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According to the Panama Canal Authority, traffic dropped to 33.7 vessels per day in March.
According to a bulletin published by the Panama Canal's administrative authority on Thursday, the number of ships transiting the canal, the second busiest waterway in the world, dropped to an average 33.7 vessels per day, or 1,045 total ships, during the month of March. In February, 34.8 vessels crossed the waterway on average per day, a slight increase over the 32.6 vessels that crossed per day in January but still well below the maximum number authorized. Despite lower fees, transits in Panama this year are still below the maximum 36 vessels per day allowed since the waterway lifted restrictions due to drought in the third quarter of last year. According to the Panamanian authority, transit fees this year are 15% lower than last year. In late 2023 or early 2024, a severe drought forced the waterway connecting the Atlantic and Pacific Oceans to place restrictions on passage. This led to long waits and increased transit fees. Since Donald Trump, the U.S. president, complained about the fees earlier this year Washington has been monitoring them closely. Washington will take over the canal once it determines the presence of companies from China and Hong Kong in the vicinity is a security threat. The authority of the canal announced in late March that it would begin offering a weekly net-zero passage slot for vessels using dual fuels and operating with low carbon intensity, starting October. This plan is part an initiative that rewards and encourages investments in energy efficiency. (Reporting and editing by Chris Reese, Stephen Coates, and Marianna Pararaga)
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Investors reassess Trump’s tariff flip as oil prices drop over 3%
The oil prices fell by more than two dollars per barrel on Thursday. This erased the previous session's gains as investors re-evaluated a planned pause of sweeping U.S. Tariffs, and shifted their focus to an intensifying trade war between Washington, D.C., and Beijing. U.S. West Texas Intermediate Crude Futures dropped $2.28 or 3.7% to settle at 60.07 per barrel. Brent crude futures dropped $2.15 or 3.3% to $63.33 per barrel. Both contracts gained more than 2 dollars a barrel after U.S. president Donald Trump suspended the heavy tariffs that he announced against dozens U.S. trading partner a week earlier, marking an abrupt U.S. turn less than 24 hour after the levies went into effect. Trump raised tariffs on China at the same time. The White House informed the media on Thursday that U.S. import tariffs totaled 145%. China imposed an additional 84% tariff on U.S. imports. Ritterbusch and Associates, a trading advisory firm, told clients Thursday that higher tariffs against China will likely result in lower U.S. imports of crude oil by Beijing. This will back up the supply and increase U.S. stock levels. Data from vessel tracker Kpler revealed that U.S. crude exports to China dropped to 112,000 barrels of oil per day (bpd), nearly half the 190,000 bpd exported last year. Henry Hoffman, coportfolio manager at the Catalyst Energy Infrastructure Fund, said that if these trade disputes persist, global economies will likely suffer significant economic damages. The U.S. crude oil stockpiles increased by 2.6 millions barrels in the past week, according to government data released on Wednesday. This is almost twice as much as analysts had predicted, who expected a rise of 1.4million barrels. Macquarie analysts stated on Thursday that another build is expected this week. The United States has also imposed a 10% tax on all imports. Energy Information Administration (EIA) of the United States lowered their global economic growth predictions on Thursday and warned that tariffs may have a heavy impact on oil prices. They also slashed their U.S. oil demand and global oil consumption forecasts for both this year and next. Ritterbusch and Associates stated that "the tariff-driven expectations of reduced demand in the face of continued U.S. economic recession will likely remain at the forefront of trader concerns, keeping a lid" on price increases near term. (Reporting and editing by Emelia Sithole Matarise, Kirsten Doovan, David Evans, and Mark Porter; Additional reporting and editing by Ahmad Ghaddar, Jeslyn Lerh, and Mark Porter; Reporting and Editing by Shariq Kumar and Arunima Kumra;
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Venture Global's profits will increase as Calcasieu provides long-term clients with a new LNG plant
Venture Global Inc. is set to sell liquefied gas cargoes at its Louisiana export terminals to long-term clients rather than the highest bidder. It plans to use the controversial, but lucrative practice in a larger terminal it is building. Venture Global is finally completing the commissioning of its Calcasieu Pass facility, in Louisiana. This binds Venture Global to all contractual obligations that it signed when developing the facility. Many LNG plants take months to commission a plant or ensure that its systems work as intended. Calcasieu Pass took three years to commission, or ensure that the plant's systems are working as designed. Shell, BP Orlen Edison and Repsol filed arbitration claims alleging Venture Global intentionally failed to meet their supply contracts by dragging its heels to commission the facility so that it could profit off higher spot prices. Venture Global claimed that a malfunctioning power system caused the delay in normal operations. Venture Global's larger and newer Plaquemines LNG facility is increasing production to meet the demand of the lucrative spot market. The plant began producing at the end of December. Venture Global has said it will commission its plant in two-year stages, which analysts believe will improve the company's profit outlook. Adam Baker, a Morningstar energy analyst, stated that "we still expect the majority of sales to be made on the spot market by 2025". According to a filing made by the SEC last Thursday, Plaquemines now produces at 140% its design capacity. In three months it has sold 29 cargos for an average fee of $7.26 million British thermal unit (mmBtu) per liquefaction. Jason Feer is the Poten and Partners business intelligence chief. He said: "One can reasonably expect the company's total revenue to increase from