Minnesota iron ore moving to China

The world may be flat, according to Thomas L. Friedman’s book on the progress and effects of globalization, but who could have envisioned iron ore pellets from Minnesota being sold and transported to China?

Minnesota iron ore bound for China begins the waterborne portion of its transport in the hold of a U.S.- or Canadian-flagged laker.

More than one million tons of pellets from Minnesota’s famed Iron Range are being shipped to China this season, beginning their voyage at the mines and then going to ore docks in Duluth and Two Harbors and then being shuttled out to St. Lawrence River deep draft ports for transshipment to large ocean vessels bound for China steel mills.

The vessel shuttle process from Minnesota docks is being handled by three means:
U.S. lakers transport iron ore pellets directly from Duluth and Two Harbors to Toledo, Ohio, where they are reloaded onto Canadian vessels for delivery to the Port of Quebec for transloading onto large ocean vessels.
Canadian bulk-lakers transport iron ore pellets directly from Duluth and Two Harbors ore docks to St. Lawrence River ports for transloading onto large ocean vessels.
Canadian self-unloading lakers transport pellets from Duluth and Two Harbors to St. Lawrence River ports for transloading onto large ocean vessels.

As an example, in June the Quebec Port Authority and St. Lawrence Stevedoring welcomed the Chin-Shan, one of the biggest dry bulk vessels to ever call on the Port of Quebec, for 100,000 tons of iron ore pellets destined for China.

“The arrival of this vessel demonstrates once again the excellent commercial positioning developed by the Quebec Port Authority and St. Lawrence Stevedoring in the transshipment of dry bulk to and from the Great Lakes area,” said port authority President and CEO Ross Gaudreault. “The Chin-Shan left very quickly for new horizons. This demonstrates that at the Port of Quebec, we welcome opportunities of this sort with open arms.”

The Port of Toledo anticipates five shipments of iron ore pellets bound for ports in China this season. In this case, the pellets aredelivered to the port authority’s general cargo center by large self-unloading U.S. lakers or tug-barge combos. The ore is then loadedonto Seaway-sized ships for transport down the St.Lawrence River; it is met in Quebec for transferonto an ocean-going vessel. The Toledo portion of the operation occurs within three days.

Once in China, home of one of the world’s fastest-growing economies, the ore is used in the production of steel. Given current market conditions, it is anticipated that iron ore shipments from Minnesota will continue into the foreseeable future.