ANALYSIS OF GRAIN BARGING RATES AND COSTS ON THE MISSISSIPPI RIVER

The major objective of this study was to provide a base of relevant data, beginning with an appraisal of the competitive structure of the barging industry and continuing with a probing into cost and price relationships. Structural analysis of the grain barging industry revealed that a relatively small number of rims own grain barging equipment. The existence of moderate concentration, based on the number of grain barges owned by each firm, indicated an oligopolistic rather than a purely competitive industry structure. A grain barging cost model was developed based on budgeting procedures similar to those used by firms in the industry. Critical assumptons include the method of allocating overhead to specific grain shipments, equipment age and utilization rate, and availability of backhauls. Estimated grain barging costs increased sharply after 1973, primarily due to a steep rise in diesel fuel prices. The impact diesel fuel price increases have had on the estimated cost to barge grain offers a clue to the effect proposed user charges in the form of fuel taxes would have on grain barging costs. In summary, the grain barging industry was found to be reasonably competitive but not purely competitive as is often assumed. Entry by grain shippers is changing the structure of the industry and may affect the competitive nature of the industry in the future. The barge pricing system is working less well than in the past.

• Corporate Authors:

  University of Missouri, Columbia

  Agricultural Experiment Station
  Columbia, MO  United States  65201
• Authors:
  • Woolverton, M W
• Publication Date: 1978-5

Media Info

• Pagination: n.p.

Subject/Index Terms

• TRT Terms: Analysis; Barge operations; Barges; Bulk cargo; Costs; Economics; Freight traffic; Grain; Inland waterways; Rates; Transportation; User charges; Water transportation; Waterways
• Uncontrolled Terms: Cost analysis; Grain trade; Transportation costs
• Old TRIS Terms: Barge economics; Barge transportation; Bulk grain; Cargo rates; Inland waterways economics
• Subject Areas: Economics; Transportation (General);

Filing Info

• Accession Number: 00319899
• Record Type: Publication
• Report/Paper Numbers: Dissertatn
• Files: TRIS
• Created Date: Nov 19 1980 12:00AM