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Iraq tries to increase exports through Turkey by transporting crude oil from the south of Iraq north.
The trial began on September 13 and lasted two days In 209 trucks, 38,000 barrels of oil were transported. Iran War disrupts Iraqi exports to the south By Aref Mohamed and Ahmed Rasheed BASRA (Iraq), Sept. 16: Iraq has launched a pilot project to transport crude oil from its southern oilfields by road to a Kirkuk oil storage facility. The goal is to increase supplies for the northern export system, and possibly to increase shipments via Turkey's Ceyhan Port. The initiative is part of Iraqi efforts to increase exports through the northern route, after the U.S. and Israeli war against Iran disrupted Iraqi shipments via the Strait of Hormuz. A spokesperson for the oil ministry confirmed that Iraq's Oil Ministry has contracted local company,?KAR Group, to transport crude oil using its fleet tanker trucks. A statement from the state-run Basra Oil Company confirmed that the arrangement had been made. BOC reported that the trial operation began on September 13 and lasted for two days. During this time, a little over 6 million litres crude oil, which is equivalent to 38,000 barrels was transported by 209 tanker truck each with a capacity of 30,000-litres. Saleem al-Rikabi said that the contract with KAR Group was based on the total volume delivered by tanker truck. He added that daily volumes transported depended on a number of factors, including road conditions, security clearances, and loading capacity. KAR Group didn't?respond instantly?to an inquiry for comment. Oil ministry figures indicate that current flows from northern Iraq into Turkey's Ceyhan Port are estimated to be around 200,000 barrels per day (bpd). This is down from 250,000 bpd prior to the Iran War. BOC sources say that the project faces logistical difficulties, including limited truck supply and limited loading infrastructure at southern oilfields. Initial volumes are too small to materially increase exports from the north without an expansion in transport and loading capacities.
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US Farm Agency prepares to reopen New Mexico Port to Livestock Trade next week
U.S. Agriculture Secretary Brooke Rollins announced on Wednesday that the Department of Agriculture is preparing to reopen an New Mexico port for livestock trade after it had been closed due to New World screwworm. Rollins stated during her remarks at the National Association of State Departments of Agriculture conference in Portland, Maine that she intends to travel to New Mexico Wednesday night. Rollins stated, "We are getting ready to reopen that New Mexico port in the next week." After months of port closures because of concerns about the screwworm parasite, the USDA resumed the cross-border trade of livestock with Mexico in late August. According to the agency there are currently two active screwworm infections, both in Texas, one in a horse, and another in a canine. Rollins stated, "What you have all 'proven for the past?20 days in Douglas, is that this situation is manageable and doable. And if we think there is another threat we will shut it down."
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Sources say that two pumping stations on the Saudi East-West Pipeline were damaged by a recent attack.
According to three oil and security sources, two pumping stations that serve the vital 'East-West Pipeline' in Saudi Arabia have been damaged by an attack last week. Saudi Aramco did not reply to a comment request. The company operates the 1,200 km (745 mile) pipeline that runs across the Arabian Peninsula. Saudi Arabia's media office did not respond immediately to a comment request. Saudi officials said that the?pipeline which had helped to relieve the blockage in the Strait of Hormuz was temporarily shut down after an?attack by a drone coming from Iraq. Sources claim that the strike has damaged pumping stations 8 and 9. According to industry estimates, the pipeline is serviced with 11 pumping and two pressure relief stations. Since?six months, the facility has been the main way to export Middle East oil globally. The Strait of Hormuz is largely closed due to war. Saudi Arabia has been able to avoid the disruptions that have crippled the other Gulf oil and natural gas exporters.
