U.S. Great Lakes Seaway Ports Enjoying Magic Grain Season
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FALL 2010 U.S. Great Lakes Seaway Ports Enjoying Magic Grain Season Freight Rates Luring Salties to Seaway U.S. grain tonnage shipped through the St. Lawrence Seaway this year by both Seawaymax ocean-going vessels and Canadian lakers has S increased by more than 36 percent over 2009 navigation season num - ADMINISTRATOR ’S bers with almost 1.3 million metric tons shipped through September 30. COLUMN Part of the reason for the big bump up in tonnage can be attributed to e Nature’s generosity in providing excellent weather during the growing season. Farmers deserve kudos for having had the foresight to increase grain acreage planted. a U . Collister S . Johnson, Jr. Seed, sunshine, rain, labo r— all are vita l— but are not enough reasons D e w for a exceptional year for grain on the southern side of the Great Lakes. p a r t The price of grain, especially wheat, has been substantially higher since m e late July than most analysts projected two brief months earlier. n t o f a T Record rainfall in a huge swathe of the Canadian Prairie provinces r The Future is Bright a n spelled trouble in June. In a few days, a major chunk of the season s p There is no doubt that we are was lost. Meanwhile intense heat baked fields in Russia, Ukraine and o r y t witnessing good things happen - a Kazakhstan laying waste wheat crops that had been slated to be export - t i o ing in the Great Lakes Seaway n ed to global markets. Wild fires burning fields and forests worsened System this year and the future • the crisis, and Russia’s President forbid grain exports through the year’s C looks positive. Cargo shipments S end to allay public concerns amid widespread price spikes. The action a i are rebounding, there’s an n t essentially tightened supply lines for key grain importers like Egypt L increase in new business and a o and India at a time when another major grain exporter, Australia, was w r trade routes, and these trends experiencing drought conditions. e n look to continue through the c e remainder of the navigation S m Global wheat prices spiked in August just as the U.S. harvest was getting e a season. In fact, this fall will underway. In September, grain prices dropped as it became clear that w a likely see continued robust y ample stocks were on hand. Still, wheat prices have remained relatively D American grain shipments to e high to the delight of farmers, the marine industry, supply chain profes - v cap off the 68 percent surge we e l sionals and the chagrin of bargain conscious consumers. o p p continued on page 2 m e The clear winner has been the American farmer, and U.S. Great Lakes n t C ports and the St. Lawrence Seaway. Why have the latter profited so o a r p much when one considers that typically this region ships less than o In This Issue: r a t i continued on page 3 o Highlighted Guest, Ross Gaudreault n s SLSMC Appoints New President/CEO Lifting of Canadian Import Duty s Environmental Scientist Supports SLSDC SLSDC Employee Honored by Secretary of Transportation International Container Service Great Lakes Ballast Water Collaborative Port of Burns Harbor Celebrates 40 Years of Business Melford and Maher Terminals Join Forces EPA Publishes a Notice in the Federal Register www.greatlakes-seaway.com FALL 2010 S Administrator’s Colum n, continued from page 1 environmentally responsible alternative to the existing realized through September. The recovering economy is surface modes of transportation. Their operating vessels e reflected in the demand for raw materials in the Great are modern, state-of-the-art, fit-for-purpose, short-sea Lakes, resulting in a boost in iron ore and steel shipments. shipping feeder vessels. The service promises to have a financial and environmental advantages for the greater Cleveland area and beyond, and its launch is much w Even while this season is bringing an uptick in cargoes and transits on the System, we all must be proactive in anticipated. developing new business, new cargoes, new routes, and a new vessels to grow the System. Cargo growth is our most Without a doubt, there are some regulatory hurdles pressing issue. At the top of the list for trade development that require attention; the myriad of state ballast water y is short sea shippin g— the movement of containers regulations, the Harbor Maintenance Tax (HMT) on through the lakes. Most container traffic entering shipping, and various security-related challenges to C Montreal and Halifax is destined for the Midwest, name a few, that continue to place limitations on the demonstrating the need for expanded use of Great Lakes industry. Work continues on all these fronts with pos - o shipping. It is important to track trends to