Key shipping line and terminal operator cautiously optimistic about Great Lakes/Seaway trade

Concerns persist about an unlevel playing field emerging between Canadian and US shipping companies within the Great Lakes and Seaway as trade tensions persist between the countries.

The US government and American vessel operators remain in opposition to Canada’s ballast water regulations. They require all domestic lakers to install treatment systems to manage ballast during loading in Canada, even if the freighters later discharge the water at a U.S. port. The Lake Carriers’ Association contends that the multi-million-dollar systems would place an undue hardship on US operators who manage invasives through voluntary practices.

“We hope regulators will find a reasonable effective solution that works for both sides of the border soon that it is clear and consistent,” says Jonathan White, Canada Steamship Lines’ vice president, Commercial, Canada.

Canadian maritime associations and ship owners remain opposed to any port fees being imposed on Chinese-built Canadian lakers. After strong opposition from numerous U.S. industry representatives, the proposal was put into abeyance until this coming October, but one of its proponents has raised the idea again as part of a USTR investigation into China’s shipbuilding policies and support.

“We’re closely monitoring this situation because while we’re happy to support the American shipbuilding industry and regularly go into US shipyards for repairs and wintering, we can’t have a robust cross-border trade that relies significantly on Canadian vessels penalized in this way,” White says.

The reverberations of the high American tariffs on the Canadian steel industry have already been significant on both sides of the border. “Algoma Steel closing its blast furnace and coke-making operations in Sault Ste. Marie, Ontario, last January has had a ripple effect across the Canada-U.S. Great shipping community with raw material volumes drastically reduced,” White notes.

CSL’s shipping volumes for iron, coal and stone are all lower than before tariffs in 2024 and basically similar to last year. Nevertheless, the company has been keeping all its vessels operating by carefully working with its customers to pivot to new demands to limit tariff impacts. This includes some traffic in response to Build Canada initiatives as well as to new foreign markets.

“We’re also seeing another robust year for grain with a lot of volume going through the St. Lawrence with buyers continuing to favour these crops despite the higher fuel prices sparked by geopolitical tensions, particularly in Iran,” White says.

LOGISTEC’s Terminals

LOGISTEC’s US Great Lakes and St. Lawrence terminals continue to show resilience, adaptability and long-term growth potential, despite the decline in steel and aluminum shipments. Activity remained stable or increased during first half of 2026 at the company’s terminals New York, Indiana, Ohio, Pennsylvania, and Wisconsin.

“A key driver is renewable energy, including wind components, project cargo and BESS battery movements throughout the Great Lakes region,” says Frank Robertson, LOGISTEC’s senior vice president – Operations, North. “This focus is expected to continue, with several large-scale project cargo, steel, bulk and renewable energy opportunities planned in the second half of the year, which will support the region’s growing role in North America’s energy transition.”

Increased spending on US infrastructure and energy projects is keeping LOGISTEC’s Ohio network busy as a key hub for steel and breakbulk through the Cleveland terminal, as is major state projects requiring pipe and other breakbulk and bulk cargo.

LOGISTEC’s focus on commodity diversification at Milwaukee and Burns Harbor terminals is proving to be a good solution for customers in the energy storage and bulk cargo sectors.

“Our international commercial development effort in the first half of the year is expected to generate opportunities that can flow into the Great Lakes network through inland logistics by vessel, rail and road,” says Robertson. “Looking ahead, strong project pipelines, growth in renewable energy, emerging domestic steel opportunities plus the strength of LOGISTEC’s integrated North American terminal network, position LOGISTEC and the US Great Lakes region for a solid second half of 2026.”