A shrinking barge fleet and rising replacement costs could threaten U.S. grain exports and put more pressure on farm profitability. This is according to a new report from CoBank. The U.S. inland barge fleet has declined nearly 7.6% over the past decade to 19,668 vessels. Meanwhile, the average barge age has increased to 17.6 years. CoBank says 500 to 1,000 barges are retired annually, compared with about 410 new vessels built each year. Replacement costs are also climbing, with a new grain hopper barge now costing roughly $1 million or more. CoBank grains and oilseeds economist Tanner Ehmke says tighter barge availability could increase transportation costs, weaken grain basis levels, and delay shipments. The report also points to recurring low water levels on the Mississippi River and aging infrastructure as additional challenges for grain transportation.
Shrinking barge fleet could threaten U.S. grain exports
