St. Lawrence Seaway Releases Mixed Cargo Results for YTD 2008

Results compare Montreal, Lake Ontario and Welland Canal numbers for year-to-date results 2008 and 2007; cargo figures show a 15 percent drop overall from last year.

Total traffic and tonnage for the St, Lawrence Seaway (Montreal, Lake Ontario, and Welland Canal) is down almost 15 percent from the same period a year ago. According to Andrew Bogora, Communications and Public Relations Officer for the St. Lawrence Seaway Management Corporation, April traffic results reflect a downturn in the volume of imported steel products from overseas.

Bogora told MarEx in an E-mail message on Thursday that, "This drop can be attributed to the depreciation of the U.S. dollar (making imports more expensive) and the rising cost of energy which also makes the importation of goods over long distances more expensive. The downturn in imported steel impacts the export of grain from our system, as fewer ocean vessels are available to carry grain to overseas destinations on the return leg of their journey."

Bogora went on, however, to paint a somewhat rosier picture for Seaway, going forward. He added, "I would like to point out that our preliminary May figures show a pronounced rebound in overall cargo volumes. While steel and grain are still lagging behind last year's figures on a YTD basis, we are witnessing significant increases in the volumes of iron ore and coal. These volumes reflect both strong domestic demand (as steel mills are ramping up production to fill orders once met via imports) and export opportunities. Exports of iron ore and coal to overseas destinations are filling voids, as strong demand in China has tightened supplies of these commodities worldwide."

Bogora also said that project cargo volumes are also contributing to a rebound in overall tonnage; given the continuing influx of wind turbine components for North American based "green" energy projects. "Seaway draft remains consistent at 26'6" enabling vessels to carry full loads throughout our system," he said. MarEx readers can read the latest Seaway data by clicking HERE.

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