New study reveals economic impact of Mississippi River Ship Channel disruptions

The Big River Coalition (BRC) today released a comprehensive economic impact study on the Mississippi River Ship Channel (MRSC), underscoring its role as a critical gateway for U.S. global trade and domestic markets. The report, funded by the Louisiana Department of Transportation and Development (LADOTD) and conducted by Polaris Analytics and Consulting with assistance from the BRC, reveals that the MRSC supports an average of $226.5 billion in annual trade value through the New Orleans Customs District (NOCD)—equivalent to $620.4 million per day—and handles approximately 20 percent of all U.S. waterborne cargo volumes.

The MRSC, extending from Baton Rouge to the Gulf of Mexico via Southwest Pass, connects the world to the U.S. hinterland through more miles of navigable waterways than the rest of the world combined. The deep-draft ports on the MRSC channel—Baton Rouge, South Louisiana, New Orleans, St. Bernard, and Louisiana Gateway—facilitate $99.7 billion in annual trade value based on unified volumes, or $273.1 million daily. From 2014 to 2023, U.S. imports through NOCD averaged $117 billion annually, while exports averaged $109.5 billion, serving over 200 countries with top import origins including Russia and Brazil, and top export destinations like China and Mexico.

The study emphasizes the MRSC’s dominance in cargo handling, with an average of 470 million short tons annually from 2014 to 2022—nearly double that of the Houston Ship Channel during that period. It also highlights strong linkages between shallow-draft barge movements from the Mississippi River Basin and deep-draft vessel trade, particularly for commodities like grains, soybeans, coal, petroleum products, and fertilizers.

A critical focus of the report is the economic vulnerabilities from river disruptions, such as draft restrictions and closures. An unplanned 12-hour closure could result in up to $3.8 million in lost output and $876,000 in labor income. A two-week closure might escalate to $194.8 million in total sales impacts, including effects on water transportation, port operations, and grain storage. Per-foot draft restrictions over two weeks could lead to losses of up to $5.5 million in sales at a 43-foot draft level, with ocean freight rates rising by $0.92 to $1.05 per metric ton per foot lost on typical dry bulk vessels.

“This study quantifies the immense value of the Mississippi River Ship Channel to our nation’s economy and underscores the urgent need for sustained infrastructure investment,” said Sean Duffy, executive director of the Big River Coalition. “Disruptions not only drive-up freight costs and weaken farmer basis but also plant ‘seeds of doubt’ among global buyers, risking long-term cargo diversions and lost U.S. export sales. We must prioritize maintenance and deepening to ensure reliable navigation for generations to come.”

Julia Fisher-Cormier, deputy secretary of the Louisiana Department of Transportation and Development (and recently named executive director of the Port of South Louisiana), added: “LADOTD is proud to fund this vital research, which demonstrates the MRSC’s pivotal role in supporting Louisiana’s economy and the broader Mississippi River System. The findings highlight how even short disruptions can ripple through supply chains, affecting jobs, trade competitiveness, and regional growth. This report will guide our efforts to enhance resilience and efficiency in our waterways.”

“As the Chairman of the Big River Coalition, and the President of the Associated Branch Pilots/Bar Pilots on the Mississippi River, I have a deep firsthand appreciation for the MRSC as a driver of economic prosperity for ports, shippers, and communities along the Big River. This study provides the data we need to advocate for policies that protect this essential artery of American commerce,” said Captain Michael Miller.