Coal freight arbitrage may be impacted by low sulfur oil directive

摘要

The dry bulk commodity shippingindustry faces rising costs from an expectedswitch in 2020 to low sulfur fuel oil, which mayweaken arbitrage possibilities in markets suchas coking coal, warns shipbroker SimpsonSpence & Young.Implementation in 2020 of the InternationalMaritime Organization's 0.5% global sulfurcap, from 3.5%, may threaten the availabilityof sufficient fuels for current fleets, or promptmore scrappage due to the cost of fittingscrubbers, according to SSY's research team.