The avalanche of dumped foreign steel and the strong dollar finally came home to roost on the Great Lakes in August. Cargo movement in U.S.-Flag lakers and from U.S. and Canadian Great Lakes ports fell below the previous year's level for the first non-weather-related reason in at least two shipping seasons.
Cargo movement in U.S.-Flag lakers totaled 13.9 million tons, a decrease of 2.7 percent. Iron ore loadings, the trade most directly affected by the onslaught of unfairly traded steel, fell by 1.5 percent to 6,766,003 tons. The slowdown in steel production as imports reached historic highs even necessitated the short-term lay-up in September of the EDWARD L. RYERSON, a U.S.-Flag laker dedicated to supplying raw materials to Ispat Inland Steel Co. For the season, U.S.-Flag iron ore cargos stand at 37.3 million tons, an increase of 6.3 percent.
Coal cargos in U.S. bottoms fell 8.1 percent to 2.6 million tons. The slump is again steel related; the metallurgical coal moving on the Lakes is used by steel mills, and as that industry reduced its production, the resulting decrease in power consumption deflated utility's demand for steam coal. Through August, the U.S.-Flag coal float totals 12.7 million tons, a decrease of 4.9 percent.
Stone loadings in U.S.-Flag lakers also slipped by more than 130,000 tons, but in this instance, curtailed production following a fire at a major stone shipper influenced that decline. Since the resumption of the stone trade in mid-March, stone cargos in Jones Act lakers stand at 18.6 million tons, an increase of 7.5 percent.
U.S.-Flag Great Lakes carriers utilized 66 of their 69 vessels during August, an increase of one integrated tug/barge compared to a year ago. Only two U.S.-Flag lakers available for service have not sailed this season, but unless the Clinton Administration takes swift action as called for by House and Senate resolutions to stem the flood of dumped steel, some Jones Act lakers could end their 1998 season early.
| Commodity | August 1998 |
August 1997 |
Season to Date 1998 |
Season to Date 1997 |
|---|---|---|---|---|
| Iron Ore (a) | 6,766,003 | 6,866,511 | 37,334,916 | 35,117,181 |
| Coal - Western | 1,462,674 | 1,665,068 | 7,788,440 | 7,975,718 |
| Coal, Coke - Eastern | 1,132,130 | 1,160,463 | 4,933,459 | 5,400,594 |
| Total - Coal | 2,594,804 | 2,825,531 | 12,721,899 | 13,376,312 |
| Limestone, Gypsum | 3,805,367 | 3,935,699 | 18,593,457 | 17,291,551 |
| Cement | 531,136 | 500,570 | 2,498,705 | 2,408,207 |
| Salt | 109,077 | 43,269 | 694,123 | 533,843 |
| Sand | 42,044 | 51,463 | 168,528 | 187,727 |
| Grain | 71,457 | 84,076 | 165,076 | 437,167 |
| Totals - All Commodities | 13,919,888 | 14,307,119 | 72,176,704 | 69,351,988 |
(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.