Coal news and updates

COAL SHIPMENTS TO ADVANCED ECONOMIES HEADING FOR A 15-YEAR LOW

During the first 10 months of 2024, coal shipments to advanced economies fell 6% y/y. Import demand weakened, particularly in Europe, where it fell 22% y/y as countries continued to decarbonise their electricity generation. At this rate, shipments to advanced economies will reach a 15-year low in 2024,” says Filipe Gouveia, Shipping Analyst at BIMCO.

Thermal coal shipments fell by 9% y/y as electricity generation from coal decreased, especially in Europe. In Asian advanced economies, shipments only fell 4% y/y, as higher temperatures increased electricity demand for air conditioning. Coking coal imports in advanced economies rose 1% y/y, even as steel production marginally decreased. Coking coal is used to produce virgin steel but not recycled steel.

Shipments to advanced economies are falling for the second consecutive year in 2024, but their share of global coal shipments has been falling for longer. In 2009, the last time the volumes were this low, these economies were the destination of 57% of global coal shipments compared to only 30% today.

“The volume loss so far in 2024 is equivalent to a 0.5% decrease in global dry bulk cargo, primarily affecting the capesize market. Despite this, global coal shipments have still risen, supported by strong shipments to emerging economies,” says Gouveia.