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Lake Ore Shipping Is Affected by Greater Use of Scrap By Alexander I. Wood ESSEL owners on the Great V Lakes are directly and adverse- ly affected by the increasing use of iron and steel scrap in the production of steel. The production of steel in the United States has in- creased some 36 per cent in the past 20 years, while in contrast to this growth the production of iron ore has decreased 3 per cent. In view of the fact that it takes 1.85 tons of ore to make one ton of pig iron, it is seemingly a paradox that less ore was produced in 1931 than the total pro- duction of iron and steel. This peculiar condition is due, not to imports of foreign ores, but to the tremendous increase in the use of iron and steel scrap. The amount of scrap consumed by the open hearth and blast furnaces has increased to an estimated yearly volume of 28,- 000,000 tons. Approximately 85 per cent of the ore consumed in the United States is mined in the Lake Superior district. Except for small amounts of all rail shipments the entire production is shipped via the lakes to the consum- ing centers. It is therefore clear that the increasing use of scrap and the consequent reduced demand for ore even in normal times with steel production at a high point, has ser- iously affected the shipping industry of the Great Lakes. In Table 1 the trend in consump- tion of lake ore in proportion to the total production of iron and steel is clearly evident. It will be noted that for the year 1929 the total lake ore consumed was 63,662,342 tons. Had the ratio remained the same as in 1920 the consumption of iron ore would have been 73,211,693 tons. The drop in the consumption of iron ore in proportion to the total produc- tion of iron and steel simply means that a great deal more iron ore was used to make one ton of steel in 1920 than in 1929, the difference being made up by the use of scrap. This difference represents a loss of nearly 10,000,000 tons of cargo to the ves- sel owner. Anticipating a continued increase in the demand for the movement of iron ore from the Lake Superior dis- trict corresponding to the upward The author, Alexander T. Wood, is connected with the Wilson Transit Co., Cleveland. Statistics quoted are taken from STEEL, article by A. J. Hain, Jan. 1, 1931, and from the Jan. 1, 1932 issue. Statistics on number and trip capacity of ore carriers were compiled by A. B. Kern, M. A. Hanna Co., Cleveland. With a total movement of only 23,- 467,786 tons of ore in 1931, the hope of operating an ore fleet at capacity can only be projected into the dim future. Under these circumstances it is not strange therefore that shipowners on the Great Lakes have been seeking other uses for their freighters. In 1925 there were 363 vessels on the TABLE I Year Total Iron Total Lake Ore Ratio Lake Ore to and Steel Consumed Total Iron and Steel ODO ieee ie ae ee 50,259,115 57,153,886 1.14 PORT Ce Recta 23,123,637 25,832,215 12 gE 2 PS ne 41,168,260 40,975,775 1.00 TO eee Ga i ae 53,831,743 62,295,386 1.16 OO ae ee ep ae Pen 45,166,420 45,978,221 1.02 DOD Diet ee ee we 53,007,249 54,767,112 1.03 VOI G Or rer eine 56,455,761 58,359,015 1.03 dla! WAr Gate, teehee Nine te ollagiri elena 53,087,851 52,932,630 1.00 g (Sled eh meee ah SUN et 58,561,637 56,823,322 97 PO 29 Ghee ete ie 64,258,562 63,662,342 .99 trend in steel consumption the lake shipping industry built up an organi- zation capable of handling more than 85,000,000 tons of ore a season. This volume has never been attained and there is now a realization among ship-owners that the lake ore fleet has been over-developed in capacity. O anticipated normal increase in demand for ore, even in years of plenty, will absorb the present lake fleet capacity ac- cording to the author's analysis. This is probably correct. How- ever, an important point has not been touched upon. Many of the units of this fleet have long since passed, and others are rap- idly approaching, the end of their normal replacement period. An obsolescent ship, like any ob- solescent tool, is an economic ‘liability because of the high cost of operation. The real objective now should be the modernization of the ore carrying fleet. In the final analy- sis the successful vessel operator cannot ignore modern improve- ments and practice in naval ar- chitecture and marine engineer- ing. Therefore in the years to come new ships must be built, ships that will give the most efficient service at the lowest possible cost. Why not begin an intensive study along these lines so that a plan of procedure can be prepared? Editor's Note {SSD DR ERA ELD SLL TS EEO MARINE REvIEw—May, 1932 Great Lakes operated in the ore trade with a trip carrying capacity of 3,- 098,700 tons. In 1931 there were 335 vessels with a trip capacity of 2,807,900 tons. The difference rep- resents a shrinkage of almost 10 per cent in number and about 8,000,- 000 tons in capacity. Many of the ships listed as ore car- riers in the accompanying Table II did not carry ore even in the record ore shipping year 1929. The with- drawals between 1925 and 1931 represent ships no longer available for carrying ore. Exclusive of ships sold to Canadian interests most of the withdrawals have been recon- structed for special trades. There has been a notable increase in the self-unloader type of vessel. Several ships have been remodeled to carry TABLE IT Year Number of Tons Capacity Ore Carriers per Trip (19 foot draft) BIS [you ieee ee 363% 3,098,700 VOZG isi 357 2,862,900 1927 oe 358 2,909,800 PODS es 346 2,847,000 1929 eek 340 2,827,000 POSOn eos 335 2,807,900 UOSAe eee 335 2,807,900 automobiles and not a few are now equipped to handle scrap. In view of the above outlined changing developments in the ore in- dustry, the future of lake shipping in the ore carrying trade will not cor- respond with the fortunes of the steel industry. Until the ultimate ef- fect of the use of scrap is established there is likely to be little new con- struction of ships for the ore trade. A bronze plaque has been awarded by the Standard Shipping Co. to the tanker E. T. Breprorb, in recognition of her record of three years and three months without an accident involv- ing loss of time of the personnel. 19