U.S. Railcar Backlog Building

WASHINGTON - Nov 13/14 - SNS -- The United States is experienced strong demand for transportation resources from the grain, oilseed and pulse industries, according to the today's Grain Transportation from the USDA's Agricultural Marketing Service.

So far this calendar year, U.S.-owned Class I railroads hauled 878,825 cars of grains and oilseeds, up 15% from 763,889 for the same 44-week period last year.

BNSF Railway (BNSF) year-to-date graincar loadings are up only 1%, but the last 4 weeks are 4% higher than the same time last year, possibly contributing to the recent fall in secondary railcar rates. Canadian Pacific (CP) year-to-date graincar loadings are also up 1%, but the last 4 weeks are down 8% from the same period in 2013.

Graincar backlogs on each railroad have been increasing over the past several weeks, reaching 6,793 cars past due for BNSF and 2,754 cars for CP. Congestion during the fall peak is normal following harvest, but shippers are afraid of a repeat to last year with prolonged congestion lasting into 2015 and grain backlogs increasing to the same levels as last year, with over 15,000 cars past due.