DBCT closes as Queensland cyclone remnants approach

Queensland's Dalrymple Bay Coal Terminal (DBCT) was closed for a day as the region prepared for heavy rainfall from the approaching remnants of Tropical Cyclone Owen, which is expected to add to vessel congestion at the port.

All coal transport vessels were told to exit berths at DBCT and return to anchorage offshore, where 49 vessels were in the queue today to load mostly cargoes of coking coal and the pulverised injection coal (PCI) grade.

"DBCT officials are saying it won't affect the overall loading schedule, but we think it will," a Singapore-based trader said.

Cyclone Owen was the first cyclone to form near Australia in the 2018-19 season when it formed in the Coral Sea earlier this week. The cyclone weakened below cyclone intensity by 4 December but remains strong enough to damage port facilities if ships are at berth.

It was unclear if other Queensland coal export terminals will also face short-term closures, although they do not face the same level of congestion as DBCT. Last week the adjacent port of Hay Point had nine vessels in its queue, while queues at the ports of Abbot Point and Gladstone were 14 and 12 respectively.

The longer queues have pushed out waiting times at DBCT, with a vessel that arrived on 25 November not due to depart until 19 December. The extended waits are adding to demurrage costs for coal mining firms using DBCT.

These delays also limit the amount of coking coal Queensland mining firms can offer on the spot market since they have to prioritise deliveries on a contract basis.

Longer shipping queues are reasonably common in Queensland at this time of year as coal mining firms look to ship out additional tonnages before the wet season, which runs during November-April, rises to full strength. But the number of vessels at DBCT is unprecedented and partly because of maintenance on two of the four berths at the port, which were completed last week.