- Frontline (NYSE:FRO) and Golden Ocean (NASDAQ:GOGL) are forming a joint venture with commodities giant Trafigura to set up a company to supply shipping fuels ahead of a shakeup in regulations next year.
- GOGL and FRO will hold respective 10% and 15% interests in the JV, which is expected to commence operations in Q3, and Trafigura will contribute its existing physical bunkering activities to the deal.
- Starting Jan. 1, International Maritime Organization rules will prevent many ships from using marine fuel, also called bunker fuel, containing more than 0.5% sulfur in order to help reduce air pollution, a move that could disrupt fuel delivery and cause prices to spike; the current limit is 3.5%.