ALPENA — The shipping industry is beginning to feel the effects of the economic downturn brought about by the coronavirus, with many ships starting to lay up until there is more demand for cargo.

Lake Carriers’ Association President Jim Weakley said companies still have ships sailing but are reducing the number of boats because of a decrease in demand.

“We’re a service industry, and we need a cargo in order to keep the ships moving, and we are hopeful the cargo will be there to bounce back, soon,” Weakley said.

He said steel companies, such as U.S. Steel and Cleveland-Cliffs, and mining companies are starting to idle temporarily. There still may be a little time for freighters to move some of the inventory built up over the winter, he said.

Carmeuse Lime and Stone spokesman Kevin Whyte said the shipping season was slightly behind schedule this year, but his firm is shipping.

“We expect that the COVID-19 crisis will negatively impact the business for 2020, resulting in lower shipments,” he said. However, “at this time, the overall impact remains unknown.”

Whyte said Carmeuse remains committed to meet all customer demand for aggregate and for chemical limestone.

There are several challenges associated with boats laying up this early in the shipping season — not only to the shipping industry but to the sailors whose livelihoods depend on that industry.

The unknowns are the biggest challenge, according to Weakley, because no one knows when the boats will next be able to fit out.

In the fall and winter, he said, boats will have to resupply the steel mills so they have enough cargo to get through the winter. In the winter, Weakley said, freighters become dependent on the U.S. Coast Guard to break ice.

“The challenge will be, are we going to have enough time and capacity?” he said.

Those unknowns also impact sailors.

Weakley said the decrease in demand the industry is seeing now is similar to what happened in 2008, during the Great Recession, although he said some could argue this is worse.

“There is and there always will be a demand for moving raw materials efficiently on the Great Lakes and the best way to do that is by water,” he said.

He said it’s just a matter of the steel mills coming back online and power plants having an increased electrical demand.

Crystal Nelson can be reached at 989-358-5687 or cnelson@thealpenanews.com.