El Niño-driven river levels drop hampers coal barging from Kalimantan
Commodity price intelligence provider Argus in August revealed that parts of the upper reaches of the Barito River have become completely unnavigable, with some mining companies in the area already declaring force majeure on shipments.
Argus revealed in August that parts of the upper Barito River have become completely impassable for barges due to extremely low water levels, forcing some mining companies to declare force majeure on shipments. The Indonesian Coal Mining Association (APBI) reported that prolonged dry weather, intensified by El Niño, has contributed to the decreasing river water levels in Kalimantan, disrupting coal shipments.
APBI's executive director, Gita Maharyani, stated that droughts and reduced water levels have impacted coal barging in certain regions, limiting barge draft and potentially increasing stockpiles at mining sites and ports. While the association believed that coal prices would still be influenced by global supply and demand, they acknowledged that logistics conditions in Indonesia could also affect market sentiment.
The APindo estimated that the dwindling water levels, particularly in the Barito River, could disrupt around 3.9 million tonnes of coal barging operations in a month.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
