More proof positive that illegal steel imports are stalling the decade-long revival of Great Lakes shipping came with compilation of the December U.S.-Flag float. An 800,000-plus ton drop in iron ore cargos in December lowered total U.S.-Flag carriage of dry-bulk commodities to 10.4 million net tons, a decrease of 10 percent compared to December 1997. For the season, U.S.-Flag carriage is now a mere 600,000 ahead of 1997's pace, a lead that will surely evaporate when the January totals are known.
While the December fall-off in iron ore loadings was significant, even more telling is that what once was a 2.3 million ton lead over 1997 has dwindled to 140,000 tons by the end of December. Steel demand remains high, but with illegal imports capturing more and more market share, domestic steelmakers have had no choice but to reduce production and hence iron ore shipments on the Lakes.
Given the general strength of the U.S. economy, not all cargo commodities are being negatively impacted by the deluge of dumped steel. Thanks to a booming construction industry, the U.S.-Flag stone trade totaled 31.6 million tons at the end of December, an increase of 6 percent compared to 1997. Only a few stone and gypsum cargos were loaded in January, so that total largely represents the 1998 season for U.S.-Flag lakers.
Cargill's first full year of salt shipments from Cleveland swelled the salt trade in U.S. bottoms to 1.3 million tons, an increase of 30 percent compared to 1997. Again, that trade has largely concluded for U.S.-Flag lakers.
The coal trade in U.S.-Flag vessels ended December at 21.9 million tons, a decrease of 5.7 percent compared to 1997. Again this total should basically represent the season for U.S.-Flag lakers and reflects a general reduction in shipments due to inventory adjustments at some major utilities.
| Commodity | December 1998 |
December 1997 |
Season to Date 1998 |
Season to Date 1997 |
|---|---|---|---|---|
| Iron Ore (a) | 6,018,273 | 6,873,479 | 61,320,598 | 61,180,059 |
| Coal - Western | 1,327,039 | 1,439,607 | 13,451,935 | 13,763,365 |
| Coal, Coke - Eastern | 446,386 | 742,781 | 8,404,130 | 9,425,654 |
| Total - Coal | 1,773,425 | 2,182,388 | 21,856,065 | 23,189,019 |
| Limestone, Gypsum | 2,102,051 | 1,938,264 | 31,605,007 | 29,805,766 |
| Cement | 361,251 | 351,979 | 4,136,959 | 4,080,119 |
| Salt | 77,810 | 94,593 | 1,312,157 | 1,002,934 |
| Sand | 0 | 0 | 234,300 | 272,218 |
| Grain | 35,504 | 65,900 | 352,083 | 669,741 |
| Totals - All Commodities | 10,368,314 | 11,506,603 | 120,817,169 | 120,199,856 |
(a) Includes Lorain/Cleveland transshipments
Notes: Given the limited number of gypsum producers (two), that commodity must be combined with limestone to insure confidentiality. Cargo totals represent the members of Lake Carriers' Association and the following: Great Lakes Associates; Upper Lakes Barge; Upper Lakes Towing; Andrie, Inc. (cement only); and Merce Transportation.
The tracking of liquid-bulk cargos has been suspended pending implementation of a new reporting system.