Latest News
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US Postal Service wants to temporarily increase prices by 8% in order to cover fuel costs
The U.S. The U.S. USPS needs the Postal Regulatory Commission's approval for this temporary price increase. The surcharge, it said, will be a "bridge" to a permanent mechanism that will reflect the market conditions for prices of competitive products. This comes as USPS warned they could run out money as early as October. The increase will not affect first-class stamps. USPS reported that FedEx and UPS have imposed fuel surcharges between 25% and 28% on ground and air delivery since the beginning of the 'Iran War. This is due to the sharp increase in oil prices, including a rise in diesel and jet fuel. USPS stated that "transportation costs are increasing and our competitors have responded with a number surcharges." "We have avoided surcharges, and this charge is about one-third less than what our competitors charge just for fuel." USPS expects the surcharge will be in effect until January 17, next year. At that time, the agency will decide if a long-term solution is needed. U.S. Postmaster-General David Steiner said to Congress this month that increasing the price of first-class mail stamps from 78 cents to $1 or 95 cents would help them cut their losses and generate more revenue. Steiner says that stamp prices have increased by?46% from early 2019 when they were only 50 cents. However, they are still 'far lower than other countries. Since 2007, USPS has reported net losses totaling $118 billion as its most profitable product - first class mail - has dropped to its lowest level since the 1960s. Reporting by David Shepardson, Washington. Editing by Franklin Paul, Matthew Lewis and Matthew Lewis.
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Canada's Trans Mountain is nearly full due to global oil disruptions. CEO of Trans Mountain says
Canada's Trans Mountain Oil?pipeline is expected to be?almost completely full in April. This marks an important milestone for the conduit, which has seen a record-breaking level of usage since the C$34 billion expansion last year. The 890,000-barrel-per-day pipeline, which carries oil from the province of Alberta to British Columbia's west coast, is running near maximum capacity, said Trans Mountain ?CEO Mark Maki. Maki stated that the Iran War has caused disruptions in Middle East oil supply, which have led to an increase in demand for Canadian oil, particularly from Asian buyers, including China. Maki stated in Houston, at the CERAWeek conference by?S&P Global, that "we will be very close to full soon." Maki also said that utilization rates were in the "high 90s" percentage. "I'd attribute that to disruptions around the globe, as it is close to being full now." Trans Mountain, owned by Canada, was only 84% full last summer. Trans Mountain's forecasts indicated that the pipeline capacity would not be reached until 2027-2028 as usage of the newly expanded system increased slower than expected. Maki stated that the pipeline company may revise their long-term capacity utilization predictions to reflect changing conditions. This includes an increase in output from Canada's Oil Sands producers. Trans Mountain plans to implement a number of optimization projects including adding drag-reducing agents to the system and installing new pumping stations. This is expected to increase the system's capacity by 300,000 barrels per day (bpd) by the end of 2028. Alberta, Canada's main oil-producing ?province, has also been exploring the ?feasibility of a new one-million-barrel-per-day crude oil pipeline to British Columbia's northwest coast to increase exports to Asia, but no private-sector company has committed to such an effort yet. Amanda Stephenson, Houton reporter
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JetBlue taps advisers for potential sale, Semafor reports
JetBlue Airways hired advisers to evaluate the viability of a possible sale to a competitor carrier, according to Semafor, which reported on Wednesday. The shares of the low-cost carrier rose by?14%. According to a report, JetBlue had 'various scenarios' on how Washington policymakers would view potential combinations with United Airlines or Alaska Airlines. According to LSEG, JetBlue's market value was approximately $1.55 billion at Tuesday's closing. Could not confirm independently Semafor’s report. JetBlue said in an email that it had made "meaningful progress" on its multi-year JetForward strategy. It was referring to the long-term financial plan. We're confident JetForward will restore profitability and create value for our investors, as well as opportunities for our crewmembers. The airline announced earlier this month that it was on track to achieve $850-$950 million in additional operating profits by 2027 thanks to its JetForward Plan, which aims to reduce costs, increase its network, and improve service for travelers. JetBlue canceled its $3.8 billion merger with Spirit Airlines in 2024 after an American judge blocked it on the grounds of anti-competition. JetBlue announced last year a partnership with United that allows travelers to book flights using both carriers' websites, and earn and use frequent flyer points interchangeably. JetBlue has also agreed to give United access to up to seven round-trip daily flights at New York's congested JFK International Airport starting in 2027. JetBlue could still be in the preliminary stages and decide to not pursue deal talks with rivals. The report added that it was not possible to determine if JetBlue had been in discussions or received any indications of interest. Reporting by Aishwarya Jain, Bengaluru. Editing by Leroy Leo.
