NASHVILLE, Tenn. (RFD NEWS) — Lower ocean freight rates in 2025 quietly improved the competitiveness of U.S. grain exports, offering some relief to producers facing weak commodity prices. Even with late-year volatility, shipping costs averaged below recent years, helping keep export channels open.
Average bulk ocean freight rates for wheat, corn, and soybeans declined from 2024 levels and the prior four-year average. Rates from the U.S. Gulf to Japan averaged $50.83 per metric ton, while Pacific Northwest routes averaged $28.09, narrowing delivered cost pressure for overseas buyers.
Seasonal slowdowns, ample vessel supply, and normalized Panama Canal operations weighed on rates early in the year. Although rates firmed during the second half of 2025, full-year averages remained lower, preserving a cost advantage for U.S. exporters relative to competitors.
Cheaper freight supported export demand during a period when futures prices offered limited margin opportunity. That dynamic helped protect basis levels tied to export terminals, particularly in Gulf-dependent regions.
Looking ahead, early-2026 freight rates remain moderate, but shifts in global demand or vessel availability could alter export competitiveness later in the year, according to U.S. Department of Agriculture analysis.
Farm-Level Takeaway: Lower freight costs helped sustain export demand amid a challenging pricing environment.
Tony St. James, RFD NEWS Markets Specialist
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