COALspot.com keeps you connected across the coal world

Submit Your Articles
We welcome article submissions from experts in the areas of coal, mining, shipping, etc.

To Submit your article please click here.

International Energy Events


WTI Crude Oil

BRENT Crude Oil

Search News
Latest CoalNews Headlines
Friday, 11 June 21
5 REASONS GLOBAL SHIPPING COSTS WILL CONTINUE TO RISE - ING
INGNo short-term relief
Shipping costs have been growing strongly since the autumn of 2020, but the first months of this year have seen a new surge in prices across different freight rates (dry bulk, containers) along major trade routes. Prices for several trade lanes have tripled compared to last year, and charter prices for container vessels have seen similar rises.
 
There is little sign of relief in the short term, and rates are therefore likely to continue spiking in the second half of this year, as rising global demand will continue to be met with limited increases in shipping capacity and the disruptive effects of local lockdowns. Even when new capacity arrives, container liners may continue to be more active in managing it, keeping freight rates at a higher level than before the pandemic.
 
Here are five reasons why costs aren’t going to come down anytime soon.
 
1. Continued global imbalances push prices up further
 
Problems that had built up from the beginning of the pandemic have included imbalances in the production and demand for goods, with countries locking down and opening up at different times, as well as shipping companies cutting the capacity on major routes and shortages of empty containers. As the recovery has progressed, global demand has recovered strongly, especially in the sectors which are most closely linked to international trade in goods. Competition for ocean freight capacity has intensified as economies open up further and inventories are rebuilt across the several links of supply chains.
 
2. Few alternatives to ocean freight
 
A lack of alternatives to ocean freight means it’s hard to avoid surging transport costs at the moment. For higher value products, alternative modes of transportation would normally be an option, such as the shipment of electronic devices by air or via train, not least through the ‘Silk Road’. But capacity is currently limited, and tariffs have spiked as well. Shippers of lower value products such as household items, toys, promotional articles or t-shirts have seen freight costs increase from around 5% of their sourcing costs to more than 20%.
 
The difficulty of absorbing increases on this scale in margins means that consumers may start to feel the impacts through price increases, or changes in product availability.
 
3. An unbalanced recovery throughout 2021
 
Some counties are already exporting more goods than they did before the pandemic, while in others, including the US, exports continue to lag behind the overall recovery in output. Trade in goods will rise further while not only the major trading countries, but also their trade partners, continue recovering. With the competition for ocean freight capacity set to remain, the unbalanced recovery will continue to exacerbate some of the problems for world trade, including displaced empty containers. It all adds up to more pressure on freight rates in the near term.
 
4. Reduced blank sailings will help ease capacity constraints
 
Globally, capacity on major shipping routes has recovered to levels before the major lockdowns in 2020, although blank sailings (cancelled port calls) continued to cut 10% of scheduled capacity through the first quarter. There are signs of improvement this quarter, which on current plans will average at 4%. But cancellations have partly been a response to delays, so while the system remains congested, shipping capacity may continue to be taken out of the system at short notice.
 
5. Port congestion and closures keep creating delays
 
As the link between cancelled sailings and delays suggests, congestion is part of the problem. Shipping performance in 2021 has carried on where 2020 left off, in terms of lower rates of vessels keeping to schedule, and average delays for late vessels rising. There are some signs that average performance will start to improve as the share of vessels reaching their destinations on time stopped sliding in April, and average delays improved. But overall performance remains the lowest it has been in ten years of records.
 
At the same time, the pandemic is still leading to disruptions, like the sudden closing of China’s Yantian container port – part of the world’s 4th largest container port Shenzhen – in early June. Even though operations have resumed, congestion and the continuing need for measures to stop the spread of Covid-19 mean delays continue to mount. Although China and other major trading countries are making progress with vaccination programmes, creating immunity will take time and consequently handing interruptions will remain a risk over the coming months.
 