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Muto scores as Kobe win the Asian Champions League with a win
Vissel Kobe won 2-1 over Port FC on Wednesday thanks to a deftly executed goal by?Yoshinori muto. The Japanese team?made a perfect start in the league phase of?Asian Champion League Elite?in Thailand. Ren Komatsu, a former 'Japan - international', had given Michael Skibbe and his team the lead at the 10th minute. Issei Tahashi flicked Diego's throw-in into the Port penalty area and Komatsu pounced. In the fourth minute of stoppage time in the first half, he was able to redirect Issam al-Sabhi’s header past his own goal-line. Muto scored the winning goal after being played?on-goal by fellow substitute Yuya Osako. He then lifted a calm finish above Port goalkeeper Michael Falksgaard, as last season's semifinalists picked up all three of their points. Former champions Jeonbuk Motors came back from a goal behind to beat Kashiwa 2-1 in Jeonju. Kenshin Yuba scored an individual goal in the 30th-minute to put Japan ahead. However, Tiago Orobo equalized the score three minutes into second half by scoring a header. Italo scored the winning goal for Jeonbuk at the 69th-minute mark. The Brazilian slid his shot in the bottom right corner of Ryosuke's Kojima. The eight top teams in east and west Asia, who finished first or second respectively in the league phase of the competition (which has increased from 24 to 32 teams) will move on to the knockout round. The 'last 16 matches' will be played on a 'home-and-away basis' in March, while the quarter-finals (quarter-finals), semi-finals (semi-finals) and final in Saudi Arabia will be held centrally in April and may.
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Meloni, the Italian leader in the election campaign, has scrapped road tax on most cars.
Giorgia meloni, the Italian Prime Minister, announced on Wednesday that Italy will 'abolish road tax' for 14,5 million cars and motorbikes. This move is estimated to cost more than EUR2billion ($2.31billion) in state funds. The government is looking for ways to increase support in advance of the national elections next year. Meloni’s?conservative alliance is trailing in the polls the centre-left and is under pressure from National Future - a new far-right political party led by Roberto Vannacci that is steadily gaining supporters. Meloni stated in a press release released by her office that "today the government eliminates one of the taxes most disliked by Italians". The benefit is available for 'all motorbikes' and'more than 70% of small and medium-sized vehicles, according to the Cabinet Office. However, each citizen will only be able to use it once. The draft decree that was seen by us before the cabinet meeting indicated that the exemption would only be for one year, between January 1, 2027 and December 31, 2027. It will cost EUR 2,36 billion. Meloni did not reveal where the money would come from to fund the initiative. Italy's public debt is expected to reach 139% of its gross domestic product (GDP) in this year under its latest budget plan. This will replace Greece as the most indebted nation in the Eurozone. The coalition parties welcomed this measure as part the government's agenda to cut taxes, while critics dismissed it for a ploy to divert the attention away from the soaring fuel prices. Rossano Sasso is a senior assistant to Vannacci. Fuel prices have risen in Italy for several months due to the U.S. War against Iran, which has disrupted supplies around the globe. The government had to spend EUR2.8 to date to reduce excise duties.
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Italy eliminates road tax on most cars in the run-up to elections
Giorgia meloni, the Italian prime minister, announced on Wednesday that the government would abolish road tax for 14.5 million cars and motorbikes. The government is looking for ways to increase support in advance of the national elections next year. Meloni stated in a press release issued by her office that "today the government will eliminate one of 'the taxes most disliked by Italians. The benefit will apply to all motorbikes, and to more than 70% small-sized cars. However, citizens are only allowed to use it on one vehicle. The election next year is shaping up to be a close race between Meloni’s rightist coalition and centre-left opposition. The government has not said how much the abolition?of road tax will cost?public finances. Italy's public debt is expected to reach 139% of its gross domestic product this year under its latest budget plan. This will replace Greece as the most indebted nation in the Eurozone.
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Flydubai CEO: We expect to return to full capacity before the end of this year.
Flydubai, the airline of Dubai, expects to return to full capacity before the end of the year. This is as airlines 'across the region' recover from the impact of the Iran War. Ghaith al Ghaith, CEO of Arabian Travel Market, said to the media that by the end of the year, "we will go back to 100 percent, and maybe even more, because we'll be getting more planes." Ghaith said that Flydubai, Emirates sister airline, operates at 85% of its current network capacity. Its load factor (which measures how well a?airline fills available seats) is "good". Flights in the Middle East, and even beyond, were disrupted for weeks by the Iran War, which began at the end February. However, Gulf carriers - some of the largest in the world - have slowly resumed their activities. The EU Aviation Safety Agency issued an advisory this year to avoid the Gulf Airspace due to potential 'risks associated with the war. He added, "Our biggest problem, particularly in Europe, are all the (travel) advisory messages that continue to be issued." The CEO's comments come after the airline announced on Tuesday that it would take a further 11 aircraft this year. This includes seven?Boeing 737-9 MAXs and four Boeing 737-8 MAXs, bringing its fleet to over 100 aircraft.
