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
OOIDA’s Lewie Pugh says varying state rules and highway fuel-tax obligations could limit the benefits of Trump’s temporary red-dyed diesel order for truckers.
Federal officials are examining claims of barriers to new competitors in fertilizer markets.
Fertilizer prices surged after shipments through the Strait of Hormuz were disrupted.
Weather concerns and strong export demand continue to support coffee prices.

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:

USDA says the $13.8 billion total is before payment-limit reductions and a required 5.7% sequestration cut.
Rain Shifts Harvest Conditions Across U.S. Farm Country
Brazil is expanding corn and sorghum exports as U.S. suppliers face stronger competition.
Weaker housing demand is putting more pressure on lumber and timber markets.
Ethanol exports reached a five-month high as distillers grains shipments hit an 11-year high.
The funding will support research aimed at developing stronger crop varieties.
Weakening wells could put costly irrigation investments at risk across the southern High Plains.
Apparel orders are shifting among overseas suppliers as importers look to offset tariff costs.
Tighter slaughter supplies are increasing competition for market-ready cattle.
Imports remain the biggest challenge as domestic olive oil demand continues to grow.
Higher butterfat and protein levels can add hundreds of dollars in annual revenue per cow.