5 Decisions Barge Operators Face During Times of Low Water and Drought

Drought and low water levels are becoming a more regular part of barge operations. The last three years have seen extreme drought conditions, leading to low water levels and all kinds of river level shipping risks. And most reports say this isn’t going away anytime soon.

As droughts become more common, the barge industry will need to adapt to deal with the narrower shipping lanes, reduced carrying capacity, and increased traffic and delays. To find solutions, you first have to take a close look at the challenges barge operators face with barge dispatch decision-making, pricing, and optimizing future operations.

Let’s take a look at some of the difficult decisions barge operators have
to make and some tips for easing the pain:

1. Raise Rates or Eat the Costs?

Profits for both barge operators and their customers are on precarious ground during times of low water levels–especially if this occurs during the harvest season for farmers. Reduced shipping lane space and increased traffic result in fewer barges getting to their destinations on time, and low water levels mean barges simply can’t carry as much. 

Barge operators are then faced with the decision of keeping their own profits afloat by increasing rates (potentially damaging customer relationships) or absorbing the costs. This might depend on how long the water remains at low levels or how much profit is generated during non-drought periods. For example, taking advantage of periods when there are no river level shipping risks can allow for flexibility to keep rates down during harder times.

Tips for Reducing Costs:

Streamlining your operations is key to reducing your costs.  A great way to start is by investing in data analytics software designed for barge operations, which can help reduce fuel costs and optimize productivity. 

Additionally, implementing systems like predictive maintenance, powered by real-time data, can also help barge operators reduce their maintenance costs. Ultimately, these savings allow for that much-needed wiggle room during difficult times and an increased ability to keep customers happy.

2. Who Gets Priority When Dealing with River Level Shipping Risks?

Congested shipping routes mean fewer vessels can get through–at least temporarily. This can lead to difficult barge dispatch decision-making, such as determining which customers to prioritize when choosing between those who receive a delayed shipment and those who receive their goods on time.

There are likely several factors to consider here. For example, the cargo might be time-sensitive, such as with certain foods, or you want to avoid delays for customers who have already experienced prior delays. But, how do barge operators keep track of all of this and make the best decisions for everyone involved when they already have so much on their plate? 

Tips for Dealing with Customer Delays:

When making the best decision about who receives priority during low water levels, it’s essential to ensure that all customer data is correct and easily accessible. This is where it helps to have automated tracking of day-to-day activities in fleet management, invoicing, and towing operations. 

When these customer activities are automated, like in BargeOps Freight Contract, the data is stored and easier to access, eliminating the need to shuffle through papers or click through emails to try to remember who has already had the most delays. And many of these systems also automatically help keep your customers updated regularly–letting them know they are still a priority even if their cargo gets delayed.

3. Which Barge Routes to Stick to and Which to Avoid

Low-water logistics can be a headache. Not all routes are created equal, and sometimes you have to determine which routes make more sense to take. Some may be harder hit by drought, increasing traffic on more navigable routes. It is also challenging to predict what kinds of challenges might arise ahead of time, such as longer wait times at terminals on non-drought rivers.

Tips for Making the Right Barge Dispatch Decisions:

Due to the challenges of increased water levels over the past several years, the barge industry has embraced technological advancements for impact mitigation strategies. These strategies include predictive weather modeling, adaptive loading and routing techniques, based on the real-time information from GPS systems, and improved communication between ports and vessels. 

So, how do you utilize these technologies in your own operations? 

This usually involves implementing new software and automated systems in your fleet. One example is our BargeOps Onboard software, which enables improved traffic monitoring by integrating GPS for boat positions, using graphical tow and fleet representations, and facilitating tow planning.  

4. Not Enough Barges or Too Many?

Reduced water means smaller shipping lanes and restrictions on the number of barges per tow. So, barge operators might be left trying to determine whether they should grow their fleet to secure more tows to compensate for the reduced cargo going on each trip. However, in some cases, it may be better to wait out the storm, thereby avoiding the need for excess barges that would not be needed later. 

Tips for Deciding on Barge Fleet Size:

What’s best for your barge business can be personal, but there are some factors that can help inform the decision of whether to grow or shrink your fleet. Again, having accurate and up-to-date data on your barge operations can be extremely helpful when making scaling decisions. Data analytics can help analyze the costs and profits of adopting either approach, and also help determine the most efficient ways to ship cargo in order to get the most out of each trip.

5. What Changes are Needed for Future Drought Barge Operations?

As droughts become more frequent, barge operators may need to implement long-term adjustments. Being prepared for future drought barge operations can help companies stay afloat during hard times. For example, adjusting insurance plans, diversifying into different waterways, or investing in smaller light-draft vessels can help you prepare for recurring droughts. 

Tips for Being Prepared for Future Low-Waters:

To prepare for the future, learn from the past. Look at what aspects of the drought hit you the hardest. Did price hikes make your customers seek out other barge transport companies? Did you dispatch your fleet to the hardest hit waterways? Did you experience any issues with efficiency?

Whatever the issue, automating procedures and collecting data for efficiency and cost analysis can help you make informed decisions. As the world goes digital, the barge industry is going along with it, and that is the key to making everything run a little smoother.