MARTIN STUDY: MARINE SHIPPING IS THE RESILIENT HEARTBEAT OF OUR ECONOMY

Acomprehensive independent study has clearly shown that marine shipping on the Great Lakes-St. Lawrence River Waterway is playing a central role in driving key aspects of the North American economy. The recently released study was made possible through collaboration among the Chamber of Marine Commerce, the American Great Lakes Ports Association, the Lake Carriers’ Association, the Great Lakes St. Lawrence Seaway Development Corporation, the St. Lawrence Seaway Management Corporation, the Shipping Federation of Canada, and Transport Canada (Transportation and Economic Analysis Group), all of which served as members of the project steering committee and provided confidential data, guidance and oversight for this study. Together, they engaged Martin Associates to prepare this study - an internationally recognized leading economic and transportation consulting firm that has conducted more than 1,500 economic and planning studies for nearly every port in the United States and Canada, as well as ports in China, Europe, South America and the Caribbean. Through the analysis of 2022 activity, the Martin Associates study has shown how marine shipping is strengthening supply chains, supporting hundreds of thousands of well-paying jobs, generating billions in tax revenue, and stimulating GDP (Gross Domestic Product).

Strengthening Supply Chains

The Martin Study showed that cargo moved on the Great Lakes-St. Lawrence River Waterway in 2022 totaled 252.1 million metric tons, valued at $157.2 billion CDN. These huge and valuable volumes of cargo positively affect every aspect of life for Canadians. Key commodities moved include the iron ore used in steel production and manufacturing of electric vehicles; the grain and sugar used for dozens of dietary staples, including bread and pasta; and the building products that enable the construction of new houses, condos, apartments and office towers.

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SUPPORTING WELL-PAYING JOBS

The study revealed that marine shipping supported 356,858 jobs. To put that in perspective, that’s more than twice the population of the province of Prince Edward Island. In terms of wages, the industry generated a total of $30.2 billion CDN in total personal wage and salary income, and local consumption expenditures for regional residents of the U.S. and Canada.

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Generating Tax Revenue

The study showed that a total of $12.8 billion CDN in direct, induced, and indirect federal, state/provincial and local tax revenue was generated by maritime activity at the marine terminals located on the Great Lakes-St. Lawrence River Waterway. To give a sense of scale, that amount is 170 % of the total transportation budget for the Province of Ontario –almost double what an entire province spends on transportation infrastructure.

Stimulating Gdp

The study revealed that marine cargo and vessel activity generated $66.1 billion CDN in economic activity in Canada and the U.S. in 2022. That’s more than the gross domestic product (GDP) of many small countries, and a clear indication of the contributions made by the industry towards the overall strength of the North American economy.

“Despite the diverse challenges presented in 2022, including global supply chain disruption, intense geo-political conflicts, and ongoing post-pandemic recovery, marine shipping clearly remained the resilient heartbeat of the North American economy,” noted Bruce Burrows, President and CEO of the Chamber of Marine Commerce. “The volumes of information gathered and analyzed through this unique and broad-based project confirm that our industry is powering the success of diverse and vital industries including mining, agriculture, and construction. We can take great pride in knowing we do that as “the green mode,” moving more cargo with less carbon emissions than the other modes, and with a commitment to become even greener in the years to come.”

Recent studies additional to the Martin Associates project have underlined that marine shipping is the most efficient way of moving large quantities of cargo, with one vessel capable of moving the same volume as nearly 1,000 transport trucks.

“You have 10,000 truck trips between Toledo and southern Ontario alone,” says Ian Hamilton, CEO of the Hamilton Oshawa Port Authority (HOPA).

Hamilton says, based on data compiled by the McMaster Institute for Transportation & Logistics, 13 million kilometres (8.07 million miles) of truck trips between southern Ontario and common destinations could be converted to marine transport.

Burrows notes the potential to use marine to slow global warming is significant. “If marine shipping were prioritized as the means for moving cargo throughout North America, our ability to meet 2050 net zero goals would become far more certain,” says Burrows. “Clearly, our industry is the ideal partner to both governments and businesses as they seek to reduce carbon emissions, improve supply chain efficiency and reliability, reduce costs, and improve global competitiveness.”

Opportunities to explore such partnerships abound. The most recent Canadian federal budget included $27.2 million over five years to establish a Transportation Supply Chain Office. The intent is to have this office work with industry and provincial governments to respond to disruptions and enhance coordination to improve the supply chain’s overall capacity, efficiency, and reliability.The budget also included $165.4 million over seven years (delivered through Transport Canada) to establish a Green Shipping Corridor Program. The program sets a strong foundation upon which the marine shipping industry can make even larger investments in Canadian research and development necessary to advance the use of alternative fuels and new technologies to further enhance marine shipping’s leadership as “the green mode” of transport.

“We live in a time of great change, and great challenge,” notes Burrows. “People want our economy to remain strong throughout the green transition. They want road traffic and pollution reduced. They want supply chains to become stronger by becoming more resilient and more efficient. They want new job opportunities. They want North America to set the standard for other jurisdictions to follow with respect to sustainability and best practice. In all these respects, marine shipping is showing a strong track record and a commitment to do even more, so when it comes to the ambitions of our governments, businesses, and citizens, we can confidently say Marine Delivers.” n

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