As a record corn crop is being harvested, the United States is preparing to ship much of its corn, along with other coarse grains and co-products, around the world. Buyers of bulk shipments of U.S. grains have the option to choose either dry bulk or container shipping to receive their product. Dry bulk shipping serves different needs based on buyers’ preferences.

Benefits of Dry Bulk Shipping

In dry bulk shipping, grain is transported from the farm via rail, barge or truck to ports where it is loaded directly into compartments on vessels. As a result, single shipment sizes for dry bulk are typically around 25,000 to 60,000 metric tons (984,000 to 2.4 million bushels) each.

Due to the large unit sizes, large shipments of grains in dry bulk shipping tend to have a lower overall cost. Current pricing for dry bulk shipping out of the United States remains low, due to large fleets available for transport.

Considerations for Choosing Dry Bulk Shipping

Because the grain is put directly onto ships in large quantities, typically more mixing and blending occurs in dry bulk shipping. Also, the grain is exposed to more handling, which is minimized in containers where grain is loaded directly from local elevators into the container. 

The need to transport grain to feed mills after shipments arrive in buyers’ ports also plays a role in choosing dry bulk shipping. If mills are located far from ports, unloading ships and reloading grain onto trucks could lead to extra cost. 

“What’s the best way to ship? It depends,” said Jay O’Neil, senior agricultural economist for the International Grains Program at Kansas State University. “We want buyers to know that they have the ability to purchase either in bulk or in container freely, and that they can make those choices based on what is most convenient for them. The economics don’t necessarily favor one or the other overall.”