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Maersk warns about growing uncertainty but expects US growth to continue
Maersk, one of the largest container shipping groups in the world, stated on Wednesday that it had seen a robust demand for its products from the United States this year. It continues to forecast U.S. expansion, although tariffs could cloud the outlook. Maersk published its regular global market forecast before U.S. president Donald Trump announced reciprocal tariffs against nations that have duties placed on U.S. products later on Wednesday. In its market outlook, the company stated that "U.S. economic growth is (the main) scenario but volatile geopolitics clouds economic visibility." Maersk warned that the U.S. Tariffs could affect global trade flows, despite a robust start in 2025. It said it was monitoring early indicators of a possible slowing momentum that could impact global supply chains. The company cited the declining U.S. Consumer Confidence over four consecutive month as a concern for future demand. It said that consumers' reactions to perceived risks or financial uncertainty could lead them to be cautious in their spending. This, in turn, can have further ripple effects. Maersk reported that companies have increased their inventory in preparation for tariffs. (Reporting and editing by Terje Solsvik, Stine Jacobsen)
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Kremlin restricts Caspian oil pipeline export infrastructure after Ukrainian drone attack
The Kremlin announced on Wednesday that Russian restrictions have been imposed on Black Sea oil export infrastructure via the Caspian Pipeline (CPC) as a result of Ukrainian drone attacks against the pipeline's Infrastructure. After a quick inspection by Russia's Transport Watchdog, the Black Sea Terminal that handles Kazakhstan's oil exported by U.S. majors Chevron & Exxon Mobil was ordered to close two of its moorings this week. Moscow accuses Ukraine of attacking a CPC Kropotkinskaya oil depot and pumping station in southern Russia. Transneft, the Russian pipeline monopoly, said on Wednesday it had suspended a berth for oil at the Novorossiisk port in the Black Sea due to the inspections by the watchdog. Dmitry Peskov, Kremlin spokesperson on a daily call with reporters, said: "This is because of the damage caused to CPC infrastructure by the drone strikes from Ukraine." "We cannot forget the enormous, complex and technologically sophisticated damage that was caused there. This can't, of course, have no consequences on the overall system functionality, he said. The attacks took place amid efforts to end the conflict between Russia and Ukraine, which were mediated by President Donald Trump's Administration. Kazakhstan and Chevron both confirmed that the flow of oil through the pipeline was not interrupted. Trump said that he was unhappy The rate of progress made in peace negotiations with Russia Ukraine (Reporting by Gleb Stolyarov; writing by Vladimir Soldatkin; editing and re-editing by Guy Faulconbridge) (Reporting and writing by Gleb Stlyarov, editing by Guy Faulconbridge; written by Vladimir Soldatkin)
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Executives say that Trump's plan to impose reciprocal tariffs on ocean shipping increases the risk of chaos.
The ocean shipping industry is on edge after President Donald Trump announced his new tariff plan. He has stoked a trade conflict that will stifle transport demand and force companies to scramble to manage the fallout. On Wednesday, the Trump administration will announce "reciprocal duties" against nations that impose duties on U.S. products. The move comes after the Trump administration imposed new import duties on products from Mexico and Canada, as well as steel and automobiles. Hapag-Lloyd, CMA CGM, MSC and Maersk are among the major global container shipping companies that transport the towering piles filled with colorful boxes of goods to U.S. clients like Walmart, Target, and Home Depot. They are titans of the ocean shipping industry, which handles 80% or so of all global trade. The industry is worth about $14 trillion per year. Trump's on-and off tariffs are also whipsawing companies. Blake Harden is the vice president for international trade at Retail Industry Leaders Association. "The implementation has caused confusion," he said. The companies haven't had the time, certainty and guidance that they needed to comply with these changes. During his second term, Trump invoked emergency powers in order to quickly add tariffs, which he sometimes retracted and then reinstated. Kit Johnson, Director of Import Compliance at John S. James Co. - a U.S. Customs Broker and Freight Forwarder with customers such as automakers, producers of chemicals, machines, medical devices, and textiles - said that importers do not know their duty costs from week to week. Johnson has seen a rise in the number of customers who choose to ship their autos by air, rather than shipping them by sea. This is a way for customers to avoid new tariffs. Container imports to the U.S. have also risen to record levels over the past few months, as companies rush in toys, bedding, furniture, machinery, and