Transportation costs for exporting soybeans from the United States and Brazil rose from the second to the third quarter of 2025, according to the latest USDA Agricultural Marketing Service Grain Transportation Report. The changes reflect shifts in freight rates, farm values, and transportation modes affecting competitiveness in key overseas markets like China and Europe.
From the U.S. Gulf to China, transportation costs increased due to climbing barge and ocean freight rates, driven by reduced shipping capacity and strong demand for bulk commodities such as iron ore and coal. Similarly, shipments from the U.S. Gulf to Germany saw higher transportation costs. In contrast, shipments from the Pacific Northwest (PNW) to China experienced rising ocean freight rates that outweighed decreases in truck and rail costs, causing overall transportation costs to rise slightly.
Brazil also faced higher transportation costs for shipments to both China and Germany, with increases in truck and ocean freight rates contributing to the rise. These cost changes, combined with fluctuations in farm values, led to varied impacts on landed costs—the total expense of transportation plus farm value.
Year-over-year, U.S. transportation costs fell for shipments to China but rose for routes to Europe. Brazil’s transportation costs increased for both destinations. Landed costs in the U.S. decreased mainly due to lower farm values, while Brazil saw higher landed costs driven by increased transportation expenses.
Transportation costs accounted for roughly 23-24% of U.S. landed costs for shipments to China and 18-19% for shipments to Germany. In Brazil, transportation made up 21-27% of landed costs to China and 20-26% to Germany.
According to USDA export data, China purchased 6.9 million metric tons of U.S. soybeans in marketing year 2025/26 as of January 1, with 5.7 million metric tons still unshipped, indicating ongoing transportation demand.
U.S. soybean exports are projected at 42.86 million metric tons for 2025/26, down from 51.23 million metric tons the previous year. Brazil’s exports are forecast to rise to 114 million metric tons from 103.14 million metric tons.
These transportation cost trends will influence the competitive dynamics between the world’s two largest soybean exporters as they vie for key global markets.
