With the capacity utilisation rate for the nation’s steel industry still hovering around 40 percent, iron ore shipments on the Great Lakes in May totalled only 3 million tons, a decrease of nearly 60 percent compared to a year ago. One dock loaded only one cargo during the month. Another dock’s total for the month of May would be typical of a week’s operations in a healthy economy.
The iron ore trade has fared even worse on a year-to-date basis. Through May, shipments are down 65 percent compared to a year ago. Comparisons with the 5-year average for the month and January-May timeframe are only slightly better.
Adding to the iron ore trade’s woes are the debilitating effects of the dredging crisis. Mother Nature has provided some relief in the form of higher water levels, but even so, the largest vessels are still forfeiting 5,000 tons or more each trip because the U.S. Army Corps of Engineers is not maintaining ports and waterways to project dimensions. The Corps had an opportunity to ease the dredging crisis, but elected to allocate only 2 percent of its stimulus dollars to the Great Lakes.
Source: Business North
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