Coal shipments to Japan, South Korea and EU jump on LNG disruption: BIMCO

Coal shipments to Japan, South Korea and the European Union rose 27% in April from a year earlier as disruptions to liquefied natural gas (LNG) supplies pushed buyers to seek alternative fuels for power generation, shipping association BIMCO said.

The increase followed the closure of the Strait of Hormuz, which disrupted LNG exports from the Persian Gulf and contributed to an 8% year-on-year decline in global seaborne LNG shipments in April, BIMCO said.

“In April 2026, coal shipments to Japan, South Korea and the EU jumped 27% y/y as these countries sought alternative energy supplies to gas to meet electricity demand,” Filipe Gouveia, Shipping Analysis Manager at BIMCO, said in a statement.

Coal imports into the three markets typically decline in April and May as heating demand eases, but shipments rose 1% month-on-month this year despite lower seasonal demand, according to BIMCO.

Japan, South Korea and the EU account for about 25% of global coal cargo volumes and 31% of tonne-mile demand for coal shipping, the association said.

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BIMCO said the increase in coal shipments to the three markets contributed to an 8% rise in global tonne-mile demand for coal in April, helping support freight rates for panamax and capesize vessels.

Panamax vessels account for 58% of coal shipments to the three regions, while capesize vessels transport another 31%, it added.

The association said prolonged disruption at the Strait of Hormuz could further increase coal demand in advanced economies as utilities switch from gas-fired to coal-fired power generation.

Under that scenario, BIMCO forecast global coal shipments could grow by as much as 1% in 2026 and between 0.5% and 1.5% in 2027.

However, BIMCO said coal shipments to the three economies were expected to decline over the longer term as renewable energy capacity continues to expand.

Editing by Reiner Simanjuntak