Barges full of shipped materials are getting stuck in the mud as drought lowers the Mississippi River water levels.
Americans are feeling the effects of inflation in their wallets, and several recent developments are contributing to a worsening economy, such as a rise in gas prices following the Organization of Petroleum Exporting Countries' (OPEC) decision to drastically cut oil production. The Federal Reserve raised interest rates again recently, and one finance expert told Newsweek the Mississippi River drought could lead to worsening inflation on "the food side of things."
The Mississippi River winds 2,350 miles, connecting the center of the continental United States to the Gulf of Mexico. The National Park System calls the Mississippi River "significant to national trade" and is an avenue to funnel 500 million tons of shipped goods into the U.S. economy. Products most often shipped on the Mississippi are grains, petroleum products, iron and steel, grain, rubber, paper, wood, coffee, coal, chemicals and edible oils.
The U.S. Army Corps of Engineers maintains a nine-foot shipping channel from Louisiana to Minnesota in order to transport the goods up and down the Mississippi River. In some areas of the drought-ridden channel, the Weather Channel reported the waterway was so narrow, barges were at a standstill and backed up for miles.
Effects on Inflation
University of Notre Dame finance professor Jeffrey Bergstrand told Newsweek that shipping impacted by the drought will most likely lead to inflation for agricultural goods.
Bergstrand compared the shipping slow-down to the COVID-19 pandemic, supply chain shortages, limited staff and lockdowns at ports slowed and, at times, halted shipping. The low water levels won't only complicate shipping times and lead to higher prices, but Bergstrand said they could have a broader economic impact as well.
"Those things have similar effects on the broad macroeconomy much like the oil prices," he said. "That shock to costs tends to get passed on in higher prices and tends to exacerbate our inflation situation."
Bergstrand said the impacts will most heavily be felt on the agricultural side. It can take several months for the price increase to be fully felt.
U.S. Army Corps of Engineers Public Affairs Officer Lisa Parker said drought conditions are expected to continue for the next several weeks. The last time the area saw such a severe drought was 2012.
"The Mississippi River is experiencing drought conditions throughout the basin. There are impacts on navigation, commerce, shoaling, saltwater intrusion, and municipal water intakes to name a few," she told Newsweek in an emailed statement. "The Corps is working with the US Coast Guard to identify areas that need dredging. The Corps is working to maintain a 9-foot navigable channel throughout the river basin.
"The bottom line is, we need rain," she added. "Other rivers that feed into the Mississippi River such as the Ohio and Missouri are also experiencing low water conditions. We are working with our local, state, and federal partners to mitigate the issues."
A CBS News article said the U.S. Coast Guard reported eight cases of barges grounding, or getting stuck along the bottom of the river, even as loads are restricted to combat the low water levels. The water is low between Missouri and Louisiana, and the Weather Channel blamed the drought on a lack of rain.
Update: 10/07/22 1:46 p.m. ET: This article was updated with comment from U.S. Army Corps of Engineers Public Affairs Officer Lisa Parker.
Uncommon Knowledge
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Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
About the writer
Anna Skinner is a Newsweek senior reporter based in Indianapolis. Her focus is reporting on the climate, environment and weather ... Read more
