Barge companies shun freight orders on Mississippi River

The low water levels on the Mississippi River have forced barge companies to stop accepting orders for immediate delivery of everything from metals to agricultural products to fertilizers.

Companies are paying a premium to move steel, aluminum and other goods by rail and truck, despite the cost that is up to five times more than what they would normally pay by barge. Shipments of coal and petroleum have been rerouted, but these other modes of transportation aren't an effective solution.

In order to move the amount of freight currently in transit via a barge on the Mississippi, it would require an enormous amount of capacity that is unique from an equipment standpoint, said Charles Roth, an analyst at FTR Transportation Intelligence, in a phone interview. The trailers used to haul grain versus coal and bulk liquids are all different. There are limited options for moving that freight. Nucor Corp., the largest US steelmaker, is not planning to load barges with steel shipments for a few weeks, as the company wants to avoid having material stuck on the river and ensure on-time delivery, according to a person familiar with the decision. All this came as Ingram Barge Co., the largest US barge operator, declared force majeure on some shipments due to low-water conditions disrupting normal operations through the river.

The shipments are going to be delivered to nearly every sector of the US economy, from automobiles to appliances to grocery stores and restaurants. The depleted water levels are a concern because the river basin produces 92% of the nation's agricultural exports.

The beauty of our navigable rivers is that they are capable of transporting heavy freight, like soybeans and grain, long distances in an economical manner, according to Mike Steenhoek, executive director of the Soy Transportation Coalition. One 15 barge tow has the same freight capacity as 940 semi-trucks. This efficiency is predicated on normal water conditions, which unfortunately do not currently exist. No hackers target Eager Homebuyers with a Dumb Scam That Keeps Working.