The Agricultural Retailers Association (ARA) surveyed some of its fertilizer member companies to gain a better understanding of the Gulf Port situation and the movement of fertilizer.

Jack Eberspacher, ARA president and CEO, says reports are somewhat mixed but it is estimated that the entire Gulf area is operating at approximately 60 percent. River traffic is limited to daylight hours only and congestion is a problem in some areas. There are between 80 and 100 vessels in waiting to unload and it is hopeful that by the first of the week deep draft vessels will be able to navigate the river to unload.

Rail west of New Orleans is in good shape and the interior area is slowly improving. One major railroad east of New Orleans has lost 60 miles of track. Most fertilizer facilities have not sustained major damage and some estimate that handling of bulk products to be approaching near normal in a few weeks. However the question remains when the river opens for business, what will be the availability of barges and rail cars. It is estimated that as many as 200 barges sank in Hurricane Katrina.

Commercial operations have been put on the back burner by the Army Corps and Coast Guard, and understandably fertilizer does not have the same priority as fuel and relief supplies. The more lasting effect will be from the energy side. Fuel surcharges have raised dry barge costs to about two times that of last year’s. Product demand and availability will probably be curtailed by record high prices.

Leave a Comment

Name (required)

Email (will not be published) (required)

Website