In April, coal shipments to Japan, South Korea, and the European Union surged by 27% year-on-year, driven by tight gas supplies and disruptions in LNG shipments. According to BIMCO, the closure of the Strait of Hormuz significantly impacted LNG exports from the Persian Gulf, contributing to an 8% decline in global seaborne LNG shipments for the month.
Typically, coal imports decline during April and May as heating demand wanes; however, this year saw a 1% month-on-month increase despite lower seasonal demand. Japan, South Korea, and the EU collectively account for about 25% of global coal cargo volumes and 31% of tonne-mile demand for coal shipping.
The rise in coal shipments has led to an 8% year-on-year increase in global tonne-mile demand for coal in April 2026. While sailing distances to these regions are shorter than the global average, they remain longer than the average for coal, thereby supporting freight rates, especially for panamax and capesize vessels.
Looking ahead, BIMCO suggests that ongoing disruptions at the Strait of Hormuz could further elevate coal demand as utilities transition from gas to coal. However, in the long term, a gradual decline in coal shipments is anticipated as renewable energy capacity expands.
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