Filter content by area of interest
Handling Equipment/Systems
Ports & Terminals
Transport & Distribution
Materials & Commodities
Storage
Processing
ICT & Telecoms
Civil Engineering
Mining
Environment
Safety & Security
Business
 View all Topics View all Topics A-Z
More View all Topics View all Topics A-Z

You are viewing this article with our compliments. 


register  or  login  to manage your newsletter preferences and to prevent this message from appearing.

Chinese coal restrictions land a punch on Panamaxes

China’s decision to restrict its 2019 coal imports below 2018 levels will dent demand for Panamaxes, but an ongoing tussle with Australia could be the silver lining, according to the latest analysis by Drewry Maritime Research.

Linked InTwitterFacebookeCard

The Chinese Government plans to curb the country’s coal imports by 3-4% in 2019, translating into a decline of about 10 Mt. Indonesia, Australia, Russia and Mongolia are the major coal suppliers, which together accounted for more than 95% of imports in 2018. Mongolian trade is overland, but the dip in trade from other key locations will be detrimental for Panamaxes, the London-based maritime research company said.

 

“Assuming no change in the sourcing pie in 2019, annual seaborne trade could decline by 8.6 Mt, rendering more than 10 Panamaxes unemployed,” warned Drewry.

(Source: Drewry Maritime Research)
(Source: Drewry Maritime Research)

“At the same time, we expect to see some changes in trade patterns because of ongoing political differences between China and Australia, resulting into delayed customs clearance of the latter’s coal cargoes. Although the Dalian customs authority – which handles around 14 Mt of annual coal imports – has stopped giving clearance to coal imports from Australia, we believe this matter will soon be settled.”

 

Therefore, in 2019, Drewry expects Australian coal exports to China to be in the region of 71-72 Mt, compared with 89 Mt in 2018.

 

“In turn, we expect any decline in coal imports from Australia to be partly offset by overland imports from Mongolia. If Mongolian exports to return to peak of 36-37 Mt, this will leave China with a deficit of 12-13 Mt, which could result in increase in trade with North and South America.”

 

As the voyage distance between China and North America is almost three times that of Australia to China, increased coal imports from latter will more than offset the loss in vessel employment, deploying about 15 additional vessels compared with 2018.

 

Linked InTwitterFacebookeCard

Latest News

Some grain cargo pests not beaten by fumigation

Some grain cargo pests not beaten by fumigation

Weather watching in the global wheat markets

Weather watching in the global wheat markets

Bobcat sand cleaner fights plastic peril

Bobcat sand cleaner fights plastic peril

Scania 6x6 G500 trucks replacing dumpers

Scania 6x6 G500 trucks replacing dumpers

Linked In
Twitter