It is wait-and-see for Great Lake Ports, but there are still bright spots.
Port of Cleveland. Tariff uncertainties, coupled with a slower start to the season at some ports, are making it a wait-and-see year in Great Lakes shipping, while the St. Lawrence Seaway maintains course with record grain exports.
At the Port of Cleveland, the year began strong with the first international vessels arriving in early April. “We moved a lot of cargo in April and May and were still up 11% by July over last year, but early shipments were likely booked to avoid tariffs,” says David Gutheil, the Cleveland-Cuyahoga County Port Authority’s Interim President and CEO. “June’s slight downturn has made people uneasy about possible tariff impacts.”
The regular barge service transporting a significant amount of Canadian steel might also be affected. As of early July, those volumes were on track with 2024’s early season but could plummet if the Trump administration maintains a 50% tariff on imported steel.
Meanwhile, the port is seeking new opportunities. In late June, it signed a strategic agreement with the Shannon Foynes Port Company, Ireland’s second largest port, to bolster trade links between the Great Lakes and Europe. “The more partners we can find to work with us on building transatlantic container flow, the better,” Gutheil says.
Significant investments include the $32 million in federal and state grants announced last year towards modernizing the port’s general cargo terminal. Major structural improvements to the terminal’s largest warehouse are expected to be completed by next year with the entire project – including the facilities to use more electrically powered equipment – in place by 2027.
Tariffs have spurred interest in the Foreign Trade Zone program that allows a port to reduce, defer or eliminate duties on imported goods while they’re kept in designated FTZs. “We’re receiving numerous calls,” Gutheil says.
Tariffs Driving “Interest” for Port Milwaukee
At Port Milwaukee, FTZ inquiries have also spiked. “We have several new operators participating, as well pending applications,” Maria Cartier, Port Milwaukee’s Market Development Manager, says. “Tariff possibilities are driving the interest by regional businesses.”
Widespread relief followed the US administration’s decision not to proceed within the Great Lakes and Seaway region with a $1.5-million tariff per ship call by Chinese-made vessels or carriers that have Chinese-built vessels within their fleet or on order. “If that had occurred, Port Milwaukee would have lost half its trade,” Cartier says. “Extensive advocacy went into making the US administration aware of the unintended consequences.”
While the port’s cargo is slightly down with salt remaining stockpiled after a few mild winters, the year has started out strong on steel imports that were likely ordered ahead of potential tariffs. The earliest calling international vessel arrived to load agricultural exports, particularly dried distilled grains with solubles as feedstock. “It’s the first time that DeLong, which usually focuses on container shipments, is moving agricultural products overseas in bulk and it’s proving highly successful,” Cartier says.
The $40-million DeLong Agriculture Maritime Export Facility that opened in 2023 has boosted the port’s international throughput by approximately 12% and will boost it further with a $15.7-million planned expansion.
Port of Duluth Busy
At the Port of Duluth, the season was delayed by ice conditions in Whitefish Bay, along with several vessels requiring maintenance before they could set out. “Our general cargo terminal has been steadily busy since, but the rest is a mixed bag,” says Kevin Beardsley, the Duluth Seaway Port Authority’s Director.
“Iron ore, which accounts for half our tonnage, is slightly down compared to 2024, but we’ve heard that domestic steel mills ramped up production in late June so we’re hoping for a positive outcome by the end of the season,” Beardsley says. “Grain is also off pace for various reasons that include global pricing competition and alternative routing.”
In mid-July, CHS Inc. announced the permanent closure of its nearby Superior grain terminal at the end of August. Demand for mid-Western grain had fallen to approximately one million tonnes annually compared to 10 times that volume at its peak in the 1970s. A primary factor is lower pricing from Russia, Argentina, Brazil and Canada (with the exchange rate).
“The logistics chain has also changed to favour grain being shipped by rail to coastal ports for loading onto Panamax ships rather than using Seaway-sized vessels,” Beardsley adds. “We’re helping the City of Superior to remarket the grain facility and there’s already interest.”
Duluth is bustling in terms of project cargo, particularly wind turbines and energy-related components. This year marks the 20th anniversary of the first wind-energy cargo arriving at Duluth. “By the end of this season, we’ll have received more than 2.6 million freight tons of this cargo doing another good year,” Beardsley adds.
