This article has been reprinted from the July 18 USDA Grain Transportation Report.
Ocean freight rates for shipping bulk commodities, including grain, increased for two consecutive weeks.
As of July 11, the rate for shipping grain from the U.S. Gulf to Japan was $46.50 per metric ton (mt), an 8 percent increase over the past 2 weeks, and 2 percent above the same period last year.
The rate from the PNW to Japan was $25.50 per mt, 7 and 3 percent over the last 2 weeks and the same period a year ago, respectively.
According to the July 11 Transportation and Export Report, by O’Neil Commodity Consulting, the rate increase could be attributed to an uptick in iron ore demand and the increased cost of complying with the International Maritime Organization’s low-sulphur emission regulations scheduled for 2020.