parts from China. The U.S. imports of containers from China, the world's No. 1 exporter have also surged to record levels in recent months as companies rushed in toys, furniture and bedding from China. Other vessel types and planes were called in to assist U.S. companies stockpile cars and other goods from Europe, the Far East and Ireland. According to data provided by freight pricing platform Xeneta, the average spot rate for a 40-foot shipping container on the important Far East-U.S. West Coast was $2,844 Tuesday. This represents a gain of nearly 16% in just one day. This rate is lower than it was one year ago when Houthi attacks were a relatively new threat and traders did not try to avoid tariffs. TARIFFS TAKE BITE Front-loading is a quick fix, but it's only temporary. Tariffs in retaliation could spark trade wars and suffocate the demand. Tariff tiffs are occurring as ocean shipping is put at greater risk by a separate Trump proposal to impose large U.S. Port Call Fees on ships that have links to China. Those who oppose this proposal claim that it will decimate the domestic energy and agriculture exporters Trump promised to help. The critics also say that it could rekindle pandemic chaos in ports, as vessel operators would be tempted to avoid paying fees by flooding some ports while starving other ports. The addition of this tax to tariffs has paralyzed the decision making process for how to sell, source and move goods. Peter Sand, Xeneta’s chief analyst, said: "You can't make important decisions about your supply chain if the rules keep changing." A Greek container shipping executive who asked to remain anonymous for fear of public comments negatively affecting business said that customers did not load cargo out of fear that they might be charged a high levy at the end a long ocean voyage. We are waiting and watching. Experts have started counting the damage caused by Trump's tariffs. According to the Institute for Supply Management's survey, the fear of levies has already slowed down the turnaround of the U.S. Manufacturing sector. This sector relies heavily on imports and exported goods and is a major driver for transportation. S&P Global Market Intelligence predicts that the volume of U.S. Ocean Container Freight Imports will drop by 0.7% in 2025. S&P stated that "While there was still strong growth in first quarter 2025, this is expected reverse in the second as tariffs bite." U.S. Customs and Border Protection, meanwhile, is scrambling around to reprogram and test the systems required to calculate and collect tariffs. In February, the Trump administration delayed its plan to collect duties from retailers such as Temu and Shein for direct sales of low value goods. This was after packages began piling up at New York’s John F. Kennedy International Airport. Johnson, a customs broker, said that the more tariffs there are, the harder it will be to keep up. Reporting by Lisa Baertlein, Victoria Waldersee, Rene Maltezou, and David Lawder, in Washington. Editing by Jamie Freed.
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Russia tightens restrictions on Black Sea oil export ports
Russia, the second largest oil exporter in the world, imposed new restrictions on a major oil export route on Wednesday. The suspension of a mooring from the Black Sea port Novorossiisk came only one day after the restriction on loadings through a Caspian pipeline. Russia produces around 9 million barrels per day or just over a tenth of the global oil production. The ports of Russia also receive oil from Kazakhstan. Transneft, the Russian oil pipeline monopoly, said that it had suspended an mooring in the Black Sea port of Novorossiisk after a quick inspection by a transportation watchdog. The Novorossiisk Commercial Sea Port is one of Russia’s biggest export outlets. Closing one mooring will not have a significant impact on its operations. "A temporary operation ban has been placed on the oil loading berth 8." Transneft reported that NCSP was ordered to eliminate any violations identified by June 30th 2025. According to industry sources, Berth 8 is the Sheskharis Terminal's low-sulphur fuel tanker terminal. These tanks have a deadweight around 7,000 tons and are primarily used for exports into Turkey and Georgia. LSEG data and other industry sources showed that this berth handled approximately 100,000 tons of diesel between January and March. On Monday, two of three moorings were closed at a terminal near the Caspian pipeline consortium, in which U.S. oil giants Chevron, Exxon Mobil, and others have stakes. Donald Trump, the U.S. president, has expressed his dissatisfaction with Russia over the pace of peace talks in Ukraine and threatened to impose secondary duties on Russian oil buyers. Mark Trevelyan (Reporting and Editing)
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Ukraine April wheat exports are expected to reach 1 million tonnes, says the producers' union