Flood of new container capacity will ease price pressures, but not before 2023
 
Container liners have enjoyed outstanding financial results during the pandemic, and over the first 5 months of 2021, new orders for container vessels reached a record high of 229 ships with a total cargo capacity of 2.2 million TEU. When the new capacity is ready for use, in 2023, it will represent a 6% increase after years of low deliveries, which the scrapping of old vessels is not expected to offset. Along with global growth moving past the catch-up phase of its recovery, the coming increase in ocean freight capacity will put downward pressure on shipping costs but won’t necessarily return freight rates to their pre-pandemic levels, as container liners seem to have learned to manage capacity better in their alliances.
 
In the near term, freight rates may yet reach new highs thanks to the combination of further increases in demand and the constraints of a congested system. And even when capacity constraints are eased, freight rates may remain at higher levels than before the pandemic.
Source: ING


If you believe an article violates your rights or the rights of others, please contact us.

Recent News

Wednesday, 01 December 21
MARKET INSIGHT - INTERMODAL
Essentially, anyone involved in the shipping and commodity markets still struggle with commodity supply issues and skyrocketing prices in the conte ...


Tuesday, 30 November 21
CHINA'S TOP ECONOMIC PLANNER SUMMONS COAL PRODUCERS; LONG-TERM PRICING MECHANISM IS ADVISED - GLOBAL TIMES
China’s top economic planner the National Development and Reform Commission (NDRC) said on Monday that they summoned coal producers for a hea ...


Tuesday, 30 November 21
CHINA'S COAL PRICES PLUNGE AFTER GOVT SIGNALS MORE PRICE REGULATION - REUTERS
China’s thermal coal futures dropped 5.6% on Monday after the state economic planner signaled further regulations for prices of the dirty pow ...


Friday, 26 November 21
AS COAL MARKET STABILIZES, CHINA STEPS UP NATURAL GAS SUPPLY TO MEET WINTER DEMAND - GLOBAL TIMES
The daily supply of natural gas in China has exceeded 1 billion cubic meters (bcm) since November began, up 11 percent year-on-year, data from stat ...


Friday, 26 November 21
CHINA FINDS COMPLIANCE PROBLEMS IN COAL PRICE INDEX PROBE - REUTERS
China’s state planner on Wednesday said it had discovered some “noncompliant” behaviour among coal price index providers as it an ...


   5 6 7 8 9   
Showing 31 to 35 news of total 6503
News by Category
Popular News
 
Total Members : 27,706
Member
Panelist
User ID
Password
Remember Me
By logging on you accept our TERMS OF USE.
Free
Register
Forgot Password
 
Our Members Are From ...