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Equinor plans LNG growth in early 2030s for European and Asian demands
Senior executives at Equinor said that they hoped to increase their liquefied gas supply portfolio between 10 and 15 million metric tons (tpy) per year in the early part of the next decade to meet demand from Europe and Asia. Ingvar Egeland is Equinor's Vice President for LNG. He said that the Norwegian producer will announce a second LNG deal with an Asian client this week. In May, Equinor signed a 15-year LNG deal with India’s Deepak Fertilizers &?Petrochemicals Corp. Egeland stated that Equinor has been in contact with many counterparts, particularly in India and other places in Southeast Asia. They are interested in finding new sources. The U.S. and Israeli war against Iran has?prevented Qatar, the United Arab Emirates, from exporting the majority of their LNG via the Strait of?Hormuz. A fifth of global LNG supplies used to pass through this Strait, forcing Asian buyers into seeking other sources. Equinor expects to double its portfolio of supplies to 7 million tonnes per year in 2030, when U.S. supplies reach full capacity. The Norwegian LNG plant Hammerfest is responsible for half of the total supply. Egeland stated that Equinor intends to increase its supply to between 10 and 15 million tonnes per year (tpy) by the early 2030s. This will include cargoes with a Brent price to diversify their exposure to prices. He added that the volume does not include Tanzania where Equinor has a project in progress which is being 'delayed' by government negotiations. Tanzania's deputy minister of energy said this week that a new law on LNG investments could be passed by the end the year. Egeland said that the East Coast of the U.S.A., West Coast of Canada, South America and other African countries, besides Tanzania, could be potential new sources of supply.
Shipping companies pull out of Hong Kong to avoid US-China risks
Some shipping companies move their operations discreetly out of Hong Kong, and remove vessels from its registry. Some shipping companies are making contingency planning to do this.
Six shipping executives have said that these low-profile actions are motivated by a fear that their vessels could be seized by Chinese authorities, or face U.S. sanction in the event of a clash between Beijing and Washington. The people said that the growing U.S. scrutiny over the importance of China’s commercial fleet to a potential military conflict, such as one over Taiwan, and Beijing's emphasis of Hong Kong's role in serving Chinese interests is causing concern in the shipping industry. Last month, the U.S. Trade Representative proposed imposing steep U.S. fees on Chinese shipping firms and other companies that operate Chinese-built ships to counter China's "targeted dominant" in shipbuilding and maritime logistic. Washington warned American companies in September about the growing risks associated with operating in Hong Kong. The U.S. has already imposed sanctions on officials who are involved in a crackdown.
Hong Kong has been the hub of shipowners for over a century, as well as brokers, financiers underwriters, and lawyers who support them. Official data shows that its maritime and port industries accounted for 4,2% of the GDP in 2022.
VesselsValue - a subsidiary company of Veson Nautical, a maritime data group - reports that the city's flag was flown on eight out of ten ships in the world.
Interviews with two dozen people familiar with Hong Kong including shipping executives and lawyers revealed a growing concern about the possibility that commercial maritime operations in Hong Kong could be caught up by forces outside their control if a U.S. - China military conflict occurs.
Many pointed out China's increased focus on national security goals, trade frictions, and Hong Kong's leader's broad powers to take control of shipping if necessary, as he is accountable to Beijing.
One executive who, like many others, was allowed to remain anonymous to discuss this sensitive subject said: "We do not want to be in the position where China is knocking on our door, requesting our ships, while the U.S. targets us from the other side."
Previously, the concerns of shipowners as well as their efforts to limit exposure to Hong Kong were not reported. In recent years the perception of risk has increased, in line with the tightening security environment in the Chinese-ruled area and the tensions between two of the largest economies in the world.
