September 07, 2008

China orders ban on coal export loading

It is reported that China's Transport Ministry has ordered ports to temporarily stop loading coal for exports as the country struggles to meet domestic needs amid mounting power shortages. The coldest winter with the most snow in decades has left millions of Chinese without heating and running water, causing mounting losses from power shortages and other damage.

The Transport Ministry's emergency notice, posted on its Website, ordered railways and other transport networks to make hauling coal and food a priority over coming weeks. It said “Ocean shippers should stop loading coal for export and divert shipments, if needed for domestic thermal coal requirements.”

It has warned of severe consequences for failing to comply with the order, to stay in effect through the Lunar New Year holiday in February.

It is unclear the amount of coal shipments that would be affected by the order.