Great Lakes Limestone Trade Slumps Badly Again in June

Cleveland---The Great Lakes limestone traded continued to slump in June. Loadings totaled 3 million net tons, a decrease of 32 percent compared to a year ago, and a drop of 34 percent compared to the month’s 5-year average. Quarries that can load nearly a million tons a month when demand for aggregate and fluxstone is strong saw their shipments plunge by 40 to 60 percent.

The one bright spot – a record cargo for a vessel – was, in the final analysis, a reminder of the dredging crisis that plagues Great Lakes shipping. On June 26, the U.S.-Flag self-unloading barge Great Lakes Trader took on 35,457 tons of limestone at Presque Isle, Michigan. That is the largest stone cargo the vessel has ever loaded at that dock. The vessel was able to load deeper because of rising water levels.

However, if the Great Lakes navigation system was dredged to project dimensions, the Trader would have loaded nearly 37,000 tons of stone. The U.S. Army Corps of Engineers needs to remove 17 million cubic yards of sediment from Great Lakes ports and waterways before the Trader and other U.S.-Flag lakers can carry full loads. Unfortunately, the Corps elected to all but ignore Great Lakes needs when Congress gave it $4.6 billion from the stimulus package. The Corps directed only 2 percent of its stimulus dollars to Great Lakes projects.

For the year, the Great Lakes limestone trade stands at 7.4 million tons, a decrease of 37 percent compared to a year ago. Shipments are 44 percent below the 5-year average for the for the first half.

Great Lakes Limestone Trade: June 2004-2009 and 5-Year Average

(net tons)

2004

2005

2006

2007

2008

2009

Average

2004-2008

U.S. Ports*

3,795,869

3,729,611

3,503,499

3,526,974

3,498,132

2,114,392

3,610,817

Canadian Ports**

912,385

1,028,905

971,684

855,600

896,000

878,533

932,915

Total

4,708,254

4,758,516

4,475,183

4,382,574

4,394,132

2,994,934

4,543,732

Great Lakes Limestone Trade: Year-To-Date 2004-2009 and 5-Year Average

(net tons)

2004

2005

2006

2007

2008

2009

Average

2004-2008

U.S. Ports

11,210,894

11,335,827

10,917,566

9,861,051

9,329,070

5,585,830

10,530,882

Canadian Ports

2,995,204

3,026,297

3,075,410

2,430,375

2,445,900

1,832,571

2,794,637

Total

14,206,098

14,362,124

13,994,982

12,293,433

11,774,970

7,420,410

13,325,519

U.S. ports: Calcite, MI, Cedarville, MI, Drummond Island, MI, Kellys Island, OH, Marblehead, OH, Port Inland, MI and Presque Isle, MI. Kellys Island is currently not shipping. Canadian ports: Bruce Mines, Manitoulin Island, Port Colborne, and Smelter Bay (all Ontario). Port Colborne ceased shipping by vessel in 2006.

Lake Carriers’ Association represents 18 American companies that operate 65 U.S.-Flag vessels on the Great Lakes and carry the raw materials that drive the nation’s economy, including iron ore and fluxstone for the steel industry, limestone and cement for the construction industry, and coal for power generation. Collectively, these vessels can transport more than 115 million tons of cargo a year when high water offsets lack of adequate dredging. More information is available at www.lcaships.com. Contact: Glen G. Nekvasil, Vice President - Corporate Communications. Telephone: (216) 861-0592.

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