A sharp increase in diesel prices, up about 60% since the start of the year, is beginning to drive higher grain transportation costs, with impacts expected across trucking, rail, and ocean shipping. While Canada’s regulated rail system may delay the full effect, higher fuel costs will eventually be reflected in rates, and ocean freight is also set to rise as bunker prices have more than doubled. According to Quorum Corporation, these cost increases will likely emerge in the coming months, though stronger grain prices may partially offset the impact, with consumers ultimately expected to absorb much of the increase.
