September 29, 2014

Rail congestion and high truck transport costs are shifting more U.S. commodity transport to the U.S. inland waterway.  But with a record U.S. harvest on the horizon and competition from the shale oil industry, the river system is over-taxed by an increasing demand for shipping capacity, a low barge inventory, and a crumbling lock system and industry source state that the system is one major event away from disaster after decades of neglect. These conditions are leading the USDA to expect grain transportation costs from the U.S. Midwest to export facilities in October to reach a six-year high.  Demand for covered barges is extremely high as grain shipments along the rivers of the Midwest are nearly double what they were a year ago while barge numbers have declined from 12,500 in the 1990’s to 10,500 today.  Most Midwest locks were constructed in the 1930’s with a 50 year lifespan and a lack of funds has cause maintenance to be carried out on a fix-as-it-fails system.  From 1992 to 2008 the number of emergency lock closures has increased by 543% and the backlog of projects waiting for funding has reached over $8 billion over fifteen years.  To read further:

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