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 Cleveland Star 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 Cleveland Star.
More InformationNEW YORK: This week, ratings agency Moody's warned that it could downgrade China's credit rating, citing costs to bail out ...
NEW YORK, New York - AI set the scene for solid gains in technology shares on Thursday. Demand for Alphabet ...
WASHINGTON D.C.: To help reduce car collisions with wildlife and help animals safely cross roadways, the U.S. Transportation Department has ...
BRUSSELS, Belgium: To address power shortages at electric vehicle (EV) charging stations, last week, the European Commission announced plans to ...
BEIJING, China: Falling hog prices, mounting losses and rising debt are putting pressure on the biggest pig breeders in China, ...
NEW YORK, New York - A decline in labor costs as measured by ADP failed to boost U.S. Markets Wednesday."ADP's ...
CHICAGO, Illinois: As winter sets in and with cold weather just around the corner, Chicago is struggling to house hundreds ...
ARLINGTON, Virginia: This week, the conservative U.S. political network Americans for Prosperity Action (AFP Action), led by billionaire Charles Koch, ...
(Photo credit: Marc Lebryk-USA TODAY Sports) Zach Edey gets a true home game when he leads No. 4 Purdue into ...
(Photo credit: Kiyoshi Mio-USA TODAY Sports) When Los Angeles FC travel to oppose the Columbus Crew in the MLS Cup ...
(Photo credit: Brian Bradshaw Sevald-USA TODAY Sports) Mikael Granlund scored 37 seconds into overtime to give the San Jose Sharks ...
(Photo credit: Jeff Curry-USA TODAY Sports) The St. Louis Blues hope to find some consistency when they visit the Columbus ...