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Indonesia coal exports post rare decline so far in 2025: Maguire
In 2025, Indonesian exports of thermal coke have fallen to their lowest level in three years due to weak demand from China and India, the two world's largest coal consumers. According to Kpler, the commodities intelligence firm, the world's biggest exporter of thermal coal for power production shipped out 150 millions tons of thermal coal in the first four month of 2025. This was 12% or almost 20 million tons less than the amount shipped in the same months of 2024. It was the largest year-on-year drop in data since the beginning of 2017. The lower Indonesian shipments, which account for about half of all thermal coke exports, have also lowered global thermal coal shipments by 7% or 23 million tonnes from January to April, compared with the same period a year earlier. If coal exports continue to be relatively slow over the remainder of the year, Indonesian coal exports could decline for the first time since 2020 when COVID-19 slowed down the country's coal production and shipments. KEY MARKET CUTS Indonesia's coal trade was hampered by a weaker demand for coal from China and India. China, the world's biggest coal consumer, producer and importer, reduced its Indonesian purchases by 14 million tonnes, or 20 percent, from January to April compared with the same period in the previous year. Beijing's increased emphasis on increasing local coal mine production, along with ongoing efforts to reduce pollution, has been the main driver behind China's decreased appetite for imports. India, the world's second largest coal consumer, is also focusing on increasing domestic coal production. It has reduced its imports of Indonesian coking coal by 15 percent, or 6 million tons from January to April 2024. BROADER COAL USE SLIPS? Indonesian coal imports have decreased this year, not only from China and India but also from other historically large coal-importing countries. Japan and South Korea have imported 13 million tons from Indonesia between January and April. This compares to 17 millions tons in the same period of 2024. Taiwan, Thailand and Malaysia, as well as the Philippines, have also seen a decline in coal imports to Indonesia. The continued efforts to reduce coal consumption in power generation and the increase in clean energy production instead has likely helped reduce coal demand in Asia this year. Further declines in coal purchase could occur in the future. Data from Ember think tank shows that coal-fired power production in Asia fell by 3% over the first quarter 2025 compared to the same period in 2024. The weak state of China’s industrial economy, which has direct trade links with partners in the region, has likely also played a part in reducing Asia’s coal consumption. The weakening of Chinese construction and heavy industry will have knock-on effects on its supply chains that span across borders, and have also chilled energy-intensive activities in neighbouring countries. The new tariffs imposed by U.S. president Donald Trump could further reduce the demand for coal in the coming months. If Asian economies choose to implement stimulus measures to counteract the impact of U.S. tariffs, this could lead to a greater industrial energy consumption, and subsequently a rise in coal imports. OUTLIERS Some major coal consumers have not yet reduced their coal imports and consumption. Vietnam and Bangladesh have both increased their Indonesian coal imports from January to April to record levels. They are also likely to increase coal consumption and imports in the future to feed their rapidly growing energy systems. The price of natural gases, another important source of energy in many places, has also increased sharply this year. Spain, Italy and New Zealand have all seen increases in their coal imports from Indonesia, as well as a higher output of coal-fired electricity. Ember data show that even the United States increased coal-fired electric production this year by more than 20% compared to last year's levels. This is not much help for Indonesian coal exporters as the U.S. also exports coal. The recent slowdown in Indonesia's coal exports is likely to continue for at least the short term, as China and India are both expected to remain modest coal importers. This in turn could lead to a rare year-long contraction in Indonesian coal shipments and a possible peak of global coal exports. The author is a columnist at
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Enbridge exceeds Q1 profit expectations on Mainline and Gas Distribution Growth
Enbridge exceeded market expectations for its first-quarter profits on Friday. This was due to higher earnings in its Mainline system, which includes its gas distribution unit. It also said that U.S. Tariffs are not expected have a material impact on its current operations. Canada is the largest supplier of oil imported to the United States. It delivers about 4 million barrels a day, mostly to Midwest refineries that are designed to process the specific grades. Enbridge expanded its gas distribution business by acquiring three utilities, including liquid pipelines, from Dominion Energy, a U.S. company, last year. Enbridge's gas distribution unit saw its earnings increase to C$1.60billion ($1.15billion) from C$765mil last year. The company's Mainline System, which transports nearly half the crude oil in the U.S.A, also saw an increase in its first-quarter core profit adjusted to C$1,45 billion from C$1.34billion last year. Enbridge CEO Greg Ebel stated in a press release that "The Mainline" was allocated the entire quarter and delivered a record-breaking 3.2 million barrels of oil per day. This shows its crucial role in transporting oil to major demand centers. Ebel stated that the investment of up to C$2 Billion in Mainline Capital Investment was based on the need for reliable and efficient service. In April, the U.S. Army Corps of Engineers awarded National energy emergency status Enbridge's Line 5 oil pipeline tunnel proposal has been approved, allowing the federal government to expedite a critical permitting process. After President Donald Trump declared an energy crisis in the United States, he issued an executive order declaring a national emergency. According to data compiled and analyzed by LSEG, the company reported an adjusted profit of C$1.03 for the quarter ending March 31. This was higher than analysts' expectations of 96 Canadian dollars per share. ($1 = 1.3917 Canadian dollars) (Reporting by Arunima Kumar in Bengaluru; Editing by Pooja Desai)
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Chinese exporters are preparing to move goods to the US as soon as trade talks start.
