US Grain Transportation Costs Skyrocket on Fuel Surcharges

September 15, 2026 · GıdaTarım

Soaring rail fuel surcharges to 48 cents per car-mile have pushed logistics costs for corn and soybean farmers to record highs during the harvest season in the US.

Corn and soybean farmers across the US, entering the harvest season, are facing a sharp increase in logistics costs. The average fuel surcharge applied to rail transportation has risen to 48 cents per car-mile as of early September, up from 19 cents a year ago. This 153% year-over-year increase in fuel surcharges reflects the direct pass-through of fuel price fluctuations by rail companies to freight rates. Even small per-mile increases can significantly inflate total rail transport bills for shipments spanning thousands of miles.

Geopolitical developments in global energy markets are at the core of this leap in logistics costs. With war risks emanating from the Middle East and Iran pressuring oil supply, diesel prices across the US have neared the $6 per gallon mark. Fuel prices, which were relatively low in the early months of the year, have quickly become the heaviest expenditure item in grain logistics. This rise has pushed fuel surcharges, directly added to rail tariffs, to historic record levels.

The share of rail fuel surcharges in corn and soybean transportation costs has climbed to 11% from 5% last year. This cost increase directly impacts inland producers, particularly those without direct access to alternative transport networks like river or sea routes. Farmers who must transport their crops by rail to export terminals and major processing facilities are seeing their profit margins narrow, while high freight expenses also dampen their competitiveness in the global market.

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