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From: Russ
Location: Las Vegas
email: COGIT8R@aol.com
Remote Name: 207.200.116.72
Date: 03.31.06
Time: 05:47:30 PM
I suspect there are several contributing factors. First, I believe it has been pointed out in the past that the Ryerson burns quite a bit of fuel. If the Canadian boats are more fuel efficient, that may give them a slight edge. Second, there may be additional operating savings depending on crew requirements and salaries on Canadian boats. Third, the Canadian boats can not be bringing ore in from Duluth or Escanaba. If they are bringing in ore from Sept. Isles or Port Cartier, the Canadian sinter ore has a higher iron content. If the Ryerson is marginal on the Lakes, it is probably prohibitive on the Seaway run and the Sherwin is too large to go down the Seaway. If the Canadian boats are carrying something other than ore, they have a higher capacity than the Ryerson. Fourth, and probably most important, the Canadian boats are involved in two way traffic (i.e., grain down the Seaway and iron ore back up). The Ryerson would be carrying ore to Indiana Harbor and up light (i.e., with higher operating costs, she would be running empty half the time). Fifth, the Ryerson would be limited to the Inland/Mittal trade route while the Canadian boats service a wider variety of ports. Collectively, these factors make it feasible to operate the Canadian boats or they wouldn't be running.