LNG Supply Disruptions Lead to Increased Coal Shipments to Japan, South Korea, and EU
The disruption of LNG shipments due to the closure of the Strait of Hormuz has led to a significant increase in coal shipments to Japan, South Korea, and the European Union. According to the shipping association BIMCO, coal shipments to these regions rose by 27% year-on-year in April 2026. This surge is attributed to the need for alternative energy sources as gas supplies remain tight. The closure of the Strait of Hormuz has resulted in an 8% decline in global seaborne LNG shipments, prompting these countries to turn to coal to meet their electricity demands. Despite typically lower demand for coal imports in April and May, shipments increased by 1% month-on-month this year. Japan, South Korea, and the EU account for about 25% of global coal cargo volumes and 31% of tonne-mile demand for coal shipping. 
