Feedstuffs in Focus

Rail delays cost grain industry more than $100M this year


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Rail service failures in recent months have led to widespread delays of train delivery at major grain export destinations. Failures and delays that have cost the grain industry more than $100 million through the first quarter of 2022, according to the National Grain and Feed Association.

NGFA testified this week before the Surface Transportation Board about those failures and costs to the industry, calling on the Board to implement financial incentives for the railroads to perform more efficiently – similar to what the railroads do to keep shippers loading and unloading rail cars as efficiently as possible. The Association also testified on a wide set of policy issues, from reciprocity on switching rules, requiring additional data reporting, and developing additional guidance to railroads on their statutory obligations on service.

In this episode we talk with NGFA Chief Economist Max Fisher about the current situation with the railroads, and what NGFA asked the Board to do to alleviate the burden on grain shippers and other agricultural customers.

RELATED: If you want to learn more about the problems facing U.S. transportation and logistics, including rail, truck and ocean freight shipments, visit Feedstuffs 365 and watch our recent interview with Ken Eriksen of S&P Global.

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