The home of the Rock and Roll Hall of Fame seeks to add another spotlight to the city of Cleveland, Ohio by adding multi-purpose shipping to the banks of the Great Lakes. The 450-foot Dutch-flagged Spliethoffoperated, Fortunagracht, arrived in Cleveland Harbor from Antwerp on April 21 where it took on containerized consumer goods, industrial wares, Ro/Ro, project and heavylift cargoes – including boats, machinery, steel and lumber - for its maiden voyage to Europe. This first voyage was part of a time-based agreement with long-term intentions by both parties, and is what the Cleveland-Cuyahoga County Port Authority, which pioneered the service with the Spliethoff Group in Germany, calls its Cleveland-Europe Express or CEE-way service.
The Fortunegracht docked at the Port of Cleveland, OH
The freight shipping service, which takes the MV Fortunagracht through the Saint Lawrence Seaway once a month initially, was approved by The Port of Cleveland Board of Directors in November. The seasonal, all-water, service will run from April to December and provides Midwest shippers a cost-effective and quicker alternative to the cumbersome combination of water, rail and truck they’ve become accustomed to as they move their goods into the Midwest from U.S. East and Gulf Coast container ports. During winter months, when weather dictates that the Seaway be closed, cargo operations will continue, but will move with an increased intermodal component. The trade is expected to be balanced by both the port authority and Spliethoff. “The service connects two of the largest economic areas in the World: the EU (and beyond) and the Great Lakes / Midwest. So there is balance,” said Torin Swartout, vice president Spliethoff Cleveland.
William Friedman, president and CEO of the Port of Cleveland called the service, “the fastest and greenest route between Europe and North America’s heartland.” He also acknowledged that the new service will allow regional companies to ship their goods up to four days faster.
When asked about transit times, Swartout said that typically it’s 12 or 13 days each way between Antwerp and Cleveland. “In Antwerp the cargo connects with through bills of lading on our existing liner services to Russia, Estonia, Finland, UK, Poland and Spain, plus everywhere that can be reached by barge or truck,” he explained.
“This service will offer Ohio exporters a faster, more cost-effective, and greener solution to get their goods to global markets,” Friedman said. “The Cleveland-Europe Express can handle roughly 10-15% of Ohio’s trade with Europe.”
Timing is Everything
So why introduce the service now?
“Timing is always right for a better alternative in the market,” said Friedman. He also gave mention to the possibility of the Transatlantic Trade and Investment Partnership, a proposed free-trade agreement between the European Union and the U.S., and to the fact that U.S. exports are up.
Likewise Swartout, said, “The high cost of trucking and fuel, coupled with congestion and uncertainty at East Coast ports and on the rail, make this an opportune time for us to offer a direct, all water scheduled service.”
Bookings for industrial equipment and containerized goods are strong. When asked about interest from shippers Friedman said that they’ve had a, “very favorable market reaction so far.” He also commented that the community has been extremely supportive.
According to the port authority, general cargo moving through the Port of Cleveland was up 20% in October 2013 compared to the same month a year earlier. At the time, general cargo was also up more than 20 percent over the port’s 2012 tonnage level, setting the pace for the highest annual tonnage level since 2008. Additionally, the combined port and river system is a major contributor to the regional economy. It’s responsible for 17,832 jobs; $1.08 billion in annual personal income; $112 million in annual taxes paid to local and state government; $508 million in annual local purchases and $1.81 billion in total economic activity.
For now, one ship will suffice for this new addition to the region, but as demand grows, the agreement between the port and Spliethoff allows for the addition of a second ship, which would put the service on a two-week rotation.
“This is starting as a monthly service, and we are prepared to increase that frequency as required by our customers,” said Swartout.
Spliethoff Group
The Spliethoff Group owns and operates a fleet of about 100 multi-purpose, heavy-lift, and Ro/Ro vessels ranging in size from 9,500 to 21,000 tons, all of which sail under the Dutch flag and are part of the reason Swartout thinks Spliethoff was chosen for the venture.
This particular vessel, the Fortunagracht which was previously trading globally until her reassignment to the CEE-way service, was built in 2012 and is a, “multi-purpose tweendecker with heavy gear, fully container fitted and designed to lift up to 160 metric ton pieces and carry containers, breakbulk, and Ro/Ro cargo,” according to Swartout. “Her deadweight is 12,500 metric tons.”
On one side of the pond, Spliethoff will also offer shippers through bills of lading using their European logistics network. And on the other, the company will offer onward connections to and from Cleveland utilizing their Americas logistics network for door-to-door services.
And, if there was any question that the port can physically handle its newfound business, Friedman quickly answered by saying that no additional infrastructure had to be added. “We are looking at making some improvements to the port but our infrastructure is sufficient.”
“We recently held a reception in Cleveland marking the arrival of the Fortunagracht,”said Swartout. “The support is quite remarkable and we are very appreciative and pleased to partner with the Port of Cleveland in this historic venture.”
The historic venture will undoubtedly continue as Fortungracht will once again leave Antwerp bound for Cleveland on May 6.
