U.S.-Flag Carriage Down 9.8 Percent In 2001

 The shipping season for U.S.-Flag Great Lakes vessel operators ended on January 29 when Central Marine's JOSEPH L. BLOCK arrived her winter berth in Sturgeon Bay, Wisconsin. The vessel had loaded the last cargo of the season - iron ore at Escanaba, Michigan - on January 27 and delivered it to Ispat Inland Steel in Indiana Harbor, Indiana, on January 28. That cargo brought the U.S.-Flag total for the season to 102.2 million net tons, a decrease of 9.8 percent compared to 2000 and the lowest total since 1991.

As this web site has stressed all season, the crisis in steel is primarily responsible for the dramatic fall-off in U.S.-Flag cargos. Iron ore cargos for the steel industry plummeted nearly 20 percent to 47.2 million tons. This comes as no surprise. During 2001, two integrated steelmakers - Acme and LTV - ceased operations. In total, the steel industry operated at a mere 79.2 percent of capacity. Both American steelmakers and U.S-Flag Lakes lines are extremely efficient, but they cannot compete against dumped foreign steel. The Bush Administration must take prompt and forceful action to end unfair trade in steel or the upcoming season will be a continuation of 2001's struggles.

Coal cargos in U.S. bottoms increased slightly to 21.4 million tons, but largely because the slump in iron ore made capacity available to the coal trade. Stone cargos finished the season down 2.1 percent. The decrease would have been more, but mild weather in November and December kept demand strong from the construction industry and so helped narrow the gap a bit.

U.S.-FLAG CARRIAGE
JANUARY 2002/2001 AND SEASON-END TOTALS: 2001 - 2000
(net tons)

Commodity

January 2002

January 2001

Season Total 2001

Season Total 2000

Iron Ore - Direct Shipments

1,422,395

1,069,792

44,182,574

53,242,963

Iron Ore - Transshipments

0

0

3,045,729

5,276,634

Total - Iron Ore

1,422,395

1,069,792

47,228,303

58,519,597

Coal - Western

0

289,737

13,350,523

12,878,253

Coal - Eastern

199,701

392,754

8,043,592

8,230,010

Total - Coal

199,701

682,491

21,394,115

21,108,263

Limestone and Gypsum

0

0

27,334,146

27,933,432

Cement

174,040

95,580

4,367,242

4,125,542

Salt

0

0

876,392

838,017

Sand

0

0

625,094

427,070

Grain

0

0

350,719

351,398

Totals

1,796,136

1,847,863

102,176,011

113,303,319

In addition to the 12 U.S.-Flag Lakes operators who comprise Lake Carriers' Association, this survey includes Andrie, Inc. (cement only), Great Lakes Associates (grain) and Upper Lakes Towing Company, Inc. (various dry-bulk cargos). Pere Marquette Shipping Company also participates in this survey, but did not operate in 2001.

For more information contact Glen Nekvasil, Vice President - Corporation Communications (phone: 216-861-0592/e-mail: ggn@lcaships.com
.

ggn@lcaships.com
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