Aging barge fleet causing concern for grain transportation

Rigucci / Depositphotos.com An aging and shrinking U.S. barge fleet could mean higher transportation costs and weaker grain prices for farmers in the years ahead. A new report from CoBank says the inland waterway system is facing growing pressure from older vessels, rising construction costs, and recurring low water levels on the Mississippi River. The barge fleet has declined nearly eight percent over the past decade, while the average vessel age has increased to 17.6 years. More barges are being retired each year than are being replaced. CoBank economist Tanner Ehmke says tighter barge availability can push freight rates higher and weaken grain basis levels paid to farmers. The Mississippi River handles roughly half of U.S. corn and soybean exports, making reliable transportation critical to agricultural markets. The report warns that without greater investment, transportation bottlenecks could threaten export competitiveness as grain shipments increase. NAFB news service