U.S. auto industry buoys Seaway steel shipments

 

Shipments of steel products through the St. Lawrence Seaway to U.S. ports have increased significantly this season due to demand by the U.S. automobile industry and an improving American economy.

According to the Seaway corporation, general cargo shipments including steel slabs and coils and aluminum totaled 872,000 metric tons from March 25 to June 30, a 44 percent increase over 2013. The steel was shipped through the St. Lawrence Seaway to the ports of Cleveland, Detroit, Indiana-Burns Harbor and Milwaukee. The specialty steel is either further processed by U.S. manufacturers to produce fenders or internal components or sent directly to the auto assembly plants. Some steel is also used in construction.

A Canadian grain rush has also helped shipping rebound considerably after a crippling start to the season due to ice coverage. However, total cargo shipments through the St. Lawrence Seaway from March 25 to June 30 were 11.1 million metric tons, down 7 per cent compared to 2013 due to decreases in iron ore exports and coal traffic.

Quotes

• Stephen Brooks, President, Chamber of Marine Commerce,— “The Great Lakes-Seaway system is a fast and cost effective way for U.S. manufacturers to ship raw materials and specialty steel products primarily for the auto industry. With U.S. car sales as of the end of May up 11 percent year over year and the Purchasing Managers Index indicating strong growth for American factories, expectations are that steel product shipments through the Seaway will continue to be strong.”
• Pat Sutka, Treasurer, Nicholson Terminal & Dock at the Port of Detroit —“Our terminal has seen a 16 percent increase in steel coils, wire and beams, most of which is used in Detroit-area manufacturing. Our biggest source is the UK this year. It’s driven by demand for parts for the automobile industry.”
• Rick Heimann, Port Director for the Port of Indiana-Burns Harbor — “Midway through 2014, shipments at the Port of Indiana-Burns Harbor were up over 40 percent from the previous year, driven primarily by steel-related cargoes coming from New Orleans, the U.S. East Coast, and from Europe via the St. Lawrence Seaway. By being located in one of the world’s largest steel producing regions, this port provides multimodal connections for manufacturers to move large volumes of raw materials and semi-finished products to and from the Northwest Indiana/Chicago-market by lakers, ocean vessels, river barges or rail. Our port companies have reported seeing higher business levels than they’ve seen in years and we’ve had multiple inquiries about expansions and new facilities at the port, which is a good sign for things to come.”

 

Quick Facts

• The bi-national Great Lakes-St. Lawrence Seaway marine industry generates $35 billion in business revenues and supports 227,000 jobs in the U.S. and Canada.

 

About the Chamber of Marine Commerce

The Chamber of Marine Commerce (CMC) is a bi-national association that represents more than 150 marine industry stakeholders including major Canadian and American shippers, ports, terminals and marine service providers, as well as domestic and international shipowners.  The CMC represents the interests of its members by addressing government issues affecting marine transportation. Advocacy extends to both the federal and provincial levels of government and, when appropriate, to U.S. federal and state governments and agencies.  

Media Contact

Julia Fields

Chamber of Marine Commerce

1-613-294-8515