Ocean Freight Rates Rise as Grain Shipping Pressures Build

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

trade_adobe stock.png

Adobe Stock

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
Related Stories
Shaun Haney joins us to discuss falling diesel prices, implications for farm operating costs, and ongoing discussions surrounding fuel pricing policies.
Industry experts say land values have remained resilient, but fertilizer costs and geopolitical uncertainty continue to challenge producers.
American Soybean Association’s Jamie Beyer joins us to discuss USMCA, soybean trade stability, export market challenges, and the outlook for U.S. agriculture ahead of the upcoming review.
Purdue University’s new digital calculator helps growers navigate input costs and risk management with region-specific cost estimates and expert support.

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:

Texas A&M economist David Anderson says drought, placement timing and feedlot marketings are key trends to watch.
The White House is asking Congress for more than $11 billion in additional farm assistance, including new economic support for 2026 row and specialty crop producers and disaster aid tied to losses from the Southeast freeze.
For farmers and ranchers, the biggest near-term pieces are in the safety net.
Strong cattle prices continue as USDA monitors the impact of New World screwworm along the southern border.
USDA says corn shipments slowed from the previous week, while wheat and soybean inspections topped year-ago levels.
Higher transportation costs through the Gulf are adding another cost consideration for grain exporters and producers.