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Home Coal Demand

Colombian Coal Exports to Asia Reach New Heights

Editor by Editor
2 years ago
Reading Time: 1 min read
Colombian-Coal- Exports
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Colombian coal shipments to Asia are about to reach a record high of 2.3 Mt in June. Kpler data shows that coal exports to Asian destinations have been on the rise since January 2023. In June, 0.9 Mt of Colombian coal were already shipped to Asia, compared to 1.3 Mt in May.

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With a Columbia-East Asia voyage time of near to 40 days when going around the Cape, cargoes to Asia departing Colombia in June will not have been discharged yet.

Kpler analysis of June’s unreported destination vessels departing from Colombia indicates that eight (carrying a combined 911,517t) likely have Asian destinations based on raw signals.

This would boost Asian shipments to nearly 2.3 Mt, the highest monthly level since March 2020.

Currently, Colombia is the 6th largest seaborne coal exporter. According to Kpler data, a further nine vessels, carrying a combined 1.3 Mt from Colombia, are likely headed to Asia based on raw data.

Kpler recorded further Colombia-Asia coal shipments in July. Does this signal strong momentum for Colombian coal exports to Asia?

“Higher shipments to Asia reflect demand weakness in the Atlantic (notably Western Europe), forcing Colombian exporters to look elsewhere.

Reduced freight costs due to low Capesize earnings have also made Colombian coal more competitive on Asian markets.” Alexis Ellender, Lead Major Dry Bulks Analyst, Kpler

Will the short-term trend in recent coal shipments evolve into a long-term shift?

With weak European demand and low freight rates, it’s worth considering. As thermal coal consumption declines in Europe and Asian markets grow, Colombian exporters seek new customers.

Source: KPLER


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