Low water levels in the Mississippi River cause high barge rates
9/16/2024 12:00:00 AM
CATEGORIES:
Agriculture
Business & Industry
Water Supply & Quality
AFFECTED AREAS:
Minnesota
Missouri
Mississippi
Start Date: 8/25/2024
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The level of the Mississippi River is unusually low for a third straight year, forcing barge companies to limit the amount of cargo able to be transported. Just two months ago, much of the Mississippi River was above flood stage north of St. Louis. The river level has dropped steadily in subsequent months.
For the week ending August 31, the U.S. Department of Agriculture’s Grain Transportation Report showed that 480,750 tons of grain was shipped by barge, a drop of 17% from the previous week.
Freight rates were up dramatically. Freight rates from St. Louis were 8% higher than the same time last year and were up 57% compared to the three-year average. Freight rates from Memphis were 10% higher than last year, and 63% higher than the three-year average.
The Associated Press, Sept 11, 2024
Barge rates have increased 17-19% at stations along the Mississippi River between Minneapolis-St. Paul and Saint Louis due to low water levels. Barge companies have begun to draw limits on draft and how many vessels can be towed.
Bloomberg (New York NY), Sept. 6, 2024.
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