Great Lakes Iron Ore Trade Down 18 Percent In 2001

Shipments of iron ore from U.S. and Canadian Great Lakes ports totaled 55.9 million net tons during the just-finished 2001 navigation season, a decrease of 18 percent compared to 2000, and the lowest total since 1987. 2001's tally reflects the depressed state of America's steel industry. Preliminary estimates for 2001 show raw steel production fell 11 percent to 99.3 million tons. For the year just ended, the steel industry operated at 79.2 percent of capacity, compared to 86.1 percent in 2000.

The 2001 iron ore trade began on March 12 and stretched through January 27, 2002. While in terms of length the 2001 navigation season was actually a few days longer than 2000, the number of cargos shipped slipped 22 percent to 1,555. The closure of Taconite Harbor played a major role in the decline in tonnage and cargos. Taconite Harbor, which served LTV Steel Mining Company on the Mesabi Range, normally shipped 7-8 million tons each season in 200-plus boatloads. The mine was permanently closed in January, so in 2001, the dock shipped a mere 2.1 million tons in 60 boatloads.

U.S.-Flag vessel utilization rates mirrored steel's problems. Two mid-sized ore carriers, the ELTON HOYT 2ND and the EDWARD L. RYERSON, were never activated in 2001. Ten other U.S.-Flag lakers were idled for various periods of time during the season. The newest vessel in the fleet, the self-unloading barge GREAT LAKES TRADER, was taken out of service twice for lack of cargo. The 1,000-foot-long JAMES R. BARKER was laid-up for a few weeks in the fall and her season ended very prematurely, on November 23. Another 1,000-footer, the WALTER J. MCCARTHY, finished her season just three days later. Under normal operating conditions, the 1,000-footers sail into January.


Great Lakes Iron Ore Trade
(net tons)

Port

2001 Shipments

2001 Cargos

2000 Shipments

2000 Cargos

U.S. Ports

Duluth

5,375,657

151

6,056,445

148

Superior

10,006,048

184

10,146,082

216

Two Harbors

12,410,539

249

13,005,054

293

Silver Bay

3,592,711

140

4,479,481

170

Taconite Harbor

2,148,340

60

7,817,464

186

Presque Isle

7,818,509

294

8,305,070

357

Escanaba

5,937,047

181

7,350,464

244

Total

47,288,851

1,259

57,160,061

1,614

Canadian Ports

Pointe Noire

3,984,322

139

4,772,159

173

Port Cartier

2,082,935

75

3,535,418

115

Sept Iles

2,503,676

82

2,597,271

91

Total

8,570,933

296

10,904,848

379

Totals - U.S. & Can.

55,859,784

1,555

68,064,909

1,993

Low water levels continued to impact the iron ore trade in 2001 (other trades as well). The table below lists the largest single cargo loaded at U.S. ports in 2001 and 1997, the last year of high water levels on the Great Lakes. The table omits Canadian ports on the St. Lawrence River as loaded draft in the Seaway is limited to 26' 03", hence that segment of the trade does not benefit from high water levels.

Largest Iron Ore Cargos

Port

Largest Cargo - 2001
(net tons)

Largest Cargo - 1997
(net tons)

Duluth

65,067

70,542

Superior

64,929

72,300

Two Harbors

65,981

70,988

Silver Bay

63,382

68,108

Taconite Harbor

61,809

71,258

Presque Isle*

26,459

66,804

Escanaba**

67,878

76,322

* Given the height restriction at Presque Isle's loading dock, 1,000-footers do not serve this port on a regular basis. None called there in 2001.
** Since Escanaba is located below the Soo Locks, loaded drafts are not restricted by water levels in the connecting channels.

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For more information, contact Glen Nekvasil, Vice President - Corporate Communications (216-861-0592).

ggn@lcaships.com
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