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Transportation Costs Keep Rising
WASHINGTON - Nov 1/07 - SNS -- Transportation costs faced by North American domestic and export grain traders continues to escalate in the face of rising domestic diesel fuel costs and ocean freight rates, according to the USDA's Transportation Services Branch.
"During the week ending October 29, diesel fuel prices increased 6 cents a gallon to $3.16—up 2% from the previous week and 25% above the same week last year," the USDA said in its weekly Grain Transportation Review.
"Prices have increased 11 cents a gallon since the beginning of October. This trend may continue if the crude oil prices keep rising; they reached record levels this week, surpassing $94 per barrel.
"In the week ending October 24, the cost of shipping grain from the Gulf to Japan was $117 per MT, and the cost from PNW was $92 per MT. Both rates were 2% higher than the previous week."
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