Waterways are essential to the U.S. steel industry because they provide an efficient, cost-effective means of transporting critical raw materials such as iron ore and coal to steel mills.

Iron ore, a primary raw material used in steel production, is often imported from other countries or transported from U.S. mines to steel plants. Since these materials are bulky and heavy, waterways, including the Great Lakes and major river systems, offer a cheaper and more efficient transport option compared to rail or road. This allows steel producers to keep transportation costs lower, which is crucial for maintaining competitive pricing in the global steel market. Additionally, shipping by waterways reduces road congestion and environmental impact.