Wood Mackenzie research director Matt Preston said Hurricane Florence had the potential to disrupt US coal exports from Hampton Roads, Virginia, which was the main point of departure for US Central Appalachian metallurgical and low sulphur thermal coals.

 

"Although Hampton Roads will now likely avoid a direct hit, there has still been an impact at the coal ports," he said.

 

"Most ships in port or queued awaiting loading have moved to deeper water. Loadings have stopped and may not resume for several days. The already high current vessel queue, which is in the mid-teens, will likely increase by the time shipping resumes."

 

The Hampton Roads region has a total capacity to ship 82 million tonnes per annum and is made up of three major ports, Lamberts Point, Pier IX and Dominion Terminal Associates, with 20Mtpa. 

 

Lamberts Point is owned by the NS railway and has no ground storage area. Dominion Terminal Associates is owned jointly by Contura Energy and Arch Coal. Pier IX is owned by Kinder Morgan.

 

"For the April through June period, monthly metallurgical coal exports from Hampton Roads have averaged 2.9 Mt," Preston said.

 

"This means each delay of a week would mean 740,000t. Thermal coal shipments averaged 600,000t per month for the same period, or 150,000t per week. With vessel queues averaging in the mid-teens recently and rail service struggling to keep up with deliveries, it is questionable that the ports would be able to quickly make up any loss."

 

The projected inland track into the Southern Appalachians could potentially interfere with metallurgical coal production in Alabama.

 

"The Hampton Roads region is still expected to face some storm surge and unusually high tides as well as associated heavy rains," Preston said. 

 

"These factors have some potential to interfere with normal business."