After a series cancellations due to U.S. Tariffs, China-based shipping companies have resumed purchasing container space for goods heading for the United States. Beijing and Washington are now headed for trade negotiations in Switzerland. The trade between the two world's largest economies has plummeted since U.S. president Donald Trump imposed tariffs of 145% on China-made goods, a move that prompted China impose levies at 125% on U.S. made products. According to Flexport Logistics and Freight Forwarding, the U.S. Tariffs affected an estimated 80% goods shipped from China into the U.S. in April. Hapag-Lloyd customers cancelled 30% of their shipments to China in the last month. According to two Chinese executives from freight forwarding companies who declined to give their names because they were not authorised to talk to the media, traders began to buy more shipping capacity in late April. They then locked it up for mid-May. Four China-based companies, including some that serve large U.S. retailers like Walmart, have also said they are preparing to resume shipping goods to the U.S. within the next few weeks. This was a previously unknown development. Exporters hope that both countries will lower their tariffs soon, as the U.S. has adopted a more conciliatory tone on trade with China since late April and the officials are due to start trade talks on Saturday in Geneva. Trump announced on Thursday, in the latest indication that rates may be lowered, that it was possible to reduce the rate from 145%. "We all look forward to the relaxation of (tariffs) this month." "I believe it will be," said Liu. She is a second-generation manufacturer of toys from Dongguan, the southern export hub. She added that, until recently, about half of her orders were from customers in the United States, including Walmart. EMPTY SHELVES The shipments are not only driven by the optimism that tariffs may fall. As U.S. stores wait for the tariffs to escalate, goods such as Bluetooth speakers, toys and home furnishings that they cannot easily or quickly source elsewhere than China are stuck in China. Exporters from China have warned that if these products do not arrive by June, the shelves of U.S. stores will start to empty. "Companies have run out of stock and Trump has toned back his China talk," said Jonathan Chitayat. Genimex Group is a contract manufacturer that works with clients on designing and engineering custom mechanical, consumer, and electronic goods, from bluetooth speakers to trash bins. He said that the risk of "empty store shelves" in 30-60 days was a strong motivator for U.S. customers who would need to send some goods to China as soon as possible, regardless of whether tariffs are changed. Liu, a toy maker, announced that, after a pause of almost a full month in the shipment of orders to the U.S. Liu says that if her products are not reduced in tariffs when they arrive in the U.S., "the American consumer will bear the full burden" of additional tariff costs. Judah Levine is the head of research for Freightos. This platform allows users to book and pay for freight. He said that "one way or another, these economies are intertwined, and both sides are beginning to feel pain." The "massive decreases" in recent shipping volumes followed months of orders frontloaded in anticipation of Trump tariffs. Levine stated that "at a certain point, that will run down and...there is an expectation that the situation with tariffs will improve." Walmart has said that it did not stop purchases in a particular country or for all categories. Walmart's spokesperson stated: "We have thousands products and are working with our suppliers every day, item by product and category by category, in order to navigate this fluid environment for our members and customers." Hapag-Lloyd refused to comment on the current U.S.-China cargo bookings saying that it was a fluid situation. Dominic Desmarais is the chief solutions officer of Liya Solutions. The company connects small- and medium-sized businesses with suppliers in China who make everything from furniture to Titanium products. Freight forwarders have told him that shipping prices may increase by $500 per container once the activity picks up after May 15. Freightos estimates that a 40-foot shipping container between Shanghai and Los Angeles would cost between $2640 and $3781. Desmarais says that betting on the end of the trade war is wishful thinking. He said that it took the U.S. two years to come to an agreement with China in 2018, when Trump imposed 25% tariffs on the 80% of commodities coming from China. "I don’t think that discussions in Switzerland will make it happen." Reporting by Casey Hall from Shanghai; additional reporting by Siddharth Cavale in New York, Lisa Baertlein at Los Angeles and Lisa Jucca in London. Editing by Lisa Jucca, Kate Mayberry and Lisa Jucca.
