Great Lakes Become the Focus of Supply Chain Resilience

Are Maritime Highways an Underutilized Transportation System?

It might be more than summer sunshine driving boat traffic to the Great Lakes. The American Great Lakes Port Association in conjunction with the Great Lakes St. Lawrence Seaway Development Corporation is aiming to expand freight movement through the lakes to inland waterways.  These freshwater transport routes, once the foundation of trade and economic development in the United States are, today, viewed as underutilized systems.  Fortifying them could be a logistically efficient means of strengthening domestic supply chains while also supporting the further development of the region’s economies.

Collectively the Inland Waterways and the Great Lakes move 700 million tons of cargo annually.  Eight States, including Ontario and Quebec make up the region and, according to current data, if the area were a nation unto itself it would represent the third largest economy in the world.  Despite these facts, waterway transportation has experienced a downturn in recent years and currently acts as a support to industries that have favored rail and highway transport instead.  The perceived or real uptick in waterway traffic this summer hints that freight movement is up for reassessment.

Comparing Waterways to Highways

The Trump administration has been clear about its desire to strengthen domestic supply chains by investing in infrastructure and building back production of goods in the U.S.  Waterways are crucial to this agenda. Expanding cargo capacity on maritime highways could strengthen connections between 41 states in the United States.  Over $13 million has been invested in 11 projects since March of 2026 to help improve port infrastructure in seven states.  Projects should contribute to the continual flow of goods even in the event of global emergencies and natural disasters. They should also make water transport more accessible to U.S. industries.

While financial contributions from the federal government support the expansion of what we can transport and where we can transport it, individual companies are likely also looking to waterways as the more efficient means of getting cargo from one location to another.  Fuel prices remain high during the height of transportation season due to geopolitical conflicts and businesses are weighing their freight options. Waterways might be helping companies cut costs and represent a natural shift in the flow of goods moving across the country.

Utilizing the St. Lawrence Seaway to move imports coming from the Atlantic into the interior of the United States via the Great Lakes could prove efficient for companies looking to minimize tariff impacts. One barge can hold the equivalent of 16 railcars or 70 large semi-trucks.  A barge can move one ton of grain 500 miles using one gallon of fuel while a semi-truck can move the same ton at about 60 miles per one gallon of fuel.  Highways tend to win in the speed category and are the most flexible option as they can alter routes on the fly. Barges win in cost effectiveness and sustainability as they produce fewer emissions and use less fuel. 

Distance goods must travel might be the determining factor for a company working to find the most efficient mode of transport.  Neither barges nor trains can deliver directly to a final destination. Not to mention, there are large regions of the United States that do not connect to inland waterway systems capable of accommodating barges. What and where are important factors in identifying the best way to move freight.

Cargo traveling in a 500 mile radius might be best moved by trucks which are the only transport mode equipped for door to door delivery.  If speed is the ultimate goal, then trucking products might be a good choice. Beyond that, logistical benefits do not always outweigh fuel costs when it comes to highway transportation. Rail or barge transport presents the most cost effective option for longer distances, even when their mode subjects them to additional logistical considerations. Planning must account for international relations, regional changes in weather and port activity levels, but can also be the most predictable and cost efficient options.

Barges fill the role of transporting bulk goods or special cargo well, which is why agriculture, steel, coal and portions of the manufacturing industries favor waterways over rail or highway transport whenever possible.  Modern barges are built to hold 675 tons of cargo.  The newest barge to hit the Great Lakes is capable of hauling wind turbines and bridge components on one trip, then shifting and sliding cargo hatches to accommodate agricultural goods on a return trip.

These are items that would be logistically complex to transport on a highway because of size or quantity.  Highway routes would be determined by weight, bridge locations and daily traffic trends, all contributing to fuel cost projections.  Great Lakes and St. Lawrence River port officials and association heads believe the waterways are currently operating under 50% of their maximum traffic capacity.  Maritime highways could absorb more of this type of cargo as well as agricultural goods.

Waterway Shipping Trends and Projections

During 2025, the Great Lakes and the St. Lawrence Seaway saw less freight traffic.  The collection of lakes and rivers relies on a lock and dam system to move large vessels up from sea level inland where river systems are often at higher elevations.  The water highway is situated so far north that it is dependent on the Coast Guard to break ice in order to maximize transport during chilly months.  When these two things are not operating smoothly it can add strain and cost to waterway transportation.

Expanding freight movement across U.S. waterways will include updating lock systems.  Currently, $1 billion has been awarded for resilient modernization.  Modern technology will be leveraged as a national security element, but also to help existing lock and dam systems accommodate the largest barges.  By 2030 projects should be completed, providing additional layers of security and making maritime highways accessible to new industries. 

The U.S. is currently working to acquire a fleet of ice breakers, at least one of which maritime transportation authorities hope finds a home in the Great Lakes.  The waterway lost 85 days of freight movement due to ice blockages.  When freight stops moving in the Great Lakes it can affect projects as far as California and Texas.  When our inland waterways remain open, economies can thrive.  

Economic Impact of Increased Waterway Transport

As a region unto itself the Great Lakes and St. Lawrence Seaway generates roughly 211,000 jobs just pertaining to barge, tug and pushboat vessels.  Yet, without this inland waterway system, Midwest industry would crumble making the waterways the foundation of the some $36 billion worth of cargo being moved along these routes. Manufacturing, agriculture and energy rely on barge transport to export their goods around the country and beyond.  Facing high transport costs from rail and truck shipping rates, these industries would struggle to remain competitive.  It is unlikely that current highway infrastructure could accommodate what America’s waterways transport.

If the Great Lakes are so essential to job production and our nation's infrastructure, it stands to reason that focusing on modernizing these waterways could also boost industry from New York to South Dakota and Michigan to Louisiana, effectively achieving the second part of the Trump administration's goal of bringing industry back to the U.S.