Mississippi River Reopens as Freight Costs Begin Rising

Rising fuel costs will soon increase grain transportation expenses.

Mississippi river MS _adobe stock

Adobe Stock

NASHVILLE, Tenn. (RFD NEWS) — Grain transportation is shifting into spring mode as the Mississippi River system reopens, while rising diesel prices are expected to push freight costs higher in the weeks ahead.

The Mid-Mississippi River reopened for navigation on March 19, followed by the Upper Mississippi River reaching St. Paul, Minnesota, on March 24 — marking the final seasonal opening point. The reopening comes slightly later than last year but restores a key export corridor after winter closures. In 2025, more than 12.8 million tons of grain moved through a key lower Mississippi lock, underscoring the system’s importance to U.S. exports.

Transportation costs are now becoming a growing concern. Diesel prices have surged to $5.375 per gallon, up sharply in recent weeks, which will begin flowing into rail shipping costs through higher fuel surcharges starting in May. For long-distance routes, that could add roughly $575 per railcar to freight costs.

Shippers are already reacting. Rail demand is expected to increase in April as grain companies try to move product ahead of higher fuel surcharges. Secondary railcar markets have firmed in recent weeks, reflecting that shift in demand.

Barge and ocean activity are also strengthening, with increased vessel loadings in the Gulf and improving river traffic as navigation conditions normalize.

Transportation conditions are improving seasonally, but rising fuel costs are likely to increase overall grain shipping expenses as we move into late spring.

Farm-Level Takeaway: Rising fuel costs will soon increase grain transportation expenses.
Tony St. James, RFD NEWS Markets Specialist
Related Stories
While access to China remains uncertain, U.S. beef exporters are finding resilience and opportunity in other global markets, which could help maintain industry value and expand export opportunities.
Mike Spier, president and CEO of U.S. Wheat Associates, discusses the new U.S.-Bangladesh trade agreement and its potential benefits for U.S. wheat growers.
Gretchen Kuck of the National Corn Growers Association joined us to discuss the Ag Coalition for USMCA’s report findings and expectations ahead of the upcoming USMCA review.
Strong corn exports offer support, while soybeans and wheat remain weighed down by ample global supplies, according to the USDA’s latest WASDE report for February.
Higher livestock prices reflect resilient demand, even as disease and herd shifts reshape 2026 supply expectations.
Kevin Charleston of Specialty Risk Insurance discusses the importance of grain bin safety and joint efforts with Nationwide to provide farmers and first responders with access to critical, life-saving rescue tubes.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

In the U.S. and Canada, reduced planted acres—not yield losses—led to a decline in potato production, while Mexico saw modest gains due to increased yields and harvested areas.
AFBF Economist Samantha Ayoub discusses the latest data on Chapter 12 farm bankruptcy filings and what the troubling trend signals for the farm economy. At the same time, bigger loans and higher rates are squeezing working capital and increasing financial risk.
Corn demand remains supportive, but weaker soybean buying limits overall export momentum.
Farm numbers still favor small operations, but production, resilience, and risk management are increasingly concentrated among fewer, larger farms.
China’s reliance on imported soybeans remains entrenched, shaping global demand and trade leverage.
Cuba remains a steady, nearby buyer of U.S. poultry, pork, dairy, and staples, but legal and compliance risks could still affect shipping and payment channels.