Bloomberg reported that Daiichi Chuo Kisen Kaisha, a Tokyo based shipping line, is targeting a boom in coal exports from the US as the development of shale gas reserves in the world’s biggest economy frees up the fuel for sales overseas.

Mr Saburo Koide president of the company in an interview in Tokyo said that “Exports of coal from the US could easily double in the next three or four years. We’ve already had several inquiries on shipping coal from there but declining to name potential customers.”

The shipping line plans to add an office in Brazil as early as next month to handle imports to South America, expanding its overseas branch network that includes China and India, Koide said. The US can boost coal exports as much as 110 million tons by this year as low natural gas prices erode the fuel’s domestic demand, the International Energy Agency said last month.

Mr Koide said that “We’re going to see more bulk ships traveling to the US. China and India are already strong markets for coal. Brazil is also expanding.”

He said that “Demand for coal from developing countries is increasing as their populations and economies expand.”

He added that Daiichi already has won some contracts to transport coal from the US.

Daiichi also plans to expand its fleet to 280 ships by the end of March 2016, from 195 vessels in March. The shipping line plans to add 111 vessels including capesizes and panamaxes in this period.

(Sourced from Bloomberg.net)