Hydrogen replacing coking coal – should owners of dry bulk ships take note?
The recent development of replacing coking coal with hydrogen in crude steel production has created a buzz that coking coal might soon be out of favour. For dry bulk operators this is a potentially negative development, but is this really the case?12 Nov 2020: Appalling fate of non-coking coal trade
While imports to the EU will continue to decline, momentum in Asia’s imports will remain intact over the next five-eight years, thereby supporting dry bulk shipping demand. However, increasing consensus on limiting climate change is expected to decelerate coal imports to Asia post-2030, leading to a drop in non-coking coal trade and consequently dampening employment opportunities for dry bulk vessels.16 Oct 2020: China-Australia tiff to hit dry bulk demand
The Chinese government has prohibited the import of Australian coal, which will be detrimental for dry bulk vessels as Chinese importers will shift from Australia to Indonesia and Mongolia, resulting in a decline in average haulage length and a loss in shipping demand.
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