvest Season

From Successful Farming/Reuters

Sept. 14 (Reuters) – 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.

The average fuel surcharge rate on grain shipments climbed to 48¢ a mile per rail car in the second week of September, up 153% compared with the weighted average a year earlier, according to U.S. Department of Agriculture data. Railroads use surcharges to recover most of what they have paid for fuel and combine them with long-haul freight rates. Read the rest of the article here.