Weekly U.S. Rail Loadings Rise

WASHINGTON - May 25/06 - SNS -- The number of carloads of grains and oilseeds delivered to U.S. ports for the week ending May 10 inched up, according to the USDA's Transportation and Marketing Programs/Transportation Services Branch weekly Grain Transportation Report.

Total carloads delivered to major port areas during the week totalled 7,634, versus 7,334 the previous week. This lifted calendar year to date deliveries to 189,099 cars, up 4% from the 181,791 cars unloaded during the same period last year.

In other transportation news, the USDA reports that the Brazilian Export Soybean Transport Indicator Report has been expanded to include total landed cost from major production areas in Brazil to Shanghai, China. Transportation costs accounted for almost half of the total landed cost of shipping soybeans from Sorriso, North Mato Grosso (MT), to Shanghai, through the respective ports of Santos and Paranaguá.

The route between North MT and the port of Santos is 90% longer than the average of 626 miles for the 24 routes considered in the report. Consequently, the cost of shipping is higher. Costs are exacerbated by the poor condition of the roads.

During the first quarter 2006, total transportation costs of shipping soybeans from North MT to Hamburg, Germany, were 7% higher than the first quarter 2005. Ocean rates from the ports of Santos and Paranaguá to Hamburg, Germany, dropped by 13% from the first quarter 2005. However, this decline in ocean rates was not enough to offset the 65% increase in truck rates in the state of Goiás which resulted in a 15% increase in total transportation costs.

Subscribers can read the full text of the article by Clicking here