Antwerp, Rotterdam Stack Aluminum

Steel shipments have been hurt by the recession but general cargo terminals in Antwerp and Rotterdam report a sharp increase in volumes of aluminum ingots.

Terminal operators say much of the aluminum arriving at their terminals is from Russia and South America and is going into storage under London Metals Exchange contracts.

"For us, when steel is going down, this type of metals is going up," said John Jumelet, manager of waterside operations at Broekman DistriPort in Rotterdam, showing off a warehouse crammed with 40,000 tons of metal while a mobile crane unloaded a shipload of aluminum ingots from Russia.

Christian Schlenker, business development manager of Nova & Hesse-Nord Natie, the Antwerp-based stevedoring and logistics services company, also reports an increase in aluminum shipments.

Steel, meanwhile, remains soft -- a sharp contrast with two years ago, when NHS's terminals were so full of steel that five ships had to be turned away. Steel volume at Antwerp, which leads European ports in that commodity, was down 14 percent last year from the 12 million tons handled in 2007, and has continued to slide in early 2009.

Despite the drop in volume, terminals are continuing to invest to handle the inevitable rebound. At Broekman's Rotterdam terminals, piles are being driven for a 250-meter quay extension, among other expansion projects.

Schlenker said the project cargo business is soft, but that Nova & Hesse-Nord Natie is investing in new cranes, equipment, space and warehouse facilities "to be ready for when the project world is more active."

Contact Joseph Bonney at jbonney@joc.com.