Low water levels on US rivers reshape grain export routes

Severe cold weather and drought across the US Midwest have reduced water levels and caused ice buildup on the Mississippi and Ohio rivers, disrupting barge traffic and slowing shipments of key commodities such as soft red winter wheat. Reduced draft capacity has limited cargo volumes per vessel, pushing up transportation costs.

Higher freight rates have weighed on interior US grain prices relative to global export values, as moving crops to Gulf export terminals has become more expensive. Analysts note that constrained logistics capacity is weakening price competitiveness despite strong export demand, particularly for corn.

The Illinois River, a major year-round grain loading hub and pricing point for Chicago Board of Trade contracts, has seen traffic nearly halt due to iced locks. This has significantly delayed shipments and pressured local cash prices across the Midwest.

Shippers are shifting part of the flow to rail transport, though rail remains more costly and less efficient than river barges. For corn in particular, some volumes may be redirected toward Pacific Northwest ports for exports to Asia, while railcar premiums continue to rise.

Traders say river freight conditions are close to critical, already delaying shipments of corn, soybeans and wheat. If low water levels persist, transportation costs could remain elevated and further reshape US grain export logistics in the coming weeks.

Tags: river shipping, USA