GMI Resources UK co-chairman Steve Rodley told Bloomberg the company would contribute $2000 a day to take about 74,000 tonnes of Australian or Indonesian coal to buyers in the Atlantic region.

“It’s a result of chronic over-ordering of ships three or four years ago,” Rodley said, adding the vessel surplus was “comfortably” the biggest since he joined the industry in 1994.

“All the ships are delivering in the market and demand has not kept pace,” he said.

Data from the world’s largest shipbroker Clarkson shows supply of Panamaxes has ballooned more than 50% since 2008, in line with an increase in the global trade of coal.

Rodley said a Panamax ship burned 27 tonnes of fuel daily at 12 knots, meaning it was unfeasible to sail without cargo to Europe from Asia.

He said GMI could profit by subsidizing the voyage provided vessel earnings in the Atlantic were high enough to compensate for the money-losing shipments.

Bloomberg reported that Panamax charter rates were averaging $6329 a day globally.