According to a report recently unveiled by the Energy Information Administration (EIA), the 661 million tons of coal consumed by the electric power sector last year was the lowest amount utilized since 1983. Additionally, 2017 was the fourth consecutive year n which U.S. coal consumption and coal shipments by all transport modes declined.
Nearly 70 percent of the coal consumed by the power sector last year was transported either completely or in part by railroad, with the remainder shipped by truck, river barge, or other methods. The electric power sector consumption level in 2017 was 36 percent lower than in 2008, when coal production in the United States reached its highest level. The amount of coal shipped by rail has seen similar declines, with tonnage down by nearly one-third since 2008.
The amount of coal shipped by river barge actually increased by five percent since 2008. This growth stems primarily from coal produced in the Illinois Basin relying on the ability to be shipped along the Ohio River and its tributaries. The share of shipments by truck has declined from 12 percent to nine percent since 2008, coinciding with reductions in Appalachian production.
The cost of transporting coal can vary significantly along different routes. In addition to costs associated with a particular mode of transport, factors such as route length, availability of a specific transport mode, supply chain options, and competition amongst other commodity providers can affect the transportation cost. These prices will also impact usage and production levels.
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