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UK sanctions directors of an oil trading group for Russian ties
The United Kingdom announced on Friday a set of sanctions against Russia. This included freezing the assets of several directors at Coral Energy Group (now known as 2Rivers Group), an oil trading company. As leaders of the Joint Expeditionary Force security alliance in northern Europe met in Norway on Friday, a wider package targeting around 100 oil tanks from Russia's shadow fleet was announced. The government announcement of the sanctions named Ahmed Kerimov and Tahir Garayev as well as Anar Madatli and Talat Safarov. It said that they "were involved in obtaining or supporting a benefit from the Russian government" through their work at Coral Energy Group. Coral Energy has rebranded to 2Rivers Group following a merger with 2Rivers Group Management buyout Safarov, Kerimov & Madatli in 2024. Coral Energy, founded in 2010 by Garayev, has offices in Dubai and Singapore. The British government said that Coral Energy was "doing business in an area of strategic importance to the Russian government, namely its energy sector." Britain In December 2024, 2Rivers will be sanctioned . The group expressed its disappointment at that time. (Reporting and editing by Sarah Young; William James is the reporter)
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Indonesia coal exports post rare decline so far in 2025: Maguire
In 2025, Indonesian exports of thermal coke have fallen to their lowest level in three years due to weak demand from China and India, the two world's largest coal consumers. According to Kpler, the commodities intelligence firm, the world's biggest exporter of thermal coal for power production shipped out 150 millions tons of thermal coal in the first four month of 2025. This was 12% or almost 20 million tons less than the amount shipped in the same months of 2024. It was the largest year-on-year drop in data since the beginning of 2017. The lower Indonesian shipments, which account for about half of all thermal coke exports, have also lowered global thermal coal shipments by 7% or 23 million tonnes from January to April, compared to the same months last year. If coal exports continue to be relatively slow over the remainder of the year, Indonesian coal exports could decline for the first time since 2020 when COVID-19 slowed down the country's coal production and shipments. KEY MARKET CUTS Indonesia's coal trade was hampered by a weaker demand for coal from China and India. China, the world's biggest coal consumer, producer and importer, reduced its Indonesian purchases by 14 million tonnes, or 20 percent, from January to April compared with the same period in the previous year. Beijing's increased emphasis on increasing local coal mine production, along with ongoing efforts to reduce pollution, has been the main driver behind China's decreased appetite for imports. India, the world's second largest coal consumer, is also focusing on increasing domestic coal production. It has reduced its imports of Indonesian coking coal by 15 percent, or 6 million tons from January to April 2024. BROADER COAL USE SLIPS? Indonesian coal imports have decreased this year, not only from China and India but also from other historically large coal-importing countries. Japan and South Korea have imported 13 million tons from Indonesia between January and April. This compares to 17 millions tons in the same period of 2024. Taiwan, Thailand and Malaysia, as well as the Philippines, have also seen a decline in coal imports to Indonesia. The continued efforts to reduce coal consumption in power generation and the increase in clean energy production instead has likely helped trim the coal demand in Asia this year and could cause further declines in coal purchase in future. Data from Ember think tank shows that coal-fired power production in Asia fell by 3% over the same period of 2024. The weak state of China’s industrial economy, which has direct trade links with partners in the region, has likely also played a part in reducing Asia’s coal consumption. The weakening of Chinese construction and heavy industry will have knock-on effects on its supply chains that span across borders, and have also chilled energy-intensive activities in neighbouring countries. The new tariffs set forth by U.S. president Donald Trump could further reduce the demand for coal in the coming months. If Asian economies choose to implement stimulus measures to counteract the impact of U.S. tariffs, this could lead to a greater industrial energy consumption, and subsequently a rise in coal consumption. OUTLIERS Some major coal consumers have not yet reduced their coal imports and consumption. Vietnam and Bangladesh have both increased their Indonesian coal imports from January to April to record levels. They are also likely to increase coal consumption and imports in the future to feed their rapidly growing energy systems. The price of natural gases, another important source of energy in many places, has also increased sharply this year. Spain, Italy and New Zealand have all seen increases in their coal imports from Indonesia, as well as a higher output of coal-fired electricity. Ember data show that even the United States increased coal-fired electric production this year by more than 20% compared to last year's levels. This is not much help for Indonesian coal exporters as the U.S. also exports coal. The recent slowdown in Indonesia's coal exports is likely to continue for at least the short term, as China and India are both expected to remain modest coal importers. This in turn could lead to a rare year-long contraction in Indonesian coal shipments and possibly a peak in coal exports globally.
