They reduced the size of crews and support staff and extended the life of their equipment by running it longer than was the norm. The gradual growth in tonnage moving on the rivers has been accompanied by an exponential growth in volume loaded per barge. Most of the productivity gains that were possible have already been made, however. Barge analysts say capacity bottomed out in 1990 or 91, with usage rates at their most efficient ever. Over the next few years, barge freight rates are likely to head steadily upwards as demand continues to put pressure on a limited fleet that is already running pretty much flat out.
Spot prices are a fair indicator of the underlying strength of overall rates.
Barge operators and customers agree that the renewal of the existing fleet is the main concern for the next few years. A fleet of 3,244 barges will be required in the next four years, estimates the Army Corps of Engineers. Between 2,700 and 2,800 barges are active now. Midland Enterprises Inc. Figures for 2000 are projections. Select another article.