Economic Impact Analysis of Artificial Draft Restriction on the Lower Mississippi River Port Complex

Stich, Bethany; Mallum, Faisal B.

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Economic Impact Analysis of Artificial Draft Restriction on the Lower Mississippi River Port Complex

2025-10-30
By Stich, Bethany ; Mallum, Faisal B.

File Language:

English

Details

Creators:

Stich, Bethany ; Mallum, Faisal B.
Corporate Creators:

University of New Orleans. Transportation Institute ; Maritime Transportation Research and Education Center (MarTREC)
Corporate Contributors:

United States. Department of Transportation. Office of the Assistant Secretary for Research and Technology ; United States. Department of Transportation. University Transportation Centers (UTC) Program
Subject/TRT Terms:

Aids To Navigation Delays Depth Draft Restrictions Economic Impacts Electronic Aid To Navigation Freight Transportation Hurricane Ida Hurricanes Marine Terminals Mississippi River Policy Ports Service Disruption Shipping Southwest Pass Supply Chain Disruptions Supply Chain Management Vessel Delays Water Transportation
Resource Type:

Tech Report
Geographical Coverage:

United States
Edition:

Final Report: 02/15/2024 – 09/30/2025
Corporate Publisher:

Maritime Transportation Research and Education Center (MarTREC)
Abstract:

The Lower Mississippi River Port Complex is a critical hub for U.S. and global trade, handling over 500 million tons of cargo annually, including grain, petroleum, and chemicals. In August 2021, Hurricane Ida severely disrupted maritime operations, knocking out electronic aids to navigation (eATON) at the Southwest Pass, a vital shipping corridor. This study examines the potential economic impact of eATON failure, focusing on vessel delays, draft restrictions, and supply chain disruptions. A model-based economic impact analysis was conducted, utilizing industry estimates, historical disruptions, and expert assumptions to quantify financial losses. The findings reveal that the loss of eATON resulted in a conservative estimate of $46.4 million in economic losses for a specific number of vessels over a given period, with draft restrictions accounting for 94% of the total impact. Vessel delays led to port congestion and increased operational costs, while reduced draft capacity forced vessels to carry an estimated 72,800 tons less cargo, significantly impacting U.S. grain, oil, and chemical exports. Additionally, supply chain disruptions required cargo to be rerouted via rail and trucking, further increasing transportation time and costs and reducing U.S. trade competitiveness. The study highlights the vulnerability of inland waterway navigation to weather events, emphasizes the urgent need for resilient aid to navigation systems infrastructure, and offers some next steps for securing and maintaining up-to-date and resilient systems.
Format:

PDF
Funding:

69A3551747130
Collection(s):

University Transportation Centers
Main Document Checksum:

urn:sha-512:f70031153e3e3d926e05cd4c3dcb562806f3d2d9e0144b62377925471afd68ac6010da2d882d32580e3bac3f0860acdedc34247b30ef4a9e9ec999228882a0d3
Download URL:

https://rosap.ntl.bts.gov/view/dot/88295/dot_88295_DS1.pdf
File Type:

[PDF - 696.31 KB ]

File Language:

English

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