Big Slowdown In Iron Ore Trade In July

A 23 percent decrease in iron ore shipments dominated Great Lakes shipping in July. The ore slump completely offset record months for western coal and Canadian stone and pulled shipments of the three major dry-bulk commodities from U.S. and Canadian ports down by nearly 11 percent compared to the same period last year.

Iron ore loadings at U.S. Great Lakes ports actually fell by 27 percent in July. This largely reflects the closure of LTV Steel Mining Company in Minnesota and impending cessation of shipments from its Lake Superior port of Taconite Harbor. Loadings at Taconite Harbor have slowed to a trickle, but many ports registered decreases compared to last July. With domestic steel production down by more than 13 percent for the year, Great Lakes iron ore shipments must follow the curve, as there is no other major use for iron ore except steel production.

The Lakes western coal trade out of Superior, Wisconsin, registered its best month ever: 2,253,840 net tons tons. This development is certainly welcome, but it did result in part from more carrying capacity being available for coal because demand for iron ore is off by so much. Superior's record month offset another decline at Lake Erie ports and in total pushed the coal trade up by more than 5 percent.

A record month at Canadian stone docks could not overcome sluggish demand at American ports. The trade slipped 4.1 percent in July.

For the season, shipments of iron ore are down by nearly 15 percent. Coal loadings have slipped by 5.7 percent and the stone trade is off by 3.9 percent.

The U.S.-Flag Lakes fleet has felt the impacts of this reduced demand. Two vessels have never sailed this season, and 6 others have been withdrawn from service for varying periods of time. The latest addition to the lay-up list is USS Great Lakes Fleet's ROGER BLOUGH. The 854-foot-long vessel is one of the largest working the Lakes, but she was idled indefinitely on August 15.

 

Great Lakes Iron Ore, Coal and Stone Trades
U.S. and Canadian Ports
July 2001 And Season-To-Date
(Net Tons)

CommodityJuly 2001July 2000Season to Date
2001
Season to Date
2000
IRON ORE



Great Lakes5,018,3836,874,32822,979,17827,165,110
Eastern Canada1,400,1851,483,6424,734,8735,382,494
Total - Iron Ore6,418,5678,357,97027,714,05132,547,604
COAL



Lake Erie1,935,3122,333,1408,663,45911,053,544
Lake Michigan310,272318,2731,215,530967,034
Lake Superior - U.S.2,253,8401,723,4178,226,9967,339,741
Lake Superior - Canada218,804109,122461,899334,488
Total - Coal4,718,2284,483,95218,567,88419,694,807
LIMESTONE, GYPSUM



U.S. Ports3,467,8653,906,18513,389,31314,449,145
Canadian Ports1,044,932797,9083,587,2563,224,514
Total - Stone4,512,7974,704,09316,976,56917,673,659
Total All Commodities15,649,59217,546,01563,258,50469,916,070

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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