Despite a record harvest creating logistical pressure, the U.S. transportation system is currently keeping up with demand, thanks in part to recent investments.
Max Fisher, chief economist and treasurer for the National Grain & Feed Association, explains that global trade shifts also provided a buffer.
The current trade environment, particularly reduced grain movement to major export hubs in the Pacific Northwest and the Gulf of Mexico, has eased congestion.
“The trade barriers have meant that we have a little excess capacity, especially in our rail system right now,” Fisher tells Mid-West Farm Report. “So there’s just not as much grain moving through it. For the time being, because of a little slack in the amount of grain demand for rail, the service has just been excellent.”
This temporary slack has helped carriers manage the heavy domestic flow. However, the long-term health of the system depends on sustained infrastructure funding, particularly for waterways. Fisher points to the inland waterways as an example of successful public investment.
“It seems like the cheapest way to move grain, we found, is by water,” Fisher says.
He credits consistent congressional action for improving resilience against extreme conditions.
“Right now, we’re going through very low water levels on inland waterways. And in years past, that would have really snarled freight. But because they’ve done like the necessary dredging, and they’ve done their work on the locks and dams… it’s made it to where we haven’t had as much impact on our freight from these low water levels as what we would have in the past.”
Fisher is optimistic about the Great Lakes corridor, noting recent investments like the revamp of the Port of Milwaukee by the DeLong Company. He suggests the St. Lawrence Seaway remains an underutilized corridor for grain transportation.
While the return of major export markets like China is expected to ramp up demand for the system, infrastructure improvements and a strong trucking workforce are allowing the U.S. to effectively move its crop.
