Rail fuel surcharges hit 76 cents per mile

Grain shippers in Davidson County face the highest rail fuel surcharges on record this month. The average Class I railroad charge reached 76 cents per mile in November. This figure marks a 231 percent increase from April levels. Producers and elevators moving crops through the marketing system now pay more to transport their goods.

The spike follows a sharp rise in diesel prices earlier this year. Most rail programs tie their surcharges to highway diesel prices from about two months prior. This lag means current shipping costs reflect fuel prices from September and October. The USDA Grain Transportation Report confirmed the new peak in its latest data.

Rates vary significantly among different rail carriers. BNSF charges 61 cents per mile. Union Pacific charges 84 cents. Norfolk Southern charges 95 cents. Legacy Kansas City Southern and Canadian National both charge $1.04 per mile. These differences affect the total cost for shippers depending on which line handles their freight.

Mileage changes can also alter total expenses even if the per-mile rate drops. On a wheat route from Salina, Kansas, to Houston, BNSF was $9 per car cheaper than Union Pacific last month. After route adjustments, BNSF became $50 per car more expensive. Such shifts can surprise shippers who rely on historical cost comparisons.

Some relief is expected in 2027. The Energy Information Administration projects retail diesel will average about $4.50 per gallon next year. Prices are still expected to stay above $4 through the coming year. Shippers will continue to monitor these rates as they plan for the next marketing season.