1    

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.      

       

2    

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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JeffersonvilleJeffersonvilleJeffersonvilleJeffersonvilleJeffersonvilleJeffersonvilleJeffersonvilleJeffersonvilleJeffersonville

RockportRockportRockportRockportRockportRockportRockportRockportRockport

Mis

siss

ippi

Riv

er

�������������������������������������������������GuntersvilleGuntersvilleGuntersvilleGuntersvilleGuntersvilleGuntersvilleGuntersvilleGuntersvilleGuntersvilleLOWER MISSISSIPPI SYSTEMLOWER MISSISSIPPI SYSTEMLOWER MISSISSIPPI SYSTEMLOWER MISSISSIPPI SYSTEMLOWER MISSISSIPPI SYSTEMLOWER MISSISSIPPI SYSTEMLOWER MISSISSIPPI SYSTEMLOWER MISSISSIPPI SYSTEMLOWER MISSISSIPPI SYSTEM

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

       

3    

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