Drought's Grip on the Mississippi River
For the third consecutive year, historically low water levels on the lower Mississippi River are impacting the supply chain. While it isn’t translating into lost export business for the U.S., it’s having a negative impact on basis levels as higher transportation costs are passed on.
A lack of rain has led to reduced barge draft and tow sizes along the Mississippi river system, causing delays and groundings near Hickman, Ky., according to USDA’s Grain Transportation Report.
“Every foot of reduced water depth or draft is the equivalent of loading 7,000 fewer bushels of soybeans/fertilizer on an individual barge,” Soy Transportation Coalition states. “You can see an overall reduction of 10% to 15% on the modest end of the spectrum all the way up to 30% to 40% reduction, which is really considerable.”
A lack of rain has led to reduced barge draft and tow sizes along the Mississippi river system, causing delays and groundings near Hickman, Ky., according to USDA’s Grain Transportation Report.
“Every foot of reduced water depth or draft is the equivalent of loading 7,000 fewer bushels of soybeans/fertilizer on an individual barge,” Soy Transportation Coalition states. “You can see an overall reduction of 10% to 15% on the modest end of the spectrum all the way up to 30% to 40% reduction, which is really considerable.”