NOAA snapshot of river situations at Memphis on September 30, 2022
by Mike Steenhoek, government director, Soy Transportation Coalition
Executive Director
Soy Transportation Coalition
As if agricultural shippers didn’t have sufficient provide chain challenges to occupy a number of lifetimes, there may be present and rising concern associated to the diminished water ranges alongside the inland waterway system that may influence barge transportation. This will change into extra acute as we more and more enter harvest season.
Due to the shortage of precipitation all year long, the water depth along our navigable waterways is limiting the effectivity of barge transportation in two methods—channel depth and channel width. Currently, the realm of specific concern is the Mississippi River south of St. Louis.
CHANNEL DEPTH
Barge corporations are having to load barges lighter with a view to stop groundings, which have already occurred and are a rising concern. A typical barge will be loaded with 1,500 quick tons of freight (50,000 bushels of soybeans). A 15 barge tow can due to this fact simply accommodate 750,000 bushels of soybeans. Each lowered foot of water depth (i.e. “draft”) will lead to 150-200 fewer quick tons (5,000-6,700 fewer bushels of soybeans) being loaded per barge.
Let’s assume a soybean-growing area might want to transport 100 million bushels of soybeans through barge. Under regular situations, 100 million bushels ÷ 750,000 bushels per 15 barge tow = 133 barge tows required. If the water stage for loading is decreased by 1 foot and should you make the most of the conservative 150 fewer quick tons (5,000 fewer bushels) per load, the 15 barge tow shall be loaded with 75,000 fewer bushels. This is the equal of eradicating the whole manufacturing of three soybean farms from a single barge tow (500 acres of soybeans per farm X 50 bushels an acre = 25,000 bushels). Under this state of affairs, 148 barge tows shall be required (100 million ÷ 675,000 bushels per 15 barge tow).
CHANNEL WIDTH:
Barge corporations are asserting a most of 25 barges south of St. Louis. Since there aren’t any locks and dams positioned on the Mississippi River south of St. Louis, barge tow sizes are bigger since they don’t must transit lock chambers and the dimensions limitations they impose. During drought situations, the delivery channel turns into narrower, which necessitates lowered tow sizes. Barge tows south of St. Louis can usually embody 30-40 barges. A lowered most to 25 barges is due to this fact important.
When making an attempt to move an anticipated strong harvest through a much less environment friendly inland waterway system, it turns into analogous to attaching a backyard hose to a fireplace hydrant. Having to load barges lighter and limiting the variety of barges leads to needing extra roundtrips to accommodate a given quantity of quantity. The anticipated results of that is larger barge delivery charges. According to the U.S. Department of Agriculture, transporting a ton of soybeans – loaded alongside the Mid-Mississippi River (i.e. – area between St. Paul and St. Louis) price $51.02 per ton in the course of the week ending on September 20, 2022. For the week ending September 21, 2021 (one yr earlier), the identical cargo price $38.30—a 33% enhance.
Unfortunately, precipitation over the following month is predicted to be restricted—additional exacerbating the delivery challenges. When mixed with an general provide chain underneath stress, agricultural shippers predict some difficulties in getting soybeans and grain to market. Fortunately, we now have the most efficient farmers on the planet and an infrastructure that, regardless of these challenges, stays the envy of different soybean and grain producing international locations, however the present and anticipated situations alongside the Mississippi River are clearly a cause for concern.
