Marketing U.S. Grain and Oilseeds 

by Container (Summary)

Agricultural 

Marketing 

Service

February 2015

Over the past decade, U.S. exporters have increasingly used containers to ship grain. However, the dynamic 

market, heavily influenced by global demand and by ocean carriers, poses challenges in optimizing operations 

and making the best investment decisions. Access to more and better market information helps exporters 

navigate the ever-changing environment. Marketing U.S. Grain and Oilseeds by Container report describes 

the growth of the containerized grain industry and highlights some of the investments that help stimulate 

the market. 

U.S. agriculture continues to adapt to changes in the world food market. Some of these changes include 

increased demand for food security, rising costs of energy, and increasing sophistication of international 

buyers. Amidst these changes, the marketing of grain and feed products in containers, which have traditionally 

been moved in bulk vessels, has become a more popular option. Grain movements in containers comprise 

around 10 percent of the total grain export market, and provide an opportunity to access new international 

niche markets. 

This paper reports on an analysis of rail and port container traffic that offers insight into market activities, 

trends, and opportunities for the marketing of grain internationally via container. The ability of the U.S. grain 

industry to understand and successfully respond to market signals is key to continued growth for container 

transportation as a marketing alternative to traditional bulk shipment.

While some specialized grain products have been marketed in containers for decades, a more general 

commercialization of the grain container market has occurred over the past several years. The U.S. grain 

industry has for decades offered the container option to fulfill orders such as food-grade soybeans to Japan. 

A wider use of containers for traditional bulk shipments such as feed-grade corn is a more recent 

phenomenon. The increase in containerized grain shipments has resulted from market changes, as well as 

industry investments that increase the visibility and viability of this option. For example, the grain industry 

near Chicago, IL—America’s largest inland intermodal hub—has converted several small, local grain facilities 

from bulk to container to take advantage of its proximity to a readily available supply of empty containers. 

This is a summary of Marketing U.S. Grain and Oilseeds by Container, by Kimberly Vachal, Upper Great Plains 

Transportation Institute, North Dakota State University, Fargo, ND, September 2014, produced under an 

Agricultural Marketing Service (AMS) cooperative agreement. The full paper is available at 

http://www.ugpti.org/resources/reports/details.php?id=773. 

April Taylor
Transloading grain from bulk railcars to containers has also become a viable option for containerized grain 

exporters. For example, the Union Pacific has recently invested in a new transload facility in Yermo, CA. 

Transloading takes advantage of the economies of size associated with moving trainload units of grain from 

inland production regions to a near-port facility, allowing minimal drayage costs because of the proximity to 

the larger supplies of empty containers at port terminals. While several transload facilities in the region have 

been operating in a smaller capacity for many years, the Yermo facility is a major investment dedicated to 

large-scale transload of agricultural products.

Competitive and reliable transportation services are fundamental to U.S. agriculture’s success in a global 

market. Recent statistics show an increasing trend in world grain traded via container. Although bulk shipping 

remains dominant in the world grain export market, niche container marketing is increasingly being used by 

U.S. grain companies and by competitors, such as Canada and Australia. Analysis shows that, although it is a 

relatively small part of the U.S. grain market, container exports of grain have begun to attract more attention 

from investors and shipping lines as a viable mode of international grain trade. However, the distance of major 

grain production areas to the largest container inland terminals and ports remains the largest challenge for 

the industry. The ability of the U.S. grain industry to adapt to a dynamic market through terminal investments, 

expanded transload facilities and increased “match-back” traffic will prove challenging, but potentially 

advantageous in long-term benefits associated with market diversification and an expanded customer base.

As industry experience is gained and investment decisions related to grain container shipping are made, the 

nature and activity levels for U.S. agriculture in this market will change. This report offers context for decisions 

related to this market, both from a general perspective and a more granular viewpoint.

The goal of the Marketing of U.S. Grain and Oilseeds in Containers report is to give insight into grain container 

shipments based on activity levels and trends, considering commodity, origin and destination. An initial step 

in understanding the grain container supply chain is recognizing inland terminals, ports, and international 

port networks. Unlike the bulk supply chain market, grain is a minor commodity in the spectrum of products 

shipped by container, so a brief discussion of the overall use of containers is included for the purposes of 

context. The report provides an in-depth discussion on major grains (such as corn, wheat, and soybeans) and 

has a section on distillers grains, a relatively new but important by-product of corn ethanol production used as 

an animal feed supplement. 

A descriptive analysis was used to compile facts about trends and recent activities in marketing farm (and 

specifically grain) products via container. Statistical measures were used to test relationships in the market. 

In creating the profile, the U.S. Department of Transportation’s U.S. Public Use Waybill (Public Waybill) and 

the JOC Group, Inc.’s Port Import Export Reporting Services (PIERS) data were the principal data sources. The 

methodology mirrors that presented in the industry profile published in 2001: U.S. Containerized Grain and 

Oilseed Export: Industry Profile Phase I. 

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Photo credit: Courtesy of Athewma