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
EPA Administrator Lee Zeldin, in consultation with the U.S. Department of Energy and under the Clean Air Act, approved the temporary measure to help stabilize fuel supplies and reduce costs for consumers.
As farmers and ranchers navigate rising input costs, lawmakers are considering a roughly $15 billion aid package to help, which would be tied to the spending bill for the war with Iran.
Lower costs improve competitiveness, but demand remains uncertain.
Policy clarity will determine the trajectory of soybean crush demand, but producers in Kansas have shown that expanding local crush capacity strengthens basis and marketing options.
Corn and soybean shipments continue to move at a steady pace as spring trade flows develop.
Tony Adkins with Specialty Risk Insurance addresses current market challenges for farmers and ranchers and offers strategies to help producers navigate risk.

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:

Acreage shifts could impact pricing and marketing plans.
Herd growth and exports supporting dairy outlook.
Strong exports continue to support corn despite larger supplies.
Crush demand is supporting soybeans despite biofuel uncertainty.
Bigger stocks may limit upside in cotton prices.
Export growth remains key for grain profitability.