China's coastal ports handled 2.52 billion tonnes of coal in 2023, rising 5.4% year on year, an industry analyst cited data from the China Coal Transportation and Distribution Association, at a market seminar held late last week.

 

Total coal shipments from coastal ports reached 880 million tonnes last year, with northern ports accounting for 780 million tonnes, said Zhu Yanan, information analyst of a shipping company headquartered in Hebei province, at a power plant fuel market seminar held in Huainan, East China's Anhui province on May 16.

 

 

Zhu highlighted the significance of waterway transport as the second-largest channel for China's outbound coal shipment.

 

China's inverse distribution of coal production and consumption determines the logistical pattern of transporting coal from west to east and north to south coal with rail and waterway combined means.

 

The country's coal transport modes include railways, waterways, highways, and multimodal transport, with rail shipment taking up approximately 60% of the total, waterways at 30%, and road transport at 10%.

 

To further optimize the transport structure, reduce freight costs, and promote energy conservation and emission reduction, the national government requires relevant authorities to establish a development pattern by 2025 that primarily relies on railways and waterways for bulk commodity transport.

 

The national freight volume by rail and water is expected to grow by 10% and 12% respectively compared to 2020.

 

In 2023, the domestic coal shipping volume of major ports and coastal ports decreased by 1.5% and 1.4% respectively year on year.

 

Qinhuangdao port maintained stable shipments, while Huanghua and Jingtang ports experienced steady growth, with a year-on-year increase of 2.2% and 4.9% respectively. Caofeidian and Tianjin ports witnessed a slight decline in shipments, down 4.9% and 6.1% respectively.

 

Zhu attributed the decline in both the coal handlings and shipments at ports mainly to the substantial growth of imported coal.

 

Moreover, she predicted the coastal coal throughput to exceed 2.3 billion tonnes by 2030. The shipping capacity is forecast to surpass 820 million tonnes, with the volume at Bohai-rim ports reaching over 750 million tonnes.

 

The total capacity of coastal inter-provincial bulk carriers (over 10,000 tonnes) amounted to 2,538 vessels and 83.356 million deadweight tonnes in 2023, up 111 vessels and 3.532 million deadweight tonnes from the end of 2022, a 4.4% rise. This marks an excess of shipping capacity.

 

Against this backdrop, the coastal coal freight index remained below 1,000 points throughout last year, leading to a sharp decline in vessel owners' operating income.

 

In 2023, the freight rates for the Qinhuangdao-Guangzhou route (60,000-70,000 DWT) and Qinhuangdao-Zhangjiagang route (40,000-50,000 DWT) route averaged 32.2 yuan/t and 24.7 yuan/t, respectively, down 12.2 yuan/t and 8.8 yuan/t year on year, and falling 25 yuan/t and 24.3 yuan/t compared to 2021.

 

Looking ahead, Zhu expected higher market sensitivity and a shorter cycle of coastal freight rate fluctuations with domestic coal output remaining high, end-users reducing buying amid healthy stocks, as well as a loose import market.