Hamilton port sees strong year so far

Volatility in the United Stateshelped deliver a strong year for Hamilton's port so far, with moresteel imports and grain exports than the same timeframe in 2017.

Overseas cargo shipments are up 81 per cent through September compared tolast year, said the port authority, andtotalcargo is up 18 per cent.

President andCEO Ian Hamilton says there'sbeen an uptick in steel importswiththe revival ofStelco, high demandand foreign countries turning to Canada to avoid U.S. tariffs.

But agricultural shipments "are off the charts," he said, with grainshipments from Hamilton up109 per cent.

Hamilton said infrastructure investments meant the port could take advantage of a "perfect storm" this year.

Acombination of NAFTA uncertainty, Canada'srecent trade deal with theEuropean Union,and a drought in Europe, has driven the demand for agricultural shipments, he said. Canadian grain traders have been looking more toEuropean marketsthan the United States, meaning more grain shipped overseas.

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Combined with a good harvest, it "all came together."

Hamilton said companies could take advantage of the "unique" yearbecause of effortsto diversify the port'scargo to become less dependent on steel.

Over the last decade there's been$250 million in investments on the port for agricultural products, he said.

"We're seeing how ports can be used to diversify our trading partners and provide gateways for overseas markets," said Hamilton.

Stelco, U.S. tariffs and high demandboosts steel shipments

It's also been a strong year for steel imports at the port, said Hamilton.

Finished steel shipments are up 38 per cent from last year, he said,andmetallurgical coal is up 25 per cent.

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That's "in no small part" because of revived operations at theStelcosteel company, said Hamilton, which lead to the uptick inmetallurgical coal.

Therise in steel importsis due in part to high demand, he says.However, Hamilton said there's also evidence some steel on its way to the Stateswas diverted to Canada to avoid Trump's tariffs.

U.S. volatility has meant many overseas steel importers have started looking atCanada as a distribution point, he said.

The United States has imposed a 25 per cent tariff on steel and 10 per cent tariff on aluminum, which remains in place despite thenew United States-Mexico-Canada Agreement (USMCA).

Canada has been trying to curb steel dumping and mitigatethe damage from tariffs.

To protect against "excessive imports of steel products," the federal governmentis introducing a25 per cent surtax onseven steel importsstarting October 25.

With the government safeguards,Hamilton said he does not think dumping is still happening.

If the U.S. doesn't remove itstariffs, Hamilton saysthey may see a reduction in steelshipments long-term.

However, he expects steel markets to stabilize and the agricultural market to grow.

"I think that the demand for steel is relatively stable, so it should continue to be a prosperous sector," he said.

Petroleum, fertilizer also up

The Hamilton port has also seen an increasein fertilizer andpetroleum imports, Hamilton said, aftermore investments in gas distribution facilities.

Petroleum products were up 40 per cent and and fertilizer wasup 11 per cent.

Strong year for the Seaway overall

It's not just Hamilton that's had a good shipping year; the St. Lawrence Seaway has seen an upward trend overall,with shipmentsup 4.1 per centcompared to 2017.

Canadian grain exports and salt shipments are driving the growth,saidTerence Bowles, president and CEO of the St. Lawrence Seaway Management Corporation, in a press release.