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Barge Situation for Grains and Oilseeds
This section looks at key barge factors that are impacting movements of grains and oilseeds. The information in this section is based on information from the Army Corps of Engineers Lock Performance Monitoring System, Waterborne Commerce of the United States and Vessel Operator Characteristics, and Informa’s annual Barge Fleet Profile report. Grain barge loadings demonstrate a shift in loadings by waterway. The trend of relatively less grain loading on the upper Mississippi and Illinois Rivers has emerged since the early 2000s. About 60% of annual grain barge loadings originated on the upper Mississippi and Illinois Rivers, and has trended lower to about 40% in 2010. This trend is particularly evident for soybean loadings with increased loadings on the lower Ohio and lower Mississippi Rivers. This shift in loadings has occurred during the time of the ethanol build out across the Corn Belt and within proximity of the navigable river system, especially in Iowa where corn became deficit. Once the corn ethanol mandate is achieved corn surpluses are expected to return along the upper Mississippi River. But with issues of crumbling lock infrastructure, increased crop production lower along the Mississippi River, deeper draft barge equipment being used, and a widening barge freight spread, will the upper Mississippi River gain a competitive edge with the lower Mississippi River, during a time when the Panama Canal expansion effort will be completed and will likely expand the draw area for river navigation.
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U.S. Inland River System
OHIO RIVER SYSTEMOHIO RIVER SYSTEMOHIO RIVER SYSTEMOHIO RIVER SYSTEMOHIO RIVER SYSTEMOHIO RIVER SYSTEMOHIO RIVER SYSTEMOHIO RIVER SYSTEMOHIO RIVER SYSTEM
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RockportRockportRockportRockportRockportRockportRockportRockportRockport
Mis
siss
ippi
Riv
er
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UPPER MISSISSIPPI SYSTEMUPPER MISSISSIPPI SYSTEMUPPER MISSISSIPPI SYSTEMUPPER MISSISSIPPI SYSTEMUPPER MISSISSIPPI SYSTEMUPPER MISSISSIPPI SYSTEMUPPER MISSISSIPPI SYSTEMUPPER MISSISSIPPI SYSTEMUPPER MISSISSIPPI SYSTEM
Mississippi River
HoustonHoustonHoustonHoustonHoustonHoustonHoustonHoustonHouston
Bla
ck W
arri
or
Tenn
esse
e Rive
r
Cumberland RiverWhite River
Qua
chita
Riv
er
Yazo
o R
iver
Ohio River
Allegheny River
Green River
Ap
alac
hic
ola
Riv
er
Illino
is Rive
r
Monongahela River
Kanawha RiverMissouri River
Gulf Intracoastal Waterway
Red R
iver
Tom
bigb
ee R
iver
Gulf Intracoastal Waterway
Arkansas River
New OrleansNew OrleansNew OrleansNew OrleansNew OrleansNew OrleansNew OrleansNew OrleansNew Orleans
MinneapolisMinneapolisMinneapolisMinneapolisMinneapolisMinneapolisMinneapolisMinneapolisMinneapolis
PittsburghPittsburghPittsburghPittsburghPittsburghPittsburghPittsburghPittsburghPittsburgh
LouisvilleLouisvilleLouisvilleLouisvilleLouisvilleLouisvilleLouisvilleLouisvilleLouisvilleSt. LouisSt. LouisSt. LouisSt. LouisSt. LouisSt. LouisSt. LouisSt. LouisSt. Louis
CairoCairoCairoCairoCairoCairoCairoCairoCairo
ChicagoChicagoChicagoChicagoChicagoChicagoChicagoChicagoChicago
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Share of Grain and Soybean Loadings by River Segment
Source: Army Corps of Engineers and Informa
9%16%
20%
19%
13%
19%
30%
20%
25% 23%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Shar
e of
Vol
ume
Year
Grain and Soybean Barge Movements by River Segment
Upper Mississippi River (MSPto Missouri River)Illinois Waterway
Mid-Mississippi River(Missouri River to Ohio River)Ohio River
Lower Mississippi River (OhioRiver to Baton Rouge)McClellan-Kerr ArkansasRiverBaton Rouge to New Orleans
New Orleans to Mouth ofPasses
4
Share of Soybean Barge Loadings by River Segment
Source: Army Corps of Engineers and Informa
20%
30%
16%
15%9%
15%28%
12%
24% 20%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Shar
e of
Vol
ume
Year
Grain and Soybean Barge Movements by River Segment
Upper Mississippi River (MSPto Missouri River)Illinois Waterway
Mid-Mississippi River(Missouri River to Ohio River)Ohio River
Lower Mississippi River (OhioRiver to Baton Rouge)McClellan-Kerr ArkansasRiverBaton Rouge to New Orleans
New Orleans to Mouth ofPasses
5
• Since 2001, the average tons loaded per barge for grains and soybeans by river segment: o Upper Mississippi River 1,554 tons; o Lower Mississippi River approximately 1,700 tons; o Illinois Waterway 1,552 tons; o Ohio River 1,561 tons; and o Arkansas River 1,406 tons (average since 2003).
