USA: railroad fuel surcharges for grain shipping hit a record $0.76 per mile, with relief expected only in 2027
The U.S. Department of Agriculture's Agricultural Marketing Service (USDA AMS) published its weekly grain transportation report on November 5. According to the report, the average fuel surcharge that major U.S. railroads add to grain shipping rates in November is $0.76 per mile (≈ $0.47 per km), an all-time record and 231% higher than in April 2026.
Key figures
- Surcharge: $0.76/mile
- Vs. April: +231%
- Previous record: $0.58/mile
- October diesel: $6.25/gal
- 2027 forecast: $4.50/gal
- Freight to Japan: $74.75/t
What changed
On top of the base rate, which usually changes once a year, shippers pay a fuel surcharge. It is recalculated every month based on the average retail diesel price from two months earlier. Since March 2026, diesel prices in the U.S. have risen sharply, and surcharges have climbed to a record. The previous peak was in August 2022: $0.58 per mile (≈ $0.36 per km). Across railroads, the November surcharge ranges from $0.61 to $1.04 per mile (≈ $0.38–0.65 per km).
In numbers
U.S. grain transportation, according to the report:
- The average retail diesel price was $6.29 per gallon (≈ $1.66 per liter) in September and $6.25 (≈ $1.65 per liter) in October.
- In December, surcharges will ease slightly, following the October diesel price.
- As of November 3, shipping from Illinois to New Orleans by rail, including the surcharge, cost $32.80 per short ton (907 kg), and by barge on the Illinois River, $33.59.
- Ocean freight for a ton of grain from the Gulf of Mexico to Japan as of October 29 was $74.75 (−2% for the week), and from the U.S. Pacific Northwest, $39.50 (+3%).
Forecast
In its October Short-Term Energy Outlook, the U.S. Energy Information Administration (EIA) expects retail diesel to gradually get cheaper in 2027 and average $4.50 per gallon (≈ $1.19 per liter). The reasons are softer oil prices and a partial rebuilding of diesel inventories. However, inventories will stay below normal levels, and diesel is forecast to cost more than $4 per gallon (≈ $1.06 per liter) throughout 2027. This means surcharges should come down from recent months but remain above the level seen before March 2026.
What it means for buyers
Transportation within the U.S. is part of the delivery price for both machinery and export grain. Record fuel surcharges make the trip from farm to port more expensive, and according to the EIA forecast, relief will come only in 2027. Buyers planning to bring machinery from the USA by spring should keep in mind that the fuel component of rail rates is currently at a record level.
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