How bad is it? Near Memphis, Tennessee, the river is about
13 ft. below its normal depth. In Vicksburg, Mississippi, it’s more than 20 ft.
below. Overall, the river is about 13 ft. below normal for this time of year —
that’s 55 ft. below last year’s flood levels.
As a result, barge, tugboat and towboat operators have had
to change how they move goods up and down the river. Many have had to lighten
loads for fear of getting stuck. As the
drought worsens, the river gets narrower and shallower. The narrowness is
forcing barges to sail more closely past each other, often slowing their
speeds. In some sections of the river only one-way traffic has been able to
move through.
So far, the Mississippi remains navigable. The Army Corps of
Engineers is busy dredging stretches of the river to ensure that the
Mississippi stays at least 9 ft. deep throughout. Ironically, the money for the
dredging operations is coming from a relief act worth $20 million that was
passed to help repair damage from last year’s flooding.
Still, the result of lighter loads and moving at slower
speeds will likely drive up transportation costs. According to the American
Waterways Operators, transporting goods via waterways costs $11 a ton less than
by rail or truck. However, if those goods are moved to other modes of
transportation, the costs for consumers will likely rise.
Higher food and gas prices are expected thanks to not only
increasing transportation costs but also the damage the drought has brought to
farms throughout the US Midwest. The US Agriculture Department expects US food
prices to rise as much as 3.5% this year and as much as 4% in 2013. Of
particular concern is the fact that the US is the world’s largest exporter of corn,
soybeans and wheat. Markets around the world are growing worried that food
costs will soar because imports will be expensive.
The outlook is not good as weather forecasters expect
little relief. Many bulk shippers will
probably need to switch to rail and truck until water levels recover to normal.
However, additional costs will be passed along to the final customer – a burden
that will prove increasingly hard in an economy that is beginning to
displays signs of strain.