WASHINGTON, D.C. (RFD-TV) — Rising ocean freight costs are adding pressure to U.S. grain exports, especially from the Gulf, as higher fuel costs and vessel demand increase the expense of reaching Asian markets.
USDA says third-quarter freight from the Gulf to Japan averaged $72.76 per metric ton, up 34% from a year earlier and 28% above the four-year average. Pacific Northwest rates averaged $36.67, up 26% from last year.
By October 8, Gulf-to-Japan freight had climbed to $76.25 per metric ton, while Pacific Northwest rates reached $37.50. The widening spread makes Pacific Northwest grain comparatively cheaper to move into Asian markets.
USDA points to higher bunker fuel costs, Panama Canal restrictions, longer routes around Africa and strong demand for Panamax vessels. Very-low-sulfur marine fuel prices were 65% above a year earlier in September.
Higher ocean freight can weaken U.S. export competitiveness and eventually pressure basis if foreign buyers shift purchases toward cheaper origins or ports.
