CSX Rate Increase to Impact Grain Sector

CSX railway has announced that beginning Oct. 1 grain shippers in Ohio, Indiana, Illinois and Michigan will face increased rates. These rates are expected to drive costs ranging from 10 to 20 cents per bushel of grain hauled by CSX and an estimated increase in transportation costs of 35% to 380%, according to Chris Henney, president and CEO of the Ohio AgriBusiness Association (OABA).

Henney and other industry stakeholders have expressed concern about potential impacts on grain producers, as well as elevator and terminal grain pricing, grain logistics, markets and movements. Another concern is the inequity in those who may be impacted by rate increases.

“The new rate structure picks ‘winners and losers,’ meaning that some existing grain handlers are disadvantaged more than others,” Henney is reported as saying in the Ohio’s Country Journal. “The new rates reportedly are disproportionate in how they impact similar operations, causing uncertainty and confusion.”

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