Ocean Freight Rates Rise as Grain Shipping Pressures Build

Higher ocean freight raises export costs just as global grain competition intensifies.

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NASHVILLE, TENN. (RFD-TV) — Ocean freight rates for bulk grain shipments climbed from the second to the third quarter of 2025, tightening cost pressures on exporters moving corn, wheat, and soybeans out of the U.S. Gulf and Pacific Northwest. According to data from O’Neil Commodity Consulting, rates to Japan rose sharply quarter-to-quarter, even though year-over-year costs remain lower and remain well below the recent four-year average.

Third-quarter Gulf-to-Japan rates averaged $54.36 per metric ton, up 17 percent from spring, while PNW-to-Japan rates averaged $29.08 per ton, up 7 percent. Gulf-to-Europe rates followed the same pattern. Rising Chinese demand for iron ore, coal, and steel exports helped lift global vessel use through July and August, pushing grain freight rates higher.

Operationally, shippers also contended with supply-chain disruptions, including Argentina’s low Parana River levels that slowed grain loading and raised vessel costs in September, as well as Chinese Golden Week stockpiling.

Looking ahead, vessel supply has grown 3 percent year over year, which could moderate rates, but China’s renewed soybean purchases are expected to increase Panamax demand.

Farm-Level Takeaway: Higher ocean freight raises export costs just as global grain competition intensifies.
Tony St. James, RFD-TV Markets Specialist
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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.

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