Dry Bulk Market: Indonesian Coal Exports A Driving Force During 2023

Seaborne coal exports from Indonesia were a driving force during 2023, with a 10.2% increase compared to 2022. In a recent weekly report, shipbroker Banchero Costa said that “global coal trade has really picked up pace in recent months, and is now fully back to pre-Covid levels. In Jan-Dec 2023, global seaborne coal loadings increased by +5.8% yo-y to 1,339.5 mln t (excluding cabotage), based on vessel tracking data from AXS Marine. This was well above the 1,265.5 mln t loaded in Jan-Dec 2022, the 1,254.2 mln t in Jan-Dec 2021, and the 1,196.5 mln t in Jan-Dec 2020. It was also a little above the 1,309.8 mln t loaded in Jan-Dec 2019. In Jan-Dec 2023, exports from Indonesia increased by +10.2% y-o-y to 494.6 mln t, whilst from Australia were up +4.6% y-o-y to 344.1 mln t. From Russia exports declined by -2.1% y-o-y to 184.6 mln t in 2023, from the USA increased by +16.7% yo-y to 86.6 mln t, from South Africa increased +0.4% y-o-y to 60.8 mln t. Shipments from Colombia increased by +1.9% y-o-y to 56.4 mln t in JanDec 2023, from Canada by +9.6% yo-y to 49.9 mln t, and from Mozambique surged by +15.1% t-o-y to a record 23.8 mln t. Seaborne coal imports into Japan declined by -10.3% y-o-y to 160.5 mln t in Jan-Dec 2023, to South Korea by -4.4% y-o-y to 117.4 mln t, to Taiwan -4.3% y-o-y to 58.3 mln t, whilst to India increased by +6.9% yo-y to 240.8 mln t and to Vietnam +54.2% y-o-y to 47.4 mln t.

According to the shipbroker, “Indonesia is the world’s largest seaborne exporter of coal, accounting for 36.9% of the global seaborne coal market in 2023. Export volumes from Indonesia were relatively depressed during 2020 and 2021, due to disruption from Covid19 and from government policies favouring domestic consumption, but bounced back to an all-time record high in 2022, and continued to grow further in 2023. Total seaborne coal exports from Indonesia in 2022 reached 448.8 mln tonnes, +7.9% y-o-y, according to AXS Marine vessel tracking data. In 2023, coal exports from Indonesia increased further by +10.2% y-o-y to 494.6 mln tonnes”.

“The vast majority of Indonesian coal exports are loaded in East Kalimantan and South Kalimantan (the island of Borneo), with some volumes also shipped from southern Sumatra island. The main coal export terminals in Indonesia are: Taboneo/ Banjarmasin (94.8 mln t loaded in Jan-Dec 2023), Muara Berau (40.9 mln t), Tanjung Bara (38.1 mln t), Samarinda (37.1 mln t), Muara Banyuasin (34.4 mln t), Balikpapan (30.1 mln t), Bunati (30.0 mln t), Muara Pantai (29.4 mln t), Adang Bay (21.8 mln t), Muara Satui (14.6 mln t), Tanjung Pemancingan (13.5 mln t), Sangkulirang (12.9 mln t), Senipah Terminal (11.6 mln t). The majority (55%) of coal volumes from Indonesia in 2023 were loaded on Panamax vessels, with 37% on Supramax/Handymax vessels, and just 8% on Capesize tonnage. China continues to be the top importer of Indonesian seaborne coal exports, accounting for 41.5% of shipments in Jan-Dec 2023. In Jan-Dec 2023, shipments from Indonesia to China surged +21.7% at 205.2 mln tonnes, following a -10.0% y-o-y decline in Jan-Dec 2022”, the shipbroker said.

“About 21.0% of exports, or 104.1 mln tonnes in Jan-Dec 2023, were shipped to India, representing a modest increase of +0.2% y-o-y from 103.9 mln tonnes in 2022, but well above the 68.8 mln t shipped to India in 2021. Shipments to the Philippines have also increased by +18.6% y-o-y to 35.0 mln tonnes in 2023, with the Philippines accounting for 7.1% of Indonesian exports. Exports to South Korea declined by -0.7% y-o-y in 2023 to 26.1 mln t, with Korea accounting for 5.3%. Japan imported 25.2 mln t of coal from Indonesia, down -5.1% y-o-y. Malaysia received 24.6 mln tonnes, an increase of +7.4% y-o-y. Last but not least, exports to Vietnam increased +88.1% y-o-y to 17.7 mln t in Jan-Dec 2023”, Banchero Costa concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide