• The case for coal • Evolution of today’s coal market • Types of coal and their availability • Review of international exports and imports • Overview of the world’s competitive dynamics for the coal sector • Competition from gas and other fuels • What explains price changes in the last 3 years? • Changing commercial structure • Consolidation in coal supply
• Inquiries, tenders and offers • Taking a position • Standard terms and conditions • Contract structure • Point of sale (mine / port / plant) • Passing title and risk • INCOTERMS • Price and price basis • Payment and invoicing • Long-term and frame contracts • Options
This case study will involve teams from different coal mining companies, an electricity generator and a steel company competing with each other in a coal trading simulation. It will cover the evaluation of purchase/sales options from various sources/destinations and the development of a long-term coal procurement/marketing strategy.
• Introduction to standardised trading in the coal market • How online trading works and the role it plays • Tools of the financial coal market: Indices, swaps, options & clearing • Opportunities in physical and financial coal trading • Standardising new markets
• Building quality assurance into the contract • Why is it important? • How is it done – Sampling & Analysis • Role of independent inspectors • Critical control points in supply chain of coal • Critical parameters for coal quality • Weight & measurements • Losses and measurement techniques • Risk areas
• Basic outline of Asia’s coal infrastructure and trade flows • Understanding the development of the coal industry over the past 10 years • Basics of price setting • Major producing and importing regions in Asia • Key drivers of the supply/demand balance • Identifying central trading hubs • The history and future of China as a coal importer • What do current trends suggest for the future of the coal industry?
• Description of what is being sold/bought • Title and Delivery obligations • Warranties and representations • Jurisdiction and choice of law • Force Majeure • Risk management and effect of Charterparty obligations: demurrage • Cyber fraud - key issues
This case study will challenge delegates split into teams representing generating, shipping, stevedoring and mining companies to negotiate with each other in response to a force majeure situation that disrupts their interlocking contracts for the supply and transport of coal.
• Understanding the legal considerations of vessel chartering • Time charters vs voyage charters • Key clauses in shipping contracts • Bills of lading and ownership of goods in transit • Interaction between shipping contracts and sale contracts
• Overview of dry bulk shipping and impact on coal freight vs shipment sizes • “Horses for courses”: overview about alternative waterborne supply chains o Types of coal ports and their equipment o Type of transshipment alternatives for loading/discharging o Offshore transshipment vs. shore terminals o Barging and transshipment contract types • Case study: Integrated coal supply chain to power stations seeking efficiency in supply • Identifying the players and their role in the coal transportation chain • Barge systems in different countries/operational challenges • Overview of Self-unloading barges and ships • Storage and coal blending opportunities • What next?