FAST FIVE: "Dangerously Low" Mississippi River Level May Spark Transport Chaos For Farm Goods During Harvest

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Barges cannot haul farm goods at full capacity because of shrinking water levels, sparking a vessel shortage that has sent transport prices to record highs.

It's another headache for the American farmer this harvest season.

Lower water levels mean barges reduce cargo loads to improve draft, so it takes more vessels to haul farm goods which have caused a vessel shortage on the waterway.  Barge rates this past week jumped to$49.88 per ton, the highest on record and up 50% from a year ago.  The waterway is responsible for at least half of the US corn and soybean exports.

It said soaring demand for barges during harvest time “will likely put even more upward pressure on barge rates.” Dryness this year in much of the Mississippi river basin is leading to low water levels in many locations and raising risk of interrupted barge traffic.

The world has been closely observing the North American growing season to restock food reserves after Russia invaded Ukraine, disrupting international trade flows.  Tyler Durden Sat, 10/01/2022 – 14:00.

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