Low water casts deep trouble on Great Lakes
November 16, 07 by TheFleetIf you're new here, you may want to subscribe to our RSS feed. Thanks for visiting!
By Gitte Laasby | Source: Post-Tribune
The nearly historic low water levels in Lake Michigan could soon hit consumers’ pocket books.
Water evaporation and lack of precipitation are causing trouble for shippers and power companies, who might pass on added expenses to consumers.
… At the moment, the Port of Indiana in Burns Harbor is more affected by market forces such as a weak U.S. dollar than by low lake levels, but shippers generally experience increased costs because they have to carry lighter loads.
“Lake levels certainly present a different equation in that you can’t fill the ships as high. Therefore, it takes more ships to bring in the same amount of cargo or it costs more,” said Jody Peacock, spokesperson for the Ports of Indiana. “You may not be able to make as much profits. Any time you add cost into the equation, the cost has to be passed down” to the consumer.
That also affects the steel industry. The Burns Harbor port handled $820 million worth of cargo in 2006.
