The efficiencies of the Seaway, coupled with available capacity and near-perfect reliability measures, have induced a range of dry bulk commodities to see upticks. The 3,700-kilometre Great Lakes-Seaway System offers environmental benefits, including the 99 per cent reliability factor, as it straddles eight U.S. states and two Canadian provinces. This bi-national collaboration is a unique and powerful combination, showcasing how the Seaway’s assets can be equally and simultaneously leveraged for the economic benefit of two countries. Realizing this, potash shippers have included the Great Lakes Seaway as part of their supply chain. One vessel carries the equivalent of 301 rail cars.
A record-breaking year for potash exports in the Port of Thunder Bay could be reached by the end of the 2024 shipping season. The authority’s stats show almost 260,000 more tonnes of potash has moved through the port since the shipping season opened in March, which is topping 2023, a year that was already record setting for potash volumes.
The Seaway has seen year-on-year potash shipment records since 2021 in Thunder Bay, and is poised for the same in 2024, the fourth consecutive year posting increasing volumes. As an entire system, the Seaway’s yearly traffic report for 2023 showed total exports at approximately 1.5 million tonnes. The potash is mainly destined to South American and European countries.
“Thunder Bay is the only potash export port on the Great Lakes – St. Lawrence Seaway System, making it a critical junction in the Canadian potash supply chain,” says Chris Heikkinen, CEO for the Port of Thunder Bay. “Continued growth in potash exports highlights the port’s importance for this commodity and its capability to manage substantial volumes of bulk cargo efficiently.”
Investment in port infrastructure, as revealed in the late 2023 release of the Martin Study, has ports even more poised to handle increased volumes of a range of cargoes and commodities, bringing onside the investment in terminals, cargo handling equipment, more advanced technology, and the use of alternative fuels, to further the position as the already greenest mode of transportation.
The Seaway is referred to as Highway H2O and is anchored by 41 port partners, providing access to key global markets for exporters and direct access into the Heartland of North America for importers. The gateway offers shippers a cost-competitive gateway with a lower environmental impact than competing gateways.
The St. Lawrence Seaway offers a number of incentive programs for shippers to utilize the system. The New Business Incentive offers shippers a 20 per cent toll reduction for new business, along with a Gateway Incentive to induce traffic moving through competing gateways.
“Canada is the world’s largest producer and exporter of potash, representing 38 per cent of global production. We export 95 per cent of our potash to over 75 countries,” noted Karen Proud, president and CEO, Fertilizer Canada. “Farmers rely on Canadian fertilizer to grow healthy, hearty crops, and our industry relies on Canada’s supply chains to get our products to farmers worldwide. In recent years, Canada has increased potash production to offset the decreased output from Russia and Belarus due to sanctions and restrictions. Supply chain partners in the St. Lawrence Seaway play an important role in getting our products to international markets. Reliability in Canada’s supply chains is paramount to ensuring that farmers receive the fertilizers they need in a timely manner.”
Seaway officials echo this sentiment, citing a major factor for increased potash volumes on the Great Lakes is the ongoing Russia-Ukraine conflict, as countries importing potash from Russia and Belarus have now turned to Canada for their potash needs. Additionally, a series of challenges impacting supply chains in recent years is also causing a shift in potash movements, including west coast export gateways becoming less viable due to forest fires, flooding, and unplanned shutdowns. This has put pressure on companies to diversify their supply chains resulting in added reliance on the Great Lakes.
With climate change contributing to more wildfires out west, supply chains may increasingly rely on the Great Lakes in the years to come.
