Numerous barges have run aground on the lower Mississippi River and grain barge shipping rates are soaring to historic highs this week, Reuters reports, hampering already sluggish grain exports from the Gulf. Tow boats on the lower Mississippi have been forced to reduce the number of barges per tow by nearly 40% to squeeze through the reduced shipping lanes.
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Barge freight at the Port of St. Louis hit a record-high $49.88 per ton this week, up 58% from a year ago, according to USDA data, while grain barge unloads at Louisiana Gulf Coast export terminals were 39% below the five-year average since Sept. 1. “The projections for the water levels are going down, which means this situation is going to get worse,” Mike Steenhoek, executive director for the Soy Transportation Coalition, told Reuters. “Unless we get a significant amount of rainfall soon, this season is going to be a challenge.”
