Railroad indexing to API 2 could help US coal exporters manage risk

Freight train
Railroads could track European coal prices

The possible linking of transportation prices to API 2 by US railroad firms could increase the exportability of US coal and bolster the status of the dominant coal benchmark, according to market participants.

"The eastern US railroads have seen their business of transport to the domestic utilities well under the historical levels they had gotten used to, so they're increasingly reliant on the export market and in doing so, they're really going to do whatever it takes to keep thermal coal exports

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