A warmer and drier winter has led to an earlier start to the Upper Mississippi River shipping season this year. However, this unusual weather pattern could also signal the onset of drought conditions in key areas of the Mississippi River Basin in the upcoming months.
According to Ed Clark, director of NOAA’s National Water Center, there is concern about low flows on the Mississippi River during the summer and fall due to below-average snowpack and precipitation in the Northern Plains and Midwest. This could pose challenges for navigation and commercial interests that rely on water from the river. If this forecast materializes, it would be the third consecutive year in which the Mississippi River faces potential bottlenecks.
Shipping via barges along the Mississippi River is crucial for the transportation industry and the U.S. economy as a whole. In 2019, over 60% of U.S. soybeans were transported along the river, making the U.S. the world’s largest soybean producer and the second-largest exporter. Additionally, nearly one-fifth of the U.S.’s crude oil exports traveled on the Mississippi that year.
The impact of the drought on the Mississippi River in recent years has been significant, leading to challenges for freight flows and causing barge rates to skyrocket. Despite efforts to mitigate these challenges, the drought has taken a toll on the U.S. economy, resulting in billions of dollars in lost economic output.
As the shipping industry navigates uncertain waters ahead, forecasts suggest a growth in the U.S. barge transportation market. The sector is expected to benefit from federal spending on infrastructure projects like the Port Infrastructure Development Program. However, the future of commodities shipped on barges, such as soybeans and crude oil, remains uncertain as the industry continues to face challenges posed by extreme weather conditions and fluctuating demand.
