Considerable effects of the midwest drought, such as the reduced flow volume and therefore depth of the Mississippi River. Barges are no longer able to hold full loads, and number of barges per tow are being reduced. Does this situation, nonetheless, bode well for freight railroads, which could pick up a greater portion of the transport of goods?
I doubt it, most produce that moves by barge pretty much has to move by barge, either the destination is served only by river access, or the commodity doesn’t lend itself to rail car loading.
In fact, some coal moves that require the trans loading to barge for the final move may be adversely affected.
The same drought is going to reduce the amount of grain there is to haul on trains, as well as other farm related products like fertilizer.
I can tell you this from looking at the crops around my house. The corn the Farmers are going to be lucky to get 80 Bushels an Acre as small as the Ears are. The Beans might break 40 if we can get some rain but the Corn is pretty well set. We got hurt and HURT hard this year. Some Farmers are chopping their Corn into Silage for animal feed those that have cattle as it was that bad.
In addition to the previous answers, barge rates are typically unstable. If demand goes up, rates go up. If demand drops, rates drop. Light loads increase per ton costs. Whether or not that can get passed on to the buyer depends on the demand situation.
Unusually high barge rates would prompt some shippers to look to rail. At the moment, with cars and locos in storage the rail capacity issue would be crews, and I do not know what the rail’s situation is on that front. Most likely rails could take some barge moves. I doubt that the light barge loads are more than an inconvience at this point.
With the drought we have, there is a looming shortage of agricultural freight. Shippers have long memories. If I was running a barge line, I would be hesitant to adjust rates based SOLELY on light loads in my barges at the moment.
Mac
First Ironeagle2006:
Welcome ! [#welcome]
Second: Since you have not indicated where you are located, and the current drought is pretty wide spread. Hard to make any comparisons.
Here in South Central Kansas, we are also seeing corn cut and chopped in the fields for silage. primarily, in the non-irrigated fields. Irrigated fields seem to be experiencing a pretty good growth ( to the untrained eye). But no whee near what it has been in the last couple of years. My neighbor, mentioned in a recent conversation that the crops were really suffering, and he estimated that it was going to be off about 30 to 50 percent. Pretty much confirmed by this article in The Wichita Eagle which says 40% reduction.
@http://www.kansas.com/2011/09/12/2013708/forecast-local-corn-harvest-down.html
We have only had traces of rain, with very widely scattered heavier amounts. Usually, rain in July and August is when the Fall Crops set their pods, bean,s and bolls. Without rain, at least a
Mac,
Right now, most Class 1 crews are tight, not quite to the shortage point, but close…if you’re riding a pool or extra board, your turning and burning pretty consistently, for the crews, that means a good deal of extra pay.
Lousy home life though…
Ed.
The ilk thank yu for the update.
Mac
Northwest Indiana - we have had sufficient rainfall, particularly the past 2 weeks. The grass is green again and growing. I have not watered my garden in quite a while and the farm crops look pretty good. Two counties to the east and there has been an effect.
Now, my farm in Southern Illinois is done for the year. Would be surprized if it is even harvested.
Going to be one of those years. This will heavily impact ethanol.
Ed
This going to impact many facets of our economy. Food and fuel prices will increase. Cotton products will go up, etc., etc.
Help may be on the way in the form of “tropical depressions” heading through the Caribbean. Remember what happened in New England last year when Irene hit. I think NYC is getting dependent on passing hurricanes to keep its reservoirs full. I remember about 40 years ago they had to use bulldozers to connect all the puddles in the Croton reservoir to get enough water.
…Yes, I wonder too if that system approaching crossing the Golf of Mexico, will actually bring us some rain. Here, we’re down beyond 10" below normal now…Not sure just how much beyond now. That figure was from last week.
I had a beautiful yard up including early summer, and was mowing every 3 to 4 days. Right now I believe it is 33 days since I mowed this {what’s left of it}, yard. That’s a record for 40 years since we built this house.
Noted on the Evening News, A lashed group of barges are grounded in the Mississippi R. up in Wisconsin.
It just seems this situation is just a bit more now than serious.
This area is generally a great area for corn…It’s certainly sad looking now…Bad, bad stuff…Plus we continue to hit the 90s each week.
Today they actually closed sections of the river, a few barges are grounded.
My neighbor came over yesterday and asked me if he could use my Well for Water his Well ran DRY. His farm is an old Family Farm and has been around since 1880 and Expanded a few times by buying out his neighbors when the sons decided not to continue to farm. His well Survived the 1936 Drought the 1988 Drought with NO Problems but could not make it through this one. His was 85 Feet deep and ran dry this year. Mine is in the so called PA River Aquaduct at close to 300 feet down so I should be Fine. I know the IL River is Restriciting Traffic to 1/4 of what they Normally allow right now. A local river had a Massive and I mean MASSIVE fish kill that took out an estimated 20K fish in a 2 Mile Stretch of the river at a local water Supply dam.
Hell it is so hot and Dry around here even the Cats in my yard are aking dips in the pool to cool off and I have NEVER seen my cat do that one.
The current drought serves as a reminder that commercial navigation on inland waterways is not predictable. Floods and droughts can hamper, or shut down the system. Every winter the upper Mississippi freezes over. Detours are not an option.
Hear is a link to an article that describes the current situation. http://usnews.nbcnews.com/_news/2012/08/15/13295072-drought-sends-mississippi-into-uncharted-territory?lite
In 1981 or 82, there was similar navagation problems on the lower Mississippi. The ICG was running very frequent grain trains and making good bucks on the haul. Assuming there is corn and grain ready to go to the Gulf Ports for export, the CN could be looking at some nice moves.