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Jazeera Airways taps Saudi hubs as Kuwait airspace remains shut
Executives said that Kuwait's?Jazeera Airways will offer 200,000?seats this April, which is about 40% of its pre-war network. The airline plans to?rebuild the operations?disrupted?by the U.S./Israeli war against Iran. In its fourth week of fighting, the war has claimed more than 2,000 lives, shattered global markets and led to Iranian strikes which have effectively'shut down' the Strait of Hormuz, disrupting global air traffic. Kuwait's airspace was closed when the conflict started on February 28. Its international airport and surrounding areas were targeted multiple times, prompting Jazeera?to shift its operations to Saudi Arabia. On March 11, the airline began transporting passengers across the border via land from Al Qaisumah Airport. Now, it is also operating out of Dammam. Barathan Pasupathi, the Chief Executive of Jazeera, told media via remote that he had no idea when Kuwaiti airspace would reopen. The airline will be able to bring in almost two million metric tonnes of freight by using Saudi hubs, according to the official. Jazeera's Chief Commercial Officer, Paul?Carroll, said that the company operated 11 or 12 aircraft out of its 23-strong fleet. We have 22 destinations available for sale tonight. He said that the main goal was to keep Kuwait connected in terms of cargo and passenger movements. He added, "We are looking at increasing frequency where the demand warrants it." Reporting by. Mark Potter (Editing by Mark Potter).
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Austrian lower house opens the door to measures to combat rising fuel prices
Austria's lower chamber of parliament approved a draft law?on Wednesday, paving the way for implementing?measures against rising petrol prices caused by the war in the Gulf. The?military strike? by Israel and the U.S. on Iran, and Iran's threat to block shipping through the Strait of Hormuz - through which a fifth of all global oil and gas is delivered - have pushed up oil prices, and Western governments are scrambling to cushion the blow for consumers. Austria's ruling coalition of three parties plans to return to motorists the extra revenue from higher petrol prices, in the form of a tax cut on diesel and petrol. The coalition also wants to limit 'profit margins of refiners and fuel retailers. The government stated that the measures would initially reduce fuel costs by approximately 10 eurocents (12 cents per litre) starting next month. The Greens, an opposition party, voted in favor of the draft legislation to give the government a two-thirds majority. "This government must accept full responsibility for the success or failure of its policies," said?Greens Leader Leonore Gewessler at a press briefing shortly before her party voted in favor of the legislation. Gewessler, however, also stated that she believes the'measures will be ineffective. She said fuel retailers will'simply increase their prices even further. And urged the Government to improve the plans. She explained her party's voting by saying, "We Greens won't let ourselves be used as an?excuse for this government failing to act and bring down prices."
