Wheat Freight Costs Challenge Stronger Japanese Export Outlook

Higher ocean freight rates continue adding pressure to U.S. wheat exports despite stronger demand projections.

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

NASHVILLE, TN (RFD NEWS) — Transportation costs remain a major hurdle for U.S. wheat moving to Japan, even as USDA projects stronger wheat exports this marketing year.

USDA’s Grain Transportation Report shows freight accounted for 35 to 39 percent of first-quarter landed costs from Kansas and North Dakota.

Converted to bushels, transportation costs ranged from about $2.65 per bushel for Kansas wheat moving through the Pacific Northwest to $3.56 per bushel for North Dakota wheat shipped through the Gulf. Total landed costs ranged from about $7.44 to $9.04 per bushel.

Ocean freight increased from a year earlier, rising 14 percent through Pacific Northwest routes and 19 percent through Gulf routes. Higher bunker fuel costs and strong Asian shipping demand contributed to those increases.

Even with higher freight pressure, lower farm values kept total landed costs below last year across all four routes. North Dakota wheat moving through the Gulf remained the most expensive route.

USDA projects 2025/26 wheat exports near 910 million bushels, up 10 percent from the previous year, making transportation costs and export competitiveness increasingly important.

Farm-Level Takeaway: Stronger wheat exports help demand, but high freight costs continue to limit producer competitiveness in overseas markets.
Tony St. James, RFD News Markets Specialist
Related Stories
The agreement establishes a new system to monitor water deliveries to Texas and sets limits on how far Mexico can fall behind on its treaty obligations.
China’s expanding farm assistance in Cuba bears watching as food trade becomes part of regional influence.
Reduced slaughter numbers and stronger export demand are helping push livestock by-product values higher.
LSU economist Dr. Michael Deliberto says fewer planted acres could tighten supplies and support prices for producers.
The Rural Mainstreet Index remained below growth neutral for the fourth straight month as grain prices stay under pressure.
Soy Transportation Coalition’s Mike Steenhoek discusses the proposed six-axle truck pilot program and its potential impacts on agriculture and freight transportation.

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.

LATEST STORIES BY THIS AUTHOR:

The reports cover biodiesel, diesel, gasoline grades, ethanol, aviation fuel, kerosene, and specialty fuels.
Textile strategist Robert Antoshak says responsible fashion is not dead, but voluntary sustainability language is not enough on its own.
The pricing signals come as biofuel and corn groups continue to press Congress for permanent nationwide E15 access.
Soybean oil is already feeling the pressure.
Several counties are reviewing disaster declarations. Crop insurance may help growers cover some costs.
With U.S. cattle supplies already tight, drought response remains a long-term supply issue.