Total landed costs for shipping wheat from Kansas and North Dakota to Japan decreased across all routes in the fourth quarter of 2025, driven primarily by declining farm values in both states according to the latest Agricultural Marketing Service weekly Grain Transportation Report..
Quarter to quarter, total landed costs fell 1 percent for the Kansas-Pacific Northwest route, 2 percent for North Dakota-Pacific Northwest, less than 1 percent for Kansas-U.S. Gulf and 1 percent for North Dakota-U.S. Gulf. Year-to-year declines were more pronounced, ranging from 3 percent to 14 percent depending on the route.
Transportation costs showed mixed results. For Pacific Northwest routes, fourth-quarter costs totaled $96 per metric ton from Kansas and $105 per metric ton from North Dakota. Gulf routes cost $105 per metric ton from Kansas and $131 per metric ton from North Dakota.
Ocean freight rates increased across all routes, up 1 percent for Pacific Northwest routes and 4 percent for Gulf routes quarter to quarter. The increases reflected strong bulk shipments driven by high iron ore and coal imports by China.
Rail freight rates varied by wheat type. Rates mainly fell for hard red winter wheat grown in Kansas but largely rose for hard red spring wheat grown in North Dakota.
U.S. wheat inspections destined to Japan totaled roughly 0.48 million metric tons in the fourth quarter, down 16 percent from the previous quarter and 6 percent year to year. However, full-year 2025 inspections to Japan totaled about 2.16 million metric tons, up 7 percent from 2024.
