Higher freight costs weaken US wheat competitiveness in Japan
US wheat shipping costs to Japan increased across major routes in Q2 2026, with Gulf costs rising up to 25% year-on-year and Pacific Northwest routes up to 14%. Higher truck, rail and ocean freight costs contributed, while US wheat exports to Japan fell 26% quarter-on-quarter to 18.4 million bushels.
The cost of shipping US wheat to Japan increased across all major routes in the second quarter of 2026, raising landed costs for importers. According to USDA, transportation became more expensive through both Pacific Northwest and Gulf routes.
Transportation costs from Kansas to the Pacific Northwest rose by 11% quarter-on-quarter and 9% year-on-year. Costs from North Dakota increased by 10% from the previous quarter and 14% from a year earlier.
The increase was even stronger on Gulf routes. Shipping costs from Kansas rose by 16% quarter-on-quarter and 23% year-on-year, while costs from North Dakota increased by 15% and 25%, respectively.
Higher truck, rail and ocean freight rates drove the increase. Ocean freight costs rose by 18% quarter-on-quarter on Pacific Northwest routes and by 26% through the Gulf.
US wheat exports to Japan fell to around 18.4 mln bushels in the second quarter, down 26% from the previous quarter and 7% year-on-year. Higher transportation costs are putting additional pressure on the competitiveness of US wheat in the Japanese market.
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Source : UkrAgroConsult
