Coal exports from the Hampton Road port in the US saw a sustained drop in the first six months of 2016. Year-on-year figures showed a 30% dip, compared to the same period in 2015.
Hampton Roads is the biggest coal exporting port in the US, T. Parker Host, a Norfolk-based shipping firm, said in a report. The port’s three largest coal terminals saw a decrease in exports to 10.87 million tons in the first half of 2016, down from 15.46 million in the same period last year.
Coal production in the US has been in the doldrums in the past years as well, with production expected to drop by 17% or 155 million tons in total this year, the US Energy Information Administration said. Marginal recovery of 4% or 27 million tons is expected next year.
EIA credits the drop in demand to competition from the cheaper natural gas and comparably warmer winter weather in the first quarter of 2016. US coal exports have been falling since 2012, EIA added.
David Host, T. Parker Host chairman and CEO, said exports are expected to hit 21.7 million tons if activity is sustained, though it still represents a decrease from the 26.7 million tons exported last year.
He added that demand for coal will remain, though how much of it will be seen this year is still in question.
