Transportation costs for U.S. grain shipments to Mexico varied significantly in the fourth quarter of 2024, according to the Grain Transportation Report (GTR) from the U.S. Department of Agriculture's Agricultural Marketing Service.
The report, which compares costs across different transportation modes and routes, found that total transportation costs for corn and soybeans shipped via water routes to Veracruz, Mexico, increased by 6.1% from the third to fourth quarter of 2024. This rise was primarily due to a 19.2% increase in barge rates.
Conversely, land route transportation costs to U.S.-Mexico border locations decreased for all grains. Corn shipments saw a 0.5% reduction, while soybean transportation costs fell by 2.2% quarter-to-quarter.
The USDA attributes the higher barge rates to increased export sales and drought-induced navigation restrictions on the Mississippi River System throughout most of the quarter.
Despite rising transportation costs for some routes, overall landed costs – which include both transportation and farm value – decreased for most grains. This decline was largely due to lower farm values, which offset the increased transportation expenses.
The report also highlighted changes in U.S. grain export volumes to Mexico. In the fourth quarter of 2024, corn exports decreased by 8% from the previous quarter, while soybean exports increased by 41%. Wheat exports saw a 15% decrease.
