WASHINGTON, DC, US — Total landed costs to ship US wheat from Kansas and North Dakota to Japan dropped for the quarter and the year on all routes, according to the May 30 Grain Transportation Report by the US Department of Agriculture (USDA).  

Falling wheat farm values contributed to lower total landed costs for all routes, both from quarter to quarter and year to year. Total landed costs includes farm value plus transportation costs.

Total US wheat inspected for export to Japan was up from quarter to quarter, but down from year to year, the USDA said.

In the first quarter of 2024 total landed costs for shipping wheat via the Pacific Northwest (PNW) and Gulf routes ranged from $326 to $385 per tonne.

From Kansas, total landed costs quarter to quarter dropped 6% via the PNW route and 4% via the Gulf routes. Year-to-year landed costs dropped 23% for the PNW route and 19% for the Gulf routes. The drop mainly was attributed to lower farm values.

From North Dakota, total landed costs quarter to quarter decreased 6% for the PNW and Gulf routes, reflecting lower truck and rail freight rates as well as lower farm values, the USDA said.

Year to year, landed costs decreased 15% for the PNW route and 14% for the Gulf route, reflecting lower rail freight rates, as well as lower farm values.