The freight cost of vessels for transportation of Russian coal has increased 9 times
Russian coal companies now have access to only 30% of the world's bulk freight, and the cost of freight has jumped 9 times due to Western sanctions.
As TTS writes with reference to Interfax, this was discussed by the participants of the transport and logistics conference currently taking place in the Russian Federation.
"What is freight today? Today freight is only 30% of the possible global bulk freight. Back in February we had 100% available, today only 30% is available, and in August we also faced unprecedented influence from clubs providing reinsurance of ships," noted Denis Rahimzhanov, director of logistics at JSC "Siberian Coal Energy Company".
He added that after the European coal-consuming countries refused to supply from Russia, the distance of export transportation seriously increased.
"We have reformatted the logistics chains, and the countries to which we are transporting (coal) today through Western ports are Morocco, India, Turkey and other countries that we previously considered as non-strategically important partners. This led to the fact that the cost of coal has changed dramatically, the distance of transportation has increased. If earlier (there was a route) Murmansk-Rotterdam, it is 3 thousand km, but today it is more than 15 thousand km to Iskenderun (Turkey) and the cost of freight per 1 ton has increased 9 times" - Rahimzhanov clarified.
He also said that, although his company reduced the supply of coal in the western direction from 10 to 7.2 million tons (compared to 8 months of 2021), in general, an increase in exports by 1% is expected. At the same time, there will be a significant decrease in the monetary equivalent. Along with such factors as the availability and cost of freight, the distance of transportation, this was influenced by the increase in railway tariffs from June 1, as well as the situation in which the Russian ruble is currently located.