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
Rising costs are significantly extending walnut profitability timelines.
Consistent sorghum quality supports strong export demand potential.
Secretary Rollins is signaling a possible reopening of the southern border to Mexican feeder cattle as officials work to manage the threat of the New World Screwworm.
Higher energy activity likely keeps fuel and fertilizer costs elevated.
Lower shipping costs alone will not restore export competitiveness.
Rising fuel costs will soon increase grain transportation expenses.

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:

Higher fuel costs are raising grain shipping expenses. RealAg Radio’s Shaun Haney discusses how energy market disruptions are impacting farmers in new ways as the War in Iran continues.
Variety meat demand is helping offset weaker beef exports.
Corn exports remain the clear demand leader.
Labor supply may shift, but uncertainty remains for producers.
Spring Fieldwork Expands While Weather Challenges Persist Nationwide
Rising costs and prices are shifting acreage toward soybeans. Most fertilizer prices are up double digits from this time last year, with Urea seeing the largest gains.