By Leo Ryan, AJOTThanks to a recovery notably in the steel and automobile industries, cargo movements through the bi-national inland waterway of the Great Lakes/ St. Lawrence System are bouncing back from the 2008-2009 recession. Another important factor has been surging US grain exports sparked by crop shortages in Russia, while project cargoes remain a growing maritime activity sector - as seen in developments at such ports as Burns Harbor, Duluth Superior and Thunder Bay. The upward trends are reflected in the latest numbers from the St. Lawrence Seaway entities, the Lake Carriers’ Association representing US-flag carriers on the Great Lakes, various inland ports as well as from shipping executives. Canada’s St. Lawrence Seaway Management Corporation (SLSMC) reported a 15% increase in cargo volume on the North American waterway during the 2010 navigation season, with an estimated total of 35.5 million metric tons. This was a marked improvement over 2009’s disastrous plunge to 30.7 million tons from 40.8 million tons in 2008 – the lowest level since 1961. “With a recovery in the manufacturing sector, characterized by a resurgent domestic auto assembly business, the level of activity in the iron ore trade broke out of the starting gate at a brisk pace in 2010,” noted Terence Bowles, newly-appointed President and CEO of the SLSMC. With the end of the 2010 season showing positive momentum on several fronts, Bowles recently declared: “We are optimistic of what we may experience in 2011, as economic growth continues to regain strength.” Collister Johnson Jr., head of the Washington-based Saint Lawrence Seaway Development Corporation concurs by referring to “a widespread sense that a tough business corner had been turned.” In 2010, shipments of iron ore rose by 35% over 2009. Grain showed progress, increasing by 10%. A highlight, too, was the 63% surge in general cargo, mainly consisting of iron and steel breakbulk shipments and such project cargo as wind turbine components. For 2011, Seaway officials cautiously anticipate a moderate increase in traffic over 2010. “We are very encouraged by the bounce-back of the economy as reflected in the need for services in the Great Lakes,” said Bruce Bowie, President of the Canadian Shipowners Association. “Apart from steel and iron ore, one of the highlights of 2010 has certainly been the flexibility demonstrated by the Seaway to accommodate the changes of the grain markets in Europe.” Fednav Sees ‘Solid Improvement’ For Fednav, largest ocean-going user of the Seaway, 2010 represented a solid improvement over 2009. “It is fair to say that Fednav’s liner service (FALine) from Northern Europe to the St. Lawrence and the Great Lakes enjoyed increased imports on the steel side,” said Liner Manager Dennis Pfeffer. “With the financial crisis abated somewhat, inventory replacement at the beginning of the year was subsequently sustained by regular shipments throughout the Great Lakes season,” Pfeffer said in an interview. “Imported steel commodities varied with long steels leading the way in tonnages, followed by flat products.” General cargoes in non-steel products, Pfeffer said, “remained stable during the season up from 2009 – which is always a good sign.” He also indicated that “FALLine lifted some very interesting project cargo, including several large beer vats destined for Hamilton.” “On the wheat side,” Pfeffer went on, “exports certainly increased over 2009, which was refreshing. Ocean freight rates reflected the increased demand for grain products in Northern Europe and to the Med.” “Overall,” he concluded, “it was a well-balanced season and we look forward to the 2011 start of FALLine’s 52nd year of continuous service to the steel and general cargo trade. It is too early to tell how 2011 will unfold. However, we are hopeful that at least the quantities lifted in 2010 will be repeated in 2011, if not more.” Dennis McPhee, Vice-President, Sales and Vessel Traffic, Seaway Marine Transport