USA: diesel up 71% in a year, ocean grain freight up 34%

On October 29, the USDA Agricultural Marketing Service (AMS) released its weekly Grain Transportation Report. The U.S. average diesel price rose to $6.352 per gallon, $2.634 more than a year ago, and in September the freight rate for a ton of grain from the U.S. Gulf to Japan was 34% higher than last year. The report also notes that the Office of the U.S. Trade Representative (USTR) has proposed extending the pause on port fees for China-linked ships.

Key figures

• Diesel: $6.35/gal
• +71% vs last year
• Gulf → Japan: $76.50/t
• Freight: +34% y/y
• China ship fees on hold
• Wheat sales: 0.85 Mt

What changed

In the week ending October 26, the U.S. average diesel price rose 7.6 cents to $6.352 per gallon; a year ago it was $3.718. Fuel is most expensive in California at $8.155 per gallon, $6.480 in the Midwest and $5.951 on the Gulf Coast. USDA notes that diesel is a significant expense for truck freight and its price serves as a proxy for truck rates. USTR has proposed extending the suspension of its Section 301 port fees on China-linked vessels through January 9, 2027; comments were due October 30. If the fees are reinstated, Chinese-owned or operated vessels would pay $50 per net ton, and Chinese-built vessels $18 per net ton or $120 per container.

By the numbers

• Diesel, U.S. average (week ending October 26): $6.352 per gallon, $2.634 above a year ago.
• Grain freight per ton, U.S. Gulf to Japan, as of October 22: $76.50 (unchanged on the week); Pacific Northwest to Japan: $38.50 (+3%).
• September 2026 average: Gulf → Japan $76.38 per ton, 34% above a year earlier and 34% above the 4-year average.
• Net export sales, week ending October 22: corn 1.30 Mt, soybeans 2.58 Mt, wheat 0.85 Mt.
• Unshipped balances of 2026/27 corn, soybeans and wheat: 36.55 Mt (+4% on the week and year on year).
• Grain vessels loaded in the Gulf during the week: 28, 15% fewer than a year ago.

What it means for buyers

Combines and sprayers from the USA travel to the port on trailers, and diesel, according to USDA, is one of the main costs of trucking. Fuel is now 71% more expensive than a year ago, so a buyer in Kazakhstan or Ukraine should confirm the cost of U.S. inland delivery as of the deal date rather than rely on last year's figures. For the grain market, ocean shipping of U.S. grain to Asia has become roughly a third more expensive in a year, while the USTR decision on port fees is still only a proposal.

Source: USDA Agricultural Marketing Service (AMS)