One of the world’s largest commodity trading firms has teamed up with two shipping companies to form a marine fuel supply venture. The deal could help all three parties – Trafigura, Frontline, and Golden Ocean – ride out the disruption that may follow the introduction of new specifications for marine fuels in 2020.
The joint venture will use Trafigura’s physical bunkering assets to supply low-sulphur fuel oil (LSFO) to Frontline’s tanker fleet and to Golden Ocean’s dry-bulk vessels. The deal is expected to help Trafigura consolidate its position as a reliable supplier of marine fuel that meets International Marine Organization (IMO) standards.
It will also help Golden Ocean and Frontline prepare for the upcoming change in fuel specifications. “Our participation in the joint venture will ensure our ability to source and acquire marine fuels at competitive prices on a continuous basis,” the shipping companies said on August 13.