Soybean shipping costs increased for US exporters in the first quarter of 2026 compared to late 2025, driven by higher diesel fuel prices, weather-related disruptions on the Mississippi River, and rising ocean freight rates, making transportation a significant portion of total export costs.
- US soybean shipping costs to China and Europe rose in Q1 2026 due to higher diesel prices, reduced barge volumes, and ocean freight rate increases
- Transportation accounted for 19-26% of total landed costs for US shipments to China and 14-21% for Europe-bound shipments
- Winter closure of upper Mississippi River forced shippers to use more expensive rail transport to St. Louis as an alternative
- Brazil experienced even higher transportation costs, with shipping representing 23-29% of landed costs for China routes and 22-29% for Europe routes
- US soybean exports to China jumped 46% year-over-year to 7.78 million metric tons in Q1 2026, while Brazil's exports declined 5%
U.S. exporters faced higher costs shipping soybeans to China and Europe in the first quarter of 2026 compared to late 2025, according to the U.S. Department of Agriculture’s latest Grain Transportation Report.
The increases stemmed from multiple factors. Diesel fuel prices pushed truck rates higher across the country. Weather-related problems on the Mississippi River System reduced barge volumes and drove up barge rates from late January through early March. Meanwhile, the seasonal winter closure of the upper Mississippi River forced shippers from Minneapolis and Davenport, Iowa, to substitute rail transport to St. Louis, adding to costs.
Ocean freight rates showed mixed trends. Rates dipped for Gulf route shipments to China as an ample supply of vessels met a seasonal lull in demand during holidays, including Chinese Lunar Year celebrations. But rates rose for Pacific Northwest shipments despite the seasonal slowdown. Vessel repositioning issues reduced available ships in the PNW, and demand outstripped supply.
For U.S. shipments to China through the Gulf, transportation made up 19% to 26% of total landed costs in the first quarter. Transportation accounted for 14% to 21% of landed costs for Europe-bound shipments. Brazil’s transportation share ranged from 23% to 29% for China routes and 22% to 29% for Europe routes.
Brazil also saw rising transportation costs driven by higher truck and ocean freight rates from both North Mato Grosso and South Goiás.
Year-over-year comparisons painted a different picture. U.S. transportation costs to China rose via Gulf routes but fell for PNW shipments from the first quarter of 2025 to the first quarter of 2026. Truck freight rates decreased across all U.S. routes, though barge and ocean freight rates climbed on Gulf routes.
The USDA report now tracks shipments from St. Louis and Havana, Illinois, in addition to Minneapolis and Davenport. The agency added these locations because they handle higher volumes of soybeans bound for export through the Gulf and remain open to barge traffic year-round.
Export volumes showed the competitive landscape. The United States shipped 7.78 million metric tons of soybeans to China in the first quarter of 2026, up 2.44 million metric tons (46%) from 2025. Brazil exported 16.03 million metric tons to China during the same period, down 0.90 million metric tons (5%) from the previous year.
USDA projects total U.S. soybean exports at 45.18 million metric tons for marketing year 2026/27, up from 41.37 million metric tons in 2025/26. Brazil is projected to export 118.00 million metric tons in 2025/26, unchanged from the previous marketing year.
