If you’re already using barge transportation, you’re familiar with the benefits of using barges for bulk transport, but some of these advantages depend on adaptability and preparation. Like any industry, barge transportation comes with nuances and challenges, particularly when planning for disruptions. This year, labor strikes and port congestion have strained traditional shipping channels, while increasingly severe weather patterns have posed some of the most significant threats to inland waterway logistics. Critical waterways like the Mississippi River, vital for bulk commodity transport, have faced closures and fluctuating water levels, with ripple effects cascading through supply chains.
This most recent hurricane season has seen unprecedented disruption to the supply chain due to route closures and the inconsistent water levels caused by such catastrophic storms. For logistics professionals, understanding these evolving risks isn't just prudent - it's essential for developing robust contingency plans that protect operations against future disruptions. By understanding the how and why of these disruptions, we can better prepare for the worst of what’s to come and invest in solutions that mitigate potential ramifications.
Water Level Challenges: The New Normal
For inland barge transportation to run predictably and smoothly, and subsequently reduce supply chain disruptions, water levels would have to remain consistent. Of course, this isn’t a realistic possibility, but it has become an even more unreachable pipe dream in recent years.
For the third year in a row, the lower Mississippi River, a crucial part of the barge transport route system, is experiencing historically low water levels. Due largely to a lack of rain, these decreased water levels result in reduced barge draft and tow sizes, causing delays and groundings.
Other waterways are also facing trying water level conditions. Due to the more prevalent and extreme swings between drought and flooding that have become more frequent in the midwest, water levels in the Ohio River have repeatedly fluctuated, subsequently disrupting transportation along the Mississippi as well.
And the economic impacts of these water fluctuations are numerous. Those conditions have raised prices for companies transporting fuel and grain down the Mississippi, as load restrictions force barge operators to limit their hauls, reducing an already narrow profit margin. When freight transport is forced with less capacity, there’s also a disruption to the delicate supply and demand balance.
The drought impacts both vessel movement and cargo handling at ports, with lower water levels causing congestion delays and reducing the capacity of barges for bulk goods. Anticipating these changes is crucial for managing cost increases and price hikes.
Drought conditions are especially concerning for U.S. soy and grain producers facing limitations on barge drafts and vessel tows at a time when they are already under strain: harvest season. Other resulting consequences of ongoing drought conditions, compounded by disruptions like the day-long Canadian railroad strike, include threats to farmer profitability and increasing global food prices.
Climate and Seasonal Impact Mitigation Strategies
Seasonal planning and predictive modeling are some of the best ways to mitigate the disruptions caused by inconsistent weather and precipitation. Currently, the NOAA is working to develop and optimize the U.S.’ ability to predict the effects of severe weather on water resources with advanced meteorological forecasting. More accurate forecasts could increase potential preparedness exponentially and enable the adjustment of schedules and routes, minimizing disruption.
But it’s not just about looking to the future; historical data analysis also plays a pivotal role in lessening supply chain disruptions. Analyzing past weather patterns and river conditions helps in understanding trends and preparing for similar future events. Projects like the Atmospheric Circulation Reconstructions over the Earth (ACRE) recover historical weather observations to support reanalysis and improve predictive models.
Another technological advancement that is helping to arm us in the battle against unexpected supply chain disruptions is adaptive loading and routing techniques. Adaptive routing strategy (ARS) is a method that uses real-time information from a transportation network to make route choices. ARS can format the routes adaptively based on the real-time information communicated via GPS. In barge transportation, flexible, real-time tracking can help make the most of additional barge capacity when needed and avoid route closures.
Recent technology is also helping to more accurately monitor water levels in order to prevent disruptions even before they occur. The Internet of Things (IoT) is transforming water level tracking by using IoT devices and sensors that collect real-time data on water temperature, level, flow, etc. This data can then be uploaded to the cloud for further processing and analysis. The insights obtained allow for more accurate predictive analytics for water level variations. For route planning and pricing, OpenTug offers easy access to data such as water levels, changing weather conditions, and delays within the interface making it easier than ever to control supply chain costs and proactively plan ahead for disruption.
Hurricane and Extreme Weather Preparedness
Perhaps the best way to defend against the consequences of extreme weather and build a more resilient supply chain is by focusing on emergency response planning and leveraging technology solutions. GIS (Geographic Information Systems) and satellite imaging provide real-time data on weather patterns and natural disasters, allowing for earlier anticipation of disruptions than ever before and facilitating rerouting as needed.
Real-time tracking systems and IoT devices are also playing a crucial role in managing disruptions caused by extreme weather events. In fact, industries beyond transportation and logistics, including government agencies and even Coca-Cola, have experienced success with the adoption of IoT devices. IoT-enabled devices provide real-time data about the state of shipments and allow for proactive decision-making in response to extreme weather conditions, including issuing an alert if goods are at risk of being damaged or delayed due to changing weather conditions. Solutions like RFID tags and GPS tracking provide real-time tracking of shipments, providing up to the minute updates during a hurricane or storm and allowing for quick adjustments if route changes are necessary. For example, with OpenTug’s BargeOS Tracking shippers and operators can easily access real-time weather data, receive alerts, and check lock statuses, helping to predict any potential disruptions.
Future Outlook
Droughts impacting river navigability, extreme weather events like hurricanes and floods, wildfires disrupting transportation routes, and rising sea levels affecting coastal ports can all lead to delays and disruption to the supply chain. And these events aren’t predicted to become less frequent any time soon.
But it’s not all bleak. The challenges presented by inconsistent precipitation and water levels, more rapid oscillation between extreme weather conditions, and increasingly severe storms have driven innovation and reinforced the cruciality of real-time technology.
While there is a level of inevitability to natural disasters and water level fluctuation, that doesn’t mean relinquishing control and accepting all resulting disruptions as unavoidable. Taking proactive measures by utilizing the most innovative real-time tracking and analysis measures can help you increase agility in the face of these obstacles and is ultimately the best way to stay ahead and maintain a competitive edge.
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