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
Strong ethanol production and export trends continue to support corn demand despite seasonal fuel consumption softness.
Cotton demand depends on demonstrating performance and reliability buyers can rely on, not messaging alone.
A look at the legislative year ahead as lawmakers return to Washington with a slate of trade concerns to tackle in 2026—from new Chinese tariffs on beef imports to the USMCA review this summer.
Cuba remains a small but dependable, cash-only outlet for U.S. grain and food products.
Expanding cheese exports are strengthening U.S. milk demand and reinforcing global competitiveness.

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:

Corn and soybean exports continue to anchor weekly inspection totals, with China maintaining a visible role, while wheat and sorghum remain more dependent on regional and seasonal demand shifts.
Rail continues to carry a larger share of the grain load, increasing sensitivity to rail capacity, labor, and pricing conditions.
Meat stocks rose seasonally but remain below last year overall, while tighter butter inventories could support dairy prices, and belly stocks warrant close watch for pork markets.
Payment totals alone do not show financial stress — production costs and net losses complete the picture.
Year-round E15 remains on the table, but procedural caution and competing regional interests pushed action into a slower, negotiated path.
A mid-January winter storm delivered snow, ice, and extreme cold to a broad swath of the U.S., disrupting transportation, stressing livestock systems, and adding cost and complexity to winter farm operations as producers look toward spring.