Ukrainian farmers' union UAC stated on Wednesday that Ukraine's exports of wheat are expected to stay high, at 1 million metric tonnes in April compared with 1.1 million in March. UAC stated that exports in March were among the highest for the current season. "Traders have contracted up to 1 million tons of wheat in April. UAC reported that despite the general stagnation of demand in Europe, Ukrainian grain finds buyers, especially in Egypt. Ukraine is one of the world's largest wheat producers and exporters, but last year the Farm Ministry limited exports for 2024/25 to 16,2 million tons in order to maintain a stable supply on a domestic market. According to the Ministry, traders have already exported nearly 13 million tons wheat. Vitaliy Koval, Minister of Agriculture, said that he believes traders are complying with all requirements set by the ministry regarding export volumes. The ministry will not change the amount of wheat that is available for export during the current July-June 2024/25 season, despite the relatively fast pace of shipments. "No changes are planned." Vysotskiy stated that everything was in accordance with the memo. Ukraine exports the majority of its wheat during the first half of the year and then gradually reduces the shipments throughout the rest of the year, shifting to corn. UAC stated that it expects the price of new harvest wheat in Ukraine to drop by $20 per ton, Carriage Paid for (CPT), to between $190 and $200 per ton at the Black Sea in July. If possible, do not sell too quickly. In July-August the market has historically been saturated with wheat exports from major exporting nations - Ukraine and Russia as well as Romania and the U.S., and the price is usually lower even if there's a surplus balance. The union predicted that the price could rise to $220 to 235 per ton of CPT between October and December. (Reporting and editing by David Goodman, Sharon Singleton and Pavel Polityuk)
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Denmark's APMH offers $1.3 billion for the tugboat group Svitzer
Denmark's A.P. Moller Holding, a subsidiary of Denmark's A.P. APMH already owned 47% of Svitzer's shares prior to the bid. The independent board members of the towing company unanimously approved the offer. APMH is the controlling shareholder of Danish shipping giant A.P. Moller-Maersk . APMH stated in a press release that the stock market listing did not generate the investor interest expected. A delisting will allow Svitzer to continue its growth. It added that Svitzer must grow its business to maintain its market position in an industry fragmented and competitive, undergoing consolidation. Svitzer shares have risen 8.2% to 216.4 Danish crowns since their IPO, while APMH is offering 285 crowns.
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Maguire: US natural gas prices prepare for the impact of tariff crossfire on US prices
The U.S. Natural Gas prices have already risen by about 80% in the last year, but they are set to get a new jolt due to the effects of the recent round of tariffs levied by the U.S. Government on goods entering the nation. The U.S. Gas Market will be affected regardless of when and how the new tariffs come into effect. Exports of LNG in the form or gas are likely to become a bargaining tool in any subsequent trade maneuvers. Commitments to increase purchases of U.S. LNG can be a quick way to rebalance the trade ledger to the U.S. for nations that are looking to reduce their trade surplus or avoid future tariffs. As a possible form of reprisal, some countries that are affected by the new tariffs and who already buy U.S. LNG regularly may also threaten to reduce their purchases. Gas exporters, utilities and households will all be affected by the changes in the gas trade volume and price. BIG STAKES According to the U.S. Energy Information Administration (EIA), the U.S. exported nearly 12 billion cubic foot of LNG every day in 2024. This cemented its position as the world's top LNG exporter for the second consecutive year. The LNG shipments generated more than $30 billion in revenue, which was significant for both the companies that shipped the gas as well as the U.S. Treasury. According to Kpler ship tracking data, the Netherlands was the largest market for U.S. LNG in 2024, accounting for 11% of all volumes. France, Japan and South Korea were the next biggest buyers of U.S. LNG. China, Turkey, Spain, and the United Kingdom also made a notable purchase. Tipping the Balance The administration of U.S. president Donald Trump has threatened to impose high tariffs on goods that these countries sell to the U.S., as the U.S. is running up trade deficits. All of these countries already buy a lot of U.S. LNG. It is likely they will increase their purchases in order to ease relations with the Trump Administration. As part of the tariff negotiations, other countries with large trade surpluses, such as Vietnam, may also consider increasing U.S. LNG exports. Plan B LNG will also be a part of any countermeasures that nations take to retaliate against the U.S. after they raised tariffs. China and several European countries, including Germany, have pledged to respond to the planned hikes in tariffs. They are likely to see LNG as a way to cause revenue damage to the U.S. while not risking self-harm. Qatar, Australia, and Malaysia also provide LNG to global clients, so they will be able quickly replace any U.S. LNG volumes