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The Role of Inland Barging in Building a Circular Economy


The Role of Inland Barging in Building a Circular Economy

The combination of barging's inherent efficiency with digital visibility represents an immediate opportunity to advance sustainability in the transportation sector. Here's how.

There's a perplexing inefficiency occurring in today's supply chain industry -- empty barges passing ports where capacity was desperately needed, simply because shippers didn't know the voyages were available. This disconnect wasn't just a business inefficiency -- it represented a fundamental breakdown in resource utilization that undermines efforts toward sustainability in the supply chain.

That's why it's important to view the industry through the lens of resource optimization and sustainability. The circular economy -- an economic system focused on eliminating waste and continually reusing resources -- finds its perfect application in maritime transportation and barge transportation specifically. Instead of the traditional "take-make-dispose" linear model, a circular economy aims to keep products, materials, and resources in use for as long as possible through a closed-loop system where little or nothing is wasted, reducing environmental impact while generating new economic value. Inland barging already possesses environmental advantages compared to other modes of transportation. However, without technology-enabled visibility, these advantages remain significantly underutilized. Some industry professionals fail to achieve full capacity utilization and waste continues, creating further carbon impact for each shipment.

The efficiency metrics for inland barging are compelling. A single 15-barge tow equals 1,050 trucks or 216 rail cars, creating an immediate multiplier effect for resource conservation. More precisely, barges achieve 514 ton-miles per gallon compared to 202 for rail and a mere 59 for trucks. A Texas A&M study from 2022 found that the overall carbon footprint of barge shipping is only one-ninth as large as trucking's and about half that of rail.

This efficiency directly supports the circular economy's foundational principles. When examined through the lens of circularity, inland barging demonstrates excellence across all key principles:

● Maintenance: The long-term viability of barges through systematic maintenance is a cornerstone of the industry. With an average fleet age ranging from 17-21 years and many dry cargo barges serving 25-30 years before retirement, barges represent durable, maintainable assets designed for longevity. However, the aging U.S. fleet (22,356 barges as of 2023) faces challenges. As limited drydock availability leads to deferred inspections for operators, bottlenecks are created. Delayed maintenance threatens the circular advantage.

● Reuse: The inland barging market functions as a sharing economy of assets, with barges redeployed across various shipping needs throughout their lifecycle. This flexibility allows a single asset to serve multiple commodity flows, maximizing utility without requiring new resource inputs.

● Remanufacture: As environmental regulations and technology evolve, maturing tugboats and barges can be upgraded to extend their useful lifespans, further reducing environmental impact. Many barges undergo hull re-plating to add more years to their operational life. For tugboats, hybrid diesel and electrical options can be used to retrofit existing fleets, reducing fuel consumption and emissions for both cost and environmental benefits.

Despite these inherent advantages, the industry faces a critical inflection point. Limited connectivity and capacity combined with a lack of visibility and predictability has created delays across inland waterways. The inefficiency creates substantial waste throughout the system. Similarly, delays caused by the inevitable challenges of weather or lock conditions can make it difficult for operators to forecast the arrival times of a given barge and breakdowns in communication channels can result in barges arriving unexpectedly at docks, leaving terminals unprepared for their arrival. Ultimately, each gap in visibility or communication slows the speed with which cargo can move, reducing the time each asset is actively in use at full capacity. These gaps directly undermine circular economy principles by preventing optimal asset utilization.

Luckily, new technology can address this empty barge problem by creating efficiency. By aggregating data and increasing visibility, you can optimize voyage performance and turn times and substantially reduce lost barge days.

This digitalization unlocks circular benefits in multiple ways:

Inland waterways are critical to America's economic competitiveness, moving $158 billion of goods annually and facilitating the transport of one-third of the nation's gross domestic product. Despite this importance, maritime policy often focuses on ocean vessels while overlooking the inland fleet.

The first Trump administration recognized inland infrastructure's significance, with President Trump delivering "infrastructure week" remarks in June 2017. This focus needs to continue and expand to maximize inland waterways' potential.

Current shipbuilding initiatives present an opportunity to impact domestic capacity if properly extended to inland vessels. ASCE's 2025 Infrastructure Report Card highlights that "U.S. shipyards now account for a mere 0.13% of the global commercial shipbuilding market," with limited shipyard capacity restricting fleet expansion. The SHIPS for America Act aims to incentivize shipyard development and increase dry dock availability -- crucial for maintaining aging inland fleets.

For truly effective policy, approaches should incorporate circular economy principles:

Inland barging requires technology to optimize its potential as a tool for the circular economy. The combination of barging's inherent efficiency with digital visibility represents an immediate opportunity to advance sustainability in the transportation sector.

The evidence is clear: when inland shipping lacks visibility, valuable capacity goes unused, unnecessary emissions are generated, and economic potential is squandered. By adopting digital platforms that maximize circular economy benefits, the inland barging industry can amplify its sustainability advantages. The potential impact extends far beyond operational efficiency -- it represents a fundamental shift toward a more resilient, sustainable supply chain that makes optimal use of our resources.

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