Rail Backlogs Are Contributing to the National Inflation Issues

Rail backlogs are contributing to the national inflation issue, delaying shipments and driving up prices of grains, processed flour, and corn syrup. Iowa-based Landus Cooperative, which buys grains from 7,000 farmers across the state, has stated rail transit times of their product have doubled, and they have run into occasions where they have needed to turn away farmer loads. Landus representatives estimate delays in March and April impacted nearly 2.250 million bushels.

Where the blame lives is up for debate, with shippers pointing to the rail companies cutting labor, storing locomotives and stretching train lengths even before the pandemic. Meanwhile, the rail companies are stating COVID, extreme weather and shipping demand at the end of 2021 is contributing to the issues. However, all sides can agree that solutions must be put into place, though only time will tell whether they will be effective.

Read more on supply chain backlogs.

Rail Backlogs Are Contributing to the National Inflation Issues