Record congestion as 100 bulkers wait off Hay Point

Adverse weather conditions kept Hay Point Coal Terminal closed for the week leading up to the arrival of the category three cyclone on March 20 resulting in doubling of the vessel queue from two months ago.

The cyclone damaged the BHP Mitsubishi Alliance (BMA)-owned terminal and forced a shutdown of the neighbouring Dalrymple Bay Coal Terminal (DBCT) for several days.

Almost 90 bulkers left the anchorage and steamed out to sea before the cyclone hit, but new arrivals have since increased the total queue to 102.

BMA said last week that Hay Point Coal Terminal could remain closed until early May.

However, the shutdown has proven beneficial for shipments out of DBCT, which are now booming because the capacity-constrained rail system only has to deliver to one terminal until BMA restarts its port operation.

Waiting times at DBCT are already falling but bulkers are still waiting for about a month on average to load.

Negotiations are taking place to allow some coal shipments originally intended for BMA's Hay Point terminal to be handled at DBCT.

Dry bulk analysts Commodore Research & Consultancy said Australia's bulk port congestion had broken the previous record of 210 set in December.

"Rising congestion in Australia and robust congestion worldwide will continue to support freight rates but the latest developments in Australia will also result in an estimated loss of 4m-8m tonnes of Australian coal exports," Commodore senior analyst Jeffrey Landsberg said.

"Coking coal will be most significantly affected and buyers in Japan and South Korea might soon be forced to import long-haul coking coal from the United States and other longer-haul exporters."