Barge Freight Charges Surge as Mississippi River Ranges Drop
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The price to move America’s harvest from the Midwest to the remainder of the world is hovering as shrinking water ranges on the Mississippi River drive up barge freight charges — and the forecast for below-than-average rainfall presents no aid.
Barge spot charges as of Aug. 29 in St. Louis are up 49% from final week and 42% from final yr at $23.34 a ton. That’s up 85% from the previous 3-year common, in keeping with information from the Division of Agriculture launched Aug. 30.
The info comes simply because the U.S. prepares to start its soybean and corn harvest, signaling one other powerful yr for U.S. farmers who already are battling drought and fierce competitors from Brazil and Russia. Final yr, extraordinarily low water ranges on the Mississippi River stranded greater than 2,000 barges, crippling commerce on the very important waterway.
Water ranges on the Mississippi River, which carries greater than 45% of U.S. agricultural exports, have been dropping since June, proscribing the quantity of grain allowed on every barge. This led to a tightening of barge provide as extra barges are required to move the identical quantity of grain.
Transportation firms are “proactively decreasing drafts as they’re conscious of the issues that heavier barges brought on final time round,” mentioned Susan David, a grain analyst for No Bull in St. Louis. “This yr it feels just like the market is healthier ready to deal with it.”
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