The Mississippi River, a major thoroughfare for grain, coal, petroleum, crushed rock and other commodities, is 17 feet lower today than it was two months ago.
The low river state is costing barge owners and tow operators money because they have to light load, Mark Mestemacher, co-owner of Ceres Barge Line in East St. Louis, said in an interview Wednesday on National Public Radio’s “All Things Considered.”
Mestemacher said barges are now restricted to a nine-foot draft compared to 12-feet during the first six months of the year, costing him about a third each barge’s capacity and forcing him to use more barges to move the same amount of product or leave some behind.
“We were loading 2,200 to 2,300 tons in a barge and currently we can only load about 1,600 to 1,700 tons,” which translates into less revenue, he said.
At $12 per ton, barge owners are leaving $7,200 per barge on the table.
Many shippers from St. Louis on south are canceling bookings because they can’t even get empty barges to their docks for loading because of shallow areas, Mestemacher said.
Tow companies that moved 42-to-45 barges at once four weeks ago are now cut back to towing 25 to 30 barges, cutting their revenue by 40 percent or more, he added. – Eric Kulisch
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The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now