Cleveland-Cliffs idles blast furnace but expects strong 2025
Cleveland-Cliffs expects 2025 to be a strong year for the company, citing decreasing interest rates, certainty after the US elections and an increase in manufacturing onshoring, top executives said in the company’s third-quarter earnings call on Tuesday November 5.
“There are a lot of potential catalysts that are brewing in the market that could be a benefit here in the short term,” Celso Goncalves, executive vice president and chief financial officer, said on the call.
The CFO explained: “Manufacturing onshoring will lead to demand. Imports are currently unattractive. There’s potential for increased trade protection. You’re going to see a lot of demand from the CHIPS [and Science] Act and the IRA [Inflation Reduction Act], and the auto industry eventually will rebound.”
Clarity after the conclusion of the presidential election was another factor contributing to the bullishness for 2025, according to executives on the call.
“Customers will start placing orders [after the elections], and things will start to heat up fast. I am anticipating a very strong Q1, and I believe that we are going to have volumes back to normal by the first half of next year,” Lourenco Goncalves, chairman, president and chief executive officer of Cleveland-Cliffs, said on Tuesday.
The bullishness for 2025 comes despite a dismal third quarter, with the steelmaker reporting a net loss of $230 million, compared with a net income of $275 million in the same quarter in 2023.
The company reported steel shipments of 3.8 million net tons for the third quarter, down from 4.1 million tons shipped in the third quarter of 2023.
The weakness in automotive demand was driven by high interest rates, the CEO said on the call.
No6 BF expected to resume early 2025
Cleveland-Cliffs’ idled No6 blast furnace (BF) at its flat-rolled steel mill in Cleveland, Ohio, is expected to resume operations in early 2025, Lourenco said on the call.
The BF was temporarily idled due to ongoing demand weakness, and took an estimated 1.5 million tons of annual capacity off the market, Celso told investors.
Both Goncalves said on the earnings call that the BF will resume operations when demand improves.
“We will bring [BF6] back as soon…as demand comes back, which will come back when pricing recovers. I believe that the price recovery [will come back] early 2025, so I expect that we’re going to bring [BF6] back sometime early next year,” Lourenco said.
Fastmarkets, By Alesha Alkaff
MARAD Awards $77.3 million to Great Lakes Ports
Today the Maritime Administration (MARAD) awarded nearly $580 million to 31 recipient ports in 15 states and territories. These grants are from the agency’s Port Infrastructure Development Program (PIDP). Five Great Lakes ports received grants today totaling $77.3 million, or 13% of the total.
PIDP is the United States’ primary federal assistance program for port infrastructure. Funds are distributed annually via a competitive grant process. Recipients are port authorities, or other local public agencies, or private entities in partnership with a public agency. The PIDP program was first funded by Congress in 2019. Baseline program funds are provided by annual appropriations from Congress. Additionally, the 2022 Infrastructure Investment and Jobs Act provided $2.25 billion in advanced appropriations for the program between 2022-2026.
Unfortunately, during the program’s five-year history, there has been a bias toward East Coast and West Coast ports and an inequitable distribution of federal assistance. For example, in 2023, the U.S. Department of Transportation distributed slightly more than $653 million in PIDP grants. Great Lakes ports only received 2% of the total. West Coast ports received 42% and East Coast ports received 35% of the total.
Last March, AGLPA members met with U.S. Transportation Secretary Pete Buttigieg and called for improved regional equity in the distribution of PIDP grants. Subsequent discussions with MARAD program staff helped improve understanding of Great Lakes port needs.
Today’s announcement reflects improved balance in the regional distribution of PIDP funds. Many thanks go to Secretary Buttigieg and the team at MARAD for hearing our concerns.
To view a list all of PIDP grants awarded today, Click Here
https://www.greatlakesports.org/wp-content/uploads/2024/11/PIDP-2024-Project-Descriptions.pdf
Tawas Bay eyes cruise ship tourism for economic boost
TAWAS, MI — The possibility of Tawas Bay becoming a new cruise ship destination on Lake Huron is gaining momentum. With renewed efforts, the Tawas community is hopeful that the initiative will boost local tourism and invigorate the economy.
