Latest News
-
FAA expects certification of Boeing 737 MAX 7, 10, and 15 soon
Federal Aviation Administration officials said Monday that they expect to certify the Boeing 737 MAX 7 or larger 10 in the near future, following an extensive review of variants of this best-selling aircraft. In an interview conducted on the sidelines at the Farnborough Air Show, Deputy FAA Administrator Chris Rocheleau said that the agency is "closer than ever." "I believe the -7 is literally around the corner and the -10 is right behind it," said Chris Rocheleau, Deputy FAA Administrator at the Farnborough Air Show. He said he also expects that the Boeing 777X will be certified after?the MAX planes. "Whether this year or early next year, we let Boeing do the driving when they bring us the correct information and work it out together." Boeing announced last week that it was in the final stages of obtaining regulatory approval for a fix to its 737 MAX engine anti-ice systems. Cirium, an aviation analytics company, reports that Boeing has built 30 MAX 7s already and nine MAX 10s are waiting for delivery. At least 28% (or more) of the outstanding MAX orders are MAX 10. The certification of the MAX 7 and 10, which are years behind schedule, is still a long way off. Boeing faced a stricter certification process after two fatal MAX 8 crash in 2018 and 2019. The company was also scrutinized for its production and quality system following a mid-air panel blowout of a MAX 9 cabin on an Alaska Airlines MAX 9 that occurred in January 2024. FAA Administrator Bryan Bedford said last week that the FAA and Boeing had improved their work in certifying new aircraft. "A lot of our problems in responding quickly to Boeing weren't due to a lack of resources at the FAA. He said that Boeing's constant shifting of priorities was to blame. Bedford stated that the FAA workflows on Boeing certification has increased from 35% to 40%. Bedford stated that "Boeing is much more aware of how we can meet their certification requirements."
-
Data shows that RPT-Gulf crude oil exports increased in July, but shipments slowed down due to renewed hostilities.
Shipping data shows that Gulf countries have boosted crude oil and condensate exports to their highest level since the Iran War began late in February. Although the flow through the Strait of Hormuz is now slowing, as fighting escalates. Kpler data showed that crude and condensate imports from Saudi Arabia and the United Arab Emirates increased by about 16 percent from the average daily exports of June to 12 million barrels of oil per day in the first half July. Vortexa estimated that exports for the period were even higher at 13.06 million bpd. Kpler reported that Saudi Arabia, Iran, and Iraq led the increase in the first six months of July. Vortexa estimated Iraq had the largest increase month-on-month, while?UAE exported declined from record levels in June. Oil prices fell as a result of the increase in Gulf exports. This was after U.S.-Iran reached a mid-June interim agreement to reopen Strait of Hormuz, the most important shipping route in the world for oil and natural gas. Early July, disagreements over the administration of the waterway led to the collapse of an interim agreement. Shipping data shows that the number of daily transits through the strait has dropped to three commodity tankers, the lowest since May. Johannes Rauball, Kpler analyst, said: "We are seeing a slowdown in activity. This means that countries have to reduce their output. This will decrease the amount of crude that is shipped. Even after a rebound in exports, they remained 32% below the pre-war high of?17.6m bpd reached in February. Sources told?on?Thursday that Iran has warned Yemen's Houthis they should be ready to disrupt the traffic through the Red Sea in the event the United States attacks Iranian energy infrastructure. This could pose a significant risk to the global oil supply. Saudi Arabia diverted the majority of its energy exports via Yanbu, its Red Sea port. Kpler data shows that 75% of Saudi Arabia's 5.29 million barrels per day (bpd) crude and condensate have been exported through Yanbu so far in July.
-
Data shows that Gulf crude exports increased in July, but shipments slowed down due to renewed hostilities.
