Coal shipments to advanced economies are down 17%

Between January and August, electricity production fell by 4% y/y, according to data from the International Energy Agency.

Thermal coal accounted for 68% of coal shipments which fell by 22% y/y, between January and October this year. Thermal coal is used for electricity generation and is being phased out across many advanced economies in favour of renewable energy. Coking coal imports by advanced economies also fell, but only 2%, due to lower steel production in the EU, Japan and South Korea.

In 2023, advanced economies’ imports of seaborne coal have the potential to reach the lowest level since 2002. Imports fell in most markets, but the most significant decline was in the EU. After it boosted imports in 2022 in response to an energy crisis, volumes retreated once again and are now below the levels of 2021.

Advanced economies import 32% of the world’s seaborne coal shipments. Japan, Korea, the EU and Taiwan are the largest importers, accounting for 94% of all coal shipments to advanced economies. Australia is the origin of 40% of these cargoes, favoured for the high energy content in its coal. Other exporters include Indonesia, Russia, US, Canada, Colombia and South Africa.

Despite weaker shipments to advanced economies, global coal shipments are expected to grow 4.5-5.5% in 2023. Stronger demand in parts of Asia, particularly in China, has supported coal shipments this year. Average haul also increased 1.5-2.5%, boosted by sanctions on Russian coal.

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