Falling water levels threaten Mississippi barges
Vital barge shipments have already been disrupted as an ongoing drought hits the key artery of the nation’s inland waterway system.
Commercial traffic along America's busiest waterway is in danger of grinding to a halt as a record drought continues across much of the U.S.
The U.S Army Corps of Engineers and the Coast Guard are keeping federal and state officials briefed on the state of the Mississippi River, which normally carries close to $3 billion in commodities every January.
But this month has been far from normal when it comes to water levels along the historic river.
Reuters reports the Corps has been dredging parts of the Mississippi for six months now to give barge traffic the "draft" or depth of nine feet needed by most commercial vessels.
They've also been working to remove rocks from the river bottom at a potential choke-point south of St. Louis, Mo., near the Illinois towns of Grand Tower and Thebes, by the middle of January -- around the time the river is expected to reach dangerously low levels.
The Corps is also releasing water from some Midwestern lakes and reservoirs to keep water levels along the mid-Mississippi from dipping too low.
The University of Missouri’s Food and Agricultural Policy Research Institute calls the Mississippi "the most critical artery" of America’s inland waterway system. The river, it notes, transports more than 90% of U.S. corn and soybean exports to the Gulf of Mexico. Many energy utilities also rely on river barge shipments of coal and oil.
Shipping organizations say the low water levels have hurt commercial traffic along the Mississippi for months, in some cases doubling transit times, reducing the size of barge shipments and cancelling some orders. And they’re looking for continued assistance from the federal government to keep those water levels up.
"If a barge has a 14-day transit time from loading to the low points on the river, barge operators and their customers must make plans based on the forecasted water depth at the time of the barge’s arrival at the bottleneck," Michael Toohey, CEO of Waterways Council, said in a press statement. "That is why longer-term assurance that barges can reliably load to a 9-foot draft even beyond January is absolutely critical."
According to the Council and the American Waterways Operators, Mississippi River supply chain disruptions for the month of January alone could affect more than 8,000 jobs and more than $54 million in wages and benefits -- as well as the transportation of 7.2 million tons of commodities valued at $2.8 billion.
Disruption of Mississippi River commercial traffic is already having a ripple effect across the nation’s transportation sector.
USA Today reports that 15 river barges can carry the same amount of freight as 215 rail cars or 1,050 large tractor trailers.
And Seeking Alpha says railroad companies like CSX (CSX), Kansas City Southern (KSU) and Union Pacific (UNP) are "waiting in the wings" to see how much more demand for their services will increase, as the water levels along the Mississippi continue to drop.
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where has the obama administration been as this developes. Golfing, Vacationing, basicly doing absolutly nothing at all while the country bleeds to death. what a real leader. here goes more jobs, Who is going to pay for the welfare and unemployment checks in the blue states now.
I believe that climate change is happening due to global warming. I see the results first hand everyday. Not sure what this growing season will bring, but I do know that we are sorely in need of water in the soil.
They will say it will cost jobs in river freight, but if you look at what the addition of jobs will be to the rail system and trucking it seems more people will be employed by the use of Trucks and rail than with freighter.
In a time the economy is screaming for jobs, it would seem that the cost to keep up the waterways far exceeds the ability to create more jobs by not doing so.
A freighter may have a crew of 8, where as the people needed to support rail and trucking would surpass that number 10 fold if not more.
How many dinners would see an influx in truckers stopping everyday to eat and rest?
How much more fuel would be repairmen,repairmen and people to unload trucks and trains?
How much more revenue would be created by truckers and freight tolls?
Seems to me with the influx in taxes from fuel purchases it would benefit the state and federal road projects too.
I don't know, but it seems that using other means of transportation, that are quicker than river travel and more efficient, as well as beneficial to the economy as a whole, outweigh the cost of keeping these lanes open.
And maybe, just maybe, if we allowed the river to self manage itself, we would see less flooding every year.
Seems whenever the Army Corps is involved we are heading for more trouble than good.
I'm just saying...
We really haven't had that much rain/snow in Iowa and the moister that we do get is getting swallowed up by our more that dry land therefore there is not much run off...
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[BRIEFING.COM] The stock market finished an upbeat week on a mixed note. The S&P 500 shed less than a point, ending the week higher by 1.3%, while the Dow Jones Industrial Average (+0.1%) cemented a 1.7% advance for the week. High-beta names underperformed, which weighed on the Nasdaq Composite (-0.3%) and the Russell 2000 (-1.3%).
Equity indices displayed strength in the early going with the S&P 500 tagging the 2,019 level during the opening 30 minutes of the action. However, ... More
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