Shipping data shows that Gulf countries have increased crude oil and condensate exports to their highest level since the Iran War began late in February. However, the flow of oil through the Strait of Hormuz is now slowing down as the fighting intensifies. Kpler data showed that crude and condensate imports from Saudi Arabia and the United Arab Emirates increased by about 16 percent from the average daily exports of June to 12 million barrels of oil per day in the first half July. Vortexa estimated that exports for the period were even higher at 13.06 million bpd. Kpler reported that Saudi Arabia, Iran, and Iraq led the increase in the first six months of July. Vortexa estimated Iraq had the largest increase month-over-month, while UAE exports declined from record levels reached in June. Oil prices fell as a result of the increase in Gulf exports. This was after U.S.-Iran reached a mid-June interim agreement to reopen Strait of Hormuz, the most important shipping route in the world for oil and natural gas. Early July, disagreements over the administration of the waterway led to the collapse of an interim agreement. Shipping data shows that the number of daily transits through the strait has dropped to three commodity tankers, the lowest since May. Johannes Rauball, Kpler analyst, said: "We are seeing a slowdown in activity. This means that countries have to reduce their output. This will decrease the amount of crude that is shipped. Even after a rebound in exports, they remained 32% below the pre-war high of?17.6m bpd reached in February. Sources told?on Friday that Iran has warned Yemen's Houthis they should be ready to disrupt the Red Sea traffic if the United States attacks Iranian energy infrastructure. This could pose a significant risk to the global oil supply. Saudi Arabia diverted the majority of its energy exports via Yanbu, its Red Sea port. Kpler data shows that 75% of Saudi Arabia's 5.29 million barrels per day (bpd) crude and condensate have been exported through Yanbu so far in July.
-
Maguire: ROI-America’s power grid chokes on expensive congestion
The congestion on the U.S. electric grid is becoming a costly bottleneck. It drives up power prices, delays new generation projects, and undermines reliability. But the attention of the electricity industry is still largely focused on generation. Politicians debate?solar panel, natural gas turbines, and nuclear reactors, while utilities boast of billions of dollars in planned investments. PJM Interconnection is the largest U.S. electricity market, spanning 13 states. It provides a stark example. According to Gridraven, transmission congestion cost market players $777.8 in June. This was a drop from the?record-breaking $1 billion congestion bill during a heatwave in May, but it remains high. In just two months, the combined congestion charges amounted to $1.8 billion. GROWTH TREND It is the direction of travel, not the headline figure. The direction in which things are going is what's most worrying. In the coming years, congestion costs will likely become a greater burden for electricity producers and consumers if current trends continue. This is important because congestion acts as a tax against economic growth. Grid operators can't just dispatch the cheapest electricity available when transmission lines are overloaded. They are forced to use generators that are more expensive and located nearer to the demand centers. These costs are eventually passed on to customers through wholesale markets. Customers rarely see "congestion surcharges" on their electric bills. But they still pay. The problem becomes more acute as the demand increases at exactly the wrong time. Years ago, the U.S. demand for electricity was virtually flat. This allowed policymakers and utilities alike to put off difficult transmission decisions. This era is over. Construction of data centers is on the rise. The number of manufacturers expanding their domestic production is on the rise. State and utility companies continue to promote electrification in transport and heating. All of these trends are increasing demand for electricity and, more importantly, for the movement of it throughout the country. MISMATCH IN SUPPLY AND DEMAND Even more difficult is the geography of today's electricity system. The cheapest new generation is often located away from the major population centers. In rural areas, wind resources are most abundant. Solar power is often more efficient in areas where there is plenty of land than in places where electricity is consumed. The U.S. needs transmission infrastructure as much as they need generation infrastructure. Transmission development is notoriously slow. Permitting and building new high-voltage lines can take up to a decade. Projects are often delayed by local opposition, disputes over permits and battles about cost allocation. The demand for goods and services is growing, but it does not wait. PJM PAINPOINTS PJM is already experiencing the?consequences. Congestion in June was concentrated primarily in Pennsylvania, Maryland and Northern Virginia. These regions are at the intersection between rising electricity demand and transmission bottlenecks. Northern Virginia has been a major hub for the U.S. Data-center boom. It is clear that the billion-dollar event in May was not an anomaly. It may instead offer a glimpse at what the future of electricity markets will look like. This presents challenges to consumers and power producers alike. Even when the electricity demand is high, generators behind transmission restrictions may not be able to access all lucrative markets. Congestion can reduce revenues, distort signals of investment and reduce the value new generation projects. Many