Arrow Sees Hormuz Crisis Adding 55-65 Million Tonnes of Coal Demand, Tightening 100 Capesize Ships
Updated
Updated · Splash 247 · May 15
Arrow Sees Hormuz Crisis Adding 55-65 Million Tonnes of Coal Demand, Tightening 100 Capesize Ships
1 articles · Updated · Splash 247 · May 15
55-65 million tonnes of extra coal demand could emerge from the Middle East conflict, Arrow said, enough to absorb about 100 capesize ships from the spot market and sharply improve dry-bulk demand.
Hormuz tensions have disrupted gas supply expectations and pushed energy security ahead of decarbonisation, reversing what had looked like a weak 2025 for seaborne coal after volumes fell about 4% and tonne-miles dropped roughly 10%.
Shipowners said the rebound is already visible: Seanergy Maritime has about 40% of its fleet hauling coal, with strong flows on Australia-Far East, Colombia-Far East and even Australia-Europe routes.
Europe, Japan and South Korea were cited as reassessing coal-fired generation, while China—where coal still supplies about 60% of electricity—was described as better prepared after strengthening coal security since its 2021 energy crunch.
Dry-bulk owners also see vessel supply staying tight regardless of coal’s exact path, with about 1,100 ships set to turn 20 within three years and Chinese newbuilding slots effectively sold out until 2030.
As the Hormuz crisis reshapes energy trade, who profits from the world's renewed reliance on coal?
Is coal's revival a security lifeline or a devastating setback for global climate goals?
With coal pollution dimming solar panels, is our fossil fuel dependency sabotaging the green transition?
Strait of Hormuz Crisis Disrupts 20% of Global Oil Trade: Energy Markets, Shipping, and Coal Resurgence in 2026
Overview
The ongoing Hormuz crisis has caused immediate and significant upheaval in global energy markets and shipping, drawing worldwide attention due to its massive impact on economic stability and supply chains. As the Strait of Hormuz is a critical chokepoint handling nearly 20% of global oil and energy trade, any disruption here is a major concern for international markets. The Persian Gulf region is also vital for other commodities, including fertilizer and helium, making the crisis even more disruptive. This situation has led to surging prices, supply risks, and forced countries and industries to rethink energy strategies and adapt to new market realities.