• Since 2011, the average tons loaded per barge for grains and oilseeds by river segment:
o Upper Mississippi River 1,538 tons; o Lower Mississippi River approximately 1,700 tons; o Illinois Waterway 1,544 tons; o Ohio River 1,699 tons; and o Arkansas River 1,397 tons.
• The number of total grain and oilseed barge loadings has decreased since the 2001/02 highs on the Upper Mississippi and Illinois Waterway
while on the Ohio River 2009/10 was the high with just under 5,000 total barge loadings. Around 85% of the covered hopper barge fleet is able to handle loads that draft 12 feet to 14 feet compared with 15% that is limited to 9 feet to 10 feet. As a result, in most cases a covered hopper barge will be able to take advantage of deeper drafts if the river allows.
6
Covered Barge Fleet by Draft Characteristics
Source: Informa Economics, Inc. (www.bargefleet.com) The barge freight rate differentials between key river locations and Peoria, IL on the Illinois River have been widening. The spreads at locations downriver from Peoria have widened from a range of -‐10 cents to -‐15 cents per soybean bushel from the mid-‐1990s to the mid-‐2000s from Memphis
9% 9% 7%11% 11% 12%
16% 16% 17% 19%
10% 9%9%
9% 11% 12%
14%16% 18% 15%
81% 82% 84%80% 78% 76%
71% 68% 65% 66%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%20
01
2002
2003
2004
2005
2006
2007
2008
2009
2010
Shar
e of
Cov
ered
Bar
ge F
leet
Covered Barge Fleet by Draft12' and greater 10' to less than 12' Less than 10'
7
for example. Since 2004 the barge freight spread between Memphis with Peoria has widened further to more than -‐30 cents per soybean bushel and has maintained a greater than 25% freight advantage since 2009.
Barge Freight Rate Differential with Peoria, IL for Soybean Movements to New Orleans, LA by Select River Segments
Source: USDA and Informa
-$0.40
-$0.30
-$0.20
-$0.10
$0.00
$0.10
$0.20
$0.30
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Diff
eren
ce ($
per
bus
hel)
Year
Barge Freight Rate Corn Differential with Peoria
St. Louis Memphis Mt. Vernon Dubuque
8
Commodities Moved Tons
• On the demand side, commodity volumes moved on the inland waterways during 2010 totaled 555.4 million tons, an increase of 9% from 2009. The economic recession led to a dramatic drop in commodity flows during 2009, but movements during 2010 showed a decent rebound.
• Only farm products displayed a positive annual increase in movements, led by higher corn and soybean moves. Farm products were up 7.5
million tons or 11% to 74.7 million tons. The increase follows the poor navigation conditions of 2008 that directly impacted corn moves. Movements of soybeans were record high in 2009 at 21.8 million tons.
• For 2009, Informa estimates waterborne commerce to have expanded 15% to 587 million tons. The estimates were developed through specific
commodity and trend analysis. Average Distance
• The average distance commodities were hauled during 2009 increased to 481 miles, up from 456 miles in 2008, which is about 30 miles above the 5-‐year average.
• Food and farm products were hauled the greatest distance in 2009, with an average of 972 miles, which was the highest distance for this group
since 2006.
• Chemical movements averaged 604 miles, nearly unchanged from the 602 miles in 2008, but about average for the past five years.
9
Average Distance Food and Farm Product Moved by Barge (miles)
Ton-‐Miles
• Commodity ton-‐miles for all internal movements during 2009 totaled 245 billon ton-‐miles, down 6% from 2008.
• Food and farm products totaled 72.6 billion ton-‐miles during 2009, an increase of 17% on higher volumes and longer distances moved.
0
200
400
600
800
1,000
1,20020
00
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Mile
s
Year
Domestic Barge Traffic Average Miles
Food & Farm Products
10
Total Grain and Oilseed Barge Loadings on the Upper Mississippi River
0
5,000
10,000
15,000
20,000
25,000
30,00020
00/0
1
2001
/02
2002
/03
2003
/04
2004
/05
2005
/06
2006
/07
2007
/08
2008
/09
2009
/10
Bar
ges
Crop Year
Total Grain and Oilseed Barge Loadings on the Upper Mississippi River
11
Total Grain and Oilseed Barge Loadings on the Illinois Waterway
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,00020
00/0
1
2001
/02
2002
/03
2003
/04
2004
/05
2005
/06
2006
/07
2007
/08
2008
/09
2009
/10
Bar
ges
Crop Year
Total Grain and Oilseed Barge Loadings on the Illinois Waterway
12
Total Grain and Oilseed Barge Loadings on the Ohio River
“Farm to Market: A Soybean’s Journey” can be accessed at www.unitedsoybean.org or www.soytransportation.org. Funded by the Soybean Checkoff
0
1,000
2,000
3,000
4,000
5,000
6,00020
00/0
1
2001
/02
2002
/03
2003
/04
2004
/05
2005
/06
2006
/07
2007
/08
2008
/09
2009
/10
Bar
ges
Crop Year
Total Grain and Oilseed Barge Loadings on the Ohio River