Great Lakes coal shipments 'terrible' in Dec. due to low water

Washington (Platts)--14Dec2007

Low water levels on the Great Lakes have severely impacted the ability of
vessels to move coal in December, a spokesman for the Lake Carriers'
Association said Thursday.

"The loads we're seeing so far in December are absolutely terrible," Glen
Nekvasil said.

He said so far in December, the best coal load was only 61,951 short tons,
with some ships carrying less than 60,000 st/trip. If water levels were
normal, full loads would be 70,000 st or more, according to Nekvasil.

Vessel drafts moving through the Soo Locks on the lakes are as low as 25 feet
6 inches, he said, adding that when water levels were high, vessels were
loading to 28 feet or more.

The low water levels and inadequate dredging have been impacting lakes' coal
movement for months. In the latest report on Great Lakes shipments issued at
the end of November, the association said that coal movements slowed sharply
in September in part because of the declining water levels that kept vessels
from being loaded to full capacity.

Coal shipments on the lakes totaled 3.7 million st in September, down about
16% from the year-ago month. Figures for October and November coal shipments
have not been released yet.

Michigan munis' deliveries impacted

At one Great Lakes-served utility, Lake Michigan's lowering water levels and
windstorm-formed sandbars are slowing coal deliveries.

As it prepares for winter, Grand Haven Board of Light and Power has received
only 12 of the 14 shipments it receives annually via lake-going vessels, board
spokesman Jon Hofman told Platts on Thursday. Each vessel carries about 14,500
st produced by Alpha Natural Resources.

"Grand Haven harbor is now load limited due to [lake] depth," he said. "Our
expectation is that we will have plenty of fuel to make it through to the
beginning of shipping season" starting April 1, 2008.

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