Sept 14 (Reuters) - Railroad fuel surcharges on U.S. grain shipments have more than doubled over the past year, rippling through the farm belt and raising transportation costs as many farmers also struggle with higher production costs.
The average fuel surcharge rate on grain shipments climbed to 48 cents a mile per rail car in the second week of September, up 153% compared with the weighted average a year earlier, according to U.S. Department of Agriculture data. Railroads use surcharges to recover most of what they have paid for fuel and combine them with long-haul freight rates.