U.S. Wheat Export Costs Fall Across Key Routes

Lower costs improve competitiveness, but demand remains uncertain.

Aerial of cargo ship carrying container for export cargo from cargo yard port to other ocean concept smart freight shipping ship front view_Photo by Yellow Boat via AdobeStock_1601867486.jpg

Aerial of a cargo ship carrying a container of exports.

Photo by Yellow Boat via Adobe Stock

WASHINGTON, D.C. (RFD NEWS) — Lower shipping costs are improving the competitive position of U.S. wheat moving into Japan, even as export volumes show some softness.

U.S. Department of Agriculture (USDA) data show that total landed costs declined both quarter-to-quarter and year-over-year for shipments originating in Kansas and North Dakota. Costs ranged from roughly $7.00 to $8.80 per bushel equivalent, with most of the decline tied to lower farm values and some easing in transportation costs.

Farm-Level Takeaway: Lower costs improve competitiveness, but demand remains uncertain.
Tony St. James, RFD NEWS Markets Specialist

Transportation trends varied by route. Pacific Northwest corridors held steady, with overall costs slightly lower, while Gulf routes saw modest increases tied to higher ocean freight rates. Strong global demand for bulk shipping — especially from China’s imports of iron ore and coal — continues to support vessel rates.

Rail and truck markets were mixed. Rail rates declined for Kansas shipments compared to a year ago, but edged higher for North Dakota. Truck rates rose sharply in Kansas but declined in North Dakota, reflecting regional differences in freight demand.

Even with lower costs, wheat shipments to Japan declined, signaling that demand remains a limiting factor despite improved pricing competitiveness.

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Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

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