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
Dairy markets are improving, but large supplies still cap the upside.
Strong ethanol exports support long-term growth in corn demand.
Transporting pollinator colonies—primarily honey bee hives—is a major logistical operation in U.S. agriculture. Costs can vary widely depending on distance, fuel prices, labor, and timing.
Workshops give international bakers hands-on training with U.S. wheat products
As budget hearings continue on Capitol Hill, policymakers focus on long-term solutions to stabilize the fertilizer market to support U.S. farmers.
Rising global supplies may cap soybean price strength, while sorghum prices hinge heavily on China’s export demand.

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:

Oklahoma livestock economist Dr. Derrell Peel helps us break down the April Cattle-on-Feed report and what it signals for herd rebuilding, supplies and prices moving forward.
Spring Weather Shapes Planting Pace Across U.S. Regions
Hemp growth is driven by floral demand, with mixed returns elsewhere.
Tight supply and logistics issues may raise input costs.
Farm programs remain small but politically easier to expand.
Export funding aims to strengthen global demand for U.S. commodities.