Coal transportation in Balti became 1.5 times more expensive per month.
Northwest stevedores at the beginning of the fourth quarter increased the cost of transporting coal to $15-25 per ton. This was reported in NEFT Research review. Compared to September, the rates increased by 8-9 dollars, compared to July-August - by 9-13 dollars per ton. For large suppliers, the rate increased by $5 from September, to $15 per ton. Transportation of small portions of coal diverted from the south rose to 20-25 dollars per ton.
Today, exporters are actively competing for port capacity in the Baltic region, as deliveries in the Azov-Black Sea basin are limited.
As stated in the review, the delivery of coal exports from Khakassia to the port of Ust-Luga in September jumped by 50.7% month-on-month and 105.8% year-on-year, to 172.2 thousand tons. Transportation of Kuzbass coal in this direction decreased by 2.5% compared to August, to 2.02 million tons, which is 29% more than a year earlier.
Russian Railways maintains restrictions on transporting coal to Ost-Luga at 55% of capacity in November. According to analysts, the low availability of the resource and the high interest of Turkish buyers led to an increase in thermal coal prices of 6,000 kcal per 1 kg in the Baltic Sea during the week of October 30 by 6.2%, to $113.5 per ton (FOB).
Director of the Center for Price Indices Roman Sokolov points out that the diversion of cargo flow from the south to the northwest has increased competition for carrying capacity between groups of export goods, which has increased both freight and freight rates. According to the analyst, coal as a cargo is proving to be more vulnerable, since in global markets it is inferior in cost to both grain and fertilizers, which makes it particularly sensitive to changes in logistics even in a favorable price environment. For these reasons, in the short term, the expert predicts a decrease in the export of coal through the ports of the northwest, and adds that the overall demand for logistics in Balti will keep transportation rates in the region at a high level.