renewable developers are vulnerable, as they are far away from urban demand centers and rely heavily on transmission. DYNAMIC PROSPECTS FOR GROWTH Ironically, America is investing heavily in power generation but failing to make the most of it due to grid bottlenecks. This explains the interest in technologies which can extract more capacity from existing transmission infrastructure. Gridraven estimates Dynamic Line Rate technology could have?increased the available transmission capacity in PJM on average by 13% in June, resulting in savings of approximately $88.3 millions in congestion. The company, which models future transmission capacity using weather forecasts and AI, suggests that the most costly constraint in June was the?Graceton Manor 230-kilovolt Corridor, could have seen costs for congestion reduced by almost $36 million. It is not as important whether these estimates are accurate or not, but rather the message. Because it is so difficult to build new infrastructure, the industry is looking for ways to maximize existing grid capacity. Other firms have also developed hardware to increase capacity on existing transmission lines. These include Linevision which models transmission capacity using sensors and digital twins. These technologies could be helpful. They are unlikely to eliminate the problem completely. It's a sad fact that America's electric ambitions are growing faster then its transmission network. The country is aiming for AI leadership, increased domestic manufacturing, cleaner energie, a wider electrification, and stronger economic growth. Each of these goals will require more electricity to be flowing through the grid. Congestion costs will continue to rise until transmission expansion catches up. If PJM is any guide, then electricity consumers will soon find out that the most costly part of energy transition isn't producing power. It's moving. These are the opinions of the columnist, who is also an author. This column is great! Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn, X and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets 7 days a weeks.
-
Riyadh Air expands its fleet with 34 Boeing and Airbus widebody aircraft
Riyadh Air, Saudi Arabia's national airline, placed orders for 34 widebody planes with both Boeing and Airbus. The company is accelerating its plans to reach more than 100 destinations before 2030. The airline announced that it would exercise options on 28 Boeing 787 Dreamliners placed in 2023, and convert '20 of these options to the larger 787-10 version. Separately the 'carrier' confirmed the purchase six Airbus A350 1000 aircraft. This confirmed previously held purchase rights, and brought its total confirmed A350 1000 orders to 31 aircraft. The orders are the first announced at the Farnborough Airshow this year. Riyadh Air is ramping up its operations after launching several new routes in June. The airline has taken delivery of six Boeing 787-9 aircraft. Riyadh Air, backed by Saudi Arabia’s “sovereign wealth” fund, is central to Vision 2030’s plan to diversify the economy beyond oil. It also aims to boost tourism and connectivity. The airline has stated that it aims to connect the Saudi capital with more than 100 destinations around the world by the end the decade.
-
Chinese rescuers use explosives for clearing boulders that trap landslide victims
Rescue teams in southwest China used explosives to blast through heavy boulders that were blocking their efforts to find 34 people who had been reported as?missing? for three days following a landslide in a natural beauty area. China is one of the most "landslide-prone" countries in the world. Eight people died in the disaster that occurred in Penghui, a county located 270 kilometers (168 miles), away from the urban sprawl of Chongqing. CCTV showed images of a huge boulder being shattered in Monday's blasting operations. The broadcaster added that the mission had entered a "deep-rescue phase", but did not provide any immediate details. The search effort was in response to President Xi Jinping’s?call for scientific rescue operations and a rapid investigation into the landslide's cause. The authorities evacuated over 1,100 people following the landslide. This county is home to approximately 500,000 people, and many of the communities are clinging to steep hillsides hugging the Wujian River. Video clips and photographs showed that a section of the mountainside had collapsed, and was now cascading down into the river. This cut off the main road of this small, hillside village. The official news agency Xinhua reported on Saturday that authorities have sent teams to monitor secondary disasters and investigate hidden geological hazards. Authorities have warned that heavy rains and torrential downpours are expected across several provinces on Monday. They urge people to take extra precautions in areas at high risk due to the abundance of groundwater and construction. CCTV reported on Monday that eight small and medium rivers in Yunnan and Guangxi as well as Anhui, Guangdong and Shanghai were currently above flood alert levels. The intense summer rains, rapid urbanisation, construction and tectonic activities are all factors that contribute to disasters. In China, where mountains, hills, and plateaus cover two-thirds the land mass, these factors can be a major cause of disasters. In the?past decade, at least 5 major, deadly landslides have killed 294 people in total. After the December 2015 collapse of a huge pile of construction debris in an industrial park located in southern tech hub Shenzhen, the worst incident resulted in more than 70 deaths. Reporting by Farah master in Hong Kong, Liz Lee and the Beijing Newsroom. Editing by Clarence Fernandez.
