Dual Threat: Plummeting Water Levels Pose Challenges for US Freight and Chemical Industries

The US freight and chemical industries face a dual threat as scorching temperatures and prolonged hot weather are causing water levels on the Mississippi and Ohio rivers to plummet. These waterways are crucial not only for the transportation of goods but also for the supply of water, a critical resource for the chemical industry.

The alarming drops in water levels are already causing concerns for the freight industry. Near the city of Cairo, the Ohio River has seen a staggering six-foot decline in just one week, with meteorologists predicting an additional four-foot decrease before the end of the month. Similarly, the Mississippi River is expected to recede by three feet around St. Louis and up to six feet around Memphis. Such drastic declines in water levels push both rivers into low-stage classification, raising fears of disruptions for the freight industry. Barges could run aground, and shipping lanes may need to be narrowed, potentially leading to delays and reduced shipping capacity.

Additionally, managing inventories becomes more complex for chemical companies during drought conditions. Delays in receiving raw materials or delivering finished products can disrupt production timelines and hamper the ability to meet customer demand. In order to ensure continuity, some companies may be forced to maintain higher stock levels, tying up more capital and potentially leading to storage issues.

Last year's experiences of low water levels on the Mississippi River serve as a stark reminder of the vulnerabilities of both the freight and chemical industries. The disruptions caused by low water levels led to significant financial losses and logistical challenges, with over 2,000 barges stranded on the river on a single day. Draught restrictions imposed on barges resulted in lower payloads, further complicating logistics and leading to a shortage of tugboats.

The consequences of ongoing climate-related disruptions are far-reaching, impacting the chemical industry and the US transport system as a whole. Inland waterways are crucial for shipping, with approximately 578 million tons of cargo shipped annually, and about 60% of grain exports rely on the Mississippi for transportation.

In addition to the challenges posed by drought, other climate-related issues compound the freight and chemical industries' concerns. Flooding in April temporarily halted barge traffic, and extreme wildfires are destroying vast forest acreage, impacting transportation links and further disrupting supply chains.

As the freight and chemical industries grapple with erratic weather patterns, wildfires, and fluctuating water levels, proactive measures and investments in resilient infrastructure are crucial to safeguard against the growing threats posed to vital inland waterways and the transportation of goods, as well as the stable supply of chemical products to support various sectors of the economy. Collaboration between industries, government agencies, and environmental organizations is necessary to address the challenges and build a more sustainable and resilient future for the US freight and chemical sectors.