Algoma Central Corp. Sizes Up 2023

Canadian marine shipping company Algoma Central Corp. reported that customer demand appears to be strong in the Domestic Dry-Bulk segment in 2023 and it is preparing for its fleet to be fully utilized for the year. 

In its Product Tanker segment, the company expects customer demand to be steady through 2023, although energy markets remain volatile due to on-going hostilities in Europe. Vessel utilization is anticipated to be strong and it currently expects the newly acquired Algoberta to commence domestic operations late in the first quarter when seasonal demand picks up.

In its international businesses, demand is expected to remain steady with tight vessel supply at the Pool level in its Ocean Self-Unloader segment. Aggregate volumes are expected to continue to be impacted by the closure of a quarry in Mexico and there is some weakness expected to remain in the U.S. residential market but overall construction sector demand remains strong as infrastructure projects are picking up. Five vessels in the Algoma fleet will be dry docked in 2023. 

In its Global Short Sea Shipping joint venture, revenues from cement carriers are expected to be steady in 2023, with fleet utilization at high levels. On the other hand, mini-bulker and handy-size rates are expected to be at more normal levels over the course of the year, although volumes and utilization are not expected to be affected.

The company owns and operates the largest fleet of self-unloading and gearless dry-bulk carriers and product tanker vessels operating in the Great Lakes – St. Lawrence Seaway.