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
Trade volatility and shifting export destinations increase marketing risk for producers heading into 2026.
RFD NEWS Correspondent Frank McCaffrey speaks with Texas’s Sen. Ted Cruz and Rep. Vicente Gonzalez about USMCA renegotiation and its impact on U.S.–Mexico agriculture trade.
Shaun Haney joined us to discuss Canada’s new trade agreement with China, the potential impact on farmers and exporters, and what it could mean for U.S.–Canada trade relations going forward.
National Corn Growers Association Chief Economist Krista Swanson discusses corn supply pressures, market fundamentals, policy considerations, and producer outlook for the year ahead.
Congressman Dusty Johnson of South Dakota joined us to discuss key ag policy developments and his outlook for agriculture in 2026.
RFD News correspondent Frank McCaffrey reports from Texas on the ongoing water dispute and its implications for U.S. farmers.

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 export pace remains the bright spot, but stable ethanol export demand remains a critical support for corn markets.
Rail consolidation could affect grain basis, freight rates, and service reliability across major producing regions.
For communities that depend on agriculture as their primary economic engine, the recession is not defined by headlines on Wall Street. It is defined by the quiet disappearance of the businesses that once processed, serviced, and supported the crop.
Alan Bjerga of the National Milk Producers Federation discusses the Dairy Margin Coverage program, recent improvements, and what producers need to know ahead of this week’s enrollment deadline.
Higher output keeps milk supplies ample, reinforcing expectations for softer dairy prices even as feed costs remain favorable.
Cash flow management and lender communication are becoming critical survival tools for farmers as tightening margins increase risk and borrowing pressure.