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Maersk Shipping says Middle East urgently needs food imports
A.P., the Danish container shipping?group's chairperson, said that the Middle East has a?pressing need? for food imports which have been disrupted? by the Gulf War. Moller-Maersk stated on Wednesday. According to the World Economic Forum (WEF), Gulf Cooperation Council nations - including Saudi Arabia, Qatar, and the United Arab Emirates -- import up to 85 percent of their food. The conflict that started?with U.S. and Israeli strikes on Iran, followed by Iranian attacks in?the region, and its closure of the Strait of Hormuz has brought'shipping to a standstill, rippling through global supply chains. Maersk temporarily suspended cargo bookings in many ports of the Gulf Region and introduced emergency bunker fuel surcharges throughout the world as compensation for rising fuel prices. Robert Maersk Uggla, Maersk Chairperson, said that the company employs more than 6,000 people in the region who provide essential logistic and transportation services to customers and communities. He told the annual general meeting of the shareholders of the group that there was a "pressing need" for food imports, which are often handled using cold chain solutions, such as Maersk reefer containers. He added that "as the Strait of Hormuz has been closed, we are now trying to find alternative ways to bring the cargo to the Gulf", without providing any further details. Hapag-Lloyd, the rival container shipping company, said earlier on Wednesday that it would incur 'additional costs' of $40 to $50 million per week as a result of the Iran crisis. It cited higher fuel prices, insurance premiums, and storage fees for containers. (Reporting and editing by Jan Harvey; Terje Solsvik)
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Some private investors are unsure of what shares they have purchased in the SpaceX IPO
Tejpaul Bhatia, an entrepreneur from India, is certain that he has a piece of Elon Musk?s 'SpaceX. He can't be sure. SpaceX, which was valued at $75 billion when the former Google executive joined the industry in 2021 had already become one of the most sought-after private firms. Early backers and institutions associated with Musk held the majority of shares. Bhatia was unable to buy shares directly so he turned towards the secondary market, where a loose group of brokers trades privately held company shares. Bhatia's shares, which were purchased through brokers, are difficult to verify. Bhatia said, "I hope I wasn't duped," the former CEO of Axiom space. "I'm not sure, but there's still no way to tell." He refused to reveal the amount of his investment or the name of the broker. Many are willing to pay more for the chance to own SpaceX shares prior its public offering. They will also live with any uncertainty. He said, "This is the hottest IPO in history." Bhatia has joined a growing number of investors who are pouring money into SpaceX via the opaque market that exists for private company shares. These deals are often made through special-purpose vehicles (SPVs), which do not own shares of the company. Investors pool their money to buy rights to purchase shares at a future date. Mitchell Littman is a New York attorney who advises SPV managers, secondary market investors and other parties involved in the transactions. He said, "Everytime there is a lot of hype about these types of things, fraudsters will come out because they see an opportunity." SpaceX, Securities and Exchange Commission and Department of Justice did not respond to requests for comment. TECH GIANTS ARE GETTING A HUGE HIT WITH THEIR APPETITE SpaceX, as well as other private companies such OpenAI that are gaining traction, have reshaped how initial public offerings work. Many of the most valuable companies in the world are still private, building their brand and creating intense investor demand. This is unlike years ago when fast-growing technology companies were more likely to go public. Investors who don't want to miss out on the IPO have flocked to secondary markets where shares are traded before the IPO. The use of multiple investment vehicles has also increased as demand has risen. According to two brokers, shares can go through up to five intermediaries with their own layers of fees. Namek Zu'bi said, "It is getting a bit loosey-goosey," who manages an asset fund of more than $500,000,000. He claimed he declined requests from his investors to invest in SpaceX because he was concerned about fraud. Zu'bi stated that "a lot of people will make a lot money." "But there will also be a lot people who are shocked or surprised" to find out that they do not own any shares. Investors can only see the SPV directly above them in many deals. They cannot tell if the shares on top are real. One senior executive from the secondary market industry said, "That is not enough to ensure that the shares are real." The increased layering of costs can reduce the profit margins for the IPO and the upside potential for investors. The greater dangers are paying too much and adding multiple layers of fees, said Jay Ritter. He is a University of Florida professor emeritus, who studies IPOs. Ritter added that investors have limited upside