How to Ship Goods Internationally: A Guide for Businesses

How to Ship Goods Internationally: A Guide for Businesses

Shipping goods internationally can mean very different things depending on what you are moving. Sending a box overseas with a parcel carrier is one process. Moving pallets, machinery, a full container, or commercial inventory between countries involves freight...

How to Choose a Freight Forwarder

How to Choose a Freight Forwarder

Choosing a freight forwarder should involve more than comparing freight rates. The company you choose may be responsible for coordinating carrier bookings, shipping documents, international transportation, customs clearance, and final delivery. When everything goes...

New Regulations Reshaping Logistics

New Regulations Reshaping Logistics

International and domestic shipping could soon see new regulations reshaping logistics industry compliance. In the last few months, two regulatory decisions have impacted five major sectors of the logistics industry. These include freight brokers, freight forwarders,...

Freight Forwarding In Miami

Freight Forwarding In Miami

Whether importing into or out of the US, freight forwarding in Miami can be an ideal solution for your shipment. A freight forwarder is a service provider that acts as an intermediary between shippers and carriers. Although they don’t operate the vessel, they handle...

Grain Exports During Record Low Water Levels

Share This Article

 

The Mississippi river has reached its lowest water levels in over a decade due to a drought. Months of dry weather have exhausted the amount of water in the river to a point where reserves are now inadequate. The National Oceanic and Atmospheric Administration (NOAA) forecast that the drought conditions will worsen in the coming weeks. The effect is experienced by various shippers that use the waterway to ship goods out of the U.S. One of the most significant consequences is felt in grain exports. This is because over half of the grains exported from the U.S. flows through the river.

The way cargo like grains move across the Mississippi is by barges. Barges are flat-bottomed boats used primarily for transporting goods and people through canals and rivers. With water levels reaching unpreceded levels in the Mississippi, the barges cannot float, leading to the stalling of exports. Since many grain shipments rely on the river, many challenges are faced when moving them to foreign markets. However, with grains like soybeans being one of the biggest agricultural exports from the U.S., there is an urgency to find a solution.

The Impact on Barges

The barges’ capacity has taken a massive hit due to the current drought on the Mississippi river. The shallow water levels halted barges to a point where more than 2,000 barges were stuck waiting during a period. Transit time to move cargo has also increased due to the limited number of barges on the river. Before the draught, certain areas on the Mississippi allowed the towing of up to 40 barges at a time. The low water levels limited the maximum number of barges pulled simultaneously to 25 in the same location. On a large scale, this increases the number of round trips and transportation times.

Since water reserves are starting to deplete quickly, rain is the primary solution. However, it may be a while before an adequate amount of rain rises the river to normal levels. Another side effect of the limited capacity is that rates to use barges have increased compared to last year. Prices to move grains have risen close to 200%, while some locations like St. Louis have seen a 218% increase.

Other Alternatives?

Movers of grains in the U.S. have begun looking for alternatives for transporting their goods domestically and internationally. The war in Ukraine has created a shortage of soybeans and grains globally, which increased the necessity of exportation. An option is to transport the grains to other seaports across the U.S. and then ship them globally. Instead of being moved by the Mississippi river, trucks and railroads will transport the grains to the ports. U.S. grain companies with other locations in foreign places like South America have also considered increasing operations in those areas.

Since foreign markets have a high demand for grains, they may want to pay higher costs for importation. If you plan on shipping goods internationally, contact A1 Worldwide Logistics at 305-821-8995 or info@a1wwl.com for a quote. We assist with importing and exporting grains, soybeans, and other products to or from the U.S. Although the primary method of transportation for grains is currently hampered, we will help you navigate this predicament.

A1 Worldwide Logistics, Inc.

📍1035 NE 125th St #320, North Miami, FL 33161, USA

🌍 a1worldwidelogistics.com

📞 305-821-8995

🕒 Hours: 8AM – 5PM

Submit your request

Beer Imports Surpassing Wine Imports

Importing Alcohol and Wine Into the USA: A Guide for Businesses

Before a winery dispatches a commercial order to the United States, the importing business should have its permit and product approvals in order. For bottled wine containing 7% to 24% alcohol by volume, this generally includes a TTB importer’s basic permit and a...
Customs Clearance Process & Costs

How Much Does Customs Clearance Cost in the USA?

Customs clearance costs for U.S. imports can include the broker’s fee, import duties, and government processing charges. A shipment may also need a customs bond or additional filing services. The amount depends on the goods and the work involved, so the advertised...
Importing Tobacco the USA - Customs Guide

Importing Tobacco and Cigars Into the USA: A Guide for Businesses

Commercial tobacco imports require a permit from the Alcohol and Tobacco Tax and Trade Bureau, or TTB, before the business begins importing. The products must also meet the U.S. requirements that apply to their category. A permit to operate does not establish whether...
Import and Export. IOR.

What Is an Importer of Record? A Guide for U.S. Imports

The Importer of Record, usually shortened to IOR, is the party legally responsible for the customs entry when goods are imported into the United States. For a business buying goods from an overseas supplier, this will often be the U.S. buyer. Other arrangements are...
Importing Electronics

Importing Electronics Into the USA: A Guide for Businesses

Importing electronics into the United States can involve more than arranging freight and filing a customs entry. Depending on the equipment, you may need to check FCC authorization, lithium-battery transport requirements, product-safety rules, country-of-origin...