Twin Ports shipping down for the first time in six years

For the first time in six years, less cargo passed through the Twin Ports this shipping season than last.

The 45.6 million tons of freight that flowed through docks in Duluth and Superior during the 2008-2009 season represented a decline of 4.6 percent from the 2007-08 season.

"Through October of 2008, we were running ahead of last year," said Adolph Ojard, executive director of the Duluth Seaway Port Authority. But as a national recession took shape, shipments of iron ore pellets dropped off.

"When it hit, it hit hard," Ojard said of the downturn.

Several lakers laid up early this season as a result of diminished demand for iron ore. Ojard noted that not a single pellet was shipped out of Superior during the month of January.

Iron ore shipments sank 7 percent from the previous season to 18.4 million tons.

"Grain was the other surprise," Ojard said. Shipments of grain out of the Twin Ports fell to 1.2 million tons during the most recent season -- down 61.2 percent from the season before.

Ojard said wheat farmers in the Ukraine and Australia enjoyed bumper harvests last year, leading to reduced international demand for American grain.

With grain shipments down, far fewer ocean-going ships called on the port. In all, 69 salties visited Duluth or Superior during the 2008-2009 season. That's less than half the number of saltwater vessels the Twin Ports received during the previous season.

Coal shipments remained a bright spot for the port. Midwest Energy Resources moved 45.6 million tons of coal through its terminal in Superior during the 2008-2009 season, besting the previous year by 6.3 percent and setting a new record high for the port.

Heading into 2009, Ojard predicted a slow start to the approaching shipping season.

"There will be ships that don't set sail, including some right here in our harbor," he said.

The big unknown, according to Ojard, is the length and depth of the current recession.

But Ojard said reduced fuel, commodity and shipping rate costs could all help set the stage for a recovery.

"We're seeing a complete realignment of cost structures, from raw materials to energy. And reduced costs will hopefully help spur consumption," he said.