Exporters moving U.S. grain to Asian markets continue to struggle with harsh winter weather that’s delayed shipments via rail to ports in the Pacific Northwest.
Blizzards, avalanches and heavy rain have bogged down the supply chain and sent secondary rates for grain railcars soaring.
Growers want to move as much grain as possible before harvests in South America start to enter the market. But they have been battling adverse weather conditions since harvest in the fall.
This past week BNSF Railway was forced to shut down its Northern Corridor through the Montana Rockies due to avalanches. It rerouted some trains via Montana Rail Link in southern Montana.
Freight rates for BNSF shuttle railcars has hit $2,000 above tariff rate per car, up from $1,267 above tariff a month ago. A year ago, it was $108 below tariff, according to U.S. Department of Agriculture data.
Along the Pacific Northwest coast, rains and snow stopped loadings of ocean vessels in Oregon and Washington. With ships unable to load, congestion at PNW ports has increased, resulting in delays of 15 to 20 days.