Grain transportation costs to Mexico rose during the first quarter of 2026 compared to the previous quarter, while export volumes remained steady year-over-year, according to the latest Grain Transportation Report from the Agricultural Marketing Service.
Weather disrupts barge operations
Quarter-to-quarter transportation costs increased for all three major grain commodities shipped via water routes to Mexico due to higher barge and truck rates. A major winter storm in late January created significant ice accumulation and low water levels on the Mississippi River System, reducing barge volumes and raising rates.
The U.S. Coast Guard restricted draft and tow sizes in response to the conditions, while barge operators suspended fleeting operations on portions of the river system. These logistical challenges drove barge rates higher from late January through early March.
Land routes show mixed results
Transportation costs via land routes to U.S.-Mexico border locations fell for all three grain commodities due to lower truck and rail rates. However, rising farm values pushed up overall landed costs despite the decreased transportation expenses.
Ocean freight rates declined during the quarter due to ample vessel supply and seasonal demand lulls from global holidays, including Chinese Lunar Year celebrations.
Export volumes hold steady
First-quarter U.S. grain export volumes to Mexico totaled 6.07 million metric tons of corn, 2.00 million metric tons of soybeans and 0.11 million metric tons of wheat. Year-over-year, corn exports increased 8%, wheat exports rose 4%, while soybean exports declined 5%.
Landed costs vary by commodity
Year-over-year landed costs fell for corn and wheat but rose for soybeans. Transportation comprised 15% to 29% of total landed costs for water routes and 11% to 29% for land routes, depending on the commodity and origin location.
The data reflects the ongoing importance of efficient transportation networks for maintaining U.S. grain competitiveness in the Mexican market.
