That's bad news for greenhouse gas emissions, but good news for owners of the dry bulk ships that transport coal, particularly as America exports more of its own mining output via long-haul voyages to Asia.
"Demand to ship coal has been a good support for the dry bulk market over the first half of the year," said ship brokerage BRS on Thursday.
"Despite coal demand in Europe and North America resuming its downward trend, Asia has provided an offset as demand continues to grow there." Seaborne coal volumes are predicted to reach 1,335,000 million metric tons this year, topping 2019's record of 1,331,000 tons, the IEA said in its recently released midyear outlook.
China imported 211.8 million tons of coal in the first seven months of 2023, a 77% surge from the same period last year, said BRS. Indonesia has been China's biggest seaborne supplier, followed by Russia and Australia.
US exports higher share of production The U.S. was once the world's largest coal producer but has fallen down the ranks.
US coal CEOs focus on exports International sales prospects were highlighted by executives of U.S.-listed coal producers on second-quarter conference calls during recent weeks.
Bob Brathwaite, Consol's senior vice president of marketing, said, "We've shipped cargoes to new end users into India, into China and also into Indonesia." Joseph Craft, CEO of Alliance Resource Partners, said, "We're totally focused on the international markets." According to Jim Grench, CEO of Peabody Energy, "We see the seaborne markets as the growth markets in demand, for both metallurgical and thermal coal. As we've stated many times - and it hasn't changed - our focus is on the seaborne markets." Canal delays positive for shipping rates Most U.S. coal exports headed to Asia are loaded aboard Panamaxes and routed through the Panama Canal.
https://www.freightwaves.com/news/more-coal-is-being-shipped-by-sea-than-ever-before
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