Rising Freight Costs Reshape Global Soybean Competition

Freight volatility and route selection remain critical to soybean export margins and competitiveness.

NASHVILLE, Tenn. (RFD NEWS)Transportation costs climbed from the second to the third quarter of 2025 for both U.S. and Brazilian soybean exports, reshaping landed costs and export competitiveness into China and Europe. New analysis from USDA’s Agricultural Marketing Service shows higher barge and ocean freight rates were the primary drivers, even as farm values softened in parts of the United States.

For U.S. soybeans moving to China, total transportation costs rose on Gulf and Pacific Northwest routes. Higher barge rates tied to low Mississippi River water levels and firm ocean freight demand outweighed modest declines in truck and rail costs. Despite rising transport expenses, lower farm prices helped limit increases in landed costs, particularly for PNW shipments.

Brazil faced sharper cost pressure. Truck and ocean freight rates increased for shipments to both China and Germany, pushing Brazilian landed costs higher quarter to quarter and year over year. Transportation accounted for as much as 27 percent of Brazil’s landed cost into China during the third quarter.

Year to year, U.S. landed costs declined while Brazil’s rose, reinforcing a shifting competitive balance. However, Brazil is still projected to dominate global exports in 2025/26, while U.S. shipments to China remain sharply lower.

Farm-Level Takeaway: Freight volatility and route selection remain critical to soybean export margins and competitiveness.
Tony St. James, RFD NEWS Markets Specialist
Related Stories
Corn farmers and ethanol groups are urging Senate action on E-15 legislation while grain basis values strengthen in eastern states.
Negotiators are focusing on tariffs, market access, and economic security as broader trade discussions continue.
The American Sheep Industry Association says high labor costs and volatile markets continue creating pressure for producers.
Julia Andrus with Phospholutions joins us to discuss fertilizer market uncertainty, evolving grower strategies, and how efficiency is reshaping nutrient management decisions in modern agriculture.

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:

The pricing signals come as biofuel and corn groups continue to press Congress for permanent nationwide E15 access.
Soybean oil is already feeling the pressure.
Several counties are reviewing disaster declarations. Crop insurance may help growers cover some costs.
With U.S. cattle supplies already tight, drought response remains a long-term supply issue.
According to OPIS, the city is preparing for a projected Level 1 Water Emergency tied to a prolonged five-year drought.
Mexico’s demand for U.S. corn, soybeans, and wheat remained mostly steady during the first quarter, despite higher transportation costs.