was supposed to take four days by way of the Great
Lakes. But within sight of its destination, the cargo ship, the Arthur M. Anderson, got trapped in ice. Two heavy icebreakers from the Canadian Coast Guard eventually broke the vessel free. The trip to pick up a load of iron ore powder in
Conneaut, Ohio,
A
deep freeze this winter left much of the Great Lakes blanketed in thick
ice, sidelining the ship lines and companies that move vast amounts of
grain, cement and other commodities through this system of waterways.
And now the spring thaw, which creates piles of impassable ice, will
most likely create more delays.
“There’s
a lot of ice out there, and we need to understand the impact of that
ice,” said Mark Barker, the president of the Interlake Steamship
Company, which carries mostly iron ore, coal and limestone on its nine
ships. “Last year, we pretty much lost the month of April.”
Cold
spells and snowstorms have taken a bite out of businesses across the
Northeast and Midwest of the United States, as well as in Canada. Car
manufacturers have blamed the weather for weak sales. Housing starts,
too, have slumped. And blizzards in places like Boston have been brutal
for many local businesses.
Michael
Dolega, who analyzes the United States economy at the Toronto-Dominion
Bank, says he expects that the weather will cut first-quarter growth by
as much as three-quarters of a percentage point. And not all of that
loss will be made up later in the year, he said. “I don’t think it’s a welcome development,” said Mr. Dolega, who is based in Toronto.
The
Great Lakes shipping trade largely hibernates during the late winter
months, with occasional sailings for supplies like road salt. The Arthur
M. Anderson was making its last run of the season in early February
when it became stuck.
Shipping
is usually up and running again by March. But the opening of the St.
Lawrence Seaway, the critical system of locks that connects the Atlantic
Ocean to the Great Lakes, has been postponed until April 2. Even when
the locks open, there is no assurance that all of the lakes,
particularly choke points prone to ice buildup, will be navigable
.
Last
year’s ice-induced delays reduced early shipments from the United
States by seven million tons, according to the Lake Carriers’
Association, which represents American shipowners. That amounts to about
10 percent of all American shipments on the lakes.
The
Great Lakes are a vital conduit for companies in a wide range of
industries. Grain from farms in Western Canada makes its way to markets
around the world. Iron ore travels to steel mills along the shorelines.
Power plants depend on the coal that travels via the lakes. Companies in
steelmaking, electrical generation, construction and agriculture — like
Cargill, United States Steel and Lafarge — all need the waterways.
For
companies now facing dwindling stockpiles, there are few alternatives
to ships for restocking. Shipping by rail is more costly, even if the
tracks were not already overloaded. And hauling large quantities of,
say, iron ore by truck is neither practical nor cost-effective.
Replacing a single Great Lakes ore-carrying ship requires about 2,400
tractor-trailer trucks.
During
a normal winter, some ships can continue to make relatively short treks
without much trouble, particularly when ice cover is light. But the
last two winters have been particularly harsh.
In
2014, ice cover peaked at 92.5 percent, according to the National
Oceanic and Atmospheric Administration’s Great Lakes Environmental
Research Laboratory in Ann Arbor, Mich. Ice persisted in some places
until June. This year, ice cover was 89.1 percent.
“Two
especially severe winters back to back — we haven’t seen that in a long
time,” said George A. Leshkevich, who tracks the ice for the research
laboratory. “All the lakes seem pretty brutal.”
It has created nightmarish troubles for vessels that must continue to attempt runs through the worst of winter.
Truck
and train cargo that is too dangerous or too large for the bridge and
tunnels spanning the international border between Detroit and Windsor,
Ontario, must instead travel the Detroit River. But dense ice stopped
the Detroit-Windsor Truck Ferry for 31 days this year, 25 of them
consecutively. At one point the ferry’s tug was stuck in Windsor with
its barge separately frozen to a dock in Detroit.
Ed
Bernard, vice president of the Toronto-based Precision Specialized
Division, a heavy haul company, said he waited more than two weeks to
ferry across the river sections of large chimneys destined for Ohio.
Gregg
Ward, the co-owner of the ferry, said, “Our expenses continue, so it’s a
tragedy for us. By the time this is over, we’ve lost 20 percent of the
year.”
As
the thaw gets underway, the shipping situation can actually worsen if
wind causes ice to pile up in stacks. “I’ve been on a 235-foot Coast
Guard ship going full speed ahead, and when it hit one of those, the
ship shuddered to a stop,” said Lt. Davey Connor of the Coast Guard
district in Cleveland, which is responsible for the Great Lakes.
Many companies are now playing the waiting game.
A
United States Coast Guard icebreaker made initial attempts at breaking
up ice last week in the port here. Eight imposing grain elevators, which
collectively have the largest storage capacity in North America, make
the Thunder Bay port an important hub for Canadian exports heading to
the Atlantic Ocean.
Once
again this year, the season’s first ships will not get loaded in March
as they normally are. As the Canadian Wheat Board’s elevator nears
capacity, Paul Kennedy, its manager, says that he may soon be forced to
stop daily unloadings of 90 or so rail cars, which have come from the
western part of the country.
“They’re
starting to hunt and peck a little bit for space,” Mr. Kennedy said of
his employees in the concrete elevator. “You don’t want to get to the
point where you can’t unload any more cars and you’ve got loaded cars
sitting on track.”
Railroads
impose a $100-a-day charge for every loaded but idle car stuck on their
tracks. Last year, when shipping didn’t start in Thunder Bay until
April 26, Mr. Kennedy estimates that about 2,000 rail cars destined for
the eight grain elevators along the city’s shoreline were backed up in
rail yards.
The delays are just as painful for the companies that depend on the various commodities.
Robert
Lewis-Manning, the president of the Canadian Shipowners Association,
said that last year, two large steel makers “were getting awfully close
to having to lay off people” because their stockpiles of iron ore, coal
and coke almost ran out in the spring. He declined to identify the
companies.
As
his fleet of 22 ships gears up to resume service, Allister Paterson,
the president of Canada Steamship Lines, said he expected that the most
anxious customers would be suppliers and users of road salt along the
lakes and the east coast of North America. With their stocks all but
wiped out, such players will need to immediately start the long process
of rebuilding.
“They
were still recovering from last year, trying to get inventories up,” he
said. “And now we have another brutal winter, so I suspect they will be
in a restocking mode for quite a while.”" via IceAgeNow.info
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