Boston, MA 05/02/2014 (wallstreetpr) – United States Steel Corporation (NYSE:X) had a huge struggle on their hands in procuring essential raw materials. The cause was the ice-clogged pathways used by the vessels that bring this raw material through the Great Lakes. The Canadian Cost Guards assisted considerably in this process of providing accessibility to these carriers.
The problem was further compounded by the ship gridlock that was formed as a result, resulting in excessive delays in the supply of raw material to United States Steel Corp.
Reduced Manufacturing Activities
One of the Company’s plants in Gary, Indiana, showed remarkably lower production levels, as they were trying to obtain the raw material from other sources. The plant managed to acquire two shipments of iron ore from some mines in Northern Minnesota. These ships sailed across the Lake Superior in an astronomical time of two weeks, which under normal conditions takes no more than 3 days.
Fortunately, for the company, they managed to function, albeit at lower levels, on account of some reserves US Steel had. This prevented a complete stop in production.
Better Planning Important
Many industry analysts felt that United States Steel Corporation (NYSE:X) should have planned better and should have incorporated suitable contingency plans. This was necessitated because of one of worst winters that hit the region since 1979 was expected and witnessed.
Apparently, there was a period when the ice had spread to more than 92% of the Great Lakes, hampering all sailing efforts severely. Although, the sailing season starts by March, only two ice breakers and two ships carrying iron ore made it through Lake Superior.
Difficulties Faced
United States Steel Corporation (NYSE:X) possess nine icebreaking ships. However, only one of them is capable of cutting through thick and huge ice blocks. The Canadian coast Guard came to the rescue somewhat, by deploying two of their heavy duty ice breakers to face these difficult times.
