Mainstay Sells Canadian Fleet to Algoma in Strategic Great Lakes Shift

WILLIAMSVILLE, N.Y. – February 27, 2026 – A significant realignment is underway on the Great Lakes, as Mainstay Maritime Inc. today announced a definitive agreement to sell its entire Canadian division to rival Algoma Central Corporation. The deal reshapes the regional shipping landscape, creating a more defined operational boundary between U.S. and Canadian-flagged fleets on the vital inland waterway.

The transaction will see Algoma, a dominant force in Canadian shipping, acquire Mainstay's three Canadian operating companies, most notably Lower Lakes Towing Ltd. The sale includes the transfer of six Canadian-flagged vessels: the Kaministiqua, Manitoulin, Robert S. Pierson, Saginaw, Michipicoten, and Valo. While financial terms of the deal were not disclosed, the move marks a pivotal strategic shift for both organizations.

For Mainstay Maritime, the divestiture is a calculated move to concentrate its resources and capital on its core U.S. operations, which are protected and governed by the Merchant Marine Act of 1920, commonly known as the Jones Act.

A Decisive Pivot to the U.S. Jones Act Market

Mainstay, formerly known as Rand Logistics, Inc., is shedding its Canadian assets to sharpen its focus on what it calls a market with "robust demand." The company will now exclusively operate its fleet of 26 U.S.-flagged vessels, one of the largest Jones Act-compliant fleets serving the Great Lakes.

The Jones Act mandates that all goods transported by water between U.S. ports must be carried on ships that are built, owned, and operated by United States citizens. This creates a protected, and often lucrative, market for domestic carriers like Mainstay. By divesting its Canadian-flagged ships, Mainstay eliminates the complexities of cross-border operations and can fully dedicate its efforts to capturing growth within this insulated U.S. market.

"For Mainstay, this transaction represents a natural step in Mainstay's evolution for the long-term benefit of all our constituencies," said Greg Binion, CEO of Mainstay Maritime, in a statement. He explained the sale allows the company to "sharpen our focus on the U.S. Jones Act market, increase our reinvestment in our U.S. Flagged fleet, and position the Company to meet the growing needs of our customers."

The move signals Mainstay's confidence in the strength of the American industrial and agricultural sectors that rely on Great Lakes shipping. The waterway is a critical artery for moving raw materials like iron ore for steel production, stone and cement for construction, and grain for domestic consumption and export. According to industry data, Great Lakes maritime commerce contributes over $36 billion in annual economic activity and supports more than 147,000 jobs in the U.S. alone.

Algoma Consolidates its Canadian Stronghold

On the other side of the transaction, Algoma Central Corporation further cements its status as the premier marine shipping company in the Canadian Great Lakes-St. Lawrence Seaway. This acquisition is consistent with Algoma's long-term strategy of growth through strategic fleet expansion and modernization.

The company has a well-documented history of acquiring assets to bolster its market position, including the 2011 acquisition of Upper Lakes Group Inc.'s domestic fleet and the 1998 purchase of Imperial Oil's product tanker fleet. The addition of the six Lower Lakes vessels will immediately expand its Canadian dry-bulk capacity, enhancing its ability to serve customers across the region.

Gregg Ruhl, President & CEO of Algoma, framed the acquisition as a move to strengthen service and integrate a skilled workforce. "Algoma is pleased to grow our Canadian dry-bulk fleet with the addition of Lower Lakes' vessels and experienced team," Ruhl stated. "This acquisition enhances our ability to provide exceptional marine transportation services to our customers across the Great Lakes-St. Lawrence Seaway."

Crucially, both companies have emphasized a smooth transition for the employees of Lower Lakes Towing. Binion praised the "shore and vessel team who built Lower Lakes into the respected Canadian maritime operator it is today," while Ruhl affirmed Algoma's intent to "welcome the Lower Lakes team into the Bear Family" with the highest level of safety and respect. This focus on retaining experienced crews is critical for ensuring operational continuity and safety on the demanding Great Lakes routes.

Redrawing the Lines of Great Lakes Commerce

The deal effectively redraws the competitive map of the Great Lakes. Where Mainstay once operated as a unique carrier with significant fleets in both U.S. and Canadian waters, the industry now sees two titans focusing on their respective national markets. This specialization could lead to increased efficiencies and deeper investment within each company's chosen sphere.

The transaction, which is subject to customary closing conditions, is expected to be finalized in the first quarter of 2026. Legal counsel on the deal included Stikeman Elliott LLP for Mainstay and Borden Ladner Gervais LLP for Algoma, with AMA Capital Partners serving as Mainstay's financial advisor.

As the ink dries on the agreement, the Great Lakes shipping industry enters a new era. Mainstay Maritime is betting its future on dominating the protected and prosperous U.S. market, while Algoma Central Corporation reinforces its command over Canadian waters. The strategic divergence of these two major players will shape the flow of commerce on North America's inland seas for years to come, with each company now charting a clearer, more focused course on opposite sides of the maritime border.