LNG sales at the spot market in Plaquemines and some revenue generated from Calcasieu Pass". UBS, in a Friday note to clients, said that Venture Global's LNG revenues should double from $4.972 to $9.98 Billion in 2025. They will continue to grow through 2029, thanks to higher volumes and high prices. UBS informed investors that the company expected to sell between $10 and 12 billion worth of cargoes at the spot market from Plaquemines during the period of commissioning. The margin is $5 to $6 per mmBtu. Exxon Mobil is one of the contracted customers who receive LNG from Plaquemines. However, they did not respond when asked for comment. Shell declined to comment on its 2 MTPA Plaquemines facility. Shell, according to a person familiar with its position, is bracing itself for another long period of commissioning and possible delays when receiving LNG. Venture Global has not yet commented. Venture Global is second in the United States behind Cheniere. Both companies saw a boom in exports as the U.S. became a major global supplier of supercooled gas after Russia invaded Ukraine. CALCASIEU LEGAL FEIGHT SEC filings reveal that Venture Global has earned over $19 billion in LNG sales at the spot market during the last three years. This was almost exclusively from its Calcasieu Pass terminal. The margins of that terminal will begin to shrink on April 15 when it begins supplying customers with long-term contracts. Two people who are familiar with the contracts said that the liquefaction fee at Calcasieu Pass is among the lowest in the Gulf Coast, at $1.75 per million British Thermal Unit (mmBtu). Venture Global warned investors during its initial public offering of the decline in revenue when Calcasieu pass is commercialized. Customers who have signed contracts with Venture Global have been waiting for years to receive the cheaper cargoes. Shell, Orlen, and Repsol all say they will continue to fight Venture Global after they receive cargoes. Shell's CEO Wael sawan said last month, at the Capital Market's Day of the company in New York, "We hope that we will be able have some sort of readout in the coming months and hopefully this year." Magdalena Bartos, Orlen's chief financial officer and Repsol CEO, confirmed their respective companies' arbitration processes in separate earnings calls held last month. Orlen, who has contracted with Calcasieu Pass for 2 MTPA, expects to receive its first shipment from the facility by April 23. Josu Imaz, CEO of Repsol, said that the company plans to resell the LNG at low prices from Calcasieu in Europe and Asia if it is priced right. Imaz stated that Calcasieu is "a very competitive LNG plant, and probably the best in the Gulf" from a cost perspective. Shell intends to also sell its LNG contracts from Calcasieu. A Shell source confirmed this. Reporting by Curtis Williams, Marwa Rashed in London, and Marek Stzelecki in Warsaw. Editing by David Gregorio.
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Feed manufacturers in Spain will benefit from the EU's decision to delay tariffs on US corn
The Spanish feed manufacturers' association says that a delay in EU tariffs on U.S. products has provided relief to the livestock feed sector, which has purchased a large amount of U.S. corn during this season. Several cargoes are currently at sea. After Washington delayed imposing heavy tariffs on dozens countries, the European Union announced earlier Thursday that it would pause its first countermeasures for 90 days. This means that initial EU tariffs won't take effect until April 15th, including a 25% tax on U.S. Corn which had threatened to stop import flows and increase costs for EU feed producers. Jorge de Saja said, "We're calmer now than we were just 24 hours ago," the general director of CESFAC (Spanish Confederation of Compound Animal Feed Manufacturers). He said that there were several ships carrying U.S. Corn in the Atlantic, but they were not on time to arrive by April 15. Spain is a major grain importer in Europe. Foreign supplies are mainly used to feed the large pig population. In the current season 2024/25, U.S. corn is the most popular import in Europe, largely due to its cheap and abundant supply. In the short-term, it is likely that U.S. corn will be less competitive in terms of price than other corn sources like Ukraine or Brazil. De Saja stated that despite the tariff exemption, the uncertainty surrounding trade relations following the return of U.S. President Donald Trump to office highlighted the need for diversification in supply sources. "It is time to work on alternative solutions and Argentina is the best option we have." Spain received temporary approval to import Argentine corn by 2022, when Russia's full scale invasion of Ukraine disrupted Black Sea grains flows. However, permanent access is blocked due to EU regulations on pesticide residues.
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Brazil's Santos Port seeks to attract bigger vessels
The Santos Port Authority in Brazil, which manages the largest southern hemisphere port, has said that the port's draft will be deepened in order to attract larger ships in coming years. Beto Mendes (director of port operations) said that the goal is to increase the draft from 16 to 17 meters by 2031. Attracting larger ships would allow Brazil's commercial ties to be strengthened with partners like China, who is currently in a trade conflict with the United States. Mendes stated during a presentation that "we need to be ready." Santos will see an increase in shipping volumes as a result President Donald Trump's trade policies. Santos exported 179.8 millions tons of product last year. This was a record. Mendes, speaking at the event, said the volume of products is expected to reach 188 million tonnes in 2025. This estimate does not include the possible growth in trade due to the global trade conflict. Mendes said that there was no way to calculate the tariffs because the U.S. changed its policies too often to make any projections. Mendes stated that approximately 60% of all commodities shipped through Santos is agricultural, such as corn, soybeans, cotton, and pulp. He said that the state-owned Santos port handles all kinds of cargoes in a manner similar to European ports. Mendes said that Santos has 58 terminals with 16 kilometers of docking platforms and 62 berths. Santos terminals operated by private companies.
