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Low waterway levels threaten ag supply chain

Diminished water levels of the Mississippi, Ohio and Illinois rivers are throwing another curve ball at the agricultural supply chain. Due to record low rainfall in some areas, the water depth along the U.S. navigable waterways is limiting the efficiency of barge transportation, concerning agricultural shippers and growers who depend on the inland waterways to get their beans to market. The inland waterways system is the most cost-efficient mode of transporting agriculture and is significantly more fuel efficient than transporting products the same distance via truck.

Officials with the U.S. Army Corps of Engineers said tows can normally move 36 barges at a time. With the low water level, shippers have voluntarily agreed to cut that to 25 barges. This decrease is significant as barge tows south of St. Louis can usually accommodate 30-40 barges.

In addition, barge companies have to load barges lighter to prevent groundings, which have already occurred and are a growing issue. Mike Steenhoek, executive director of the Soy Transportation Council, said a typical barge can be loaded with 1,500 short tons of freight; therefore, a 15-barge tow can easily accommodate 750,000 bushels of soybeans. However, each reduced foot of water depth results in 150-200 fewer short tons being loaded per barge, equating to 5,000-6,700 fewer bushels of soybeans.

Precipitation over the next month is expected to be limited and further exacerbate these shipping challenges.

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