NASHVILLE, TN – Ocean freight rates for shipping grain from the U.S. Gulf to Japan climbed to $52.75 per metric ton as of July 17, the highest level since October 2024. Rates rose $4 from the previous week, marking the largest weekly increase since August 2023. Analysts attribute the rise to improved demand for iron ore in the Atlantic and strong grain export volumes from both the United States and Brazil.
USDA projects the U.S. will export a record 69.9 million metric tons of corn during the 2024/25 marketing year. As of mid-July, over 10 million tons remained unshipped. Brazil’s second corn harvest is underway, adding to global vessel demand. China also imported a record 12.26 million metric tons of soybeans in June—primarily from Brazil—further tightening vessel availability.
Grain inspections show U.S. wheat exports hit 732,000 metric tons the week ending July 17—the highest total since September 2022. Nigeria was the top destination. Class I railroads moved over 27,500 grain carloads during the week ending July 12, a 21% jump from the prior week. Grain barge traffic was also up sharply on the Mississippi River system.