[Fox Business] Baltimore port closure may hit US coal export volumes

The closure of the Port of Baltimore to shipping traffic following a container ship’s collision with a bridge that collapsed into the harbor will slow U.S. exports of coal, according to a report by the Energy Information Administration (EIA) published Thursday.

The Port of Baltimore is the second-largest U.S. shipping hub for coal exports, which have been disrupted following the collapse of the city’s Francis Scott Key Bridge early Tuesday morning. The massive container ship Dali lost power as it was transiting the channel under the bridge and struck one of its support pilings, which resulted in the bridge’s collapse.

In the wake of the accident, the Port of Baltimore has been closed indefinitely, with it unclear when the channel will be cleared, as the vessel and bridge debris remain in the channel at this time. Estimates offered by experts on a timeline for the channel to be cleared and the port reopened range from weeks to months.

“An attractive feature of the Port of Baltimore is its proximity to the northern Appalachia coal fields in western Pennsylvania and northern West Virginia,” the EIA wrote in its report.”Other nearby ports, most notably Hampton Roads, have additional capacity to export coal, although factors including coal quality, pricing, and scheduling will affect how easily companies can switch to exporting from another port.”

BALTIMORE BRIDGE COLLAPSE SHUTTERS PORT INDEFINITELY, IMPACTING SUPPLY CHAIN

Census Bureau data highlighted in the EIA report showed that the Port of Baltimore’s share of U.S. coal exports rose from between 20% and 25% from 2019 to 2022 to 28% last year. The EIA attributed that increase to growing demand for U.S. coal in Asia — though it noted that it expected growth in coal exports to slow to just 1% in 2024.

Coal exported from the Port of Baltimore has primarily been steam coal, which is mostly used to generate electrical power and for industrial heating. Steam coal accounted for 19 million short tons of coal exports from the port last year after averaging about 12 million short tons in the prior four years.

ECONOMIC IMPACT FROM BALTIMORE BRIDGE COLLAPSE WILL BE LONG-LASTING, TRADE GROUP WARNS

Metallurgical coal, which is used as a raw material in steel production, has represented a significant share of exports from the Port of Baltimore — ranging from 6 million short tons to 10 million short tons from 2019 to 2023.

Most of the steam coal shipped from Baltimore goes to India, which uses the coal in its brick manufacturing industry. A portion of the coal goes to ports in the Netherlands that service several European countries, while smaller amounts go to the Dominican Republic, Canada and Egypt.

Metallurgical coal exports from Baltimore primarily go to Asian countries, with Japan receiving 28% last year, followed by South Korea and Japan. 

BALTIMORE BRIDGE COLLAPSE SPOTLIGHTS PAST DISASTERS CAUSED BY SHIPS

The EIA noted that the Port of Baltimore only handled a limited amount of imported petroleum products, with biodiesel feedstock and other edible oils the largest, followed by fertilizers and asphalt. It also imports the most urea ammonium nitrate, a common liquid fertilizer, of all ports on the Atlantic Coast.

Other ports that can handle asphalt are Providence, Rhode Island; New York City; and Wilmington, North Carolina, while urea ammonium nitrate can go to Norfolk, Virginia, and Wilmington, according to the EIA.

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The closure of the port is also expected to decrease consumption of bunker fuel, which is commonly used to power ships.

“Since the port is a major transit point for freight and bulk vessels, we expect bunker fuel consumption to decrease,” the EIA said.

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[Fox Business] Sam Bankman-Fried’s $222M Bahamas real estate holdings to go on the market

FTX will reportedly soon put Bahamas properties tied to Sam Bankman-Fried up for sale.

The bankrupt cryptocurrency exchange could start its effort of offloading the portfolio in the Caribbean nation as soon as April, when certain pieces of real estate are expected to appear on the market, Realtor.com reported Thursday.

The number of properties that FTX is looking to sell totals roughly three dozen, according to the real estate-focused site. They reportedly have a collective value of $222 million.

FTX and its bankruptcy administrators received permission to sell them from the U.S. Bankruptcy Court for the District of Delaware about two months ago.

SAM BANKMAN-FRIED REPORTEDLY USED POUCHES OF FISH AS PAYMENT FOR HAIRCUT IN JAIL

The real estate, all located in the Bahamas, includes both residential and commercial assets, according to Realtor.com. In the latter category, the outlet reported that there were several offices that FTX had appraised at $25 million combined. 

As part of the effort, FTX is also looking to part ways with numerous condos and other residential real estate, including $151 million worth in the Albany Resort, according to Realtor.com.

That resort, which spans 600 acres, is where Bankman-Fried has his extremely high-end penthouse featuring a pool and bar.

FTX COLLAPSE: INSIDE SAM BANKMAN-FRIED’S LUXE $40 MILLION BAHAMAS BUNKER

FOX Business reached out to both FTX and Bankman-Fried representatives for comment.

FTX has been undergoing bankruptcy proceedings to pay back its creditors since the cryptocurrency exchange collapsed back in November 2022. 

Bankman-Fried, who co-founded the company, separately received a 25-year prison sentence on Thursday and a mandate to pay $11 billion in forfeitures in connection to FTX’s failure.

DISGRACED CRYPTO KING SAM BANKMAN-FRIED SENTENCED TO 25 YEARS FOR FTX FRAUD

His sentencing came nearly five months after a jury had found him guilty of wire fraud, conspiracy to commit wire fraud, conspiracy to commit securities fraud, conspiracy to commit commodities fraud and one count of conspiracy to commit money laundering.

Authorities said he had used FTX customer funds “for his personal use, to make investments and millions of dollars of political contributions to candidates from both parties, and to repay billions of dollars in loans owed by Alameda Research,” according to the DOJ.

Bankman-Fried has said he will challenge both decisions through appeals.

His cryptocurrency exchange had been the third-largest prior to its collapse.

Suzanne O’Halloran contributed to this report.

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