Soybeans and corn exporters in U.S. are afraid of a repeat of last year’s “logistical crisis” when the shoaling of rivers caused serious difficulties with the shipment of cargoes with grain and oilseeds during the peak period of their transportation along the Mississippi River. This is reported by The Loadstar.
It is noted that most of the U.S. Midwest is already suffering from drought. Precipitation in the eastern states of the macro-region this year is well below the seasonal norm.
“So far, the depths of rivers are sufficient for normal navigation, but the situation is becoming threatening. Water levels in the Mississippi and Ohio are dropping rapidly. The depths of the Ohio near the city of Cairo have twice in the past month already approached the mark when restrictions and a special regime for the safety of navigation are imposed. Barge shipping rates on this stretch have increased 18% in the last week and 38% in the month since June 20,” the report said.
River shipping is critical to the U.S. economy. About 578 million tons of cargo are transported annually on inland waterways. Moreover, the Mississippi is a key transportation corridor for delivery of export grain and soybeans to end consumers.
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