Cargo tonnage lagging at Great Lakes ports as shipping season nears its end

The amount of cargo moving through ports on the Great Lakes is trailing behind shipments at the same time last year as the shipping season nears its end.

The Port of Duluth-Superior, which moves the most tonnage on the Great Lakes, saw around 26 million tons of cargo shipped through the end of November. That’s down about 5 percent compared to the same time last year and roughly 4 percent from the five-season average.

Iron ore, which is the port’s top commodity, was down roughly 9.8 percent at the end of November compared to the same time last year. Even so, Jayson Hron, spokesperson with the Duluth Seaway Port Authority, said tonnage is largely on par with the five-season average.

“One thing to keep in mind is that last year was a pretty strong year for iron ore,” Hron said.

Around 21.5 million tons of iron ore moved through the port last year — the most since 1995. Iron ore is down as domestic steel production has declined this year. Industries that rely on steel, such as construction and manufacturing, have seen spending slow amid high interest rates, according to Marketplace.

Despite that, Deb DeLuca, executive director of the Duluth Seaway Port Authority, said the port has made gains.

“While not yet back to pre-COVID levels, grain tonnage is on pace for its best finish since 2021, which is a positive for our port and consumers around the world who enjoy high-quality wheat from the Midwest,” DeLuca said.

A total of nearly 600,000 tons moved through the port as of the end of November — up 3.6 percent from last year. All overseas exports increased by 56 percent to 588,354 tons compared to the same time last year driven primarily by grain, the port’s top export.

Meanwhile, a Port Milwaukee spokesperson said the port welcomed an increase in export tonnage through the Agricultural Maritime Export Facility, which is operated by the DeLong Company. The $40 million facility that opened last year has been ramping up operations, which moves bulk agricultural exports. That includes dried distillers grains, a byproduct from beer and ethanol production.

The port did not provide details on the amount of tonnage that has moved through the facility, and DeLong officials didn’t immediately respond to a request for comment. The port’s director, Jackie Q. Carter, previously estimated the facility would increase tonnage moving through the port by about 400,000 tons.

So far, more than 1.6 million tons have moved through the port. Last year, the port handled around 2.35 million tons by the season’s end. Through November, steel tonnage was up 8 percent. Dry bulk cargo was down 15 percent due to a mild winter that reduced demand for salt, in addition to work wrapping on construction projects.

In northeastern Wisconsin, Port of Green Bay Director Dean Haen said the port gained ground on cargo shipments through November. Even so, the port has moved around 1.56 million tons, down about 4 percent from the same time last year. Haen said tonnage through the port had been tracking around 9 percent behind until the end of November.

“We’ve closed that gap significantly,” Haen said. “With a good, strong December, we may be at the same tonnage levels as we’ve seen move through the port in 2023. Nonetheless, we’re a lot closer.”

Limestone made up more than half of cargo tonnage that moved through the port in November. Similar to Port Milwaukee, Haen said salt shipments were down due to the mild winter and leftover reserves. While tonnage is down, Haen noted the number of vessels increased, but they’re carrying smaller amounts. Overall, almost 1.8 million tons of cargo moved through the port during the 2023 shipping season.

Port officials eye potential impacts from proposed trade tariffs

As the shipping season nears its end, port officials are assessing the potential impact of tariffs. President-elect Donald Trump has threatened to impose 25 percent tariffs on all imports from Mexico and Canada if they don’t do more to stop the flow of drugs and migrants coming across the northern and southern borders.

DeLuca with the Duluth Seaway Port Authority said the threat of tariffs on Canada could be huge because officials essentially consider it domestic cargo.

“We’re so intermixed with several supply chains, and most notoriously, the steelmaking supply chain,” DeLuca said. “To remove Canada from that because of the tariffs and the possibility of retaliatory tariffs is complicated.”

Hron said tariffs can be a double-edged sword for the port, noting they can support domestic steel production in the case of steel dumping. He said that tends to increase demand for iron ore, which is the port’s top cargo by tonnage.

“Anything that increases demand for Minnesota iron ore is good for our port and the region as a whole,” Hron said. “But tariffs can also lead to retaliatory trade actions by other countries, which can hurt our port because it tends to reduce exports of key cargos like grain.”

Hron said export tonnage to Canada outpaced imports by a ratio of 16 to one during the last five seasons.

In a statement, Carter, director of Port Milwaukee, said port officials and partners are aware of concerns surrounding tariffs.

“At this point, until the changes are enacted, we are working with our partners to explore any options to limit (the) impact on consumers,” Carter said.