Tag: courage

Grit in the Heartland Continued

So in Cleveland spring came slowly, as spring does downwind of that chilly lake, and while the rest of the city paid attention to whether or not the Republican Convention for 2016 would come to Cleveland (it will) and whether or not Johnny Football would self destruct or not (he hasn’t yet) and whether Lebron might return home (he did), down at the port the little ship Fortunagracht departed after the second trip half empty, carrying, among other things, a yellow school bus. On the first two trips the ship carried little cargo, both eastbound and westbound, and there seemed to be no trend emerging that could in any way be called positive.

Meanwhile in Europe and in Cleveland the Spleithoff and Port of Cleveland staff kept burning up the wires and phone lines (except these days “phone lines” is meaningless, isn’t it?) seeking bookings, delivering quotes, hustling, always hustling.

Then as the weather warmed and May slid into June a big shipper from the area decided to use the new service to haul a lot of heavy cargo to Europe. Then we heard from Europe that some folks there had decided to send some heavy stuff west to Cleveland. And then a decision was made to send the parts of a disassembled auto plant to China using the new service through Antwerp. Down on the docks, stuff began to appear, big boxes, stamped Kazhakstan and other strange distant places, standing in silent rows on the scruffy pavement, waiting for the ship.

People had thought, when this started, we’d see containers supporting the business, but what was happening, was, the special pieces and the big pieces, looking for a direct route from the heartland to the world, came to Cleveland.

By the time the ship left Antwerp for the third voyage she was nearly filled with cargo, three quarters of a million dollars’ worth, and when she arrived in Cleveland she was unloaded and then loaded with almost as  much eastbound cargo back. The value of the bookings went from less than a half million dollars for the round trip to one million, three hundred thousand dollars – more than all operating expenses. This meant that by the third trip, with a brand new and untested service, flying in the face of traditional hub-port logic, the ship was making money. Not much, but making money. And it wasn’t containers. It was the special big pieces of strange and one-off gear – transformers, turbines, machinery, heavy gears. Stuff big and heavy, hard to sling and lift, hard to secure in the hold.

I have sailed on container ships, which are the epitome of simple and routine cargo handling. Lift a box on, lift it off, use special cranes, move fast, cycle fast, hour after hour. On Fortunagracht, the cargo was all different, heavy, awkward, and each piece needed to be strapped up, lifted by ship’s gear, placed and sometimes welded into the hold. She is a small ship, and how she is loaded is critical, so it’s a balancing act (literally) to load and place the many different pieces such that the ship can carry s much as possible and not become top heavy and unstable.

She loaded piece after piece from a disassembled auto plant. In a way it was tragic, seeing the manufacturing core of this region being sent to China for re-use, but at least the material was departing Cleveland not an East Coast port. These pieces are so big and heavy they need special 18 or 20 axle trucks to drive over the road. They weigh 100, 120, 170 tons apiece. The trucks need a special permit to drive over the road and there is a steering station at the rear of the trailer for maneuvering on city streets.

Here’s the truck they used. The length of this thing from nose to stern is almost 300 feet. It’s four or five trailers connected together.

20-axle heavy rig

IMG_20140626_135027 IMG_20140626_134909

 

Here’s the way they sling up the heavy pieces. It’s a science. The IMG_20140621_093046biggest pieces they use two ships cranes at once.

IMG_20140624_101225

 

For containers, it’s damn slow. This is because container cranes don’t exist in Cleveland. You need to hang a container spreader – the thing that grabs the container –  from the ship’s crane or a shore crane and guide it with straps and manpower over the container to be picked up, set the four corner cones, and then lift. This is slow. It’s even slower when the people guiding the container are standing on other containers in the air. The big ships and big ports, they’ll place four or five cranes against a ship at once, each one lifting 25-50 containers an hour. On a general cargo ship using their own gear, they’re doing great to lift 15 containers an hour.

container system

I couldn’t resist this -here’s the mobile office the long shore men use…..

dock office

Anyway in June the ship was full, both ways, and made a bit of money. In July the ship was full again. This time there were a few changes, though. Because the service was passing down the St. Lawrence River, the port of Valley Field down by Montreal was used to offload some wind generating equipment from Europe, which helped. Some other cargo was sent from Cleveland down the river to Valley Field as well, which was allowed because Valley Field is in Canada, not the US. If it had been an American port then a US built ship needed to be used, and Fortunagracht is a Dutch ship. In addition, there was some other cargo in Duluth in Minnesota, also wind energy equipment, that needed to be dropped off, so the ship went there first before coming to Cleveland. These stops extended the length of the voyage but the ship was filled.

