Grain freight elevator consolidation, transportation demand, and the growth of shuttle facilities

Increasing consolidation and concentration in the U.S. grain-elevator gathering system characterized by larger capacity elevators (shuttle) has altered shippers’ relative usage and demand for transportation services. In this study, we estimate modal demand for individual elevator wheat shipments from the U.S. Northern Plains to export and domestic destinations between 2006 and 2013. We find a much higher rail dependence for shuttle elevators in comparison to non-shuttle elevators reflected by the relative size of modal demand elasticities.