A new cargo service across Lake Michigan is currently in the works, and could save shippers time and aggravation from having to truck cargo though the congested Chicago area.
A new maritime cargo service between the ports of Milwaukee, Wis. and Muskegon, Mich. could potentially set sail as early as the end of March 2017, allowing shippers to avoid trucking cargo through the congested Chicago area. Supply Chain Solutions (SCS) has partnered with Eco Ships and Multi-Modal Transport to organize the planned service.
Les Brand, chief executive officer of Grand Rapids, Mich.-based SCS, referred to his company as a small, “boutique” supply chain improvement organization, and noted it has been consulted heavily on the project. He said SCS will act as a forwarder and non-vessel-operating carrier (NVO), and will work with Multi-Modal Transport on both sides of the lake to make the operation as synchronized as possible.
Although the final decision on what type of vessels the service will use has not yet been made, it has been narrowed down to a few different types. Of those, the HOS320 class would be the most conducive, according to Brand. This vessel type can hold 24 truck trailers, 84 containers (FEUs), 14,000 cubic feet of dry-bulk, and 20,911 barrels of liquid mud. Other vessels being considered include the Edison Chouest 240 Class, which can hold 15 truck trailers, 60 FEUs, 9,480 cubic feet of dry-bulk and 8,148 barrels of liquid mud; and the Chouest Containership, which has capacity for 104 FEUs and 20 truck trailers.
William Hooton, vice president of business development at Multi-Modal Transport, said the service will initially target loaded trailers and containers with a frequency of once per day, which could increase if demand permits.
Brand said he anticipates the service will attract inbound shipments of grain and barley to the Port of Muskegon, and inbound shipments of fruits and vegetables to the Port of Milwaukee. However, both Brand and Hooton noted they are still in the process of reaching out to the shipping community to figure out what other types of cargo might utilize the service.
Project officials are also looking into bringing intermodal service back to the Port of Milwaukee, Hooton said. Class I railway Canadian Pacific terminated its intermodal service at the port almost four years ago.
Jeff Fleming, a spokesperson from the Port of Milwaukee, said Union Pacific and Canadian Pacific both serve the port, carrying grain, steel, project cargo and liquid bulk, but neither currently handles intermodal container traffic. According to Fleming, the new cross-lake shipping service would cut road traffic significantly, as so many trucks currently travel on highways in southeastern Wisconsin, Illinois and Michigan, in addition to creating more jobs at the Port of Milwaukee.
A ferry service has already been operating for more than 10 years between Milwaukee and Muskegon, and its marketed in a very similar way to the planned cargo service – saving time and aggravation – Fleming explained.
The Port of Milwaukee is also called by the Fednav Atlantic Lakes Line, which operates a regularly scheduled breakbulk service between Europe and the Great Lakes, Fleming said. Other various lines calling the port for international cargo transport include Polsteam, Cargo-Levant, BBC, and occasionally Wagonborg. There are also regional freighter services calling the port that mostly stay within the Great Lakes, he added.
Max McKee, president of West Michigan Dock & Market, said the terminal would welcome any new business at the Port of Muskegon and is ready to handle any additional cargo, but has not been included in the planning discussions for the new service.
“We are fully capable of handling any type of vessel or cargo that finds its way to Muskegon,” McKee said. “We would feel more comfortable of its economic viability if we were introduced to the committed users of the service.”
According to McKee, a maritime cargo service was actually offered from the Port of Muskegon to the Port of Milwaukee back in the 1950s and ’60s that shipped new cars from Detroit. However, this service ended sometime during the ’70s and from then on the automobiles were transported by truck to Milwaukee.
Meanwhile, an August 2012 report titled, “The Economics of a Bi-State Ferry,” written by Thomas Brady of the College of Engineering and Technology at Purdue University North Central and conducted in conjunction with the Great Lakes Maritime Research Institute, painted a not-so-rosy picture for a cross-lake cargo service between Milwaukee and Muskegon.
The report looked at the feasibility of a roll-on/roll-off (ro-ro) truck ferry linking the two ports, using a set of western origin cities and eastern destination points. The primary objective was to determine if a ferry operation could be financially feasible in removing trailers from the heavily congested Chicago interstate highway corridor.
The ferry chosen for the study was a tug-and-barge type, which is slower and smaller than a dedicated ship, but cheaper from a capital investment perspective. The base vessel characteristics consisted of a tug and two barges, and each barge had a capacity of 42 trailers.
Computer simulation was used to build a detailed model of the physical process and generate accurate performance and operational costs, according to the report. Cost elements factored into truck travel included miles per gallon, driver style, cost of fuel, driver cost, truck operating and maintenance cost, tolls, and DOT regulations. Elements factored into ferry travel included ferry crew, ferry costs, fuel, harbor maintenance tax, stevedoring, storage, and insurance.
The report found that in 88 percent of scenarios tested, trucking was the more cost efficient mode.
Hailey Desormeaux is Web Editor of American Shipper. She can be reached by email here.
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