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
Several counties are reviewing disaster declarations. Crop insurance may help growers cover some costs.
Mexico’s demand for U.S. corn, soybeans, and wheat remained mostly steady during the first quarter, despite higher transportation costs.
The temporary closures come as grain traffic on the Arkansas River continues running ahead of recent years.
RealAg Radio host Shaun Haney says producers should continue to watch tariff negotiations, market access, and the possibility of a more transactional trade relationship with China.

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:

Industry leaders say restored access is a major step forward, though exports remain well below previous levels.
Texas A&M economist John Robinson says speculative buying helped push ICE cotton futures sharply higher.
Changes to several Risk Management Agency programs are set to begin with the 2027 crop year.
For farmers, better data may not solve every local rail problem, but it can make service failures easier to document.
Smaller exporter crops and lower global stocks could keep wheat markets sensitive to weather, trade, and shifts in demand.
Corn inspections remain strong year-to-date, while China’s soybean and sorghum movement remains important to late-season export demand.