  • Indonesia Power. PT
  • Cigading International Bulk Terminal - Indonesia
  • Maheswari Brothers Coal Limited - India
  • European Bulk Services B.V. - Netherlands
  • Timah Investasi Mineral - Indoneisa
  • Siam City Cement PLC, Thailand
  • Altura Mining Limited, Indonesia
  • Kobe Steel Ltd - Japan
  • SRK Consulting
  • Salva Resources Pvt Ltd - India
  • Deloitte Consulting - India
  • Reliance Power - India
  • Barasentosa Lestari - Indonesia
  • Energy Development Corp, Philippines
  • ING Bank NV - Singapore
  • Bank of America
  • Aboitiz Power Corporation - Philippines
  • PowerSource Philippines DevCo
  • SUEK AG - Indonesia
  • GVK Power & Infra Limited - India
  • Geoservices-GeoAssay Lab
  • AsiaOL BioFuels Corp., Philippines
  • Idemitsu - Japan
  • U S Energy Resources
  • TNPL - India
  • Toyota Tsusho Corporation, Japan
  • BRS Brokers - Singapore
  • Indian School of Mines
  • MS Steel International - UAE
  • Agrawal Coal Company - India
  • NALCO India
  • Coaltrans Conferences
  • Minerals Council of Australia
  • Cement Manufacturers Association - India
  • Bangladesh Power Developement Board
  • Aditya Birla Group - India
  • Berau Coal - Indonesia
  • UOB Asia (HK) Ltd
  • Banpu Public Company Limited - Thailand
  • Coal and Oil Company - UAE
  • Eastern Coal Council - USA
  • Merrill Lynch Commodities Europe
  • OCBC - Singapore
  • Economic Council, Georgia
  • Commonwealth Bank - Australia
  • South Luzon Thermal Energy Corporation
  • PTC India Limited - India
  • ASAPP Information Group - India
  • Malco - India
  • KPMG - USA
  • Metalloyd Limited - United Kingdom
  • Bahari Cakrawala Sebuku - Indonesia
  • Binh Thuan Hamico - Vietnam
  • Bhushan Steel Limited - India
  • Star Paper Mills Limited - India
  • Malabar Cements Ltd - India
  • Chettinad Cement Corporation Ltd - India
  • Gujarat Sidhee Cement - India
  • Anglo American - United Kingdom
  • TANGEDCO India
  • Kideco Jaya Agung - Indonesia
  • JPower - Japan
  • Asmin Koalindo Tuhup - Indonesia
  • Central Electricity Authority - India
  • Medco Energi Mining Internasional
  • BNP Paribas - Singapore
  • Cardiff University - UK
  • Directorate General of MIneral and Coal - Indonesia
  • Bhoruka Overseas - Indonesia
  • Credit Suisse - India
  • Kaltim Prima Coal - Indonesia
  • Bank of Tokyo Mitsubishi UFJ Ltd
  • Fearnleys - India
  • Electricity Authority, New Zealand
  • Makarim & Taira - Indonesia
  • Attock Cement Pakistan Limited
  • Videocon Industries ltd - India
  • Wood Mackenzie - Singapore
  • Indonesian Coal Mining Association
  • Meenaskhi Energy Private Limited - India
  • EIA - United States
  • PLN Batubara - Indonesia
  • Eastern Energy - Thailand
  • Permata Bank - Indonesia
  • Sree Jayajothi Cements Limited - India
  • Singapore Mercantile Exchange
  • Manunggal Multi Energi - Indonesia
  • Sinarmas Energy and Mining - Indonesia
  • Mintek Dendrill Indonesia
  • Kartika Selabumi Mining - Indonesia
  • TRAFIGURA, South Korea
  • Samsung - South Korea
  • KEPCO - South Korea
  • Heidelberg Cement - Germany
  • Maharashtra Electricity Regulatory Commission - India
  • Ministry of Finance - Indonesia
  • Coeclerici Indonesia
  • Vitol - Bahrain
  • Truba Alam Manunggal Engineering.Tbk - Indonesia
  • Argus Media - Singapore
  • Samtan Co., Ltd - South Korea
  • Dr Ramakrishna Prasad Power Pvt Ltd - India
  • Pipit Mutiara Jaya. PT, Indonesia
  • ACC Limited - India
  • Iligan Light & Power Inc, Philippines
  • Thailand Anthracite
  • Central Java Power - Indonesia
  • Jaiprakash Power Ventures ltd
  • Maybank - Singapore
  • Shenhua Group - China
  • Latin American Coal - Colombia
  • IMC Shipping - Singapore
  • Rudhra Energy - India
  • EMO - The Netherlands
  • Baramulti Group, Indonesia
  • Global Green Power PLC Corporation, Philippines
  • Thriveni
