@article{Prater:161208,
      recid = {161208},
      author = {Prater, Marvin and Sparger, Adam},
      title = {Grain and Oilseed Shipment Sizes and Distance Hauled by  Rail},
      address = {2013-12},
      number = {1470-2016-120670},
      series = {53rd Annual Transportation Research Forum Proceedings},
      pages = {28},
      year = {2013},
      abstract = {Grain and railroads have an interdependent relationship.  Grain is one of the most important commodities for  railroads. It is the primary agricultural commodity moved  by rail, comprising 7.9 percent by tons of all commodities,  94 percent by tons of all farm commodities, and 8.4 percent  of total rail revenue in 2009. In turn, railroads represent  a vital component of the grain network, hauling 33 percent  of all grain transported in the United States in 2007. As  domestic and export markets have evolved, railroads have  continuously made efficiency strides through shuttle trains  and the length of haul. Since 1994, grain and oilseed  transportation has moved from small shipment sizes to  shuttle-size shipments (75 or more railcars) for many  grains and oilseeds, reflecting the lower costs of  shuttle-size shipments, an increase in the number of  domestic destinations capable of unloading shuttle-size  shipments, and increased grain and oilseed exports in some  years. In addition, the length of haul has increased for  grains and oilseeds, reflecting competitive advantages of  rail compared to truck on longer hauls, lower rail tariffs  per mile for longer hauls, and changing grain and oilseed  markets. However, development of the shuttle market has  occurred differently among grain types and has not been  explored at the individual commodity level.   This paper  uses the Surface Transportation Board Confidential Waybill  Samples to quantify the changes in shipment size and length  of haul for each major grain and oilseed (corn, soybean,  wheat, sorghum, and barley) from 1994 to 2009. Changes in  shipment size and length of haul are compared to production  and usage changes for each of the major grains and oilseeds  to gain more insight into the underlying reasons behind the  changes.  This procedure improves upon earlier analyses of  the grain shuttle-size market by exploring the changes at  the individual commodity level.  The shuttle market for  each grain has developed differently because exports,  production, and usage have been different despite the  overall push towards larger and longer hauls by the  railroads in order to maximize efficiency. In 1994, the  dominant size of shipment for all 5 grains was 6 to 49  railcars. However, there were initial differences in the  lengths of haul: corn, soybeans, and barley were hauled  mostly between 20 and 500 miles in 1994, but wheat and  sorghum were hauled between 501 and 1,000 miles. By 2009,  corn and soybeans were mostly hauled more than 1,500 miles,  but the predominant category for each of the other grains  did not change.  Wheat has been the most consistent of the  five grains over the period of study with very little  change in exports, production, or usage. As such, it has  had the fewest changes in shipment size or length of haul;  the dominant shipment size and length of haul have remained  the same throughout the time period. In contrast, a  production increase in corn and soybeans due to corn-based  ethanol and soybean exports has led to more shuttle-sized  shipments of these commodities. Exports, the rise of large  dairies, and a shift in animal production to regions  distant from corn and soybean production regions have  resulted in lengths of haul in excess of 1,500 miles  becoming predominant. Soybeans have had the most dramatic  change in length of haul because of increased exports and  shipments to large animal feed regions which are not as  susceptible to truck competition, as evidenced by rail’s  increase in market share. On the other hand, corn’s length  of haul has been mostly more than 1,500 miles only since  2008 when more ethanol plants were built, leading to  stronger truck competition for the shorter movements to  ethanol facilities and taking away some of rail’s share.   Shuttle markets have developed differently for sorghum and  barley despite decreased production in both. Sorghum for  ethanol production and a higher percentage of exports among  total usage have led to an increase in shuttle-sized  shipments even though less is being exported overall.  Barley production has declined due to corn and soybeans  being more profitable, and barley exports have declined  without a strong export demand. The predominant barley  shipment size of 6 to 49 railcars and length of haul  between 20 and 500 miles makes rail shipment of barley more  susceptible to truck competition and has caused rail to  lose market share over the time period.},
      url = {http://ageconsearch.umn.edu/record/161208},
      doi = {https://doi.org/10.22004/ag.econ.161208},
}