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
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Senate Majority Leader John Thune says senators are trying to align the E15 effort with broader Farm Bill negotiations as producers continue grappling with weak farm income and elevated costs.
Feed grain supplies may tighten in 2026/27, supporting higher corn and sorghum prices despite large crops.
USDA says federal biofuel policy and growing renewable diesel capacity are increasing demand for feedstocks.
USDA says growing soybean output and expanding biofuel demand are helping drive the increase.
For farmers, better data may not solve every local rail problem, but it can make service failures easier to document.