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The LME now has 88% of Russian metal, up from 78% before.
LME data on Thursday showed that the proportion of aluminium with Russian origin registered in warehouses at the London Metal Exchange increased to 88% from 75%, and the percentage of Indian origin decreased to 11%. To comply with U.S., British and European sanctions over Russia's invasion of Ukraine in 2022, the LME has banned all metals produced in Russia from its warehouse system after April 13, 2024. Metal made before April 13, 2024 can still be traded. Stocks of aluminium with Russian origin, or those on warrant The end-of-March figure was 200,700 tons, up from 155125 tons in February. The data revealed that the amount of aluminium from India fell to 25,050 tonnes, down from 49,400. LME warrants are title documents that confer ownership. The amount of copper produced in China fell from 80,950 to 45,325 tons, while the amount of copper made in Russia rose from 37% to 54%. At the end of December, half of LME nickel stocks were made in China. (Reporting and editing by David Evans; Polina Devtt)
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GreenLine Mobility, an Indian company, will invest $275 Million to decarbonize the heavy truck fleet
GreenLine Mobility Solutions, an Indian company, will invest $275 millions to accelerate the decarbonization process of heavy trucks across the country. The move is intended to reduce logistics-related emissions, and align the supply chain to sustainability goals. India is the third largest emitter of greenhouse gasses in the world. Companies are investing billions to help India reach its net-zero emission target by 2070. GreenLine, a part of the retail-to mining Essar Group said that it would use this investment to deploy more than 10,000 liquefied gas (LNG), and electric trucks. Mumbai-based company will also create a nationwide network consisting of 100 refueling stations for LNG, charging stations for electric vehicles and battery swapping facilities. Anshuman Ruia is the director of Essar Group. He said, "We are looking at this opportunity as a way to build a green mobility ecosystem and, in the future invest in clean energy to power our electric vehicles." GreenLine provides LNG-fueled trucks for companies such as Hindustan Zinc, a miner, and Exide Industries, a battery manufacturer. GreenLine claims that its LNG-powered vehicles reduce carbon dioxide emissions up to 30 percent. The company currently operates a fleet consisting of 650 LNG vehicles and has travelled more than 38 millions kilometers, reducing emissions by 10,000 tons. (Reporting and editing by Nidhi verma and Shreya biswas in Bengaluru)
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Kyiv: Permit-free access to the EU for Ukrainian cargo is extended until year-end
Ukrainian officials announced on Thursday that a freight liberalisation deal allowing Ukrainian cargo into the EU without a transportation permit had been extended to the end of this year. Signed in 2022 the agreement eliminates the need for Ukrainian carriers for transit and bilateral transports to the EU to obtain permits. It also prevents Ukrainian exports from having to stop by road checkpoints. This arrangement is crucial in a situation in which Ukrainian Black Sea ports are blocked, which are key for imports and exports since the Russian invasion of February 2022. The sharp increase in traffic between Ukraine and the EU borders has prompted protests by hauliers from neighbouring countries. Oleksiy Kuleba, the Ukrainian Vice Prime Minister, said that the extension of the agreement was good news for Ukraine and its exporters. Denys Schmyhal, the Prime Minister of Ukraine, also welcomed this development. He wrote: "This is the 4th extension of the Agreement which proves it effectiveness and efficiency."
Chinese courier delivery firm BingEx eyes $1.21 bln appraisal in United States IPO
Chinese carrier delivery firm BingEx is aiming for an appraisal of $1.21 billion in its U.S. listing, banking on recovering financier hunger for brand-new stocks and reducing of regulatory roadblocks.
The business, which brands its services as FlashEx, is seeking to offer 4 million American depositary shares (ADS) in the initial public offering, priced in between $15 and $17 apiece, to raise $68 million at the top of its targeted range.
The number of Chinese companies that have actually pursued stock market flotations in the U.S. in the previous couple of years has plummeted, after Chinese ride-hailing giant Didi Global was forced to delist its shares following a backlash from Chinese regulators.
EV maker Zeekr's debut on the New York Stock Exchange earlier this year was the very first huge listing by a Chinese business in the U.S. given that Didi's delisting.
BingEx runs in 295 Chinese cities with 88.9 million registered consumers and the company had 2.7 million signed up riders, since June 30.
It controlled 33.9% of the overall independent on-demand dedicated carrier service market share in China, since last year, the company said in its IPO filing, mentioning iResearch.
BingEx has applied to trade under the ticker symbol FLX. CICC, CLSA and Deutsche Bank are the underwriters of the offering.
(source: Reuters)