lost, while U.S. LNG suppliers may find it difficult to find alternative buyers. GAS FLOW AFFECTS The domestic gas market will be affected by the new tariffs in the United States, regardless of how the LNG export volume trends. The increase in LNG imports will result in a higher demand for gas at LNG export terminals, and a tighter supply of gas for other gas consumers. This will put pressure on U.S. utility companies that rely on gas to produce approximately 40% of their electricity. In response to higher gas prices in the US, several utilities have already reduced their gas usage in favor of increasing coal-fired electricity generation. Gas prices could rise further due to the renewed strength of LNG exports. This would lead to a surge in U.S. electricity emissions, which could accelerate climate changes. If, on the other hand most trade partners choose to reduce U.S. purchases of LNG as part of a tariff reprisal, then demand for LNG export terminals may drop, which could result in more gas being available at home and lower gas costs. It is likely that there will be mixed reactions among trading partners, as some countries may reduce their LNG purchases, while others might increase them. These volume swings may eventually balance each other out, resulting in a total LNG volume that is largely unchanged by the end the year. In the short term, however, the sudden changes in LNG order flows could trigger wild swings on the gas market. Gas market participants will need to be able to take advantage of any price movements that are favorable and to avoid volatile market conditions. These are the opinions of a market analyst at.
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President of a Japanese shipping company fears that US tariffs could slow down cargo flow, he says
Nippon Yusen, Japan's biggest shipping line, fears that tariffs imposed by U.S. president Donald Trump could increase the price of cars and everyday goods, reducing consumer demand and slowing down cargo flow, according to its president. "The tariffs do not fall directly on the consumers but they are ultimately responsible for the burden, which reduces the flow of goods." In an interview with Takaya Soga on Monday, he said that this was his biggest concern. Last week, Trump announced plans to impose 25% tariffs on automobile imports. This move is expected to hurt Japan's export driven economy. He also promised to announce reciprocal duties targeting all trading partners this Wednesday. "Tariffs can have a significant impact on the economy," Soga added, adding that the actual cargo movement will determine the extent of this impact. Soga, however, sees benefits that could come from the trade conflict. He said that even if cargo volume declines, delays caused by tariff-related procedures could disrupt logistics and tighten ship demand, which would increase freight rates. NYK may find new business opportunities if China begins to source raw materials outside of the U.S. In anticipation of U.S. Tariffs, a rush for consumer goods drove cargo movements in December up until the Chinese New Year. However, there has not been a major change in material flow since they went into effect, Soga stated. The United States also plans to charge docking fees at U.S. port for any ship that is a part of a large fleet including Chinese-built or Chinese-flagged ships and will pressure allies to follow suit or face retaliation. According to NYK, of the 800 ships owned or operated, less than 10 percent are Chinese-built. He said that the U.S. Government will examine carefully whether or not this policy will be implemented. Therefore, we cannot state now that we are going to stop ordering vessels from China. Soga anticipates that Red Sea avoidance will continue as long as geopolitical risk in the Middle East persists. Last year, disruptions in the Red Sea caused by attacks by Yemeni Houthi militants consumed extra capacity as many ships took an extended route around Southern Africa. Soga stated that while the congestion of container vessels in the Panama Canal is mostly resolved, NYK has asked the Panama Canal Authority (PCA) to restore Tier 1 priority status for LNG tanker traffic. Soga stated that the company may delay its plans to invest in vessels for offshore wind projects in Japan due to a slower than expected market development. However, overseas investments would proceed faster. (Reporting and editing by Sonali Paul, Additional reporting by Tim Kelly)
China, struggling to make use of a boom in energy storage, requires a lot more
Rows of what appear like thin, white shipping containers are lined up on a barren dirt field in China's Shandong province.
Filled with batteries, they form a 795 megawatt (MW) plant that can hold up to 1 million kilowatt-hours of electrical power - enough to power 150,000 households for a day, making it China's. biggest such storage facility when it was connected to the grid. last Saturday.
Constructed by Lijin County Jinhui New Energy Co, the task is. part of an explosion in development of energy storage in China,. which has actually required even more investment in the sector to boost. eco-friendly electrical power and ease grid traffic jams.
