Great Lakes iron ore trade falls in August despite higher NA steel production

Shipments of iron ore on the North American Great Lakes totaled 3,251,657 net tons in August, or 52 percent less than a year ago, reported the Lake Carriers' Association (LCA), a trade association representing US-Flag vessel operators on the Great Lakes. This figure is also down from the 3.5 million nt of iron ore hauled on the Great Lakes in July.

Total dry-bulk cargo tonnage hauled by Great Lakes shippers in August amounted to 7.2 million nt, a decrease of more than 40 percent compared to both a year ago and the month's five-year average.

Although the North American steel industry brought some capacity back online in August, stockpiles of ore were generally sufficient to meet immediate needs, said the LCA.

For the year, the Lakes' iron ore trade stands at 16.1 million nt, a decrease of 59 percent compared to a year ago, while total dry bulk cargo is down 43.6 percent.

The LCA says that lower water levels from lack of dredging will inhibit the tonnage of iron ore cargoes  shipped for the duration of the year, assuming that water levels have peaked.

Said the LCA, “One cargo topped 68,000 tons in August. The record – set in a period of high water in 1997 – is 72,300 tons. Vessels won’t be able to carry that much iron ore again until the US Army Corps of Engineers restores the Great Lakes Navigation System to project dimensions."