This article has been reprinted from the May 30 USDA Grain Transportation Report.
Ocean freight rates for shipping bulk grains rose for two consecutive weeks, but they are still below the levels seen at the beginning of the year, and relatively the same as the same period last year.
As of May 23, the rate for shipping a metric ton (mt) of grain from the U.S. Gulf to Japan was $43.50.
This is a 2 percent increase since the last 2 weeks, but 7 percent less than the beginning of the year, and unchanged from the same period last year.
The rate from the Pacific Northwest to Japan was $24.00 per mt.
This is a 4 percent increase since the last 2 weeks, but 4 percent less than the beginning of the year, and 1 percent less than the same period last year.
According to the May 23 Transportation and Export report by O’Neil Commodity Consulting, rates are expected to continue rise gradually as we move into the fourth quarter.
However, the direction of the rates could be impacted by the outcome of the current tariff and trade turmoil.