Long-haul shipments of coal to Asia have declined in the past two months, much to the detriment of the capesize bulker market, according to Braemar.
Capesizes shipped 46% of Vietnam’s coal imports so far this year, but Indonesia overtook Australia in May as Vietnam’s top supplier of the commodity, a report on Tuesday by the UK-based broker showed.
Though the percentage tripled from 15% in the first half of 2020 to the expense of geared bulkers, the fact that Vietnam got most of its coal from Indonesia in May still hurt the capesize sector because Indonesia is much closer than Australia.
“This development has blunted the tonne-mile effect,” Braemar said in its report.
View entirety: Tradewinds