High Lake Ontario outflows impact shipping, economy
The Canadian and U.S. economies could take a $1-billion to $1.75-billion hit due to record high water levels on Lake Ontario, says the Chamber of Marine Commerce
The chamber, a binational, private sector, not-for-profit association which represents more than 130 marine industry stakeholders, said an analysis it conducted shows the impact to the economy if there was an increase in the lake’s outflow.
Even at the current record-setting outflow — water is being released at a record 10,400 cubic metres per second from the Moses Saunders Dam between Cornwall, Ont., and Massena, N.Y. — continues, the chamber said there’s a significant cost to the economy.
That cost is an estimated $3 million to $4 million in business revenues lost for every day the outflow is in place due to delays for all ship transits through the St. Lawrence Seaway.
A release from the chamber last week said it supports the International Lake Ontario–St. Lawrence River Board’s decision to continue the current flow rates.
“We are sensitive to the flood damage being done to homeowners. Given the plight of riparians, sustaining flow rates at these very high 10,400 cubic metres per second rates is the best compromise solution to deliver relief for Lake Ontario residents while maintaining safe, commercial navigation and supply to North American consumers,” chamber president Bruce Burrows said in a release.
He said the Seaway is a vital trade artery for both raw materials and global exports for North American industries, including grain, manufacturing, steel, construction, mining and energy sectors.
St. Lawrence Seaway Management Corp. spokesperson Andrew Bogora said vessels transiting the St. Lawrence River, most affected by the high outflow with increased river velocity and currents, are already facing delays.
“Ships are facing delays of two hours or more as a consequence of lower speed limits and mitigation measures put in place,” he said.
Bogora said the cost of those delays are being borne by the commercial shippers and there could be a long-term effect on the seaway as vessels aren’t able to make as many trips through the system due to the transit delays.
One area affected is the Iroquois Lock, at Iroquois, Ont., where a tug is assisting vessels on their approach to the lock due to the high currents in that location.
With the increase outflows affecting the St. Lawrence River, Bogora said the seaway corporation has put special mitigation measures in place to ensure vessels — lakers, tugs and barges, and oceangoing — are safely able to transit and limit their impact on the shoreline of the waterway.
“We have a series of more restrictive speed limits in sensitive areas of the seaway and a very strict mandate for vessels to watch their wake.
He said captains and pilots of vessels still must watch their wakes even when abiding by the lower speed limits to ensure there is no impact on the shoreline.
Last Wednesday, vessels headed downbound out of Lock 1 — toward Lake Ontario — had been advised to watch their wakes, as well.
During an interview earlier in the week, Rob Caldwell, Canadian secretary of the International Lake Ontario — St. Lawrence River Board, said the agency was looking at possibly increasing the outflow from the 32-turbine dam.
But he said before that would be done, the board would need to assess the impact increased flows would have on the velocity and current in the St. Lawrence River, and impacts on property downstream.
The chamber release said raising the outflow would have significantly more severe economic repercussions that what’s being seen currently, according to its analysis. It also said scenarios circulated to stakeholders for feedback could result in stop-and-go traffic or sustained closure of the seaway to navigation
“Raising water outflows further to unsafe levels would halt navigation on the St. Lawrence Seaway and disrupt the supply of vital materials and products to industries and towns. This would cause significant harm to other parts of the economy and put jobs at risk,” said Burrows.
He said lost time cannot be made up later in the season.
The chamber said, in Canada, halting navigation would severely impact Western Prairie and Ontario grain exports as well as the delivery of supplies to steel manufacturers across Ontario, gasoline and jet fuel supplies for the Greater Toronto Area, and construction materials and road salt to cities in Ontario and Quebec.
“Stop-and-go scenarios would also cause a cascade of traffic congestion in navigation channels, ports and significant safety challenges,” said Burrows.
Increased flows, Burrows said, could affect whether vessels could safely anchor and possibly see navigation buoys could out of position, becoming unreliable or potentially obstruct the navigation channel.
On the U.S. side, stop-and-go scenarios or complete shutdown would, for example, disrupt grain exports from the Dakotas, Minnesota, Michigan, Ohio and Indiana; and Minnesota iron ore exports to Canada and overseas, as well as impacting Quebec aluminum imports to Oswego (New York) and Toledo for automotive and appliance manufacturing; raw material imports for steel production in Ohio and wind energy components for projects in Minnesota.