Coal Carriage by Sea

Phil Rogers, John Strange, Brian Studd

• Publisher: Informa Law from Routledge
• Year: 2020
• ISBN:
  9781000341522
• Edition: 2
• Topic: Droit
• Subtopic: Droit maritime

Part of the ""Carriage by Sea"" series, this second edition contains statistical information on coal consumption, production and trade, including comparative statistics by geographical area, together with full analysis. The carriage of coal by sea, including the specifications and problems of vessels used to carry coal, terminal operations and charterparties are also covered, as are some of the most frequently arising claims and preventative measures. The book is suitable for companies involved in the coal trades, including shipowners, operators, charterers, managers, shipbuilders and coal exporters and importers.

PART I

Overview: Coal Consumption, Production and Trade

CHAPTER 1

Coal consumption, production and trade

COMMERCIAL TYPES OF COAL

In this book we consider the main commercial coals that are traded internationally by sea. This automatically excludes most sub-bituminous coals, all lignite grades and lower ranks such as peat; it does, however, include anthracite and when the coal referred to includes the latter this will be stated.

The chapters that follow refer to the individual country or regional developments, and explain the demand for coal in the light of changes in energy demand and supply. This chapter aims to explain the overall framework in terms of the major influences. In general terms these influences are perceived as steel production, electricity production, industrial and domestic demand for coal, and hard coal production.

Until relatively recent times (roughly the end of the 1970s) seaborne coal trade was determined by the needs of the developed countries—particularly in Europe and Japan. Since then, significant additional demand has materialised in countries located in the Asia/Pacific, such as South Korea, Taiwan and Hong Kong. In South Korea and Taiwan (both coal producers), demand has mirrored the industrial growth in those countries over the last 30 years, particularly in relation to steel and electricity production. In these two countries a decline in domestic coal production has been in evidence over this same period. In Hong Kong (which has no natural thermal energy resources) the growth in coal demand has matched the construction of new coal-fired electricity plants.

1. Energy production and general consumption

Taking 1960 as a starting point, the supply of seaborne coal has come from a variety of sources. Coal production in the developed countries has been insufficient to cover needs—irrespective of any domestic transportation constraints. If we take the OECD grouping as representing the “developed countries” then Table 1 shows that throughout the period (and even with the massive increase in supplies from the USA) these countries have been dependent upon coal from other non-OECD sources.

Table 1 OECD: coal consumption, production and net imports (million tonnes oil equivalent—MTOE)

Year	Consumption	Production	Net imports
1960	637.86	616.54	11.84
1965	668.18	660.72	18.78
1970	666.51	649.11	22.66
1975	624.78	640.71	26.83
1980	739.30	735.76	23.27
1985	816.57	773.92	19.92
1990	907.31	907.64	17.81
1994	883.45	854.95	28.82

Source: OECD, “Energy Balances of OECD Countries” various years; International Energy Agency, Paris 1987, 1991, 1996.

Traditional non-OECD coal suppliers include Poland, the former Soviet Union (FSU) and South Africa. Since the mid-1980s China, Colombia, Indonesia and Venezu...