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Advantages of Locating and Shipping on the Inland Waterway Navigation System


Energy Efficient, Time and Cost Competitive
Barge transportation is one of the most energy-efficient forms of transportation and is also much faster than most people think. The entire 445-mile trip from Catoosa to the Mississippi River takes two to three days; to New Orleans five to seven days. These times may be comparable to other forms of transportation considering make-up and switching times. Taking costs of shipping into consideration as well as time, barge transportion may have a considerable advantage, and if the origin or destination of the goods being shipped is on or near the waterway, shipping on the McClellan-Kerr Arkansas River Navigation System may be clearly the best choice.

During 1989 barges handled 8,400,000 tons of cargo on the McClellan-Kerr Arkansas River Navigation System. This volume would have required 84,000 railroad hopper cars, forming a line 1,030 miles long or 335,000 semi-tractor trucks forming a line 13,4000 miles long, or five times the distance from New York City to Los Angeles.

Commodity Shipments
The inland waterways are well suited for shipping bulk materials and large fabricated items. Considering the variety of barges available and the increasing use of containerization, almost any product or commodity is suitable for transportation on the McClellan-Kerr Arkansas River Navigation System.

All of the major commodities shipped on the waterway - construction materials, petroleum, coal, grains and other agricultural products, steel products, chemicals and minerals - are a part of the continued growth in river traffic. As more shippers understand the economics of water transportation, new commodities are moved along the Arkansas River system.

International Shipments
Shipments to and from inland riverports along the McClellan-Kerr Arkansas River Navigation System are increasingly becoming a part of international trade. The use of LASH barges, which are loaded directly aboard trans-oceanic freighters, expedites movement of traffic. With the establishment of foreign trades, international trade - both inbound and outbound - is experiencing a surge of growth.

Foreign Trade Zones
Foreign Trade Zones are designated geographic areas where goods can be imported and then displayed, stored, sold, or manufactured without being subject to quota restriction, most customs formalities, duty or bonding. Rather than a U.S. business getting a reduction in the duty on foreign goods shipped through a foreign trade zone, the duty is delayed until the goods enter U.S. trade channels.

A Foreign Trade Zone is advantageous to American Business in a multitude of ways. Products manufactured in the zone using foreign materials may be exported again without any import duty being paid on the foreign materials. An American buyer can inspect and sample foreign goods before buying them and paying duty. Refusal or repair of damaged goods can take place duty and quota free. Foreign goods can be stored for any length of time until they are needed. Cash flow can be improved because duty will be paid only on the portion of the shipment imported into the U.S. from the zone. Indefinite storage in the zone permits importers to import goods now and hold them until the next quota period or until the best price can be obtained on the U.S. market. American businesses benefit greatly by the existence of foreign trade zones.


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