Looming restrictions on shipping fuel sulphur content could see freight rates on seaborne coal routes rise by as much as 40% in 2020, consultancy Wood Mackenzie said on Thursday. Coal shippers may see a hike of just 9% in freight prices in 2020 once carriers switch to low-sulphur fuels, sulphur cap , principal analyst for Anthony Knutson , has warned. Coal companies traditionally rely on cheaper, high-sulphur fuel oil. However, the implementation of the International Maritime Organization's Wood Mackenzie will force companies to find alternatives, from relatively untested and costly scrubber technology to purchasing new vessels capable of running on liquefied natural gas, Anthony Knutson said. "The days of abundant and cheaper marine fuel are ending", he added.
Coal shippers may see a hike of just 9% in freight prices in 2020 once carriers switch to low-sulphur fuels, sulphur cap , principal analyst for Anthony Knutson , has warned. Coal companies traditionally rely on cheaper, high-sulphur fuel oil. However, the implementation of the International Maritime Organization's Wood Mackenzie will force companies to find alternatives, from relatively untested and costly scrubber technology to purchasing new vessels capable of running on liquefied natural gas, Anthony Knutson said. "The days of abundant and cheaper marine fuel are ending", he added.