China set to unload some stranded Australian coal despite ban

Some ships may be allowed to change crews and the move may be viewed as a humanitarian gesture intended to show goodwill to countries including India, which have seafarers stranded on the vessels.

China is set to allow some stranded Australian coal cargoes to unload, although it’s unclear if the deliveries will be cleared by customs, according to a person familiar with the situation.

In this photo released by Xinhua News Agency, machines load imported coal from a cargo vessel docked at a port in Rizhao in east China's Shandong province on Nov. 21, 2019. Australia's prime minister said Tuesday, Dec. 15, 2020 that China would be in breach of World Trade Organization rules as well as a bilateral free trade agreement if it banned Australian coal. (Wang Kai/Xinhua via AP) (AP)

The measure doesn’t mean China is loosening its ban on Australian coal imports, said the person, who asked not to be identified because the information is private. Some ships may be allowed to change crews and the move may be viewed as a humanitarian gesture intended to show goodwill to countries including India, which have seafarers stranded on the vessels, said the person.

China’s customs administration didn’t immediately respond to a fax seeking comment.

Some 61 bulk carriers are waiting to discharge Australian coal outside Chinese ports, according to shipping data compiled by Bloomberg. The ships and crew, some of which have been in limbo for months, have been trapped between authorities who won’t let them unload and buyers who won’t let them leave.

While the Australian ban has never been publicly acknowledged by Beijing, Chinese power stations and steel mills were verbally told to stop using the fuel in mid-October. Authorities also ordered traders to halt purchases of a raft of the country’s commodities, including coal, from Nov. 6.