Coal is readily available from a wide variety of sources in a well-supplied worldwide market. Coal can be transported to demand centres quickly, safely and easily by ship and rail. A large number of suppliers are active in the international coal market, ensuring a competitive and efficient market. Coal Transportation
The way that coal is transported to where it will be used depends on the distanc
e to be covered. Coal transportation is generally carried out by conveyor or truck over short distances. Trains and barges are used for longer distances within domestic markets, or alternatively coal can be mixed with water to form a coal slurry and transported through a pipeline. Ships are commonly used for international transportation, in sizes ranging from:
Handysize - 40-45,000 DWT
Panamax - about 60-80,000 DWT
Capesize vessels - about 80,000 DWT
(For a glossary of useful terms used in the shipping industry, click here)
Coal Trade
Coal is traded all over the world, with coal shipped huge distances by sea to reach markets. Over the last twenty years:
seaborne trade in steam coal has increased on average by about 7% each year
seaborne coking coal trade has increased by 1.6% a year. Overall international trade in coal reached 1142Mt in 2011; while this is a significant amount of coal it still only accounts for about 15% of total coal consumed. Most coal is used in the country in which it is produced. Transportation costs account for a large share of the total delivered price of coal, therefore international trade in steam coal is effectively divided into two regional markets
the Atlantic market, made up of importing countries in Western Europe, notably the UK, Germany and Spain. the Pacific market, which consists of developing and OECD Asian importers, notably Japan, Korea and Chinese Taipei. The Pacific market currently accounts for about 57% of world seaborne steam coal trade. Indonesia has overtaken Australia as world’s largest coal exporter. It exported over 300Mt of coal in 2011. Australia remains the world's largest supplier of coking coal, accounting for roughly 50% of world exports. Top Coal Exporters (2011e)
Total of which Steam Coking
Indonesia 309Mt 309Mt 0Mt
Australia 284Mt 144Mt 140Mt
Russia 124Mt 110Mt 14Mt
USA 97Mt 34Mt 63Mt
Colombia 75Mt 75Mt 0Mt
South Africa 72Mt 72Mt 0Mt
Kazakhstan 34Mt 33Mt 1Mt
Top Coal Importers (2011e)
Total of which Steam Coking
PR China 190Mt 146Mt 38Mt
Japan 175Mt 121Mt 54Mt
South Korea 129Mt 97Mt 32Mt
India 105Mt 86Mt 19Mt
Chinese Tapei 66Mt 62Mt 4Mt
Germany 41Mt 32Mt 9Mt
UK 33Mt 27Mt 6Mt
Sources: BP, IEA, World Steel Association, WEC
(e = estimated) (Mt = Million tonnes)
