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
The three-point plan was announced during remarks at the annual meeting of the National Association of State Departments of Agriculture.
Higher tariffs may shield some U.S. crops but risk retaliation, lost markets, and higher costs for growers. The WTO disputes highlight the fragile balance between trade policy, farm exports, and input supply chains.
USMEF CEO Dan Halstrom joined us on Monday’s Market Day Report for his analysis on the U.S.-Taiwan trade agreement, which includes big bucks for U.S. Beef.
Record U.S. sorghum crop faces weak demand as China slashes imports, while corn farmers warn of rising costs, shrinking margins, and global market pressures.
Dairy farmers are expected to face strong output and export gains, but lower prices and tighter margins will persist into next year.
Producers and processors should watch trade policy closely as tariff impacts ripple through seafood markets.

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:

Farmland values remain stable, but weakened credit conditions and lower expected farm income signal tighter financial margins heading into 2026.
Ethanol exports are expanding on strong demand from Canada and Europe, while DDGS shipments remain broad-based and supportive for feed markets.
Mary-Thomas Hart, with the National Cattlemen’s Beef Association, discusses the latest WOTUS developments and their implications for agriculture.
Only properly documented, unexhausted fertilizer applied by prior owners may qualify for Section 180 expensing; broader nutrient-based claims carry significant legal and tax risk.
Urea and phosphate see the biggest price relief from tariff exemptions, but nitrogen markets remain tight, and spring demand will still dictate pricing momentum.
Lower turkey and wheat prices helped ease Thanksgiving costs, but underlying farm-sector pressures remain significant.