Intermodal Boom Offers US Primary Produces Easy Access to Foreign Markets

The boom in intermodal networks has resulted in new opportunities for farmers in the middle of the country to get access to foreign markets. As a demonstration of the growth trend, a new rail yard has been opened just in the last few months in Decatur, Illinois by the agriculture giant Archer Daniels Midland. The company plans to use the rail yard to help businesses in the region ship more products and is expected to increase its shipping capacity three-fold in the next few years. The rail yard is already equipped to handle 50,000 containers in a single year. Farmers are seeking to take advantage of the empty shipping containers that are ending up all over the United States as a result of international companies exporting goods to the United States. In addition, grain cooperatives and exporters are taking advantage of this modular transportationtrend to ship graininternationally. The modular transportationtrend is becoming an increasingly important part of the agriculture business and farmers are estimated to have shipped 140 billion dollars worth of products over the past year. The main products being sent are corn, soybeans and wheat. These products are mainly being shipped to Asiaand Europe. Previously these shipments were sent in big vessels, but with container shipments, smaller amounts of product can be sent. This is a boon for big countries that don’t have the infrastructure in place to accept the larger vessel shipments. In addition, this has made it easier for farmers to accept orders where the recipients do not want GMO crops. This also allows farmers to ship specialized niche products that are grown in the Midwest and there is a demand for those products overseas. Farmers in Illinois, Missouri and Kansas are those that are currently leading the trend in modular transportation. Container transportation in those areas has grown at double digit rates in the past few years. The trend will likely expand to other states in the Midwest as companies begin to see the benefits of the container transportation. Despite the growing trend, the large vessel shipments still make up 90% of the shipments that are going overseas. However the major difference nowis that small businesses now have access to overseas shipments and can expand their businesses internationally by selling niche products.