Russia's coal exports drop across major routes in H1CY'24

Russia's coal exports in the first half of 2024 (H1CY'24) took a notable dip, decreasing by 10% y-o-y, with a pronounced impact on shipments to ports.

Key statistics

• Far East ports: Coal delivery by rail decreased 3% y-o-y.
  
  
• Northern ports: Experienced a 12% y-o-y decline.
  
  
• Baltic ports: Saw a 9% drop
  
  
• Southern ports: Faced a staggering 62% reduction y-o-y.
  
  
• Coal export supplies from Kuzbass by rail fell 11% y-o-y.
  
  

Reasons behind the drop in exports

The main challenges affecting Russian coal exports lie in the constrained railway capacities and the elevated costs of onshore logistics.

Russian Railways has declined to reinstate discounts for transporting coal to the northern, Baltic, and southern ports. Given the current coal prices, deliveries to the northern and southern destinations are now largely unprofitable for coal producers.

The decrease in shipments through the southern ports can be attributed to the near cessation of operations at the Port of Taman since February due to exorbitant transshipment rates. While rates were subsequently slashed by nearly half, port shipments began a gradual recovery from April onward. Yet, these still fell short of the agreed-upon volumes for June, registering a 47% decline y-o-y.

The decline in coal exports through the southern, northern, and Baltic ports is a significant setback for Russia. The interplay of reduced railway capacity, high logistics costs, and unfavourable pricing dynamics continues to challenge the coal export industry, impacting not just exporters but also the broader logistics and terminal operations.

Note: This article has been written in accordance with an article exchange agreement between SXCoal and BigMint.