A significant mechanical failure at CSX’s Curtis Bay coal export terminal near Baltimore has led to a temporary halt in coal loading operations. The incident, which occurred on August 12, involved the collapse of part of the main coal loader, disrupting ongoing operations and causing damage to a vessel, likely the Kamsarmax ship named Kerynia, which had begun loading on August 9.
According to shipping agencies in the region, it will take at least two weeks to repair or replace the damaged machinery before coal loadings onto ocean-going vessels can resume. The repair efforts are currently underway, with heavy lift cranes from Mclean Contracting Company assisting in the removal of debris from the affected vessel.
The Curtis Bay terminal, a critical hub for coal exports, had scheduled seven bulk carriers to load after the Kerynia. However, these operations are now on hold, with some vessels anchored outside of Annapolis, Maryland. In the past, CSX has used alternative methods, such as shipping coal barges to Annapolis for loading, following similar disruptions. However, it remains unclear whether this strategy will be employed again, as CSX has not commented on the situation. CSX does have a smaller loader at the B&O pier which is moving coal, and those vessels are being topped off at the company’s Newport News facility.
The temporary loss of full coal export capacity from Curtis Bay could have some short term implications for the North Atlantic dry bulk market, particularly amid the current subdued demand in the Asia-Pacific and European regions. The terminal had shown strong export figures in July, with 780,000 tons of coal shipped, but August volumes have sharply declined due to the incident.
From a coal producer perspective, however, the incident is not likely to be disruptive beyond Q3.
