Why You’ll Be Seeing Fewer Cargo Ships Coming To Duluth

The Twin Ports shipping industry just took a huge hit. Fewer cargo ships will be coming into the ports, and the change could be permanent.

Twin Ports' Largest Grain Terminal To Close

CHS Inc. announced it will be permanently closing its grain terminal in Superior, Wisconsin. The grain terminal has 500 concrete silos and is the biggest grain terminal in Duluth and Superior. The closure will take place at the end of August. Twenty-three employees will be laid off on September 8th.

Two other employees will be laid off near the end of the year.

Why Is CHS Closing Its Terminal In Superior?

MPR reports that CHS hasn't given a specific reason for the closure beside saying it has to do with the shift in how grain flows through our supply chain.

Several factors in recent years have affected the grain market. A drought in the Midwest caused grain prices to spike, and buyers went with cheaper grain from Russia, Turkey, and Argentina.

Read More: Tall Ships Late Arrival Includes Goats On A Boat

How Many Fewer Ships Will Come To Duluth?

With CHS closing the facility, we can expect about 40 fewer ships coming each year to the Twin Ports. At its peak, the grain terminal shipped out over 10 million tons of grain in the 1970s. Now it's been consistently less than 1 million tons.

What's The Future For The Huge Terminal?

Superior Mayor Jim Paine says the city's first priority is helping all affected employees find new work. Then he says the city will work closely with CHS to ensure they fulfill their commitments to the site and "hopefully facilitate a transition to a new operator."