The Steamship Buckeye was hauling cargoes of iron ore, coal, and other bulk materials throughout the Great Lakes at this time last year, primarily to stoke steel-industry furnaces.

But U.S. steelmakers are in a protracted slump and, on Sunday, the Buckeye was berthed for the winter at the Port of Toledo's coal docks.

The Oglebay-Norton Marine vessel isn't the only one to head for an early lay-up this year, either.

Two Great Lakes Fleet lakers, the Arthur M. Anderson and the Roger Blough, are idle in Duluth, Minn. - the Anderson since Halloween, the Blough since mid-August. The cement carrier Paul H. Townsend laid up last Friday, and two ships never sailed at all this year.

“It's just the general state of the economy,” said Glen Nekvasil, a spokesman for the Lake Carriers' Association, which represents U.S. ship operators. “These aren't going to be the only early lay-ups. We expect to see more.”

The general rule, Mr. Nekvasil said, is that every ton of steel requires two tons of iron ore, coking coal, and fluxstone. The domestic steel industry has produced 12 million fewer tons of steel this year than it did during the same period in 2000, he said, so that means about 24 million fewer tons of raw materials, much of which is shipped to the mills by lake freighters.

LTV Steel and Bethlehem Steel, two of the lake shipping system's largest customers, have sought bankruptcy protection from creditors in the last year, and LTV shut down its iron mining operation in northern Minnesota. Other iron mines have cut production.

Mr. Nekvasil said he cannot estimate what the early lay-ups are costing ship owners in lost revenue. Oglebay-Norton did not return a call seeking comment.

John Loftus, seaport director for the Toledo-Lucas County Port Authority, said the slowdown could lead to less winter business at the Toledo Shipyard, since repairs could be deferred if vessel owners decide that certain vessels won't sail at all during 2002.

On the other hand, he said, an economic turnaround next year could create a capacity shortage. “Right now, there's no rush to book shipyard space,” Mr. Loftus said.

Through September, Toledo's shipping statistics showed a relatively modest decline in iron ore volume: 1,701,847 tons this year, down from 1,736,872 tons last year. Iron ore shipped through Toledo is consumed almost exclusively by AK Steel, which is in relatively better financial condition than some of its competitors.

But overall, Toledo port volume was down by more than 900,000 tons through September, caused mainly by a slump in coal volume.

Mr. Loftus said the coal decline, from 3,856,462 tons last year to 3,135,605 tons this year, is perverse because the Canadian steel industry, which is a primary consumer of coal shipped across the Toledo docks, actually has a coal shortage right now.

The problem, he said, is that high natural gas prices early this year prompted American utility companies to increase their coal consumption.

The power generators booked so much of the domestic railroad coal-car fleet that there has been a shortage of equipment to haul coal to the docks, Mr. Loftus said.

First Published November 8, 2001, 11:29 a.m.