identify areas sible resolution of the HMT issue coming ever closer of focus. Much of the traffic from the Canadian ports to fruition. Along with 51 Members of Congress who m enters the U.S. on truck through congested bridges and have signed on as cosponsors of the HMT waiver border crossings. We need to capitalize on the efficiencies legislation (H.R. 3486), a litany of maritime trade of using maritime transportation to move these goods. associations and labor organizations has endorsed this p The Erie Inland Port project is doing just that. proposal and they continue their work to generate support for the bill. Although there are few legislative vehicles remaining in the 111 th Congress to which the a The Erie Inland Port is poised to begin container opera - tions with minor upgrades and equipment purchases. HMT bill might be attached, there is still a possibility this goal can be achieved. If not, the proposal will be s The Greater Erie Industrial Development Corporation was recently awarded a $500,000 grant from the reintroduced and return in an even stronger position s Department of Commerce to move the project forward. to be approved in the next Congress. The project is multifaceted and multimodal (with rail and highway connections) and is designed to alleviate a I think it’s worth noting that the November election number of problems related to shipping logistics and the brought some significant changes to Washington, D.C. environment by initiating more efficient and sustainable and in a number of state capitals around the Great methods of shipping and transportation of goods. There Lakes. Although we are losing some close Congressional are currently few alternatives for increasingly problem - friends of the Seaway System across the Great Lakes atic, time strapped and expensive modes of transportation states, there are some new faces and strong alliances that in the region. Container shipping in the Port of Erie we can look to for support in the new Congress. New would have certain measurable outcomes including committee chairmen will be chosen and members will reducing costs for shippers, relieving congestion on land vie for new leadership positions. There are six new gov - border crossings between the U.S. and Canada, reducing ernors in Great Lakes states, and they are familiar with emissions and energy consumption, and providing our issues. The education process will continue, but we savings on landside transportation infrastructure main - have come a long way in communicating our messages tenance. The project received the federal grant in large and developing good relationships with those making part because it was able to demonstrate the potential decisions that impact the maritime industry on the to create long-term, positive economic impacts in its Great Lakes. surrounding community. I believe this case can be replicated in other Great Lakes port communities. On another positive note, the Seaway’s Asset Renewal Plan is allowing us to ensure system reliability and infra - More and more, entrepreneurs are looking at cross lakes structure integrity. In just two years, over $33 million service that is rate and time competitive. Great Lakes has been spent to upgrade the U.S. locks and facilities Feeder Lines is currently working with the Port of and every indication is that the full ten year plan will Cleveland to develop a new container shipping service continue to receive Federal dollars annually. from Cleveland to Montreal that could begin as soon as next spring. It would provide a competitive, reliable, continued on page 3 2 FALL 2010 Administrator’s Colum n, continued from page 2 S and verifiable information about the Seaway System and its Also underway is an important evaluation of the economic users that can be widely utilized for educational purposes. e impact of the Great Lakes St. Lawrence Seaway System. For the first time, in a single study, Canadian and U.S. benefits As we head into the final months of the 2010 shipping season, a and impacts will be evaluated to give a comprehensive snap I anticipate a strong finish and believe there is cause for shot of our binational system. This economic impact study continued optimism for next year and beyond. But we must w will serve to update Canadian and U.S. data regarding continue to be proactive and persistent in promoting mar - employment and tax revenue. Data will be provided at the itime transportation and the Great Lakes-Seaway System. regional level, by country (U.S./Canada), and by state and Get engaged in the debate, make your voice heard, and do a province. This study, scheduled for completion sometime your part to help get the facts about the industry out there early next year, will provide a great deal of critical, factual in the public domain.