Coal Leads Plunge in Great Lakes Volume

Shipping volume on the Great Lakes was down dramatically in July and for the year to date, according to a report from the Cleveland-based Lake Carriers' Association.

Coal shipments led the deep decline in July traffic carried by U.S. lakers. Loads of coal "were nearly 5,000 tons less than vessels' optimum capacity," leading to coal shipments of 3.2 million net tons, down by 1.1 million tons or 26 percent from July last year, said the association. The LCA blamed the low volume on a “dredging crisis” leaving channels and harbors too shallow to accommodate fully loaded vessels. The global economic crisis has also weakened demand for most commodities.

For the year to the end of July, coal shipments stand at14.2 million tons, down about 28 percent from 19.8 million tons in the period a year ago, and down nearly 30 percent from the 20.2 million tons carried in the five-year average for January-July, the LCA said.

The coal report Aug. 19 brings together other cargo commodity reports for July on the Lakes to present an overall cumulative total of 28.4 million tons carried by U.S. lakers for the year-to-date. That's down 44.4 percent from the same 2008 period and down 49.3 percent from the five-year average for the period.

Iron ore trade on the Lakes for the year to date stands at 12.8 million tons, down 60 percent from a year ago, down 58 percent on the five-year average, the LCA reported. Limestone shipments from U.S. and Canadian Great Lakes ports (primarily U.S.) for the year to date totaled 10.3 million tons, down 35.5 percent from last year and down 42.4 percent from the five-year average.

"Full loads will not return until the (U.S. Army) Corps of Engineers' dredging program on the Great Lakes is adequately funded by the federal government," the LCA said.

"The lack of funding is galling to industry, as the Harbor Maintenance Tax Fund … has a surplus that is approaching $5 billion. The Great Lakes Navigation System could be restored to functional dimensions for about $230 million."

The LCA and the Great Lakes Maritime Task Force, a broad industry-wide labor-management coalition based in Toledo, Ohio, have been on a prolonged campaign to secure more dredging activity for silted up harbors and channels.

Contact Courtney Tower at ctower@sympatico.ca.