Inland Water Freight Transportation

Inland Water Freight Transportation

Brief Excerpt from Industry Overview Chapter:

Companies in this industry provide inland water transportation of cargo on US lakes, rivers, or intracoastal waterways. Major companies include independents, such as American Commercial Barge Line, Ingram Barge, and Kirby Inland Marine, and captive subsidiaries of companies that transport commodities, such as American River Transportation (owned by Archer Daniels Midland).

COMPETITIVE LANDSCAPE

Demand is driven primarily by the level of agricultural exports, petroleum refining, coal usage, and chemical shipments. Large companies have advantages in handling a broad range of cargo types, along with economies of scale in purchasing and marketing. Small companies compete by specializing in particular cargo types or services, subcontracting to larger companies, and offering responsive customer service. The US industry is highly concentrated: the largest 50 companies generate about 95% of industry revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services are transportation of dry bulks (about 40%) and bulk of liquids and gases (about 20%). Freight transportation services consist of dry cargo (such as grain, coal, steel, fertilizers, and aggregates) and liquid cargo (refined petroleum products, petrochemicals, black oils, and agricultural chemicals). Other services include towing services by water and navigational services for marine vessels.