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.

By Bruce Kennedy Jan 9, 2013 3:32PM

Downtown Minneapolis skyline & Mississippi River - Chris Andersen Photography, Flickr, Getty ImagesCommercial 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.


More on Money Now

128Comments
Jan 10, 2013 12:39PM
avatar
We need a drought in Seattle ... it has rained for a month now
Jan 10, 2013 12:39PM
avatar
Because of the drought over the last 2+ years, water tables are at there lowest in recent history. Rain water and run off has a tenancy to seek it's own level, thus seeping through the soil to reach and raise water tables. It will take a few years of good occasional rain to raise the water tables, and thus raise and maintain the river levels. 
Jan 10, 2013 12:37PM
avatar

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.

Jan 10, 2013 12:34PM
avatar
Commerce will need to ship by rail. Railroads  replaced the Erie canal as a prime mover of commercial traffic; and, until water levels resume to normal levels, railroads can handle the traffic.
Jan 10, 2013 12:33PM
avatar
@ be oberg The Midwest has an all time record low for snow fall and pack.  Runoff this year could be drastically reduced.
Jan 10, 2013 12:30PM
avatar
I live in the Quad Cities. We are still in a pretty severe drought. Very little snow so far, and hardly any rain. The temps have been so mild that there isn't much freezing along the tributaries, let alone the Mighty Mississip!  This past summer I worked on an organic farm where we couldn't keep crops alive with only one well available for drip irrigation.  The Japanese beetles overtook everything that smelled sweet to them. 

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. 

Jan 10, 2013 12:30PM
avatar
We will hear about record lows now, and record flooding this spring.
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...

Jan 10, 2013 12:28PM
avatar
But I thought man had conquered nature.
Jan 10, 2013 12:24PM
avatar
How funny.  Need the federal govt to see the river stays open???  The river that runs through all those red states.
Jan 10, 2013 12:18PM
avatar
Clearly the fault of the Obama administration and their tactics to divert needed rain to swing-states and away from the more conservative heart of America.
Jan 10, 2013 12:14PM
avatar
consider most runoff that feeds the river is now frozen. The supply of water is limited by lack of rain but also by snow not melting yet.
Jan 10, 2013 12:13PM
avatar
Winmag3,  that drought is still happening.
Jan 10, 2013 12:13PM
avatar

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...

Jan 10, 2013 11:58AM
avatar
I don't understand quite why this is such an issue now - what was happening when the majority of the lower 48 were in the midst of the biggest drought since the 1930's for an extended period during the summer when it didn't rain at all for months?  Certainly it has rained and snowed since then, so why would the river be lower now than back in August?
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

Trending NOW

What’s this?

MARKET UPDATE

[BRIEFING.COM] Alibaba Group (BABA 90.92, +22.92) is up big.  The major indices are not.  In fact, the higher the opening indication for Alibaba went, it seems the more the indices faded from their opening strength.

That could be owed to Alibaba drawing buying interest away from everything else.  Volume in the stock is already a stunning 202 million shares, which is giving a huge lift to NYSE totals on this quarterly expiration day for stock options, index options, ... More

MSN MONEY'S