Rich Castle, a board member of Develop Iosco, outlined the history and progress of the project. “In 2010, we completed two feasibility studies to determine if East Tawas was capable of accommodating a cruise ship. The studies revealed that the East Tawas State Harbor dock was not suitable for cruise ships to tie off. This halted any momentum we had,” Castle explained.
Fast forward to 2024, advancements in cruise ship operations now allow vessels to anchor in Tawas Bay and shuttle passengers to shore. This development has reignited interest in Tawas as a potential cruise destination. “We have developed a proposal and a summary sheet highlighting East Tawas as a potential cruise destination on the Great Lakes. These proposals have been sent to eight different cruise lines operating in Michigan and the Great Lakes region,” Castle added.
Local stakeholders, including the Department of Natural Resources (DNR), the East Tawas Business Association, the City of East Tawas, Develop Iosco, and the Tawas Chamber of Commerce, have collaborated to support the proposal. “Everyone is on board and supporting the community’s decision to pursue a cruise destination for East Tawas,” Castle said.
Samantha Duval from the Tawas Area Chamber of Commerce shared her excitement about the potential impact on the local economy. “The possibility of having hundreds of people dropped off downtown East Tawas would be huge for our small businesses and community as a whole,” Duval stated.
The community’s goal is to establish two cruise line destinations in Northeast Michigan, benefiting the entire region. “Our goal is to have Tawas Bay and Alpena as cruise line destinations, creating opportunities for our entire region,” Castle emphasized.
As the proposal progresses, the Tawas community remains optimistic about the potential economic and social benefits that cruise tourism could bring.
WBKB 11
49 years after sinking, Abilene resident keeps memory of Edmund Fitzgerald alive
Abilene, Kansas – On the night of November 10, 1975, the 729-foot SS Edmund Fitzgerald, loaded with over 26,000 tons of iron ore, sank in Lake Superior, taking with it the lives of all 29 crew members.
One of those crew members was Robert Rafferty, the ship’s cook. His daughter, Abilene resident Pamela Johnson, now 73, remains a yearly advocate for her father along with those who perished at memorials and for various interviews.
“I’ve been doing this since the 25th anniversary,” said Johnson, who recently traveled to Michigan for the 49th memorial anniversary service.
“I met Gordon Lightfoot, and he said, ‘Are you going to the thing up in Michigan?’ I said, ‘No’. He said, ‘Why not? You’re the daughter of the cook.’ And so he encouraged me, and I started going. I’ve been going ever since.”
Singer/songwriter Gordon Lightfoot wrote the 1976 song, “The Wreck of the Edmund Fitzgerald.”
In it he only references two people, the captain and the ship’s cook. “I’m very proud…I really feel honored for that.” As of right now, Johnson is the only one speaking about the tragedy who is directly related to a casualty of the shipwreck.
“When I went on the 25th anniversary, Gordon Lightfoot said, ‘You need to be a part of this; you need to stand up and start talking.’ He told me those two ladies that I knew didn’t really care for him. Because I came in afterward and became a speaker, they didn’t like that. Both have since died, and then I kind of took over.”
The Edmund Fitzgerald’s last trek began in Superior, Wisconsin, headed toward a Detroit-area steel mill carrying 26,116 long tons of taconite pellets. The pellets are processed iron ore, heated and rolled into marble-sized balls. It departed on November 9, joined by another freighter, the Arthur M. Anderson, which lagged about 10 miles behind.
Capt. Ernest M. McSorley of the Edmund Fitzgerald led the faster ship, keeping radio contact with the Anderson under Capt. Bernie Cooper as they tracked a course along the Canadian coast to avoid high winds. A storm with winds over 70 miles per hour and waves crashing in at over 25 feet began to toss the ships around.
The two ships continued through the waves as the sun set. At 7:15 p.m., the Fitzgerald’s radar pip vanished from the Anderson’s screens, and radio calls to the ship went unanswered. By 8 p.m., Capt. Cooper had radioed the Coast Guard, who launched a search.
