(The following appeared on the Journal of Commerce website on May 13, 2011.)
WASHINGTON, D.C. — Bulk shipper costs are escalating for the second quarter, an industry analyst said, because of heavy flooding on major U.S. rivers. Barge traffic has been disrupted, pushing more heavy freight loads to railroads.
“Our recent conversations with shipping and supply chain contacts, as well as transportation providers in the rail and barge sectors, indicate that supply chain disruption has already begun in earnest,” said Matthew Troy of Susquehanna Financial Group.
High water and fast river velocity either cause barge traffic to halt or force tows to move much more slowly and often with fewer barges. Troy said the heavily used Ohio River system will not return to normal for barging until late May, and the Mississippi River until sometime in June.
Some railroads have also seen disruptions. Major rail lines have kept operating, however, while freight has been detoured from flooded areas. Flooding is one reason for weak growth in bulk railcar traffic over the past five weeks at a time when intermodal has kept growing.
Full story: www.joc.com