Around 40% of global power generation is based on coal as the primary energy carrier, and demand is increasing due to the strong economic growth in Asia. Today, European market participants buy coal not only to fuel local power plants (asset backed trading), but also to supply third party customers. In contrast to other commodities like power and gas, coal is traded mainly by brokers and to a lesser extent on energy exchanges.
It is important to not only utilise price differences between international markets, but also to manage the coordination effort and costs of the transport option selected. The range of options includes complete outsourcing of shipping, hiring freight capacity, in-house logistics management and even marketing free capacities.
The Advisory House works with leading energy traders to develop strategies for physical and financial coal trading and implements them, including the required freight and logistics aspects.
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