U.S. barge freight rates have skyrocketed as both immediate (spot) demand and April freight demand have surged, according to USDA data. Over the past three weeks, dry bulk barge rates on the Mississippi River at St. Louis jumped from $18.80 to $34.75 per ton. The Upper Ohio River freight rate jumped from $23.60 to $49.70 per ton.
Several factors are pushing up rates. One is the increased demand with higher corn and soybean exports shipped down the Mississippi River. There is also increased demand for barges to haul coal to replace Russian natural gas and crude oil. Higher water levels on the river have reduced the amount of barge capacity on the Mississippi River by 15%. USDA said barge operators would also likely pass along higher fuel costs.
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