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Business North - The Daily Briefing - Business Newspaper Online
Recession takes toll on Twin Ports tonnage
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7/21/2009 |
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The steel industry remains hardest hit by the global economic recession. Iron ore shipments this season are down 61 percent from last year through the Port of Duluth-Superior. These figures mirror a similar drop across the Great Lakes (57 percent), according to a report released last week by the Lake Carriers’ Association.
Commercial activity is at levels not experienced since the mid-1930s, according to Adolph Ojard, executive director of the Duluth Seaway Port Authority. “Taconite shipments have slowed to a trickle. Iron ore shipments for Minnesota/Duluth-Superior could test record lows this year with steel plants sitting idle and two dozen lakers in layup,” he said.
“We’ve handled just 2.6 million tons of iron ore through June compared to nearly 6.8 million at this time last year. Hopes of a turnaround during this navigation season may be slipping away. The real economic recovery won’t arrive until the stimulus plan finds its legs and consumer confidence builds so folks start buying cars and appliances. More than likely, the Great Lakes won’t begin to feel the impact of any upswing until well into 2010.”
There were, however, a couple of bright spots in Duluth-Superior’s recent marine tonnage report. Grain shipments through June stood at 352,793 short tons, up 23 percent from record-setting lows experienced last year. Coal shipments were off just seven percent from last year as Midwest Energy Resources Company’s (MERC) Superior Terminal continues shipping coal at a steady pace to utilities in the Lower Lakes.
MERC hit a milestone on June 16, loading its 400 millionth ton of low-sulfur coal since local operations began in 1976. Coal movement through Duluth-Superior significantly outpaced overall demand across the Great Lakes, where coal shipments were off nearly 30 percent.
Overall, Duluth-Superior tonnage handled during this navigation season stood at 10,505,690 short tons through June – off 33 percent from a year ago. A total of 243 vessels called on Duluth-Superior during the first three months of this navigation season, compared to 402 during the same timeframe last year; just 17 of those visits were oceangoing vessels.
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