U.S. barge backlog swells on parched Mississippi River

CHICAGO, Oct 4 (Reuters) – Industrial barge site visitors on southern stretches of the Mississippi River was at a standstill on Tuesday as low water ranges halted shipments of grain, fertilizer and different commodities on the essential waterway, delivery sources stated.

The availability chain snarl comes simply as harvesting of corn and soybeans, the most important U.S. money crops, is ramping up and as tight international provides and robust demand for meals and gas have despatched inflation hovering.

Round 100 tow boats hauling some 1,600 barges had been lined up for miles ready to move by one bother spot close to Lake Windfall, Louisiana, that has been largely closed since late final week, delivery sources stated.

No less than two different sections of the decrease Mississippi have additionally been closed at instances, disrupting the circulation of grain to U.S. Gulf Coast export terminals, the place some 60% of U.S. corn, soybean and wheat exports exit the nation, they stated.

The U.S. Military Corps of Engineers is dredging the river to deepen the delivery channel to permit some cargo to move. However shippers worry that with out substantial rain the jam will persist nicely into the busiest grain export interval of the yr. Merchandise corresponding to street salt are additionally hauled north forward of winter.

“Mom Nature hasn’t been very useful, and there is not a number of reduction in sight within the climate forecast,” stated Merritt Lane, president and chief government of barge operator Canal Barge Firm.

Shippers have been loading much less cargo per barge so vessels sit increased on the water, and towing firms have lowered the variety of barges per tow by practically 40% because the low water situations narrowed the navigable channel.

Many U.S. Gulf exporters have pulled provides for corn and soybeans loaded in October and November as it’s unclear if they will supply sufficient grain, threatening already sluggish export gross sales.

“We will not decide to new gross sales proper now,” one exporter stated.

Reporting by Karl Plume in Chicago
Modifying by Marguerita Choy

Our Requirements: The Thomson Reuters Belief Ideas.