  • Savvy Resources Ltd - HongKong
  • Madhucon Powers Ltd - India
  • TeaM Sual Corporation - Philippines
  • Billiton Holdings Pty Ltd - Australia
  • Bank of China, Malaysia
  • Rio Tinto Coal - Australia
  • Thomson Reuters GRC
  • Sakthi Sugars Limited - India
  • Grasim Industreis Ltd - India
  • San Jose City I Power Corp, Philippines
  • Kohat Cement Company Ltd. - Pakistan
  • HSBC - Hong Kong
  • Mercuria Energy - Indonesia
  • Sarangani Energy Corporation, Philippines
  • Xindia Steels Limited - India
  • Straits Asia Resources Limited - Singapore
  • Humpuss - Indonesia
  • McConnell Dowell - Australia
  • Thermax Limited - India
  • Cebu Energy, Philippines
  • Wilmar Investment Holdings
  • Goldman Sachs - Singapore
  • Kalimantan Lumbung Energi - Indonesia
  • The University of Queensland
  • Independent Power Producers Association of India
  • Electricity Generating Authority of Thailand
  • Adani Power Ltd - India
  • Indogreen Group - Indonesia
  • Tata Power - India
  • SMC Global Power, Philippines
  • Ince & co LLP
  • Dong Bac Coal Mineral Investment Coporation - Vietnam
  • Inspectorate - India
  • Deutsche Bank - India
  • Bulk Trading Sa - Switzerland
  • Kobexindo Tractors - Indoneisa
  • Gresik Semen - Indonesia
  • Sucofindo - Indonesia
  • Arch Coal - USA
  • Globalindo Alam Lestari - Indonesia
  • Miang Besar Coal Terminal - Indonesia
  • Kepco SPC Power Corporation, Philippines
  • Krishnapatnam Port Company Ltd. - India
  • Ceylon Electricity Board - Sri Lanka
  • Africa Commodities Group - South Africa
  • SMG Consultants - Indonesia
  • MEC Coal - Indonesia
  • Clarksons - UK
  • RBS Sempra - UK
  • Asia Pacific Energy Resources Ventures Inc, Philippines
  • CIMB Investment Bank - Malaysia
  • Interocean Group of Companies - India
  • Riau Bara Harum - Indonesia
  • SN Aboitiz Power Inc, Philippines
  • Holcim Trading Pte Ltd - Singapore
  • International Coal Ventures Pvt Ltd - India
  • Pendopo Energi Batubara - Indonesia
  • Siam City Cement - Thailand
  • VISA Power Limited - India
  • Noble Europe Ltd - UK
  • UBS Singapore
  • GN Power Mariveles Coal Plant, Philippines
  • Freeport Indonesia
  • Russian Coal LLC
  • SGS (Thailand) Limited
  • Bukit Baiduri Energy - Indonesia
  • Cargill India Pvt Ltd
  • India Bulls Power Limited - India
  • Borneo Indobara - Indonesia
  • Inco-Indonesia
  • New Zealand Coal & Carbon
  • Mitsui
  • GNFC Limited - India
  • Indorama - Singapore
  • DBS Bank - Singapore
  • Global Coal Blending Company Limited - Australia
  • Price Waterhouse Coopers - Russia
  • The State Trading Corporation of India Ltd
  • Carbofer General Trading SA - India
  • Global Business Power Corporation, Philippines
  • Offshore Bulk Terminal Pte Ltd, Singapore
  • Australian Commodity Traders Exchange
  • KOWEPO - South Korea
  • Ministry of Mines - Canada
  • Dalmia Cement Bharat India
  • Tamil Nadu electricity Board
  • Thai Mozambique Logistica
  • Mercator Lines Limited - India
  • Jindal Steel & Power Ltd - India
  • Platou - Singapore
  • Posco Energy - South Korea
  • Runge Indonesia
  • ANZ Bank - Australia
  • The Treasury - Australian Government
  • IHS Mccloskey Coal Group - USA
  • Shree Cement - India
  • CESC Limited - India
  • Therma Luzon, Inc, Philippines
  • Bhatia International Limited - India
  • Moodys - Singapore
  • JPMorgan - India
  • Karbindo Abesyapradhi - Indoneisa
  • Karaikal Port Pvt Ltd - India
  • Indian Oil Corporation Limited
  • Pinang Coal Indonesia
  • Sojitz Corporation - Japan
  • Alfred C Toepfer International GmbH - Germany
  • Larsen & Toubro Limited - India
  • Gujarat Mineral Development Corp Ltd - India
  • ETA - Dubai
  • Adaro Indonesia
  • GHCL Limited - India
  • Barclays Capital - USA
  • WorleyParsons
  • GAC Shipping (India) Pvt Ltd
  • Orica Australia Pty. Ltd.
