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Coal Surges on China Imports, Aids Panamax Market

[ July 3, 2026   //   ]

Global coal shipments rose 14 percent year over year in June, helping lift panamax freight rates as stronger Chinese import demand combined with continued energy supply disruptions linked to the Strait of Hormuz, according to BIMCO.

The shipping association said coal shipments to China jumped 41 percent from June 2025 as the country sought to offset weaker domestic production following a mining accident in Shanxi Province that temporarily shut down more than 100 mines. Since the beginning of the year, however, China’s coal imports remain down 3 percent, with the acceleration occurring primarily during May and June.

The increase also supported the dry bulk market. Coal accounted for about half of panamax tonne-mile demand during June, contributing to a 73 percent year-over-year increase in S&P Global Commodity Insights’ Platts KMAX 9 freight index.

“In June 2026, global coal shipments jumped 14 percent year over year, driven by a 41 percent year-over-year increase in coal shipments to China, as the country looked to offset weaker domestic supply and to meet higher demand from electricity generation,” said Filipe Gouveia, shipping analysis manager at BIMCO.

BIMCO said coal imports also strengthened in Korea, Japan and the European Union as buyers sought alternatives amid tighter LNG supplies following disruptions to shipping through the Strait of Hormuz.

Looking ahead, BIMCO said the outlook is mixed. Chinese import demand could ease as domestic coal production recovers, while expected El Niño conditions could increase coal consumption in India and Southeast Asia by reducing hydroelectric generation.

The association also identified the Strait of Hormuz as the market’s principal uncertainty. While the U.S.-Iran ceasefire has increased vessel transits through the waterway, BIMCO said operational and security concerns remain, and a sustained normalization will likely depend on a lasting peace agreement.

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