by Jon Paul » December 26, 2017, 4:18 pm
ashland69 wrote:Mr Link wrote:I tend to think that the days of Canadian repowerings and stern conversions ended when the tariff on new foreign-built ships was eliminated. Repowering makes economic sense south of the border, but not up north, except for certain specific circumstances.
I just see Algoma running the two diesels with minimal maintenance until they drop dead.
At the end of the day, you're probably right. If the steamers can't be sold, they'll likely be scrapped. Personally, I'd like to see the Valor end up with Van Enkevort and be converted to a tug/barge unit and the Victory go to Interlake and being upgraded like the Lee A. But, knowing how the corporate brain seems to work, these steamers will likely end up being converted into knives, forks and spoons.
I would caution any inference to "corporate" greed concerning the fate of the Valor or Victory.
Great Lakes shipping is a very profit sensitive business where the margins are slim and all decisions will ultimately effect the employment of vast numbers of sailors and others.
All one needs to do is look at Oglebey Norton and their demise and now the current situation with Rand.
The reality is that a company can't afford to invest in upgrading or converting a boat that will have a limited life span in a volitile marketplace that has cyclical patterns and is no where near predictable.
A case in point is Interlake and the Sherwin a few years back. Finishing the re powering and conversion to a self unloader could have possibly led to their financial downfall. In stead they invested in re powering the active boats in their fleet which was a prudent long term investment that already is paying dividends.
I would have loved to see the Sherwin back out again but thankfully the Corporate Brain at Interlake were cooler heads and when the Iron Ore/Pellet market contracted they weren't stuck with $$ invested in a surplus boat sitting at the wall.
My best guess is that Algoma is looking for short term tonnage to help meet the overseas demand for pellets moving from Duluth/Superior out the Seaway. The Buffalo and ACE could provide that and also fill the need to river class deliveries elsewhere.
They might also sense the possible demise of Rand and are positioning themselves to move into those markets as needed.
[quote="ashland69"][quote="Mr Link"]I tend to think that the days of Canadian repowerings and stern conversions ended when the tariff on new foreign-built ships was eliminated. Repowering makes economic sense south of the border, but not up north, except for certain specific circumstances.
I just see Algoma running the two diesels with minimal maintenance until they drop dead.[/quote]
At the end of the day, you're probably right. If the steamers can't be sold, they'll likely be scrapped. Personally, I'd like to see the Valor end up with Van Enkevort and be converted to a tug/barge unit and the Victory go to Interlake and being upgraded like the Lee A. But, knowing how the corporate brain seems to work, these steamers will likely end up being converted into knives, forks and spoons.[/quote]
I would caution any inference to "corporate" greed concerning the fate of the Valor or Victory.
Great Lakes shipping is a very profit sensitive business where the margins are slim and all decisions will ultimately effect the employment of vast numbers of sailors and others.
All one needs to do is look at Oglebey Norton and their demise and now the current situation with Rand.
The reality is that a company can't afford to invest in upgrading or converting a boat that will have a limited life span in a volitile marketplace that has cyclical patterns and is no where near predictable.
A case in point is Interlake and the Sherwin a few years back. Finishing the re powering and conversion to a self unloader could have possibly led to their financial downfall. In stead they invested in re powering the active boats in their fleet which was a prudent long term investment that already is paying dividends.
I would have loved to see the Sherwin back out again but thankfully the Corporate Brain at Interlake were cooler heads and when the Iron Ore/Pellet market contracted they weren't stuck with $$ invested in a surplus boat sitting at the wall.
My best guess is that Algoma is looking for short term tonnage to help meet the overseas demand for pellets moving from Duluth/Superior out the Seaway. The Buffalo and ACE could provide that and also fill the need to river class deliveries elsewhere.
They might also sense the possible demise of Rand and are positioning themselves to move into those markets as needed.