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Mitsubishi Heavy's operating profit grows 10% this year due to robust defence demand
After its earnings for fiscal 2024-25 fell short of analyst expectations, Japan's Mitsubishi Heavy Industries projected on Friday a 9.6% increase in operating profit in this year due to robust demand in the defence sector. This projection does not include any impact from U.S. Tariffs. The company is expecting an operating profit of 420 bn yen (2.9 billion dollars) for the current fiscal year up to March 2026. This follows a profit of 383.2 bn yen in the business year just ended, which was a growth by 35.6%. It said that the operating profit for the current year would be 40% higher in the aerospace and defense segment, while the one in energy systems (including power generation equipment such as turbines) would be 17% higher. MHI stated in a presentation that the forecast does not include any upside or downside risks from U.S. Tariff Policy Impact. The total revenue for 2024-25 was 5.02 trillion yen. This is slightly higher than the average analyst estimate based on the data compiled and analyzed by LSEG. However, the pretax profit came in at 374.5 billion yen. This is below the consensus estimate of 401.6 billion yen.
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Sources say that the US Virgin Islands is considering a new registry for ships.
Four sources with knowledge of the matter say that President Donald Trump’s administration is evaluating a proposal for the creation of an international shipping registry on the U.S. Virgin Islands, as part efforts to expand the small commercial shipping fleet flying under the American flag. The Trump administration believes that increasing the number of U.S. flagged vessels will help the U.S. Commercial Shipping Fleet to better support the military during wartime and reduce Washington's dependency on foreign ships for transporting supplies and equipment along sea routes. The U.S. flag fleet is currently around 187 ships, and only 80 of them are involved in international commerce. According to estimates from the industry and U.S. legislators, China controls at least 5,500 vessels. Since decades, the U.S. Flag Registry has had difficulty attracting ship owners due to higher costs and a heavier tax burden. There are also multiple requirements like having an American crew. A congressional report last year showed that China had 230 times the shipbuilding capacity of the U.S. According to Eric Dawicki of the Center for Ocean Policy and Economics, which made the proposal, using the U.S. Virgin Islands could be the best way to "strengthen American naval posture", because the island territory would provide a U.S. controlled flag without the expensive restrictions that come with a U.S. straight flag registration. To comply with safety and environment rules, all commercial ships are required to be registered or flagged with a specific country or jurisdiction. Uncertainty about the status of the proposal was expressed by a U.S. official who said that the proposal has been sent to the National Security Council. A second U.S. official confirmed the proposal was known to the National Security Council. Officials from the White House and USVI did not respond when asked for comments. In past conflicts, like the 1991 Gulf War the U.S. relied on foreign-flagged ships to boost shipping access. "The continued reliance on voluntary chartered arrangements with foreign flagged vessels to supplement America’s sealift capability poses a vulnerability for U.S. Maritime interests," said COPE’s Dawicki. A U.S. marine industry veteran, Dawicki co-founded Dominica flag registry. Some lawmakers are in favor of the idea, but unions and those who want to see a resurgence in shipbuilding at home will likely oppose the proposal. Salvatore Mercogliano is adjunct professor and associate professor of history, at North Carolina Campbell University, at the U.S. Merchant Marine Academy. FLAG OF THE NATIONAL A century-old law called the Jones Act governs most U.S. flagged ships. This law stipulates that U.S. flagged vessels must be constructed in the U.S.A., have a U.S. crew and be owned or controlled by an American. These requirements were intended to assist U.S. shipowners, but ultimately they limited the growth of the U.S. Fleet, said Basil Karatzas. He is a consultant with Karatzas Marine Advisors & Co., a shipping specialist based in America. As a national flag it cannot compete with the labor of foreign nationals on price. According to COPE, unlike the U.S. flag, which is vetted and regulated by the U.S. Coast Guard. The USVI authority will administer and regulate a registry