Lower Levels in Mississippi River Stopping More Barge Traffic

By CnAgri Print

Some freight companies have pulled their barges from the mid-Mississippi and Illinois Rivers until March as low water after a severe drought continues to disrupt business during the peak of the grain export season.

According to Reuters, some grain terminals along the Mississippi River have stopped selling soybeans to exporters at the U.S. Gulf for fear of not being able to deliver the cargoes because of critically low water levels between St. Louis and Cairo, Illinois.

With barge traffic stricken along the Mississippi River, upon which some $7 billion worth of commodities would be ferried over the next two months, grain companies are increasingly turning to rail cars to transport their cargoes to the Gulf Coast for shipment across the world.

After devastating the corn and soybean crops this year, the worst drought in half a century is playing havoc with grain shipments at a time when millions of tonnes of soybeans are being sent to overseas buyers each week.

The situation has been made worse by a decision to reduce the amount of water that flows into the Mississippi River from the Missouri River, prompting governors, senators and shipping groups to appeal to President Barack Obama.

The Mississippi River at St. Louis is forecast to drop to near-record lows by the end of this month. Barge carriers have already restricted the amount of cargo that can be loaded on vessels transiting the 200-mile problem area between St. Louis and Cairo.