Erie Canal Shipping Costs: A Dramatic Drop

Freight costs plummeted after the Erie Canal opened in 1825. Before the canal, shipping a ton of goods from Buffalo to New York City cost $100 by wagon and portage. Afterward, the same haul cost just $5—a 95% reduction. This revolutionized trade, enabling Midwestern farmers to reach East Coast markets profitably and allowing Eastern manufacturers to sell westward affordably. The canal turned New York into the nation's commercial capital.