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Rail Outlet Netback Tool

A decision support tool for rail-based grain merchandising, comparing netbacks across multiple outlet types (export terminals, river terminals, processing assets). Features LDC-specific rail economics including per-car P&L and demurrage modeling.

Live Demo: grain-freight-arb.vercel.app

React 18 Vite Tailwind CSS

Features

Core Analysis

  • Multi-Route Netback Comparison - Compare up to 3 rail outlets simultaneously
  • Break-Even Analysis - Calculate freight and basis break-even points where routes become equivalent
  • Decision Triggers - Automatic alerts when market movements would change the optimal route

LDC Mode (Rail Economics)

  • Per-Car Economics - Netback displayed in $/car alongside $/bu
  • Demurrage Modeling - Configurable demurrage ($/car/day) with free time
  • Delay Integration - Demurrage automatically added when Monte Carlo delay exceeds free time
  • Outlet Types - Routes labeled as Export Terminal, River Terminal, Processing Asset

Advanced Analytics

  • Sensitivity Heatmap - 2D grid showing how netbacks change across freight and basis scenarios
  • Monte Carlo Simulation - 10,000-iteration risk analysis with configurable uncertainty parameters
  • Carry Cost Modeling - Storage and interest cost calculations for inventory holding periods

Execution Constraints

  • Hard Constraints - Filter routes by rail availability, truck capacity, delivery windows
  • Soft Constraints - Adjust netbacks for quality discounts and payment terms (A/R interest)

Output

  • Market Wire - Auto-generated trade recommendation summary
  • Risk Metrics - Value at Risk (VaR), probability of loss, downside/upside scenarios

LDC Mode Presets

Default preset: SE Rail Flow (Example)

Route Outlet Type Destination
1 Export Terminal Gulf (Louisiana)
2 River Terminal Burns Harbor
3 Processing Asset Ethanol Plant

Rail Economics Parameters

Parameter Default Description
Bu/Car 3,500 Bushels per railcar
Demurrage $75/car/day Daily demurrage charge
Free Time 2 days Days before demurrage applies

Tech Stack

  • React 18 - Component architecture with hooks
  • Vite - Fast development and optimized builds
  • Tailwind CSS - Utility-first styling
  • Recharts - Data visualization (histograms, heatmaps)

Getting Started

# Install dependencies
npm install

# Run development server
npm run dev

# Build for production
npm run build

Data Sources

  • Basis Data: USDA AgTransport "Latest Week of Grain Basis Data"
  • Barge Freight: USDA Grain Transportation Report
  • Rail/Truck Freight: Configurable assumptions
  • Futures: User input (references CBOT settlement)

All inputs are fully editable for scenario analysis.

Scope Boundaries

This is a decision-support tool for screening rail trade opportunities. It does NOT include:

  • Rail billing / applications workflow
  • Accounting accruals
  • Position / P&L tie-out systems
  • CRM / origination tracker

License

MIT

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