Shipping & logistics

Mississippi river's falling levels challenge grain shipments

27 September, 2023

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US grain exports face delays

{reg}Declining Mississippi River levels are causing delays and cost increases for US grain shipments ahead of the harvest season. About 60 percent of US grain exports depend on this vital waterway, which has seen falling levels since June due to a 30-year drought last year.

The situation isn't expected to improve soon, with no substantial rain in sight. Barge operators are imposing restrictions on draft and tow sizes, increasing transportation costs.

Loading drafts for barges are down 24 percent from normal between Cairo, Illinois, and the US Gulf, with tow sizes reduced between 17 and 38 percent. This has led to significantly higher monthly grain barge rates.

While lower demand has lessened the immediate impact on prices, the grain industry faces complex challenges as it enters the harvest season.[/reg]

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