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
Tom McComas became involved with toy trains by accident and with reluctance. Now, he hosts “I Love Toy Trains,” where he invites viewers to enter the delightful and charming world of toy trains.
The success of American agriculture relies upon a robust transportation system.
“Ethanol is so important to farmers, corn farmers, but all farmers, because a rising tide lifts all ships.”

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:

Water access—not acreage alone—is driving where irrigation expands or contracts.
Credit stress is building for row-crop farms despite steady land values and slight price improvements.
The Lexington shutdown pushes national slaughter capacity utilization nearer long-run averages, underscoring how tight cattle supplies are reshaping packer operations.
Texas livestock producers face a heightened biosecurity threat as New World screwworm detections in northern Mexico coincide with FDA approval of the first topical treatment.
Working capital is tightening for crop farms, increasing reliance on operating loans even as land values steady in the broader sector.
Higher ocean freight raises export costs just as global grain competition intensifies.