  • Parry Sugars Refinery, India
  • World Coal - UK
  • SASOL - South Africa
  • Sical Logistics Limited - India
  • Infraline Energy - India
  • Mechel - Russia
  • Marubeni Corporation - India
  • Petrochimia International Co. Ltd.- Taiwan
  • Sindya Power Generating Company Private Ltd
  • Jorong Barutama Greston.PT - Indonesia
  • Indian Energy Exchange, India
  • Britmindo - Indonesia
  • Renaissance Capital - South Africa
  • APGENCO India
  • CCIC - Indonesia
  • Coalindo Energy - Indonesia
  • The India Cements Ltd
  • Bangkok Bank PCL
  • Meralco Power Generation, Philippines
  • Trasteel International SA, Italy
  • Panama Canal Authority
  • Thiess Contractors Indonesia
  • Semirara Mining Corp, Philippines
  • Essar Steel Hazira Ltd - India
  • Petrosea - Indonesia
  • Bukit Asam (Persero) Tbk - Indonesia
  • McKinsey & Co - India
  • Uttam Galva Steels Limited - India
  • Surastha Cement
  • Indo Tambangraya Megah - Indonesia
  • Australian Coal Association
  • LBH Netherlands Bv - Netherlands
  • Coastal Gujarat Power Limited - India
  • Asia Cement - Taiwan
  • GMR Energy Limited - India
  • KPCL - India
  • Energy Link Ltd, New Zealand
  • Ministry of Transport, Egypt
  • Core Mineral Indonesia
  • Vale Mozambique
  • Filglen & Citicon Mining (HK) Ltd - Hong Kong
  • Directorate Of Revenue Intelligence - India
  • Antam Resourcindo - Indonesia
  • GB Group - China
  • Kumho Petrochemical, South Korea
  • Coal India Limited
  • Coal Orbis AG
  • Merrill Lynch Bank
  • Asian Development Bank
  • Orica Mining Services - Indonesia
  • IBC Asia (S) Pte Ltd
  • TNB Fuel Sdn Bhd - Malaysia
  • Standard Chartered Bank - UAE
  • TGV SRAAC LIMITED, India
  • globalCOAL - UK
  • Leighton Contractors Pty Ltd - Australia
  • Maruti Cements - India
  • Bayan Resources Tbk. - Indonesia
  • Lanco Infratech Ltd - India
  • OPG Power Generation Pvt Ltd - India
  • Vizag Seaport Private Limited - India
  • Oldendorff Carriers - Singapore
  • Lafarge - France
  • Peabody Energy - USA
  • Georgia Ports Authority, United States
  • Kapuas Tunggal Persada - Indonesia
  • Indika Energy - Indonesia
  • Tata Chemicals Ltd - India
  • Qatrana Cement - Jordan
  • Jatenergy - Australia
  • Ind-Barath Power Infra Limited - India
  • Neyveli Lignite Corporation Ltd, - India
  • Japan Coal Energy Center
  • London Commodity Brokers - England
  • Intertek Mineral Services - Indonesia
  • CoalTek, United States
  • Port Waratah Coal Services - Australia
  • PetroVietnam Power Coal Import and Supply Company
  • Chamber of Mines of South Africa
  • Total Coal South Africa
  • Vedanta Resources Plc - India
  • White Energy Company Limited
  • ICICI Bank Limited - India
  • Vijayanagar Sugar Pvt Ltd - India
  • Simpson Spence & Young - Indonesia
  • Ernst & Young Pvt. Ltd.
  • CNBM International Corporation - China
  • Xstrata Coal
  • Parliament of New Zealand
  • Tanito Harum - Indonesia
  • Mitra SK Pvt Ltd - India
  • Gupta Coal India Ltd
  • bp singapore
  • IOL Indonesia
  • PetroVietnam
  • J M Baxi & Co - India
  • Romanian Commodities Exchange
  • Planning Commission, India
  • Maersk Broker
  • Arutmin Indonesia
  • Edison Trading Spa - Italy
  • NTPC Limited - India
  • Bukit Makmur.PT - Indonesia
  • Mjunction Services Limited - India
  • Cosco
  • Semirara Mining and Power Corporation, Philippines
  • Power Finance Corporation Ltd., India
  • Rashtriya Ispat Nigam Limited - India
  • IEA Clean Coal Centre - UK
  • Ambuja Cements Ltd - India
  • PNOC Exploration Corporation - Philippines
  • Petron Corporation, Philippines
  • World Bank
  • Gujarat Electricity Regulatory Commission - India
  • PLN - Indonesia
  • Platts
  • Mitsubishi Corporation
  • Cemex - Philippines
  • Formosa Plastics Group - Taiwan
  • Bharathi Cement Corporation - India
  • Enel Italy
  • Glencore India Pvt. Ltd