mississippi river
Low water levels disrupt transportation on the Mississippi River
For the third consecutive year, drought in the Midwest is driving down water levels in the Mississippi River, hampering the transport of fuel and grain and pushing businesses to find alternatives.
In short:
- Drought conditions in the Midwest have lowered Mississippi River water levels since mid-July, causing transportation delays and increased costs for goods like grain and fuel.
- Barge operators are facing rising costs, with barge rates increasing by 57% compared to the three-year average, leading to higher shipping expenses for businesses.
- Climate scientists warn that alternating wet and dry conditions may become more common as climate change affects regional weather patterns.
Key quote:
“This was front and center for us. One of the main things that we talked about were these rapid oscillations … between wet to dry and dry to wet extremes..”
— Aaron Wilson, Ohio’s state climatologist and a professor at Ohio State University
Why this matters:
The Mississippi River plays a crucial role in U.S. agricultural exports. Prolonged disruptions could hurt U.S. farmers, especially soy growers, and allow foreign competitors to gain an advantage in the global market.
Mississippi River's low water levels hurt farmers shipping grain
For the third year in a row, unusually low water levels in the Mississippi River are causing barge companies to limit their cargo, reducing farmers' profits as they ship grain to international buyers.
In short:
- Low water levels in the Mississippi River are forcing barge companies to limit their loads, especially impacting grain shipments.
- Grain freight costs from St. Louis and Memphis are sharply higher compared to last year and the three-year average.
- The U.S. Army Corps of Engineers is frequently shifting dredging operations to address the situation.
Key quote:
“When you’ve got a transportation cost increase in any industry the question is, ‘Do I pass those costs onto the customer in the form of a higher price?’”
— Mike Steenhoek, executive director of the Soy Transportation Coalition
Why this matters:
Low water levels on the Mississippi River threaten the efficient transportation of U.S. grain exports. As freight costs rise, farmers can't easily pass on these costs in global markets, impacting their livelihoods.
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