Rising Freight Costs Weaken US Wheat Competitiveness in Japan

The US wheat export market is facing significant challenges due to rising transportation costs. According to UkrAgroConsult, higher freight rates have weakened US wheat competitiveness in Japan.

Shipping costs from Kansas and North Dakota to both Pacific Northwest and Gulf routes increased significantly in the second quarter of 2026. Ocean freight costs rose by 18% on Pacific Northwest routes and 26% through the Gulf.

The increase in transportation costs is putting pressure on US wheat exports to Japan, which fell to around 18.4 million bushels in the second quarter - down 26% from the previous quarter and 7% year-on-year.