China-Australia relations: allowing coal ships to dock on humanitarian grounds not seen as softening of import ban

China unofficially stopped importing Australian coal – both thermal coal used for electricity generation and coking coal – in October amid escalating tensions

Eight vessels have been given permission to dock at three northern ports in China on humanitarian grounds with some ships having been at sea since June

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In 2019, about 57 per cent of China’s thermal coal imports and 40 per cent of its coking coal came from Australia, according to Chinese customs data. Photo: Xinhua

Published: 1:30pm, 11 Feb 2021Updated: 9:26am, 16 Feb 2021

China will move to allow eight vessels carrying Australian coal to dock on humanitarian grounds, although doing so does not signal a lifting of its unofficial ban on imports of the commodity which began in October, according to commodities analysts.

While the vessels will be allowed to offload their shipments – mostly coking coal used in steel production – there is also no indication yet that the cargoes have received clearance from Chinese customs to enter the country.

Throughout the past week, coal and trade analysts have received confirmation that eight coal carriers have been given permission to dock at three northern ports in China.

Since October, China has unofficially stopped importing Australian coal – both thermal coal used for electricity generation and coking coal – amid tense diplomatic relations.

None of the vessels have obtained customs clearance, so the unloading is likely to be for humanitarian reasons rather than a sign that China is about to ease its ban on Australian coal import

Chris Newman

“None of the vessels have obtained customs clearance, so the unloading is likely to be for humanitarian reasons rather than a sign that China is about to ease its ban on Australian coal imports,” said Argus Media ferrous markets manager Chris Newman, echoing a view also held by Chinese coal analyst SX Coal

“These vessels arrived at the ports between June and July [2020] so their crews are among the worst off on Capesizes and Panamaxes [sized ships] holding roughly 3 million tonnes of Australian coking coal offshore.”

Six vessels have been approved to discharge their cargoes at the ports of Jingtang and Caofeidian in the northern Chinese province of Hebei, while two have been allowed to enter Bayuquan port in Liaoning province, also in the north, Newman added.