Ice Flows Bring Carriers Woes In March

With heavy ice covering most of the Great Lakes in March, U.S.-flag carriage suffered accordingly.  The major U.S.-flag Lakes lines moved only 1,051,162 net tons of dry-bulk cargo in March, a decrease of 40.6 percent compared to the corresponding period in 2002 and a drop of nearly 57 percent compared to the month's 5-year average.  For the year, U.S.-flag haulage totals 3.6 million tons, a decrease of 6.4 percent compared to the same point in 2002, but a drop of nearly 26 percent compared to the 5-year average for the first quarter.  The significant drop compared to the 5-year average testifies to the progressive weakening of America's steel industry during the period and is further proof of the debilitating impacts of unfair trade in steel.

The increase in March iron ore cargos is misleading .  Transshipments to ISG's Cleveland Works resumed in March as usual whereas a year ago the trade was inactive given LTV Steel's bankruptcy.  Direct shipments of iron ore slipped more than 21 percent compared to a year ago and 47.5 percent compared to the 5-year average.

It would not be an exaggeration to say the ice conditions virtually paralyzed the coal trade in U.S. hulls.  March shipments amounted to one cargo in a 1,000-footer.  For the year, the U.S.-flag coal float totals a mere 192,000 tons, a decrease of more than 75 percent from the 5-year average. 

The ice conditions did stall resumption of the limestone trade.  Not one stone cargo was loaded in March into a vessel of any flag.

The cement trade did resume in March, but was likewise impacted by the ice conditions.  March shipments fell by a third compared to a year ago and represent a decrease of nearly 40 percent compared to the month's 5-year average.

U.S.-Flag Dry-Bulk Carriage on the Great Lakes - March 2003-1999 and 5-Year Average
(net tons)

Commodity   March 2003 March 2002 March 2001 March 2000 March 1999 5-Yr. Average
Iron Ore
Direct Shipments 684,055 870,959 1,398,562 1,843,880 1,715,495 1,302,590
Transshipments 212,618 0 488,458 460,118 407,380 313,714
Total - Iron Ore

896,673

870,959 1,887,020 2,303,998 2,122,875 1,616,304
Coal
Lake Superior 53,577 297,396 331,620 474,015 464,644 324,250
Lake Michigan 0 39,852 77,939 186,932 51,703 144,496
Lake Erie 0 223,779 142,278
Total - Coal 53,577 561,027 551,837 660,947 516,347 468,746
Limestone 0 176,218 76,867 290,327 264,806 161,643
Cement 100,912 148,009 181,037 221,755 178,357 166,014
Salt 0 12,158 43,233 0 24,000 15,878
Sand 0 0 0 0 7,600 1,520
Grain 0 0 0 0 0 0
Totals 1,051,162 1,768,371 2,739,994 3,477,027 3,113,985 2,430,105

NOTE: LCA did not begin to track Eastern coal by Lake of loading until 2001.

U.S.-Flag Dry-Bulk Carriage on the Great Lakes - Year-To-Date 2003-1999 and 5-Year Average
(net tons)

Commodity Y-T-D 2003 Y-T-D 2002 Y-T-D 2001 Y-T-D 2000 Y-T-D 1999 5-Yr. Average
Iron Ore
Direct Shipments 2,896,233 2,516,394 2,468,354 4,257,223 3,106,414 3,048,923
Transshipments 212,618 0 537,461 959,892 591,714 460,337
Total - Iron Ore

3,108,851

2,516,394 3,005,815 5,217,115 3,698,128 3,509,260
Coal
Lake Superior 73,076 297,396 621,357 655,181 528,555 435,113
Lake Michigan 74,184 143,704 158,945 422,614 68,774 353,708
Lake Erie 44,522 319,628 536,172
Total - Coal 191,782 760,728 1,316,474 1,077,795 597,329 788,821
Limestone 24,245 176,218 76,867 315,417 277,903 174,130
Cement 195,221 349,602 305,792 374,068 336,412 312,219
Salt 50,212 12,158 43,233 0 24,000 25,920
Sand 0 0 0 0 7,600 1,520
Grain 0 0 0 0 0 0
Totals 3,570,311 3,815,100 4,748,181 6,984,395 4,941,372 4,811,870

DATE OF PUBLICATION: MAY 14, 2003

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