More than 500 barges delayed by Mississippi River closure

More than 500 barges were delayed passage through a closed section of the Mississippi River near Vicksburg, Mississippi, last week after two tanker barges struck a railroad bridge and one leaked an unknown amount of oil into the river.

The river was closed from January 27 through January 30 between river mile markers 425 and 441.  When navigation was resumed, a queue of 19 northbound vessels (containing over 200 barges) and 31 southbound vessels (containing over 300 barges) were awaiting passage. 

Barge freight costs were not immediately affected but bids firmed for loaded barges of soybeans down river from the closure.

Basis bids for afloat soybean barges in the CIF (cost, insurance and freight) market rose 2 cents per bushel to 112 cents over Chicago Board of Trade March futures, a 7-cent premium to barges loaded in the first half of February.

The closure was the latest in a string of logistical headaches for shippers who rely on inland waterways to haul billions of dollars worth of grain, coal, fertilizer and other commodities.

Low water along a busy shipping corridor between St. Louis and Cairo, Illinois, has threatened to disrupt traffic on the drought-drained river since December. Dredging operations and other work aimed at keeping barges flowing have also snarled traffic at times.

The river system's busiest lock was closed for a day last week after a barge collided with a lock gate.

The Mississippi River is the main shipping waterway for grain moving from farms in the Midwest to export facilities at the Gulf of Mexico. Some 55 to 65 percent of U.S. corn, soybean and wheat shipments exit the country via the Gulf of Mexico.

Source: Reuters