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AEP River Operations senior manager of bulk sales Martin Hettel on the drought’s impact on barge operators.
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And that brings us to our next guest the closing of the Mississippi is wreaking Havoc.
On barge operators returns -- 60% of US grain exports are shipped.
By barge along with 22% of oil exports 20% of coal that is also oversees.
We're joined by Marty tell a barge operator eight.
What it must talk about these numbers because I'm curious what the bottom line impact is to AEP overall when you have as our reporter -- showed us these barges that have to be later.
That means you can't make as much money and move is much -- correct.
Well that's correct Cheryl although we can't -- the tonnage were were about 30% less capacity in our barges right now where we normally couldn't.
Low of fifteen to 16100 tonnes per barge -- -- what I'm sorry normally -- 2000 at 2100 tonnes per barge.
Were limited to about fifteen or 16100 tonnes per barge so worth 30% of our capacities lost right.
You know -- some.
And industry some operators excuse -- have actually suspended operations.
As we try to get through this crisis in the Mississippi is that send -- -- -- considerate AP.
No we don't suspend our operations we operate low water high water and normal water conditions.
It just affects our transit time the number of barges you need to move the same amount in tonnage and it certainly can affect our profit margins.
You know I was looking at that things that you are -- saying it obviously coal is a big one obviously for the coal plants for American Electric Power.
Is there concern among AP executives that there's going to be some type of impact on energy usage on energy supply.
Considering that you're moving -- -- company's call to your plant.
Before we moved to our plants is actually on the Ohio River which is a damned now have a little river so we don't run into the problems we have currently on -- lower Mississippi River.
Over on the Ohio River so I don't see any problems whatsoever and -- in the field of power plant.
Iron -- building materials grab all other types of of materials.
I've talked to be about timing here because obviously many of your.
Customers are waiting on me shipments that are ready gonna be light at -- got this delay in the Mississippi what are we looking that.
One naturally our transit times do increased one we run into closures like we're -- below Greeneville right now so our customers have to plan further out.
For the delivery of their products just in time delivery.
Certainly doesn't work when we're facing these low water conditions.
All right fuel and labor costs and this is just your company but all companies are being affected by this.
Is there -- way to hedge or at least a plan for the next few weeks in regards to fuel labour or are you basically just stuck with what you've got these contract Gerry -- place.
Unfortunately it takes the same amount of feel on the same amount of crew members to run -- -- -- whether you're running what twenty barges or forty barges.
So yes our -- our cost -- not.
Go down at all basis the -- size so.
We have a fixed cost the cost us about 121000 dollars a day for told what white -- and that movie.
25 to forty.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Well recently -- -- an update for you and give us the latest -- -- can't if it is not the Celtics upgrade.
You're quite welcome think.