Heavy cargo deliveries for the mining industry have also been steady. “We’re 16 miles from the Mesabi Range, the premier supplier of US iron ore, so we’re a key part of shipping that cargo, along with the required machinery,” Beardsley says. “We’re also delivering components for the oil and gas industry as far as Western Canada.”
The port has requested Port Infrastructure Development Program funds for the Duluth Port Intermodal Terminal Expansion project which includes reconstructing dock walls, razing several grain elevators, providing water for the area’s redevelopment, and creating 7.5 acres of laydown space.
In late May, the official opening of the $28-million dock restoration project in nearby Superior was held. The project has led to the C. Reiss Co. relocating its shipping operations from Duluth for approximately two million tons of coal, limestone, salt and other bulk cargos annually. The project at the 50-acre site included restoring 2,500 feet of dock way, just over 87,000 feet of rail, as well as other maintenance and storage facilities.
Port of Green Bay — Freight Volumes Down but July Better
The Port of Green Bay is investing upwards of $50 million for a 1,700-foot dock accommodating two or three tenants, as well as 38 laydown acres. Construction is expected to begin next April.
Dean Haen, the Director of the Port of Green Bay, says it will further diversify cargo. “We’ll let the market decide how it wants to use it, but Wisconsin is a huge agricultural state so why not use marine transport to deliver more liquid fertilizer?” he says. “Our state is also strong in papermaking requiring kaolin clay, and we have the space for large project cargo such as wind turbines.”
As of late June, the port was trailing in cargo volumes. Haen says it’s difficult to know whether it’s due to tariff uncertainties or just business timing. “We remain optimistic about staying on track with last year’s volume of just over two million tons of cargos by the end of the season.”
While the port began to see an early July uptick, it was still approximately 40% lower in terms of year-over-year volumes. Contributing factors include a steadily diminishing coal market, along with lower demand for road salt. However, tariff uncertainties might be playing havoc with fuel purchases. “We typically receive a significant amount of diesel and gasoline and then ship ethanol for use in fuel to the US and Canadian seaboards,” Haen explains. “Buyers could be delaying their purchases during the current US - Canada trade issues.”
At the same time, European and Brazilian softwood pulp for making diapers and other products has skyrocketed by 300%. “In this case, I think manufacturers are seeking to get shipments before tariffs come into effect,” Haen says.
While Haen acknowledges tariffs may be causing some negativity, he’s optimistic they will result in some good, too. “I just read that some $108 billion was unexpectedly generated by the first nine months of tariffs,” he says. “That’s a huge amount of money into the Treasury [which] should create some positive things.”
St. Lawrence Seaway Traffic Up
Great Lakes St. Lawrence Seaway commercial vessel traffic through the US locks at Massena, New York, is up 11% over last year, and total cargo tonnage has increased by 4%, according to the Great Lakes Seaway Development Corporation.
US grain exports are upwards of 114%, and dry bulk has rebounded from a spring dip to post a 3% gain. Cruise activity is also rising, with five ships sailing this year—two more than last season—taking passengers to Great Lakes communities each week.
Overall binational Seaway traffic is slightly above 2024 levels at mid-season with a huge boost from a record year for Canadian grain. “We’re – dare I say it – north of 27% compared to late July of last year,” says Jim Athanasiou, the St. Lawrence Seaway Management Corporation’s President and CEO.
“Iron ore shipments are lower but the now fewer companies that exist post mergers and acquisitions have been more focused on first procuring the iron ore available within the Great Lakes region over the last decade before purchasing overseas imports,” he says.
Looking ahead, one of the most promising opportunities is expanding container shipping on the Great Lakes. By the 2026 season, four US ports—Cleveland, Duluth, Monroe, and Burns Harbor—will have Custom Border Protection cleared container service.
Several Canadian ports have expressed interest in binational container services connecting with transatlantic routes but continue to await clearance resources from the Canada Border Agency. Recent Canada-U.S. border issues might also make binational collaboration more challenging.
Athanasiou is among those determined to increase the Seaway’s traffic significantly from its longstanding 50% capacity but transporting more containerized shipments. “The business case might not be there yet in terms of profitability on the micro level, but more people are seeing how it makes sense on a macro scale to use Highway H20,” he says, adding that Europe has numerous successful examples.
“The Great Lakes and Seaway are close to a third or more of North America’s population, so we should be taking advantage of this underutilized system to ship containers to ports for ultimate deliver by train and/or truck in a well-balanced solution to highway congestion, continued urban densification, and greener transportation solutions.”
