Low Mississippi River Levels to Disrupt Barge Traffic Again This Fall

Water levels on the Mississippi River are anticipated to fall significantly, threatening to disrupt barge traffic and diminish loading capacity during the harvest season. This decline could mirror last year’s hindrances which led to delays and a surge in costs for the grain industry. Dana Hansen from Archer Daniels Midland (ADM) voiced concerns at the National Grain Car Council meeting, highlighting the potential for reduced traffic capacity in 2023.

The ramifications of low water levels include increased costs for the industry and logistical challenges for shippers and receivers. The efficiency of barge operations is hampered, with reduced tow sizes, limited drafts, and elevated freight expenses. ADM’s subsidiary, American River Transportation Company (ARTCo), experienced these difficulties firsthand last fall, having to cut back on barge loads and tow lengths due to the river’s narrow channel caused by extremely low water levels.

Such modifications resulted in skyrocketing freight rates and diminished grain volumes for export. With the forecast indicating hot and dry conditions for the region, similar challenges could be on the horizon. The river’s levels in St. Louis are expected to drop below zero stage by the end of August, per the National Weather Service, and similar trends are predicted for the Ohio River at Cairo.

The decrease in water levels has already triggered some restrictions on barge movements, including loading draft reductions. American Commercial Barge Line has reported even stricter limitations as of mid-August.

Although these constraints could delay transit times, the impact might not be as severe as the previous season. Ongoing dredging projects by the U.S. Army Corps of Engineers might offset some of the challenges, potentially reducing issues within the river system, as pointed out by Justin Cauley from CHS Inc. during the NGCC meeting.