Low water levels make it difficult for barges to navigate the Mississippi

Low water levels have caused several barges to run aground along a key section of the lower Mississippi River, the U.S. Coast Guard told Reuters on Wednesday, just before the start of the busiest season for grain exports to the United States.

Low water levels are slowing the movement of grain and oilseeds for export by barge from the Midwest’s farmlands for the third year in a row, making U.S. exports less competitive in a global market flooded with supplies — just as farmers are expecting record soybean and corn harvests and prices hover near four-year lows.

The U.S. Coast Guard said in an email that it has received reports of and responded to several groundings that have occurred over the past week along the Greenville-Vicksburg section of the lower Mississippi River.

American Commercial Barge Line warned that customers could expect one- to two-day delays for river shipments “due to limited navigable space in some areas,” the company said on its website.

According to barge sources, sandbars are already starting to appear on the Mississippi River at the Memphis, Tenn., gauge. Last October, that section of the river dropped to a record low of -12.04 feet, according to the National Water Prediction Service.

The water level in Memphis is lower than last year. It is forecast to drop to -7.5 feet by September 18, according to NOAA.

Towing and draft restrictions have been put in place, limiting the number of barges that can move and the amount of cargo they can load, said Mike Steenhoek, executive director of the Soy Transportation Coalition. If conditions worsen, the Coast Guard said it could impose further restrictions on vessels and towing.

Barge rates are soaring — making it more expensive for foreign buyers to get U.S. grain. Barge rates coming out of the St. Louis, Missouri, area were 65% higher in late August than the three-year average, according to Steenhoek and USDA data.

River levels remain so low despite heavy rainfall this growing season, which has led to flooding and waterlogged fields across vast swaths of the northwestern Midwest.

However, abnormal drought and drought conditions are now intensifying across the southern Great Plains and the Tennessee and Lower Mississippi Valleys, resulting in a rapidly developing flash drought situation, according to the U.S. Drought Monitor.

“The secret to our success in the global market has always been lower transportation costs,” Steenhoek said. “This further weakens our competitive position.”

(Reuters – Reporting By PJ Huffstutter. Additional reporting by Tom Polansek; Editing by Aurora Ellis)