Army Corps of Engineers has not been getting the funding they need for dredging," said Glen Nekvasil, Vice President of Corporate Communications for the Lake Carriers Association. "Higher water levels just masked the lack of dredging." Now the problem is obvious, he said. The Lake Carriers Association represents the American Great Lakes fleet: 18 corporations operating 63 U.S.-Flag vessels. Nekvasil reported that during the 2007 shipping season, the fleet lost between five and 10 percent of its capacity. Some vessels lost even more. "Reports from the first nine days of December (2007) showed that the best cargo for 1,000 foot vessels was 61,264 tons. Yet the record in that trade is 71,000 tons. They are effectively losing 10,000 tons in one trip." That's almost 14 percent lost capacity for that period. The 1,000 footers move mostly western coal out of Superior, Wisconsin to power plants throughout the Great Lakes, "but the problem is effecting every trade," Nekvasil said. "It's the worst we've seen in a number of years." Adolph Ojard, Executive Director of the Duluth Seaway Port Authority voiced similar concerns. "Lakes Huron and Michigan are near record lows and that is impacting shipping out of Lake Superior and Duluth. The project cargoes that we move are more shallow draft, so they didn't see any impact, but all of dry bulk was effected this year (coal, iron ore, stone and grain)."
Strong Market Endures
Measurements are especially discouraging now, during fall and winter's seasonally lower water levels. The hope is for better levels this spring. Above average rainfall last September and October and early winter snow storms in Lake Superior's watershed may give some relief. "Lake Superior has come up considerably," Ojard observed. "Unfortunately Huron and Michigan have not, so those lakes are controlling the draft." Still, Sellinger noted that the lakes take time to react. "The lakes have a three year memory when it comes to precipitation," she said. Despite lake levels, Ojard reported that the Great Lakes dry bulk market, the vast majority of trade in the region, has been relatively strong for the last five years, and 2007 was no exception. While light-loading has certainly reduced profitability of some of the domestic shippers, it hasn't yet effected rates, he said. The tonnage moved at the Duluth/Superior port, the largest Great Lakes port in total cargo volume, did not change significantly as a result of low water levels. It has taken more vessel calls to move the same tonnage, however. Great Lake shipping normally follows the steel and construction industries. "If steel and construction are strong, the shipping interests are going to have a good year," said Ojard. In addition, Ojard characterized project cargoes as "very strong" for the same period. For the first time, the Duluth/Superior port saw exports of Minnesota iron ore to Algeria and China in 2006 and 2007. "The Great Lakes are a tremendous opportunity to land cargo right in the heartland of America and Canada," Ojard said. "It avoids all of coastal and landside congestion. We do expect to end with another strong year next season."
About the Author
Raina O. Clark is a communications specialist, former U.S. Coast Guard officer and an advocate for sustainable maritime commerce. Contact her at raina@roclark.com or visit her Great Lakes Maritime Industry Issues blog at www.roclark.com.
30 MN
March 2008