Foreign Steel, Lower Water Levels
Hamper Great Lakes Shipping

Shipments of iron ore from U.S. and Canadian Great Lakes ports declined 10.3 percent to 7.2 million tons in May. While demand for steel remains strong, imports have declined only marginally. For the first quarter of 1999, steel imports totaled 10.4 million tons, only 500,000 tons less than a year ago. Seeing as the production of one ton of steel requires approximately 1.3 million tons of iron ore, plus quantities of coal and fluxstone (a grade of limestone), all three major Lakes trade are being impacted by illegally-dumped foreign steel.

Low water levels also remain a factor in the decrease in cargo movement. In certain trades, per-trip carrying capacity has been reduced by 4,000 tons or more. With virtually no reserve vessels that can be quickly activated, the ships that are in service will have to make more trips to carry the same amount of cargo as they did in 1998.

Besides steel and water level problems, a sluggish start to the construction season is impacting the Lakes stone trade. Stone loadings at U.S. and Canadian ports in May fell 12 percent to 4.6 million tons

Since the resumption of the dry-bulk trades in late February, shipments of iron ore, coal and stone from U.S. and Canadian Great Lakes ports stand at 34.3 million tons, a decrease of 10.9 percent..

Great Lakes Iron Ore, Coal and Stone Trades
U.S. and Canadian Ports
Month of May, 1999
(Net Tons)

CommodityMay 1999May 1998Season to Date
1999
Season to Date
1998
IRON ORE



Great Lakes6,002,6766,615,10614,128,83915,633,764
Eastern Canada1,233,9711,456,2462,460,3853,095,019
Total - Iron Ore7,236,6478,071,35416,589,22418,728,783
COAL



Lake Erie2,401,0642,620,5364,852,5135,686,512
Lake Michigan279,439206,589602,857417,733
Lake Superior - U.S.1,886,8511,719,5313,991,3853,760,173
Lake Superior - Canada118,384127,115175,953250,445
Total - Coal4,685,7384,673,7719,622,70810,114,863
LIMESTONE, GYPSUM



U.S. Ports3,749,2624,456,8146,696,3948,246,459
Canadian Ports831,933750,0451,384,1061,399,610
Total - Stone4,581,1955,206,8598,080,5009,646,069
Total All Commodities16,503,58017,951,98434,292,43238,489,715

Note: The above totals are carried almost exclusively by U.S.-Flag and Canadian-Flag lakers. Third-Flag vessels (i.e., salties) occasionally load coal or limestone for export overseas.

The ports reporting cargo movement are as follows:

Iron Ore: Minnesota - Duluth, Two Harbors, Silver Bay and Taconite Harbor; Wisconsin - Superior; Michigan - Marquette and Escanaba.

Coal: Ohio - Toledo, Sandusky, Ashtabula and Conneaut; Illinois - South Chicago; Wisconsin - Superior; Ontario - Thunder Bay.

Limestone and Gypsum: Michigan - Calcite, Cedarville, Presque Isle, Port Inland, Drummond Island, Alabaster and Port Gypsum; Ohio - Marblehead; Ontario - Manitoulin Island, Smelter Bay, Bruce Mines and Port Colbourne.


ggn@lcaships.com
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