Bulker loadings have been halted at the Vanino Bulk Terminal in eastern Russia following a fire, adding to shipping congestion.

Russian coal producer and exporter Suek declared an indefinite force majeure on its cargoes on 11 October, according to a letter from the company seen by TradeWinds.

Suek AG chief executive Yuri Filippov said two conveyor belts were severely affected by the blaze and cannot be operated, making it impossible to load coal at the terminal.

The company, which is also a vessel charterer, and the port authority are assessing the damage and working on solutions to bring bulkers in again.

VesselsValue senior trade expert Plamen Natzkoff told TradeWinds: "This is a highly significant event right now, as coal and gas shortages are forcing electricity rationing throughout much of China."

He said Vanino almost exclusively exports coal, suggesting that the vessels currently waiting there will be stuck until the loaders are repaired.

"This also means that another meaningful source of coal is currently offline, just as the world is scrambling to get hold of energy commodities — gas and coal in particular — ahead of winter," Natzkoff added.

He tallies 15 capesizes and panamaxes waiting outside the port, with a total capacity of 1.45m dwt.

Some have been waiting for more than a week and one for nearly a month already.

Nine more bulkers are expected to reach Vanino before 17 October.

One vessel operator told S&P Global Platts there is another terminal at Vanino that could load thermal coal from other mining companies.

Asian exports are key

Capesizes are among the vessels waiting to dock in Vanino. Photo: Seanergy Maritime Holdings

"There are other ports nearby to which some volumes could be diverted," a shipbroking source said.

"In the short term, it could also mean there has to be more replacement volume from Indonesia."

Other market participants said the fire could worsen the power crisis in China due to its reliance on Russian imports.

China has begun rationing power to industries because of coal shortages and to meet emission targets.

Vanino has exported 16.3m tonnes of coal so far this year, including 4.5m tonnes to China and Taiwan each, 3m tonnes to Japan and just over 2m tonnes to South Korea.

The terminal was built in 2008. Total exports hit 23.2m tonnes in 2020, Suek's website shows.

The company produced 67.7m tonnes of anthracite and 33.5m of lignite last year.

The price of Russian coal is tipped to shoot up, given that demand is firm and global supply continues to tighten, S&P Global Platts reported.

Richards Bay Coal Terminal in eastern South Africa caught fire on 7 October, although the impact is unclear, while heavy rains and flooding shut 60 mines in the Chinese province of Shanxi.

Suek was established in 2004 as an exclusive exporting company of the Siberian Coal Energy Co, Russia's biggest coal producer.