Wheat transportation costs rose across all major shipping routes to Japan in the second quarter of 2026, according to the U.S. Department of Agriculture’s Agricultural Marketing Service Weekly Grain Transportation Report.
From the first quarter to the second quarter of 2026, costs increased for transporting wheat from Kansas and North Dakota through both the Pacific Northwest and U.S. Gulf routes. Year-over-year comparisons from second quarter 2025 to second quarter 2026 showed similar upward trends, with total landed costs, farm values plus transportation costs, climbing for all routes during both time periods.
Pacific Northwest routes see double-digit increases
For the Kansas-to-Pacific Northwest route to Japan, wheat transportation costs rose 11% quarter to quarter and 9% year to year. The North Dakota-to-Pacific Northwest route saw costs climb 10% quarter to quarter and 14% year to year.
The quarter-to-quarter increases stemmed from higher truck, rail and ocean freight rates for both Kansas and North Dakota wheat. Year-to-year cost increases came from rises in truck and ocean freight rates for Kansas wheat and increases across all three transportation modes for North Dakota wheat.
In second quarter 2026, total landed costs for shipping to Japan reached $317 per metric ton for the Kansas-Pacific Northwest route and $323 per metric ton for the North Dakota-Pacific Northwest route. Transportation costs represented 34% of total landed costs for the Kansas route and 37% for the North Dakota route.
Gulf routes show steeper cost jumps
The U.S. Gulf routes experienced even larger increases. For the Kansas-to-Gulf route to Japan, wheat transportation costs were up 16% quarter to quarter and 23% year to year. The North Dakota-to-Gulf route saw costs rise 15% quarter to quarter and 25% year to year.
Second-quarter 2026 total landed costs for shipping to Japan through the Gulf were $330 per metric ton for the Kansas route and $355 per metric ton for the North Dakota route. Transportation costs made up 36% of total Kansas-Gulf-route landed costs and 42% of North Dakota-Gulf-route landed costs.
Ocean freight rates surge on strong demand
Ocean freight rates for shipping wheat from the Pacific Northwest jumped 18% quarter to quarter because of strong demand for dry bulk cargo. Year to year, these rates climbed 34% due to strong export demand, according to the July 30, 2026, Grain Transportation Report.
Gulf-route ocean freight rates increased 26% from quarter to quarter and rose 49% from year to year.
Rail and truck rates vary by origin
Rail rates for shipping wheat on the Kansas-Pacific Northwest route were up 8% quarter to quarter but down 2% year to year. The North Dakota-Pacific Northwest route saw rail rates rise 7% quarter to quarter and 8% year to year.
For Gulf routes, Kansas rail rates increased 6% quarter to quarter and fell 3% year to year. North Dakota rail rates climbed 7% quarter to quarter and 12% year to year.
Trucking rates from Kansas origins increased less than 1% quarter to quarter and rose 12% year to year. From North Dakota origins, rates rose 6% quarter to quarter and 4% year to year. In second quarter 2026, the U.S. weekly diesel fuel price rose both quarter to quarter and year to year, though U.S. average diesel prices fell throughout most of the second quarter in response to conflict in the Middle East.
Export volumes decline
The United States exported 0.5 million metric tons of wheat to Japan in second quarter 2026, down 26% quarter to quarter and down 7% year to year, according to USDA’s Foreign Agricultural Service’s Global Agricultural Trade System data.
USDA’s September World Agricultural Supply and Demand Estimates projected total U.S. wheat exports for marketing year 2026/27 at 21.09 million metric tons, unchanged from the August projection and down 15% from the estimate for marketing year 2025/26.
