Transportation costs for U.S. grain shipped to Mexico showed mixed results in the fourth quarter of 2025, with ocean freight rates rising while some land routes saw declining costs, according to the latest weekly Grain Transportation Report from the USDA's Agricultural Marketing Service.
From third to fourth quarter 2025, total water-route transportation costs to Mexico rose for U.S. wheat and increased slightly for corn and soybeans. The rise reflected climbing ocean freight rates—driven partly by strong movements of bulk items such as iron and coal.
Ocean freight rates increased 9.5% quarter to quarter, reaching $17.13 per metric ton. This affected all grains shipped via water routes to Veracruz, which typically involve truck transportation to barge to oceangoing vessel, or truck to rail to oceangoing vessel.
Land routes show divergent trends
Transportation costs rose for land-route corn and wheat but fell for land-route soybeans during the quarter. Higher truck and rail rates drove the rise for land-route corn and wheat, while reduced rail rates drove the decline for land-route soybeans.
Rail costs for soybeans from Missouri origin dropped 18.4% year to year and 12.7% quarter to quarter, reaching $43.60 per metric ton. This significant decline helped reduce total transportation costs for land-route soybeans by 14.2% compared to the same period in 2024.
For land-route corn from Iowa origin, total transportation costs rose 2.7% year to year to $67.66 per metric ton, driven by higher truck and rail rates.
Landed costs vary by grain and route
Quarter to quarter, landed costs—which combine transportation costs and farm values—varied by grain and route. For water-route corn, landed costs rose to $224.33 per metric ton, up 0.3% from the previous quarter. Water-route wheat landed costs increased 5.1% to $245.13 per metric ton.
Land-route wheat landed costs fell 1.4% to $210.68 per metric ton with declining farm values. Land-route soybean landed costs held steady at $429.57 per metric ton, as a dip in transportation costs offset an increase in farm values.
The share of landed costs comprising transportation ranged from 14% to 28% for water routes and from 12% to 30% for land routes.
US exports to Mexico grow
According to USDA's Foreign Agricultural Service data, from January to December 2025, the United States exported to Mexico 26.11 million metric tons of corn, up 5% from 2024; 5.46 million metric tons of soybeans, up 9%; and 4.33 million metric tons of wheat, up 14%.
Low transportation and landed costs for U.S.-Mexico routes remain vital to the competitiveness of U.S. grain in Mexico, a top importer of U.S. grain, and globally.