-
Honeywell Aerospace wins IndiGo avionics deal; Aeromexico to deploy runway safety technology
Honeywell Aerospace announced on Monday that IndiGo, an Indian airline, had selected its avionics systems and power systems to equip '810 Airbus A320neo family aircraft. Meanwhile, Aeromexico plans to install Honeywell Aerospace runway safety technology in more than 100 Boeing jets. Honeywell has released separate statements confirming that the IndiGo contract includes auxiliary power units (APUs), weather radar, traffic accident avoidance systems (CAAS), flight management systems (FMS) and aftermarket support. Honeywell Aerospace?supplies equipment to IndiGo's fleet of aircraft since 2015. IndiGo operates more than 400 aircraft. Aeromexico plans to adopt Honeywell Surface Alerts (SURF A) runway safety technology on its Boeing 737 NG & 737 MAX fleet. SURF-A provides pilots with real-time aural and visual alerts when an aircraft is ?on a trajectory to collide with another aircraft on a runway, using ?GPS data, Automatic Dependent Surveillance-Broadcast (ADS-B) equipment and ?software analytics ?to identify traffic hazards. The company anticipates that the Federal Aviation Administration will begin certification of SURF A on?several Boeing planes in 2026. Federal Aviation Administration will begin in the fourth quarter of 2026, and continue into 2027. Honeywell Aerospace did not disclose financial terms in either agreement.
-
Segro, a UK-based company, rejects Prologis’ sweetened $18,2 billion takeover offer
Prologis, the U.S.-based warehouse company, said that Segro had rejected its latest PS13.5billion ($18.17billion) takeover offer. It urged its British rivals' shareholders to press for Segro's board's involvement before a formal deadline. Segro's Board unanimously rejected the proposal, Prologis' third on July 17. Prologis stated that the bid valued Segro at PS9.93 a share and consisted of 0.0890 Prologis shares per Segro share, plus a partial 'cash alternative' of up to PS2.7billion. The latest offer is close to 34% higher than the closing price of the group on June 23, one day before Prologis made its interest public. Prologis said that it would explore the feasibility of listing its shares in a secondary market on the London Stock Exchange. Segro rejected the initial PS12.6 billion (about $12.6 billion) all-share offer from the U.S. company in June. They said it was "opportunistically timing" and that it fell significantly short of "fair value". On July 12, a second proposal was also rejected. Prologis has been unable to reach a deal with Segro, and as per British takeover regulations, it only has until the 22nd of July to submit a firm bid or to walk away. Segro has not responded to a request for comment regarding Prologis's statement that was issued on Monday outside UK business hours. EasyJet and Intertek are among the blue-chip firms that have attracted takeover interest over the past few months.
Freight rates stall for Asia-bound Russian Urals oil
Freight rates for tankers bring Russia's flagship Urals crude from its Baltic ports to India have actually stalled on expectations of declines in oil exports from Moscow's western ports in November, trading and shipping sources said.
Weaker rates for global standards could increase pressure on Urals freight rates, as FOB costs for the grade listed below the cost cap of $60 per barrel could draw in more Western shipowners to the market, the three sources included.
Urals costs in Russian ports have actually remained listed below the $60 per barrel practically all the time since mid-October, LSEG data shows. << URL-PRMSK >< URL-NVRSK>
> Under the terms of the cap, purchasers can only use Western services such as shipping and insurance when Russian crude trades listed below $60 per barrel.
Freight rates are low and they are not increasing. The cost of a trip (for a 100,000-tonne Urals cargo from Baltic) to India is still around $5.1-$ 5.2 million, one trader stated on condition of privacy.
Freight rates from the Baltic ports of Primorsk or Ust-Luga to ports in western India have risen to $5.5 million this month from multi-month lows around $4.3 million earlier this year.
The expense of a one-way trip from Russia's Baltic ports to India, nevertheless, is still well below the $7.7 million struck in early 2024.
Russia's petroleum exports from its three main western ports will fall by 13% in November from the previous month to 1.95 million barrels daily (bpd) from some 2.25 million in October, following completion of the refinery upkeep season, Reuters sources said recently.
The U.S., other Group of Seven
(source: Reuters)