The Indiana Harbor and Ship Canal is an artificial waterway on the southwest shore of Lake Michigan, in East Chicago, Indiana which connects the Grand Calumet River to Lake Michigan. It consists of two branch canals, the 1.25 mile (2 km) Lake George Branch and the 2 mile (3 km) long Grand Calumet River Branch which join to form the main Indiana Harbor Canal. The Indiana Harbor Canal also functions as a harbor and runs 1.4 miles (2 km) before reaching the Indiana Harbor which connects to Lake Michigan. In 2002, Indiana Harbor was the 45th busiest harbor in the United States, handling almost 13,300,000 short tons (12,000,000 metric tons) of cargo. Foreign trade accounted for only 500,000 short tons (450,000 metric tons) of that. Indiana Harbor is not a state-managed harbor, and it is maintained by the Chicago District of the U.S. Army Corps of Engineers, as authorized by the Rivers and Harbors Act of 1913.

Indiana Harbor and Canal lies in a heavily industrial area which includes ArcelorMittal Steel's two Indiana Harbor Works facilities. On the west side of the canal is the former Youngstown - J & L - LTV Steel - ISG steel mill. On the east side of the canal is the other Indiana Harbor Works, once known as Inland Steel Company, then Ispat Inland. BP's refinery in Whiting is nearby. The harbor allows transport of iron ore (taconite pellets) and limestone to the steel mills from the mines and quarries of the upper Midwest through the Great Lakes. Other commodities include coke, gypsum, steel, cement and concrete, petroleum products, and miscellaneous bulk products.The harbor is ranked 1st in tonnage among the 25 Federal commercial harbors on Lake Michigan, and 2nd in tonnage of the 55 Federal commercial harbors on the Great Lakes.