Turning Tide
To comply with safety and environment rules, commercial ships must be registered or flagged with a specific country or jurisdiction.
VesselsValue, an independent research firm, found that despite the influx of Chinese ships on Hong Kong's register, the number oceangoing vessels registered in the city dropped by more than 8% in January, from 2,580 in January 2004. Government data show a similar drop.
In 2023 and 2024 74 ships, mostly dry-bulk carriers, were re-flagged for Singapore and Marshall Islands. These vessels transport commodities like coal, iron ore, and grain. VesselsValue reports that 15 tankers and 7 container ships left Hong Kong's registry to fly these flags.
Hong Kong's ship registry has seen a dramatic decline in the last two years. Official data shows that it grew by 400% over the past 20 years.
Hong Kong's Government responded to questions by saying that it is normal for shipping companies, given the changing geopolitical, trade and economic circumstances, to review their operations. It is also normal for the numbers of ships registered to fluctuate over the short-term.
A spokesperson stated that Hong Kong will "continue to excel" as an international shipping center, highlighting a variety of incentives, such as profits tax breaks and environmental subsidies, for shipowners.
The spokesperson stated that neither the laws governing registry nor the emergency provisions empower Hong Kong's leader in commandeering ships to serve as part of a Chinese merchant navy.
When asked to comment on the concerns of industry players about how emergency powers from colonial times might be used during a conflict between the U.S. and China, the spokesperson declined. The provisions give the leader of the city "any regulation whatsoever", which includes taking control over vessels and property.
China's commerce and defence ministries did not respond to questions regarding the role of the merchant fleet in Beijing’s warfighting plan, the possible involvement of Hong Kong flagged vessels, or the concerns of commercial shipowners.
The U.S. Treasury declined to comment on potential sanctions, concerns of shipping executives, or the role played by Hong Kong-registered ships in a Chinese commercial fleet.
Lawyers and executives agree that ships can be reflagged in a variety of ways, including through the sale, chartering or redeployment on different routes.
Basil Karatzas of Karatzas Marine Advisors & Co in the U.S. said that Singapore was becoming the preferred domicile for businesses with less exposure to Chinese shipping or cargo trade. It offered many efficiencies including its legal system but also a lower risk than Hong Kong.
Singapore's Maritime and Port Authority stated that decisions regarding domiciles and flags were based on business considerations. The Maritime and Port Authority of Singapore said it had not noticed any "significant changes" in the number Hong Kong shipping companies moving operations or reflagging vessels to Singapore.
MERCHANT FLEEET
Executives and lawyers agree that Hong Kong's registry for shipping is highly regarded by the industry because of its high safety and regulatory standards. This allows its ships to easily pass through foreign ports. Many of China's international state-owned vessels now fly Hong Kong's banner.
According to PLA military studies and four security analysts, in a conflict these tankers and bulk carriers would be the backbone of the merchant fleet that supplies China's oil and food needs.
The U.S., on the other hand, has a very small shipbuilding industry. It also has far fewer vessels under its flag. Three analysts say that while China's growing state-owned fleet would be a target of the U.S. during a military conflict, Beijing would need other vessels in order to supply its needs, given its reliance on international shipping lanes and vast needs.
Donald Trump has been keeping a close eye on strategic maritime operations. Trump said in his January inauguration address that he would "take back" control of the Panama Canal from China. Trump did not provide specifics but his remarks focused on two Panama port operated by a Hong Kong conglomerate CK Hutchison Holdings subsidiary. The group did not respond to any questions regarding Trump's remarks, but agreed to sell the majority of the subsidiary's shares to a consortium led by BlackRock this week, giving U.S. interest control over the port. Trump said to Congress that his administration would create a shipbuilding office in the White House, and provide new tax incentives.
In a study conducted by the U.S. Congress in November 2023, it was stated that "cargo vessels typically transport 90% of military equipment required in overseas conflicts". The report noted that Chinese shipyards ordered 1,794 ocean-going large ships in 2022 compared to five in the U.S.
Merchant vessels played a crucial role in Britain's 1982 long-range operation to retake Argentina's Falkland Islands. Declassified CIA files show that UK-flagged ships operated out of Hong Kong, many of which were owned or controlled by Chinese firms, supplied communist Hanoi in the Vietnam War.
