ANKENY, Iowa – Export terminals and barge operators are now reporting a return to normalcy along riverways, according to Mike Steenhoek, Soy Transportation Coalition executive director.

“This is particularly the case along the Lower Mississippi River,” Steenhoek said. “Much improvement has occurred in the corridor between St. Louis, Mo., and Cairo, Ill., but we have had some recent barge loading restrictions due to lower water levels.

“Many river observers conclude that we will remain with tight water level margins in the St. Louis area until water flows increase from the Missouri River later this spring,” he added. “This is obviously an issue we will continue to monitor. Overall, though, we are pleased to be in a better place than we were in the fall/early winter of 2022.”

He said, “We are observing more of a return to normal not only with river levels, but also with barge freight rates,” he said. “In the USDA’s Grain Transportation Report, for the week ending on Feb. 7, 2023, the barge rate for a shipment originating in St. Louis was $18.55 per ton.”

He said this compares to $25.06 per ton for the week ending on Feb. 8, 2022.

“This amounts to a 26 percent decrease in barge rates over the past year,” he said. “According to the Grain Transportation Report, rates reached their highest for the week ending on Oct. 11, 2022, when they hit $105.85 per ton (originating in St. Louis). This was obviously during the period in which river levels were acutely low.

“No one notices a road until they encounter a pothole,” he added. “In 2022, we had numerous ‘potholes’ that impacted our multi-modal transportation system.”

He said, “From historically low water levels on the Mississippi River, to the potential of a railroad strike, to a rise in fuel costs, to labor shortages, to congestion at our ports, there were a number of challenges agriculture and other industries had to manage.

“We continue to be concerned with the cost of many of these infrastructure projects,” he said. “Inflation is clearly eroding much of the purchasing power of the additional funds the federal government has provided. We’ll continue to see frequent cost escalations, or delays in completion.

“It serves as a reminder that a well-functioning supply chain is not just about cost, speed, and reliability; it is also about resiliency,” he added. “Resiliency is an area that must be increasingly emphasized in 2023. We look forward to continuing to advocate for such a system for America’s soybean farmers.”