Sea freight for grains falls in the 1st quarter

Published May 13, 2025

Tridge summary

The USDA's Grain Transportation Report for Q1 2025 shows a decrease in ocean freight rates for bulk grain transportation, attributed to a seasonal decline and an increase in global dry bulk vessel capacity. However, future rates are uncertain due to potential restrictions and tariffs on Chinese-built vessels. Factors such as increased consumption and demand for coal in India, the soybean export season from Brazil to China, and Chinese demand for manufactured goods could cause rates to rise in Q2. Despite these potential increases, current rates remain moderate due to weak global demand.

Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

According to the latest Grain Transportation Report (GTR) from the United States Department of Agriculture (USDA), ocean freight rates for bulk grain transportation showed a seasonal decline from the fourth to the first quarter of 2025. However, the future scenario remains uncertain due to possible restrictions and tariffs on vessels built in China, which could significantly change the dynamics of the sector. Currently, values remain moderate, reflecting the weak global demand for foreign products. According to the GTR, global dry bulk vessel capacity grew 14% compared to December 2020, reaching 1,041 deadweight tons (DWT). This increase in vessel availability is one of the factors that traditionally puts downward pressure on prices. “Ocean freight rates typically fall when vessel capacity is ample,” the report highlights. However, the USDA points out that specific factors could exert upward pressure on rates in the second quarter. These include the expected increase in ...

Source: Agrolink