In 2013, President Xi Jinping outlined the need for a Chinese merchant fleet that would help to build China's maritime strength in a Politburo session.
In the past decade, Chinese military and government documents and studies have emphasized the dual-use value of China’s merchant ships.
According to state media, regulations enacted in 2014 required Chinese builders to build five types of commercial ships, including tankers and container ships, to be able to serve military requirements.
Since then, COSCO has seen a significant increase in its line.
Documents from COSCO show that China places political commissars, officers who make sure Communist Party goals are served, on nominally civil ships.
The U.S. banned COSCO subsidiaries in January for what they said were links with the Chinese military.
COSCO has not responded to any questions regarding its deployment of commissars, U.S. restrictions, or what role COSCO's ships -- including those with Hong Kong flags -- might play in wartime.
'REALLY DE-RISKED'
Hong Kong is still an important shipowners' base, despite geopolitical issues. Some shipowners are quietly hedging.
Taylor Maritime (London-listed) a company that was founded in Hong Kong, in 2014, has a much smaller presence in Hong Kong now after several strategic moves in the last few years.
It has been flagging its ships in Singapore and the Marshall Islands since 2021. The company has offices in London, Guernsey and Singapore.
A person with knowledge of the matter said that the firm "really reduced the risk of Hong Kong". This was due to investors' fears of a Chinese invasion in Taiwan and the Communist Party taking control of Hong Kong.
Taylor Maritime's spokesperson stated that the company initially moved its Asia-based teams from Hong Kong to Singapore to be closer to their clients.
Taylor Maritime, after acquiring Grindrod, a shipping company with an Asia office in Singapore and expanding its operations there, relocated certain functions from Hong Kong to Singapore, where it became the primary Asia hub.
Two people with knowledge of the situation said that Pacific Basin Shipping, a Hong Kong listed company, has always flagged its 110 bulk carrier fleet in Hong Kong. However, it is now preparing contingency plans for them to be registered elsewhere while it assesses possible risks.
Pacific Basin's spokesperson stated that the company constantly evaluated geopolitical risk but its fleet still flew the Hong Kong flag "which, at least for the moment, outweighs the challenges".
The spokesperson stated that "Being located in Hong Kong places us near China's 40% share of the global dry bulk export/import activity as well as close to Asia's strong industrial and economic growth regions."
Angad Banga said that shipping firms adjust contingency plans based upon risk assessments, but he has not heard of concerns regarding the commandeering vessels.
Banga said that although some organizations may be re-evaluating their operational strategies, they do not see a widespread exodus from Hong Kong or a loss of confidence. The city, he added, remained attractive to maritime commerce.
Some industry figures have described a general unease in Hong Kong, which has affected their planning.
Three lawyers have said that, until recently, contracts for the increasing number of ships constructed in China that are financed by Chinese banks stipulated that the ship must fly the Hong Kong Flag.
Lawyers said that in the past two years some companies have added a disclaimer to their contracts, stating that they are willing to consider other flags as an alternative. Could not independently verify these changes. Beijing officials have stressed that Hong Kong is important in achieving national security goals. They also referred to China's modernisation of its military and refusal to abandon the use of force against Taiwan.
Three executives and lawyers said that the sweeping security laws, which were first implemented in Hong Kong in July 2021 and then strengthened in March 2020, have increased dangers.
Lawyers said that any attempt by Hong Kong’s leader to commandeer ships in an emergency could prove difficult, since locally registered vessels often travel routes far away from Hong Kong. They said that such powers, which have been in place for a long time, now needed to be seen through the lens of national security.
One lawyer stated that some shipowners would not object to a request from the government to hand over their vessels. This could be due to patriotism, or because they might profit by a crisis.
Another veteran lawyer said that it is "better to avoid being in a situation where you could be asked".
It was not an issue a few short years ago. The national security map has been redrawn. (Reporting and editing by David Crawshaw; Additional reporting by Andrea Shalal, Idrees, and Idrees in Washington and Beijing, Shanghai, and Hong Kong;
(source: Reuters)