Only two damaged lifeboats were found initially and four days later, the wreckage was found 535 feet down. There was never a confirmed determination on how and why the ship sank, but after a few expeditions it was likely structural damage compounded by the strength of the waves.
“My mom called me and said that my dad had passed. And you know, the funny thing is, they still haven’t called my mom—who’s dead now—to tell us what happened to my dad,” Johnson shared. “They never did call, and I keep thinking, aren’t I supposed to be mad at you.” A story in the newspaper was how the family initially learned what happened.
Next year will be the 50th anniversary of the tragedy and there are already big plans in place.
Johnson said there’s a new song written about the SS Edmund Fitzgerald and it was created based on her own story. It’s called “Daddies aren’t supposed to die” but she does not remember the name of the artist.
“I don’t want to start singing it because I’ll cry,” she said on the interview. “It’s such a beautiful song, and I can’t wait. He’s going to sing it to me next year at the 50th anniversary.”
Johnson also said there are rumors of the Detroit Lions getting involved with next year’s celebration. “There’s talk—I can’t guarantee this is truthful—but one of the people up in Michigan I talk to and tell them when I’m coming, said, ‘Well, what are you doing next year? There’s going to be thousands of people there.’ They’re actually talking about having the memorial in the Detroit Lions football stadium!”
Last year, new developments concerning the wreckage were brought to light. Johnson received a video recording of the wreckage of the Fitzgerald.
“I have a recording from when they went down and dove to the bottom and tried to bring stuff up,” she revealed. “We don’t want anybody to go down there anymore. If you do, it’s a million-dollar fine and practically a hundred years in jail. We don’t allow it.”
Ontario only allows expeditions to occur legally and with a license.
“I’m proud of who I am and who he was. I wear my Edmund Fitzgerald shirt and put my little chest out there, showing it off with pride,” Johnson said. “I wear who I am proudly. I’m the cook’s daughter. My dad was a good man, and I’ve been blessed to meet other families at the memorial who understand that. We love each other deeply, and it’s a lot of crying and hugging each year. “It’s all part of keeping the memory of our fathers alive, and I don’t think I’ll ever stop going back,”
She continued, “There’s a great sense of closeness…I’m always thinking of others who couldn’t be there, those sitting outside in the cold, wishing they could be part of it all. I try to mother everyone there because I understand how it feels to want to be part of something, to want a connection.
Johnson is glad she still gets to talk about her father and that people still care. “It makes my day to remember him and share his story. There’s no replacing these memories, and they stay with you forever,” she concluded.
“I like to help people tell the truth about these things. There’s been enough loss and heartache without adding lies to it.”
By Justin Sarachik – Abilene Reflector-Chronicle Nov 10, 2024
Toledo museum celebrates the Christmas Tree Ship’s legacy
On November 23, 1912, the schooner Rouse Simmons sank while carrying Christmas trees. Known as the Christmas Tree Ship, its captain, Herman E. Schuenemann (a.k.a. “Captain Santa”), was known for giving trees to families in need.
The story of the ship’s history and captain is the inspiration behind the National Museum of the Great Lakes annual Community Giveback Event—The Christmas Tree Ship, presented by The University of Toledo Medical Center. Enjoy free museum admission all day long and make memories that last a lifetime! Watch Santa arrive at the museum’s dock aboard a Geo. Gradel Co. tugboat delivering a Christmas Tree into your hands or the hands of someone in need.
Community Giveback Day Itinerary
10 AM – 5 PM: Museum Admission Free All Day
11 AM: Enjoy the East Toledo Holiday Parade
1:15 PM: Watch the Ship’s Journey to the Museum via Livestream
1:30 PM: Santa Arrives to the Museum’s Docks
1:45 – 3:45 PM: Meet and Greet with Santa
Not able to join in person? Tune into our Facebook page around 1:15 p.m. for a livestream of the ship’s journey down the Maumee River. Get a tour of the Christmas Tree Ship, learn more about the story that inspired our event, and meet the individuals onboard, including Santa!
Read more here: https://nmgl.org/event/christmas-tree-ship24/
