Robert Besser
21 Sep 2023, 01:11 GMT+10
NEW ORLEANS, Louisiana: As Midwest farmers prepare to harvest crops and send tons of grain downriver to the Gulf of Mexico, a prolonged drought has reduced the Mississippi River level forcing barge companies to reduce their loads.
The transport restrictions have caused issues for barge companies, while thousands of farmers who have watched drought scorch their fields for much of the summer now face higher prices to transport what remains of their crops.
Some 60 percent of U.S. grain exports are taken by barge down the Mississippi to New Orleans, where the corn, soybeans, and wheat crops are stored and eventually transferred to other ships.
This method is usually the most inexpensive and efficient way to transport crops, with a typical group of 15 connected barges carrying the same cargo as some 1,000 trucks.
But as the river dried up, the cost has subsequently surged, with the cargo rate from St. Louis heading south being 77 percent more than the three-year average.
Merritt Lane, president of Canal Barge Company of New Orleans, said, "We are keeping things moving but could use some rain, some help from Mother Nature."
Mike Steenhoek, executive director of the Soy Transportation Coalition, said many Midwest farmers have multiple transport options, among them trucking and shipment by train for use by nearby ethanol and biodiesel plants and for processing into animal feed, but for grain exported abroad, the higher cost of shipping down the Mississippi have caused pain.
"It is the way that farmers in the middle of the U.S. connect with the international marketplace. It allows these farmers to have a very efficient way of moving their products a long distance in a very economical manner," Steenhoek said.
At a time when American soybean and corn exports face increased international competition, rising barge costs are eating directly into farmers' profits, he added.
Get a daily dose of North Carolina Daily news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to North Carolina Daily.
More InformationREDMOND, Washington: Microsoft President Brad Smith said there is no chance of super-intelligent artificial intelligence (AI) being developed within the ...
WASHINGTON D.C.: This week, the U.S. Federal Aviation Administration (FAA) said it implemented a new aircraft certification policy, which requires ...
WASHINGTON D.C.: As businesses built more warehouses and accumulated machinery equipment, the U.S. economy grew faster than initially forecast in ...
NEW YORK, New York - U.S. stocks extended their rally on Friday despite remarks by Federal Reserve Chair Jerome Powell ...
NEW YORK, New York - The Dow Jones index was the standout on U.S. financial markets on Thursday with a ...
WASHINGTON D.C.: Despite the ongoing economic uncertainty, major discounts during the Thanksgiving weekend enticed U.S. shoppers, who spent some US$38 ...
REDMOND, Washington: Microsoft President Brad Smith said there is no chance of super-intelligent artificial intelligence (AI) being developed within the ...
ATLANTA, Georgia: After two consecutive years of declines mainly caused by the COVID-19 pandemic, babies born in the U.S. in ...
MOSCOW, Russia: A Russian court has extended the detention of Evan Gershkovich, a U.S. reporter for the Wall Street Journal, ...
NEW YORK: A survey by Consumer Reports found that electric vehicles (EV) from 2021 through 2023 model years encountered nearly ...
PORTLAND, Maine: Maine police said that a wrong-way driver on the Maine Turnpike hit two vehicles and caused a head-on ...
Israel intensified its deadly bombardment of the Gaza Strip Saturday as renewed fighting with Hamas entered a second day following ...