international that imposes fewer restrictions. It said that the vessels could, for instance, be built abroad and crewed with non-U.S. citizens. Requests for comment from the U.S. Coast Guard or union officials were not answered. During World War II the U.S. Merchant Marine, a civilian organisation of the commercial fleet, played a crucial role in the defeat of the Axis power, with more than 10,000 ocean-going ships involved in operations. Separate U.S. statistics showed that the U.S. fleet currently represents less than 1% of shipping value in the world. COPE stated that the idea of creating an international flag for the USVI first came up in 2022, but was never presented to the former administration under Joe Biden. Trump's administration wants to revive the U.S. shipbuilding industry and attract more ships under the U.S. Flag Registry. According to U.S. legislators, there are only 20 shipyards left in the United States. Many of them are old and need major investments. There were over 80 shipyards at the end World War II. The SHIPS for America Bill was introduced by members of the U.S. Congress from both parties on April 30. This bill aims to bolster the maritime industry in the United States and ensure consistent funding. Dawicki stated that a USVI Registry would complement the SHIPS Act "without affecting the cabotage (coast-to-coast shipping) or the Jones Act". Senator Todd Young, who is one of the legislators involved in this bill, has not responded to a comment request. Reporting by Jonathan Saul, Jarrett Renshaw and Simon Webb; Editing by Richard Valdmanis, David Gregorio and Simon Webb
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US Commerce Secretary: UK to announce $10 Billion Boeing Purchase
Howard Lutnick, U.S. Secretary of Commerce, said that the United Kingdom would purchase Boeing planes worth $10 billion at the White House, but the details of the deal were not disclosed. Lutnick said the deal would be a private sector purchase and that he'd let the airline make it publicize the details. The White House's graphic describing the deal in broad terms referred to "aircraft parts", but did not provide any further details. The deal is not clear as to what type of aircraft will be involved and if it involves firm orders or options. Boeing did not respond to a request for comment. Virgin, a Boeing-operating company, confirmed that they were not part of a deal. British Airways, which has several Boeing widebody aircraft in its fleet, did not have any immediate comment. Boeing shares were up 3.1% at midday on this news.
Mitsubishi Heavy expects 10% profit growth in this year due to strong defense demand
Mitsubishi Heavy Industries, Japan, on Friday forecast a 9.6% increase in operating profit, excluding any potential impact from U.S. Tariffs. However, the outlook for fiscal 2024-25 and earnings fell short of expectations.
The company is expecting an operating profit for the year ending March 2026 of 420 billion Japanese yen, up 35.6% from the 383.2 billion yen it earned the year before.
The company stated that the operating profit for the aerospace and defense segment will grow by 40% in the current fiscal year. Earnings from energy systems, including power generation equipment such as turbines, are expected to increase by 17%.
Mitsubishi Heavy stated in a presentation that the forecast does not include any upside or downside risks from U.S. Tariff Policy Impact.
Hisato Kozawa, Chief Financial Officer of the United States' Gas Turbine Industry, said that while some price increases were expected for parts imported for U.S. made gas turbines "we intend to minimize the direct impact by passing on prices" during a press briefing.
Eisaku Ito, Chief Executive Officer of Mitsubishi Heavy, said that the company would be looking at diversifying its production sites.
Ito also said that the demand for power generation systems from the company will continue to be resilient. This is due to investments in data centers and the reshoring back of manufacturing into the U.S.
The total revenue for 2024-25 was 5.03 trillion yen. This is slightly higher than the average estimate of analysts based on data compiled by LSEG. However, the net income came in at 245.4 billion yen. This is below the consensus estimate, which was 267.0 billion yen.
Mitsubishi Heavy shares dropped more than 7% after the release of earnings, but recovered in trading afternoon. They closed down 5.6% Friday.
Mitsubishi Heavy has seen its share price more than double in the last two years, as Japan embarks on one of its largest post-war defense buildups. The company is a major producer of naval ships, missiles, and jets for Japanese forces.
(source: Reuters)