Mississippi River, the largest river in the US, has been enduring record-low water levels due to the long-lasting drought across much of the US since early October. The river is traditionally viewed as the lifeblood of the American economy: barges going upriver and downriver carry grain, fertilizers, raw materials, and other goods that are essential to the US industry and agriculture. However, the barge traffic on the river has been slowed for a long period of time.

The dropping water levels on the Mississippi River have made it difficult to ship goods because waterway closures are inevitable. As of October 22, there have been a total of over 2,700 barges and vessels waiting at points in Mississippi, Tennessee, and Kentucky.

Lower water levels lead to narrower and shallower shipping lanes, forcing barge operators to make a decision to lighten loads to reduce the risks of running aground. Port authorities have limited vessel drafts/draughts in response to the historical lows, adding to shippers' headaches except for backlogs of barges and container vessels.

Forecasting from the National Weather Service Lower Mississippi River Forecast Center has revealed there is no sign of improving in the coming weeks. It is also a safe bet to say that extreme weather will continue to affect key shipping points around the world.

The slowing barge traffic has fuelled the costs of barge transportation. According to the USDA figures, the barge rate for export grain on September 7 is 95% higher than the 5-year average and 58% higher than the same period last year. The spot barge rate may hit a historical high in the near future.