Ocean Freight Rates Continue Downward Slide

This article has been reprinted from the Jan. 31 USDA Grain Transportation Report.

Ocean freight rates for shipping bulk grains have been falling from their 2018 peak levels reached during the beginning of fourth quarter.

As of January 24, the ocean freight rate for shipping bulk grain, from the Gulf to Japan, was $41.00 per metric ton compared to $49.75 per mt during October 18, 2018—18 percent less.

As of January 24, the cost of shipping, from the PNW to Japan, was $23.00 per metric ton, compared to $27.75 during October 18—17 percent less.

Similar trends were observed on the routes from the U.S. Gulf and PNW to China.

According to January 24, 2019 Transportation and Export Report by O’Neil Commodity Consulting, the market needs more cargo demand or an increase in vessel scrapings to clear the existing excess vessel supply in the market.