Ocean Freight Rates Rise As Grain Movement Shifts

Grain movement remains active, but high ocean freight and diesel costs continue to pressure export logistics.

NASHVILLE, TENN. (RFD NEWS) — Grain transportation costs remain elevated as ocean freight rates climbed to their highest levels in nearly four years. USDA says the Gulf-to-Japan grain shipping rate reached $72 per metric ton for the week ending May 14, the highest since July 2022.

The Pacific Northwest-to-Japan rate rose to $37.25 per metric ton, its highest level since August 2022. Since January 1, Gulf rates are up 44 percent, while Pacific Northwest rates are up 41 percent.

Strong dry bulk demand, including coal, iron ore, and grain, continues to support vessel rates. Higher oil prices are also keeping bunker fuel costs elevated.

Rail grain movement softened for the week but remained well above last year and the three-year average. Barge movement improved from the previous week but stayed below last year’s levels.

Diesel eased slightly to $5.596 per gallon, still $2.06 above last year.

Farm-Level Takeaway: Grain movement remains active, but high ocean freight and diesel costs continue to pressure export logistics.
Tony St. James, RFD News Markets Specialist
Related Stories
August data from the U.S. Bureau of Labor & Statistics show continued inflationary pressure, with energy and transportation costs playing a significant role in both consumer and producer prices.
The Internal Revenue Service issued updated emissions-rate guidance on September 8, while the Department of Energy revised its 45ZCF-GREET model.
Crop margins remain constrained while cow-calf returns reach historic highs.
AFBF’s Brian Glenn discusses the Senate Farm Bill and the Farm Bureau’s push to finalize legislation before the end of the year.

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:

Lower corn and cotton supplies strengthened price expectations, while soybeans gained from stronger exports and wheat remained comparatively steady.
Drought is worsening across the Southern Plains as winter wheat producers prepare for planting
Higher costs and weak returns are putting more pressure on Southern crop producers.
Beef export value increased in July even as pork shipments faced trade-related disruptions.
Ethanol-driven corn demand is shifting acreage as tighter soybean supplies push feed costs higher.
USDA projects farm debt will grow faster than assets and equity this year