While the state-led drive has provided a welcome stimulate for. home-grown battery giants such as CATL and BYD, some. market experts and experts state prices reforms and innovation. enhancements are required for a storage sector whose rapid development. has been afflicted by low utilisation and losses for operators.
Most of the players in this sector are attempting to figure out. how to make money, said Rystad Energy senior expert Simeng. Deng.
Investment in grid-connected batteries in China rose 364%. in 2015 to 75 billion yuan ($ 11 billion), according to Carbon. Short, creating by far the world's largest storage fleet at 35.3. GW as of March.
In May, China set a new target of at least 40GW of battery. storage set up by the end of 2025, up 33% from the previous. goal under a larger plan to decrease carbon emissions.
Storage is crucial to assist balance supply and need when. wind and solar farms produce more renewable electrical power than the. grid's circulation system can deal with, or when a lack of sun or. wind means they are creating too little power.
To fulfill Beijing's targets, city governments have actually required. renewable resource plants to construct storage, driving fast capability. growth.
However, extremely managed power markets have struggled to. incentivise usage, particularly at solar and wind centers,. leading China's cabinet to call for research into improving. rate mechanisms.
Energy storage at renewables plants ran simply 2.18 hours. a day last year, while independent facilities ran just 2.61. hours daily, according to the China Electricity Council. By. comparison, storage at industrial and commercial plants run. 14.25 hours per day.
Policy mandates requiring renewables plants to install. storage have actually stopped working because they add to forecast expenses and frequently. sit idle, stated Cosimo Ries, an expert at Trivium China.
Because power prices are not versatile enough throughout. various hours, these jobs just can't really earn money,. Ries said.
BIG CONSTRUCT
The stakes are high for China, which leads the world in. adoption of energy shift innovation, and for its battery. giants, which are seeing faster growth in batteries for storage. than for cars and trucks as electric lorry sales development slows.
While federal government mandates are an essential chauffeur of China's. storage boom, huge power users such as industrial parks and EV. charging stations are also driving adoption. China, where 60% of. the world's electrical vehicles are offered, has fretted about the. results of EVs on its power grid, and storage can assist smooth. demand spikes.
Falling battery rates are enhancing the economics of. storage in China, with costs for batteries utilized in standard. energy storage down by about a 5th between the end of 2023 and. mid-June, according to consultancy Shanghai Metals Market.
Likewise, expanding adoption of peak-valley pricing, which. discourages electrical power use during peak need times by raising. rates, gives storage suppliers more opportunity to earnings by offering. stored power when they can charge more.
That has actually caused intraday rate differentials of as much as 0.9. yuan per kwh in coastal provinces like Guangdong, where the peak. cost of 1.1868 yuan/kwh is more than 4 times the low, enough. to incentivise use of both battery and pumped hydro storage,. said Alex Whitworth, head of Asia Pacific power research at Wood. Mackenzie.
Pumped hydro is an established innovation with more than 60%. higher capability than battery storage in China, but with. geographical constraints and long lead times.
Investor returns on solar-plus-storage tasks are likewise. enhancing as solar module prices fall, making. renewables-plus-storage economically practical in most parts of. China with internal rates of return conference the minimum. investment hurdle rate of a minimum of 8%, composed Pierre Lau, a Citi. analyst.
More market reform is needed to incentivise battery. storage, industry players say, with storage operators calling. for broader use of capability payments comparable to those indicated to. keep having a hard time coal plants online, with costs shouldered by. customers.
BETTER BATTERIES
Battery innovation is also improving.
The large new Shandong plant includes both lithium ion. and vanadium redox circulation batteries, according to a report by. regional state media. Vanadium is a newer technology that assures. longer storage times and enhanced safety.
While the economics of lithium ion batteries are. anticipated to enhance, specialists state most existing technology is. appropriate for much shorter storage periods of 4 hours or less,. and some state it is best utilized in smaller-scale applications. Fire. risk stays an issue, particularly with lower-quality. batteries, specialists say.
Emerging technologies such as thermal energy storage, redox. circulation batteries, and salt ion batteries have actually revealed guarantee for. longer-duration storage however have higher up-front expenses, with. innovation and supply chains that are less mature.
China is hedging its bets by increasing its pipeline of. pumped hydro jobs - which can take five to seven years to. construct - and motivating presentation jobs in emerging. innovations.
(source: Reuters)