The July voyage also earned one million three hundred thousand.

Now it’s well into August. The signs for the August voyage are positive.

Could this be a trend? Maybe. Or a summer blip? Maybe that, too. Point is, after two weak months to start, cargo volumes have risen. There is no question that a market exists for such a service, and it seems that there are a lot of companies now interested in using the service. This suggests to me that the fundamental uncertainty – is there sufficient cargo – has been answered. Now the next question is, can the service endure, make money, be self supporting? This is a function of operating costs, stevedoring costs, and marketing costs, and these questions won’t be answered until the end of this season at the earliest.

Little of this story is visible anywhere, and maybe properly so, especially when compared to Johnny Football and LeBron and the RNC and the algal blooms off Toledo – this being another interesting tale from the heartland I will get into soon – but this gamble, taken by the Port of Cleveland and Spleithoff, and supported by the local community, may be the most important story of all.

Cleveland Harbor

 

Grit in the Heartland

Cleveland Harbor

This is the Port of Cleveland, at the mouth of the Cuyahoga River on Lake Erie. That little ship on the left in the picture is the Fortunagracht, a Dutch general cargo vessel, 12,000 tons.  The Port has access to the world’s seas through the St. Lawrence Seaway, which is open eight or nine months of the year and frozen solid the rest. The port handles about 13 million tons of cargo a year, mostly materials for cement plants on the river and a big 800 acre steel complex at the head of the river, 6 miles upstream through three 180 degree turns. 600 to 700 ships a year go up that narrow winding river every year and come back down, some ships 700 feet long. More about the river system later. The port piers in the picture here are right next to Brown’s Stadium, right downtown, 80 acres, four or five berths, 300,000 square feet of warehouse space, mostly for imported steel products. About 50 inetrnational ships visit this faciity every year. (By that I mean, not US or Canadian ships plying the Great lakes system with iron ore, taconite, and liestone. Of the 260 remaining US flag deep sea cargo ships still sailing, 60 work on the Great Lakes. Last year at this time I was on the 261st US flag ship, the President Truman, heading for the breakers in India.)

Cleveland has had some hard times, like much of the industrial heartland around the Great Lakes. Once a city of nearly a million people, less than half that many live there now. Like Detroit and other midwest cities, the inner core is filled with abandoned homes and a diminishing tax base. Nearly 50 years ago, now, the Cuyahoga River caught fire, for the 13th time in the last century and a half, and it was this fire that caused the Clean Water Act and a number of other environmental laws. The story beyond northeast Ohio has been Cleveland has been sinking, failing, and losing ground. But don’t tell that to the people who live there. Especially now, what with the city getting the 2016 Republican Convention, Johny Football Manzell for the Browns, and LeBron James deciding to return to his home state and the Cleveland Cavaliers. Cleveland’s had a good run since this last spring and I was lucky enough to be there, for the first time in my life, except for driving through in 1967 and 1968 on I-90.

Last fall the Port of Cleveland-Cuyahoga County, a terrific small operation staffed by 18 people and governed by commissioners appointed by the Mayor of Cleveland and the Administrator of Cuyahoga County, made a choice to take their future into their own hands.  The Port had been led down one road by a previous Port Director who wanted to spend millions competing head to head with big US East Coast container ports, a totally flawed concept which soon became clear. For years ship visits to Cleveland had been diminishing and some were suggesting the port as an entity was doomed. The current Port Director, though, Will Friedman, his excellent staff, and his Board of Directors, lacking nothing in courage, strength of conviction, and titanium balls, decided there might be a market for a new liner service between Cleveland and Europe, direct sailings, through the Seaway. Their argument was that all the international cargo now shipped from the midwest must now be trucked or shipped on rail to an East or Gulf Coast port, hundreds of miles, and then usually sit in the yard somewhere for days before being placed on a ship. Why not, instead, ship a much shorter distance to Cleveland, load on a ship there, and send it directly to Antwerp and a hub for the rest of the world? Direct, fuel efficient, and faster.

