ShippingWatch

Royal Arctic Line fears large extra bill following Arctic fuel ban

Royal Arctic Line seeks modifications to the IMO's ban on sailing on heavy fuel in Arctic waters. Either Royal Arctic is granted an exemption, or its competitors need to comply with the rules as well, Royal Arctic Line CFO tells ShippingWatch.

Royal Arctic vessel that uses scrubbers and sails on heavy fuel risks being subject to a fuel ban in 2029. | Photo: PR / Royal Arctic Line

Since 2015, the freight rates have been flat for Royal Arctic Line, which operates the inner Greenlandic waters and represents a commercial lifeline on the stretch of ocean between Greenland and Denmark, Iceland and the Faroe Islands.

But the Greenlandic operator, which is fully owned by the Greenlandic home rule administration, predicts that a required switch to low-sulfur fuels could lead to extra costs of DKK 50-80 million (USD 8-13 million).

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