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
Betsy Jibben with Ag Market Consulting takes us behind the scenes on report day with AgMarket.net.
Foreign trade partners, such as China and the European Union, are still purchasing U.S. commodities, but are becoming more cautious as the Trump Administration’s tariff deadline approaches in August.
Demand for farm loans surged in the first quarter of the year, topping the previous record set in 2016.
$15 billion in U.S. energy, $4.5 billion ag products, 50 Boeing jets—plus a 19% tariff on Indonesian exports in exchange for U.S. market access.
Following an on-target CPI, the combination could suggest that inflation is cooling.
“Arkansas was the first state in the country to kick a Chinese-owned company off of our farmland...”

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:

Considering raising your own replacements instead of buying bred heifers? Three key factors to consider before investing capital.
Reliable, clearly graded middle meats still anchor demand; programs that deliver consistent eating quality and simple, confidence-building menus capture more repeat visits—and more value—back through the beef chain.
Prepare for tighter cash flow, delayed capital buys, and policy-driven risk management this fall.
Plan for a cooler global trade market in 2026 with tighter margins on exports, potential rate shifts, and premiums for reliable deliveries into Asian and African growth markets.
George Baird, with the American Society of Farm Managers and Rural Appraisers (ASFMRA), joins us with updates on how this year’s rice harvest is shaping up.
Crop insurance remains a vital tool for managing climate-driven risk.