Grain Trucking Indicators
Introduction
A vital link in the grain transportation system, trucks ship grain from producers to multiple destinations for a range of industries. Whether for an entire or partial route (with transfers to or from other modes), trucks deliver grain from producers to grain elevators, ethanol plants, processors, and feedlots.
This page provides an overview of key indicators in grain truck transportation and shows visualizations on grain truck availability, use, and rates for key regions in the United States shown in the map onthe right.
Truck Availability and Demand
The grain truck use
index reflects grain shippers’ demand for trucks. It compares truck use in the
current quarter to the same quarter last year. Current use is ranked on a scale
of 1 to 5 (lowest to highest), compared to the same quarter last year. The grain
truck use index commonly reflects changes in seasonal and export demand for
grain.
Similarly, the grain
truck availability index represents the ease of finding and booking trucking
services to meet demand for shipping grain. This index tracks the
perceived ease of hiring a truck in the current quarter, compared to the same
quarter last year, as reported by grain elevators. Current availability—or ease
of hiring trucking services—is ranked on a scale of 1 to 5 (very easy to very
difficult), compared to the same quarter last year.
The charts below show patterns
in quarterly availability and demand for grain trucks, both nationally and for
key U.S. regions.
Truck Rates
Truck rates are a key component of agricultural transportation
costs, affecting profit margins for grain producers, as well as trucking
companies’ viability. Besides fundamental supply and demand conditions, myriad
other factors determine rates for grain hopper trucks, including basis, export
market perspectives, fuel price, inventory, storage costs, back haul
availability, and historical rates. Truck capacity is booked either by
spot rate or contract rate. The spot rate is the market rate, while the
contract rate is a forward contract and offers the advantage of knowing the
future freight price.
The first chart below shows quarterly grain truck contract rates nationally and for key regions. The
second chart shows weekly spot rates for 13 major routes that transport the
major grains and oilseed—i.e., corn, wheat, and soybeans.
The 13 major routes covered are: Boise, ID, to
La Grande, OR; Omaha, NE, to Kansas City, MO; Davenport, IA, to Peoria, IL; Des
Moines, IA, to Davenport, IA; Des Moines, IA, to Omaha, NE; Oklahoma City, OK,
to Dallas, TX; Hastings, NE, to Omaha, NE; Fargo, ND, to Minneapolis, MN;
Springfield, IL, to Beardstown, IL; Springfield, IL, to Chesterfield, MO;
Mason, OH, to Chicago, IL; Sioux Falls, SD, to Kansas City, MO; and Memphis, TN,
to Atlanta, GA. The rates are average rates for trips that originated and terminated within 150 miles of the origin and destination cities. These routes were
selected based on the corridor analysis in USDA's The Importance of Highways to U.S. Agriculture report, which analyzed the top 5 percent of routes that
carry the largest shares of grains and oilseeds among other commodities.