Drought reduced water level in major grain exporting countries


Dry weather in the Northern Hemisphere is favorable for harvesting. At the same time, the lack of rainfall greatly reduces the water level of inland waterways in the main exporting countries, including the USA, EU and Russia, resulting in increased shipping costs for export.

Dry weather conditions have provoked the reduction of the water level in many inland waterways of the USA. According to USDA, in the lower reaches of Mississippi near Providence, LA prohibited the movement of barges at night. Another region where the movement of barges is also limited due to repair operations is the Ohio River near Brookport, IL.

According to Platts agency, a significant growth of freight rate is observed in Europe in the area of Basel-Rotterdam due to the low water level in Rhine. Inability to load barges deadweight resulted in strong demand for tonnage and high freight rates.

The water level is also much lower than average in inland waterways of Russia. Consequently, the large part of tonnage stands idle waiting for increase in water level or work with a considerable underloading.

In contrast to the Northern Hemisphere suffering from drought, in the southern hemisphere there are heavy rainfalls affecting the export shipments. Therefore, in Brazil the waiting period for loading in the port of Paranagua is about 40 days due to heavy rainfalls.




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