El Nino disrupts logistics on Indonesian key coal transport route

A deterioration in river conditions along Indonesia's major coal artery was independently confirmed on August 26 by Indonesia's Geospatial Information Agency, or BIG. Satellite imagery from May 4, July 8, July 19 and August 17 showed a progressive contraction of the Barito's active water channel around the Kalahien Bridge in Barito Selatan, with larger areas of exposed riverbed and sandbanks. BIG stressed that the river had not completely dried up, but that its water surface and active channel had shrunk significantly. Sources said the impact was more severe in parts of the upper Barito, where shallow sections were restricting or halting barge movements. This has forced some producers to declare force majeure on shipments, while others were reducing cargo sizes to avoid vessels running aground.

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