Record Fuel Surcharges Hit US Grain Shippers Amid Ongoing Conflict

Railroad fuel surcharges have reached record levels this harvest season, adding to the difficulties faced by farmers in the US farm belt.

The average fuel surcharge on grain shipments has jumped 153% from last year's level, reaching 48 cents a mile per rail car in September.

This surge is largely due to the sharp increase in crude oil and refined fuel prices, which have climbed as the conflict with Iran continues.

Farmers like Steve Compton say that railroads quickly raise fuel surcharges but are slow to lower them again, effectively giving carriers an excuse to push freight rates higher.