They – the Port staff – did some market research, some studies, went to Europe, talked to shippers and manufacturers, and heard some interest. Of course they also heard all the reasons the many people in the Never section listed:

The Seaway is closed a third of the year what do you do then?

If you ship to an East Coast port and miss a ship there’s another the next day or two, always to the same place. In Cleveland if you start with one ship it comes once a month. If you miss that sailing that’s a long wait. Too long.

Nobody will dare take a risk and commit to a new untried service that is shaky at best and unknown.

You don’t have proper container cranes or handling gear and will never be able to handle them fast enough to be competitive.

Any ship coming through the Seaway is at the biggest 35,000 tons and most much smaller, and this flies right in the face of the trend to larger and larger ships. I mean, they’re widening the Panama Canal for such ships.

Oh, the list was long. Long.

But you have to understand, here, that this is Cleveland, one could say a nothing to lose city, a place that had seen the bottom of the pit and knew what it felt like. Backs to the wall. If the port did nothing, nothing would happen. The ship visits would continue to decline, the facility would continue to get old and tired, and whatever had been here in the way of maritime jobs and commerce would leave as so many other sectors had left. For sure, no vessel owner would ever consider starting an untried and new service to a small port on an inland sea. Ships are expensive. The cost to charter a ship of 12,000 tons, which is about as small a ship as you can imagine for such a service, is at least $ 500,000 a month for the ship, crew, stores, and operation. Now add to that the fuel. One round trip back and forth from Antwerp to Cleveland will require $ 350,000-$400,000 in fuel and thousands more in pilotage charges through the seaway. Call it, a million a month before even considering stevedoring costs to handle the cargo.

The only way such a service could be started would be if the Port itself chartered  a ship, paid for the fuel, and in partnership with a vessel owner booked and handled cargo. The Port found a partner in a Dutch Company, Spleithoff, located Amsterdamn, a 100-vessel feet owner, specializing in mixed project cargo ships – ships built to carry both containers and special cargoes, or project cargoes, heavy lift items, odd shaped pieces, big pieces of machinery and equipment. The Port chartered a ship. Filled it with fuel.

In November of 2913 the Port Directors voted to do this. The Port was in good shape financially, but this is a small port, with operating revenues of about $ 3,000,000 a year. Imagine – you charter  ship that will cost you, each month, one third of your annual operating income. For a start-up, an unknown and untested trade route, competing with east coast ports, and understanding that with any start up you don’t make money right out of the gate. You do this because you want and believe there are cargoes and goods within your region that need such a service, that will see the value of direct shipment to the world, avoiding the trucking and fuel costs of east coast truck or rail delivery. You do this because you believe in your port and your city and region and because unless you try it nobody will.

You think you will capture a lot of containers and some portion of project cargo. You spend the months from November 2013 until April 214 chasing bookings in both the United States and Europe. Spleitfoff places a couple of people in the Port offices in Cleveland for sales, and others in Europe for the trade there. Spleithoff selects a sweet little ship for the service, a 600 foot, 12,000 ton multi purpose mixed cargo vessel, built in 2011, nearly new, crew of 18, fuel efficient, with three deck mounted cranes and holds that can handle everything from bulk to project cargo to containers and mixtures in between.

This is the ship that departs Antwerp about the first of April, 2014, carryring some empty containers for use back in Cleveland and virtually nothing else, the first westbound voyage. The ship leaves Antwerp just about as I get on the plane to fly to Cleveland to provide some help to their staff there, because I worked with Will years ago at the Port of Seattle and we’d spent some time in the Olympics together on steep snowfields and survived, and he’d contacted me, said he needed some help, so I headed east, found an Amish farm to live on outside the city, and with the rest of them waited for the ship’s arrival.

This is the ship:

Fortunagracht

The first morning I rose before heading to the port, here’s what I saw:

Parkman sunrise