The collapse of Francis Scott Key Bridge in Baltimore, United States, has brought in insecurities that can be felt from overseas in the Indian market, Industry experts have expressed their views regarding the incident and fear disruptions in supply chains which would impact the overall market prices of coal. Thermal coal is one of the major import Items of India and with the incident taking place it becomes imperative for India to take reinforcement measures.
According to a US-based trader, the incident is expected to restrict shipments from Arch Coal and create logistical hurdles for Indian importers.
A broker told S&P, “The incident will restrict NAPP shipments from Arch Coal and create numerous problems in the supply chain for India. Possible effect on thermal coal to Europe. Bigger impact is India. Watch the pet coke prices jump!”
India-based traders have expressed concerns over delayed shipment which would impact the energy sector.
The Indian trader said, “The authorities will take 6-7 days to assess how much debris is there from the incident and how much draft is available because if the draft is low then it could be a problem. The authorities may take 10-15 days to clear out the debris, so it means no ship movement during this period.”
With the suspension of services due to the bridge collapse, alternative routes will have to be navigated and appropriate logistical arrangements will have to be put in place to continue the supply of coal to the Indian markets.
There are varying views on the overall impact of the incident with a few market participants expecting a minor fluctuation in the prices, further, others believe that if the waterway is cleared within a reasonable time frame the price fluctuations in coal would be limited.
As of now the situation still needs to be assessed carefully and proper reinforcement measures must be employed for any potential implications.
While authorities endeavor to evaluate and remove the debris from the collapsed bridge, Indian coal, and pet coke importers are preparing for potential interruptions in their supply chains. With India’s energy security in jeopardy, efforts are concentrated on exploring alternative measures to alleviate the effects of the Baltimore bridge collapse on the nation’s energy industry.
