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Program encourages more exports through the Great Lakes

A partnership between the U.S. Soy Transportation Coalition and the St. Lawrence Seaway Management Corporation encourages more agricultural shipping through the Great Lakes.

Mike Steenhoek with the U.S. Soy Transportation Coalition says the partnership allows new freight of over 75 thousand metric tons to cut the cost of lock tolls in half. “When transportation costs go up, a lot of those costs get passed on to the farmer, and so anytime you can make your transportation system more efficient, my mind immediately goes to more money in the farmer’s wallet, and that’s really what we care about.”

Steenhoek says the Great Lakes and the St. Lawrence Seaway is an underutilized resource that should play a broader role in the agricultural economy. “It’s particularly a good day to do so when you’ve got things like low water levels on the inland waterway system when you have unreliable rail service in many cases and a lot of uncertainty due to some of these rail labor negotiations.”

Steenhoek says he doesn’t like to see shippers put all their eggs in one basket, and further diversifying the supply chain is a good idea.  He also says the program is available for other commodities, and not just soybeans.

The U.S. Soybean Transportation Coalition says four of the top six soybean exporting states are adjacent to the Great Lakes, yet only 2% of U.S. soybeans use this route.