AlwaysFree: European Investors Shun Vessels Transporting Coal

Six European institutions are either cutting their exposure to coal-transporting vessels or are considering doing so, Reuters reported. These investors represent more than 5% of the annual capital financing requirements of around $16 billion in the dry bulk shipping industry. Dry bulk carriers stretch up to 270 metres and are capable of transporting hundreds of thousands of tons of coal or other commodities such as iron ore and grain.

Swiss Re Corporate Solutions said it would no longer cover thermal coal shipping via reinsurance treaties starting from 2023 after exiting the direct insurance of coal cargoes three years ago. Denmark’s Danica Pension said it preferred greener shipping firms and would not invest in companies with insufficient ESG strategies.

Shipping industry players said there is growing ESG pressure from capital providers. They were worried that the investor pullback would drive up the cost of finance and insurance in the dry bulk sector, which is responsible for carrying roughly half of the world’s seaborne cargo volumes.

Tags: AlwaysFree,Coal,English,Europe