Low Mississippi River water levels part of 4% decline in Arkansas River tonnage

Higher freight rates and low water levels on the Mississippi River could be behind a 4% decline in commercial shipping tonnage on the Arkansas River between January and August. Another factor in the decline is an 11% year-to-date drop with inbound river traffic.

The U.S. Army Corps of Engineers is reporting that tonnage in the first eight months of the year totaled 8.09 million, down 4% compared with 8.424 million in the same period of 2023. August tonnage on the river was 1.001 million, up 2.7% compared with August 2023.

Inbound shipments – those coming from off the river system – totaled 2.588 million tons during the first eight months, down 11% compared with the same period in 2023. Outbound shipments totaled 3.018 million tons, up 22% compared with the same period in 2023. Internal shipments – those sent between port operations on the river – totaled 2.482 million tons, up 21%.

Following are the top five shipment categories by tonnage in the first eight months of 2024, with the percentage change from the same period in 2023.
• Sand, gravel, rock: 2.933 million tons (up 8%)
• Chemical fertilizer: 1.696 million tons (down 14%)
• Minerals and building products: 692,046 tons (down 4%)
• Wheat: 683,685 tons (up 2%)
• Iron and Steel: 666,486 tons (down 27%)

Bryan Day, executive director of the Port of Little Rock, is projecting that overall river tonnage in 2024 could be down 8%-10% below the port’s original projections.

“However, some of our commodities have switched from river to rail, so overall tonnage in and out of the Port is holding steady compared to 2023. Steel commodities are below projection at the port; most other commodities are meeting our projections,” Day told Talk Business & Politics. “I believe that continued escalation of freight rates and the low water on the Mississippi have and will continue to affect river traffic on the MKARNS (Arkansas River). My hope is that freight rates will start to fall and we will see strong growth in tonnage in early 2025.”

Marty Shell, owner of Van Buren-based Five Rivers Distribution, which manages port operations in Van Buren and the Port of Fort Smith, said July was the company’s busiest month of the year, but “August was stagnant.” He also attributed low Mississippi River water levels to the tonnage decline.

“Low water levels on the Mississippi are also causing (barge) rates to be higher than normal as well. All in all 2024 is comparable to 2023 and we hope to have a strong fourth quarter to lead us into the 2025 year,” Shell said. “River conditions on the Arkansas River have been really good for the past few years and the Corps of Engineers are doing a great job in keeping our Locks and Dams in favorable condition.”

TONNAGE HISTORY, RIVER INFO
Tonnage shipped on the river in 2023 totaled 12.208 million, up 10.9% compared with 11.011 million tons in 2022. Shipments of sand, gravel, rock and chemical fertilizers helped drive the 2023 gains.

Inbound shipments – those coming from off the river system – totaled 4.491 million tons during 2023, up 30% compared with 2022. Outbound shipments totaled 4.175 million tons, up 6% compared with 2022. Internal shipments – those sent between port operations on the river – totaled 3.542 million tons, down 1% compared with 2022.

The Arkansas River system – McClellan-Kerr Arkansas River Navigation System (MKARNS) – is 445 miles long and stretches from the confluence of the Mississippi River to the Port of Catoosa near Tulsa, Okla. The controlled waterway has 18 locks and dams, with 13 in Arkansas and five in Oklahoma. The river also has five commercial ports: Pine Bluff, Little Rock, Fort Smith, Muskogee, Okla., and the Tulsa Port of Catoosa in Oklahoma.