Low Mississippi water levels slowing barge movement

MarketsFarm – Low water levels along parts of the Mississippi River are slowing barge movement just as seasonal shipments of soybeans and corn typically increase.

Forecasts from the National Weather Service show levels to the north and south of Memphis, Tennessee, well below normal, with the models pointing to water levels hitting their second-lowest levels ever over the next week.

The United States Army Corps of Engineers has restricted how many barges can be moved at a time by tow boats, while the U.S. Department of Agriculture reports that unloadings in New Orleans are roughly 40 per cent below the five-year average through the first month of the 2022/23 marketing year.

In a note to customers, American Commercial Barge Lines (ACBL) reported that the low water levels were causing “severe impacts to navigation not seen since 1988.”

ACBL expected to see “significant delays to barge transits and ton-miles production driven by drastic reductions to boat and barge capacity.”

The company noted that allowable drafts were lowered to nine and a half feet, which will result in a 20 to 27 per cent reduction in how much grain each barge can move compared to normal. Some local areas will see draft depths of only seven feet, with groundings and intermittent closures also slowing movement. The reduction in how many barges can be towed at a time reflects another 17 to 38 per cent reduction in tow size.

With little rain in the immediate forecast, ACBL expected issues along the Mississippi would continue through October.