when starting with a high valuation. History shows that even companies that have a large revenue multiple tend to lag behind the market. FEAR OF FRAUD GROWING Some investors are worried that they may only have paper when SpaceX goes public. SPVs are under closer scrutiny in recent years after a series of high-profile 'pre-IPO fraud cases. Giovanni Pennetta, a financier from New York, was arrested in December at the JFK Airport on charges that he had set up a phony investment vehicle for the sale of non-existent shares in Anduril. Pennetta pleaded to charges of wire fraud earlier this month. A financier in 2023 was sentenced eight years in prison for defrauding over 50 investors, who gave him $6 million in order to purchase pre-IPO shares of multiple companies including SpaceX. Since then, the Department of Justice did not announce a pre-IPO case involving SpaceX. Investors and executives in the industry said that the company's popularity had increased risks. The Fear of Missing Out Fuels Risk-Taking Peter Wright, a broker who acts for Emirati Sheikhs, received a message via text last month from another broker. The sheikh wanted to buy a large amount of SpaceX. The message read: "We are looking for a buyer of SpaceX shares. We have a family-owned business interested in buying $1.2 billion worth of stock. Even an offer that large did not "open the door" to a possible deal. Wright and the broker for the sheikh told the client that he couldn't purchase shares directly. The transaction did not close. Wright stated that his firm will not work on deals where there are more than one intermediary. He cited the difficulty in determining ownership. He said that diligence was impossible at this point. Zu'bi says that fear of missing out is more important than the fundamentals when it comes to driving demand. They want to tell their yacht friend: "Hey, I am in SpaceX." "Are you also in SpaceX?" he asked. (Reporting and editing by Joe Brock and Dawn Kopecki in Washington and Echo Wang in New York; and Joey Roulette and David Jeans, in New York)
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Cheniere CEO: Maximum capacity already reached as Asia demands more LNG
Jack Fusco, CEO of U.S.-based LNG exporter Cheniere Energy, said that the company's Asian customers have asked for more liquefied gas due to the ongoing conflict in the Middle East, which has caused Qatari supplies to be cut. He also stated that the company was already operating at full capacity. Fusco hopes that Cheniere will be able to start commercial operations on its Train?5 expansion in Corpus Christi (Louisiana) by Friday, so as to send more cargoes from Asia. QatarEnergy used to?produce 20% of the world’s LNG. However, its plants were shut down as a result of?the U.S./Israeli war against Iran. They also sustained damage due to airstrikes. The company warned that it could lose up to 17% of current?supply in the next five years. Fusco stated that the last cargo from QatarEnergy had arrived in Asia and it was unclear when Qatar would resume its operations. Qatar is the second largest LNG exporter in the world. Meanwhile, customers are looking for more supplies in the U.S. "We're doing everything we can to help." We are looking closely at our maintenance schedules, but ultimately, we must be reliable and safe. Fusco stated that they would not sacrifice anything in order to remove the last "drop". Fusco stated that Europe is still the preferred market for Cheniere. 1,600 cargoes have been landed on the continent, since the beginning of Russia's invasion in Ukraine, 2022. However, Fusco expects LNG to grow primarily from Asia. Fusco added that the recent conflict has emphasized the need for a diverse supply. Cheniere is America's largest LNG exporter. The company expects to sell 52 million tons of supercooled gas by 2026. Curtis Williams reported; Nathan Crooks and Nia Williams edited in Houston.
Tecpetrol estimates that Bolivia will need to import gas in five to six years to meet its local demand.
Tecpetrol CEO Ricardo Markous stated on Wednesday that Bolivia's natural gas?producer may have to start importing gas from its neighboring countries within five - or six years - in order to?meet a local /demand.
Markous, speaking at the CERAWeek energy summit in Houston, said that Bolivia's gas production has dropped to 35 million cubic metres per?day compared with 65 million cubic metres per?day the previous year.
Tecpetrol is TotalEnergies’ partner in the Ipati Aquio block in Bolivia. This block is a?contract with the state energy company YPFB. Markous stated that the area currently produces 6 million cubic metres per day. This is down from 11 millions cubic meters per days.
Argentina's gas producers have started selling to Brazil after reversing a pipeline that was used to supply Bolivian gas to their neighbors. Markous stated that the same pipeline could be used to deliver Argentinean gas to 'Bolivia if parties reached agreements on 'transport tariffs.
To offset the decline in domestic production, Bolivia will have to?complete a long exploration period of?deep wells. "Given Bolivia's past, that will be very difficult", he said. Marianna Paraga, David Gregorio and David Gregorio contributed to the reporting.
(source: Reuters)