Low water levels in the Mississippi River are forcing barge companies to cut back on cargo

SF. LOUIS (AP) — Water levels in the Mississippi River are unusually low for the third year in a row, forcing barge companies to limit the amount of cargo they can carry and cutting into farm profits.

Just two months ago, much of the Mississippi River was above flood stage north of St. Louis. Since then, the river’s level has steadily dropped. The area south of St. Louis was hit particularly hard, reflecting low water concerns that began at the same time of year in both 2022 and 2023.

As part of the fallout, barge companies are being forced to limit the soybeans, grains and other commodities they carry to prevent potential barge blockages. That means less profit for farmers.

About 60 percent of U.S. grain exports are barged up the Mississippi to New Orleans, where the corn, soybeans, and wheat are stored and eventually transferred for shipment to other countries. It’s an efficient way to transport crops – a typical group of 15 barges tied together carries as much cargo as about 1,000 trucks.

With loads limited, the USDA’s latest grain transportation report showed that for the week ending Aug. 31, 480,750 tons of grain moved by barge — a 17 percent drop from the previous week.

Meanwhile, costs have skyrocketed. Transport rates from St. Louis were 8% higher than the same period last year and 57% higher than the three-year average. Transportation rates in Memphis were 10 percent higher than last year and 63 percent higher than the three-year average.

Consumers won’t necessarily feel a big impact, but farmers will, said Mike Steenhoek, executive director of the Iowa Soybean Shipping Coalition.

“When you see an increase in transportation costs in any industry, the question is, ‘Do you pass those costs on to the customer in the form of a higher price?'” Steenhoek said.

But farmers usually don’t have that option because their barge-borne product is sold internationally. If U.S. soybean prices rise, the foreign buyer may buy from another country, Steenhoek said.

It was only July when the Mississippi River reached major flood levels in places like Iowa, Illinois and Wisconsin, forcing some people to travel by boat.

All that water flowing from the upper Mississippi River was offset by drought in states along the Ohio River, which feeds into the Mississippi at Cairo, Illinois. Precipitation in places like Ohio and West Virginia was minimal throughout the summer, getting worse in August.

“The drought is increasing,” Michael Clay, chief of the Hydraulics and Hydrology Branch of the Corps of Engineers’ office in Memphis, Tenn., said at a news conference Wednesday. As a result, the Mississippi River south of Cairo is just a few feet above record low levels reached in several places last year — and falling.

Donny Davidson Jr., a deputy engineer for the Memphis District of the Corps, said dredging operations are frequently moved as areas of concern come up.

“Over the last few years, we’ve gotten really good at looking ahead and applying those resources in a very strategic way,” Davidson said.

Clay said Hurricane Francine will bring several inches of rain to much of the lower Mississippi River, including up to 4 inches of rain in Memphis in the coming days.

Photo: Low water levels on the Mississippi River in Memphis, Tennessee, US, Monday, November 7, 2022.

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