U.S.-Flag Carriage Down Again In 2002;
Iron Ore Off 24 Percent From Pre-Dumping Days

U.S.-flag Great Lakes vessels hauled 101.3 million tons of cargo in 2002, a slight decrease compared to 2001.    Even the one gain - 1.2 million tons of iron ore - is misleading.  During 2001, LTV Steel, the nation's third largest producer, was continually reducing its iron ore requirements as it limped toward bankruptcy and then closure.  ISG relit those blast furnaces in mid 2002, so the upturn reflects a resumption of production at those facilities in Ohio and Indiana.  In reality, the 48.2 million tons of iron ore moved in U.S. bottoms in 2002 represent a decrease of  24 percent compared to 1997.  It was in that year that foreign steelmakers, facing contracting markets in Asia, began dumping their excess production in the United States.  Since then, more than 30 American steelmakers and steel processors have filed for bankruptcy.  Roughly half of those companies will never melt iron or mold steel again.

The U.S.-flag coal trade was essentially unchanged in 2002.  Reduced demand for eastern coal offset an increase in loadings of western, low-sulfur coal.

Shipments of limestone decreased slightly and reflect both reduced demand for fluxstone from steelmakers and slack orders for aggregate from the construction industry.  The 8 percent fall-off in cement cargos likewise relates to the general sluggishness that characterized the Great Lakes basin construction industry in 2002.

A quartet of U.S.-flag lakers never operated in 2002.  The EDWARD L. RYERSON and ELTON HOYT 2ND owe their idle status to steel's woes.  The small self-unloaders RICHARD REISS and JOSEPH H. FRANTZ were victims of the slowdown in aggregates shipments.

Several other U.S.-flag lakers were delayed in their return to service.  The mid-sized self-unloaders BUCKEYE and COURTNEY BURTON did not sail until June.  The AMERICAN REPUBLIC did not resume operations until early July.  Even the 1,000-footer JAMES R. BARKER remained inactive until late June.

 U.S.-FLAG CARRIAGE
DECEMBER AND FOR THE YEAR: 2002 - 2001
(net tons)

Commodity

December 2002

December 2001

 2002

 2001

Iron Ore
Direct Shipments4,541,412 3,280,816 45,831,055 43,829,971
Transshipments392,671 02,334,2523,094,732

Total - Iron Ore

4,934,083 3,280,816 48,165,307 46,924,703
Coal
Lake Superior Ports1,233,839 874,234 13,874,872 13,640,260
Lake Michigan Ports224,136 190,9412,231,784 2,288,791
Lake Erie Ports339,851 618,3115,637,175 6,030,000

Total - Coal

1,797,826 1,683,486 21,743,831 21,959,051
Limestone1,840,779 1,845,094 26,460,67226,988,662
Cement281,722 346,8253,817,911 4,136,897
Salt25,852123,092 587,090876,392
Sand14,784 31,819230,950 625,094
Grain32,319 58,280329,471 350,719
Totals 8,927,365 7,369,412 101,335,232 101,861,518

In addition to the U.S.-Flag Lakes operators who comprise Lake Carriers' Association, this survey includes Andrie, Inc. (cement only), Great Lakes Associates (grain), Hannah Marine Corp. (cement only), Pere Marquette Shipping Company and Upper Lakes Towing Company, Inc. (both various dry-bulk cargos).
.
DATE OF PUBLICATION:  January 20, 2003

For more information, contact Glen Nekvasil (216-861-0592 / ggn@lcaships.com).

Hit Counter

ggn@lcaships.com
Return to
LCA's Homepage