One of the biggest phrases of 2021 is starting to rear its ugly head again in 2022l, “supply chain issues.”
These are not the words you want to hear f you are a business, industry, or just someone who likes to go to a store and find what you are looking for. This time the problem is right here in the United States.
A drought in the midwest means the water levels in the Mississippi River are the lowest they have been in 10 years; that means barge traffic has been halted. The transport ships that move goods north and south and keep the supply chain humming are not moving in one of the most critical times of the year.
Efforts are underway to do more than hope it starts raining soon. The Army Corps of Engineers has been dredging part of the river to deepen the channels and get the stuck barges unstuck.
Eight barges have run aground because of the low water level in the past week.
Most people don’t think about water traffic on the Mississippi, but the river is an extremely vital component of the supply chain. The backup is bad; 144 vessels and over 2,500 barges are waiting to get through the two impassable stretches of the river. Both spots are in the south, with one near Vicksburg, Mississippi and the second spot is in Memphis.
The Army Corps of Engineers hopes to have the barges moving again this weekend, but that doesn’t mean the situation is remedied. The barges will only operate at 80% capacity because the added weight of a full load could lead to the barge riding too low in the already low water.
One thing to keep an eye on is how this affects food and commodities prices. Word is that 50% fewer barges are moving on the river because of multiple factors, and the rates shippers are paying are higher than ever.
Usually, those price increases trickle down to consumers.
Let’s hope the midwest has a snowy winter.
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