Water levels got so low in the U.S. river system this autumn that one barge operator wanted to suffer something that’s usually a disaster.
“They were actually hoping in the late fall that a hurricane would hit because if a hurricane hit there would be more water,” said U.S. Department of Agriculture barge system analyst Richard Henderson in mid-December during the Fields on Wheels conference.
“That’s not something you hear every day.”
Canadian farmers seldom think about shipping grain via barge. The closest equivalent in Canada to the vast U.S. Mississippi barge system is the Great Lakes and St. Lawrence waterway, which hauls grain east from Thunder Bay, southern Ontario and Quebec.
Read Also
Protect your grain quality before you harvest
Information on how Canadian farmers can avoid penalties and market headaches by following labels and talking to their grain buyers.
But the U.S. system is much busier, needs much more maintenance and can be much more easily shut down by inclement weather.
Hurricanes have shut the system for days or weeks. Fog can temporarily stop movement.
But the wicked drought that desiccated the U.S. Midwest and West had a severe, long-lasting impact that isn’t likely to go away soon.
Even though December statistics suggested grain barge transportation down the Mississippi was getting closer to normal, water levels remained low, reservoirs were drained and much moisture will be needed to recharge the enormous drainage system.
This is important for grain export dynamics since a lot of U.S. exports get to port by barge. Even though only 13 percent of U.S. grain moves by barge, that includes 48 percent of the grain the U.S. exports, mostly through New Orleans and Texas Gulf of Mexico ports.
As the drought bit in during the latter half of the growing season, barge shipments became challenging. Operators were forced to float lighter loads and smaller barge arrays, with some vessels getting stuck and some operators backing off new shipping commitments for fear of problems.
On Oct. 18 the locks at Memphis, Tennessee, hit an all-time low level. Spot barge prices at St. Louis, Missouri, almost quadrupled from longer term averages, briefly hitting US$105.85 per tonne.
While there has been relief since, the situation remains worrying.
“This is a critical time for soybeans,” said Henderson.
Usually between September and December about 13.1 million tonnes of grain will have moved south by river, but in late 2022, it was likely less than 10 million. About 47 percent of U.S. soybeans that move by barge usually move during that period.
The late 2022 problems with low water levels led to an about 11 percent decline in river grain shipments from the year before, even though 2021 had seen long shutdowns and delays from hurricane Ida.
By mid-December statistics and prices were showing signs of stabilization, with better prices, movement and export inspections. But those improvements were fitful and inconsistent.
And as spring approaches, the reservoirs along the Mississippi remain low.
“It’s going to take a long time” to recover, Henderson said.
