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Golding Barge Line Co-Owner Austin Golding on the costly impact of the drought on shipping in the Mississippi River.
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-- news for the mighty Mississippi River below -- -- level and the nation's biggest river system is telling the shipping business.
Commercial shipping traffic is down by as much as two thirds because the drought part of the rivers actually to shut down.
When more than 100 ships just -- stuck in transit so products -- its ships it's gonna have to hit businesses nationwide.
We want to bring in Austin -- Leaving home owner of housing barge line.
Austin they doesn't mean with us right now we let -- we wanna hear from you directly how your business being affected by this drought.
Well -- -- day there were operating in extreme conditions.
Low water now is act is actually.
Even more intense because the flood we had last year this sediment in the mud in the different.
The different variations of impediment that came along with the flood last year her only intensified the effects of the slow water in the -- the channel even narrower even shallower than it normally would be during the slow water.
That's really interesting -- we're talking -- earlier today that just this practically December last year right we had 360.
180 degree reversal of the river it's amazing how quickly can happen.
And you're saying that this sentiment the -- brought in by the flood.
Is making it harder now to basically to dredge what the river -- days.
There's more sediment dead did the floor the river rose at the ceiling of the river last year.
So it has made it more difficult more shallow in this river when our -- come around and they normally know what a river would look like this river level.
And what -- water level is it's not it's completely different.
So wage bottom.
The case danger -- -- are supposed to be looking out -- farther shipping trails and traffic is completely different order normally would be.
OK so now.
If I understand this correctly.
For -- every seventeen tons of cargo on -- Bard's.
It sinks an entire inch.
So that would mean right as they look at -- you have to remove cargo.
That -- that's basically it this -- drafts and and how much product.
Indicate to a draft that's a lot to do with the latest is it product we move.
But I can paid this much one of our borders and our book boasted would push three board as we move gasoline diesel jet due any got a petroleum product.
One barge indicators -- a product is a 14418.
Wheeler trucks.
-- -- -- Maybe a third of the product off that barge in order operate in -- shallow water.
You can see how many more trucks that put on the highway having -- local rail cars you have to -- to move it around the country.
It took a very expensive and big critical.
OK so let's talk money now.
-- is affecting revenue for you.
What generally our revenue and -- did -- very expensive to operate these vessels all over the country.
So generally what all our profit margin indicated in the last couple feet of of product we can fit on a march so every bit a product we take off a barge.
Anybody is moving product Bob Bob barrel bushel -- -- is gonna see an impact into the profit margin.
Now what's being in recoup about that is we're utilizing more votes more -- -- more equipment to move the same amount of product around the country.
Which remains an everyday consumer transportation costs are up its calls and -- -- less and so that gonna get passed on to -- consumer.
Probably over the next year.
That's it that's -- I guess everybody at home is really worried about how does all this gets translated so you're saying.
-- transportation costs have gone up year inevitably gonna pass that on and that's gonna end up in the products we're seeing at home.
I think so -- in LA in not only our transportation costs go up but the transportation calls.
And production cost of that the people who produce the products remove and their profits are being sliced into also so as they try to recoup some of those calls in the American.
You know -- entrepreneur newer tries to keep their head above water.
That that's gonna indicate and and produce it more expensive goods and commodities for the US consumer next year.
You know we're about to talk to someone I was working with the Army Corps of Engineers but but in your opinion are they handling this properly.
They doing a great job they're working really really hard and they've really been very.
Good -- communication their efforts.
And they -- doing everything they can't their fight a war gets in Mississippi River right now and hold our own they keep -- commerce open for the United States at night we all -- A big pat on the back in the thank you to up to this point in -- great job.
And is really great to hear.
A single thing Golding barge line -- -- good luck with all this thanks for being here.
