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Tariffs are expected to end the near-record US container import streak in May
U.S. containers imports surged as companies raced against President Donald Trump's new tariffs. These include a 145% tax on goods imported from China. However, executives at two of the busiest ports in the country said that the trend was likely to reverse itself in May. Descartes, a provider of supply chain technology, reported that April container imports increased 9.1% compared to a year ago, topping 2.4 million 20 foot equivalent units (TEUs), which is the second highest monthly total ever. Imports of goods from China, which is the U.S.'s top maritime trading partner, increased by 6.2% in April and represented 33.4% all imports. Trump imposed 145% tariffs against China on April 9, more than doubling their cost to U.S. consumer. This prompted retailers such as Walmart, Amazon.com, and other importers, like Walmart and Amazon.com, to suspend or cancel certain factory orders. He also imposed tariffs of 10% on other countries and warned that these rates could rise. The Port of Los Angeles is the nation's leading gateway for goods from China and the United States' No.1 seaport complex. This week, import cargo will drop 35% year-over-year at the port. The United States' No. 1 seaport complex, and the nation's top gateway for Chinese goods, is expected drop by 35% this week. Seroka said that the overall May ship traffic may decline by around 20%, as operators of large cargo ships cancel their scheduled voyages because demand is weak. Trucks and trains are used to transport many of the goods entering the Port of Los Angeles or the adjacent Port of Long Beach across the United States mainland. Port of Long Beach CEO Mario Cordero anticipates a 20% drop in May compared to a year earlier. Descartes stated that the rapidly evolving U.S. Trade Policies and the retaliatory actions of U.S. Trading Partners as well as the ongoing instability in the Middle East, and Eastern Europe raises the risk of global supply chain disruption. Descartes stated that "the full impact of tariffs - and the expiration of de minimis exemption on May 2 - has yet to reflect in import volumes from China", referring to the popular duty-free shipping for low-value shipments out of China and Hong Kong. (Reporting and editing by Nia William in Los Angeles, Lisa Baertlein from Los Angeles)
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Doba crude oil to be imported in greater quantities thanks to new Mediterranean fuel regulation
Dutch and German oil refining companies have purchased all four cargos of Chadian Doba Crude in April, to take advantage of the soaring demand in Europe for cleaner marine fuel from shipping companies such as Maersk. Kpler reports that Asia was the primary destination for Doba cargoes before April. China and Malaysia both received multiple cargoes. The International Maritime Organization (IMO) designated the Mediterranean Sea an Emission Control Zone in May. This means that ships must switch from 0.5% sulphur to 0.1% sulphur. Exports of Doba crude to Europe soared as a result. The heavy, sweet Doba is ideal for ultra-low sulfur fuel oil (ULSFO), which has a maximum of 0.1% sulphur. Rystad Energy analyst Valerie Panopio said that Doba was ideal for ULSFO blending. Increasing exports to Germany in April and to the Netherlands could be a way to take advantage of the expected surge in ULSFO. She said that there are not many grades of coffee with the same qualities as Doba Blend. Even harder to find, is one in a steady and ample supply. Shipping data from Kpler indicates that Chad exports approximately 130,000 barrels of this grade per day and regularly ships it to Asia and Europe, as well as the Middle East. According to Kpler, four Suezmax vessels were in place in April, delivering about 127,000 bpd Doba into Europe. This would be the highest volume of Doba on this route in an entire year. Kpler data show that two oil refineries, including Chane's Rotterdam facility in the Netherlands and HES International Wilhelmshaven in Germany, have been the sole European recipients of Doba Crude since January. Maersk Energy Markets (the Danish shipping company’s bunker buyer) has signed a contract to purchase ULSFO at Chane’s Rotterdam facility to make its fleet compliant with new requirements for the Mediterranean, Maersk announced. Chane and HES did not reply to requests for comments sent via email. Enes tunagur reported the story. (Editing by Alex Lawler and Dmitry Zhdannikov)
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Traders say that Taiwan purchases approximately 99,200 T of wheat from the United States.
In a Thursday tender, the Taiwan Flour Millers' Association bought an estimated 99.200 metric tonnes of milling grain sourced from United States, European traders reported. Two consignments of various types of wheat were purchased for shipment to the U.S. Pacific Northwest Coast. They said that the first shipment for July 4-18 consisted of 34,550 tonnes of U.S. Dark Northern Spring Wheat with a minimum protein content of 14.5%. The wheat was purchased at an estimated price of $294.11 per ton (fob). The contract also included 8,600 tons hard red winter wheat with a minimum protein content of 12.5%, bought for $254.16 per ton FOB and 6,700 tonnes soft white wheat with a protein content of between 8.5% and 10%, bought for $243.77 per ton FOB. Consignment is subject to an additional freight fee of $32.49 per ton from the U.S. Pacific Northwest Coast to Taiwan. Traders said that Viterra, a trading house, sold the dark northern winter and the soft white in their first consignment. United Grain Corporation then sold the hard-red winter. The second shipment for the 22nd of July and 5th of August involved 34,100 tonnes of dark northern spring grain with minimum 14.5% of protein purchased at an estimated $284.01 per ton FOB. The contract also included 9,350 tons hard red winter grain with a minimum 12.5% of protein, bought for $248.61 per ton FOB and 5,900 tonnes of soft white wheat with a minimum of 8.5%/maximum of 10% of protein, bought for $244.58 per ton FOB. Consignment is subject to an additional freight of $33.03 per ton when shipping by ocean to Taiwan. Traders said Bunge sold dark northern spring and United Grain Corporation hard red winter in the second consignment, while United Grain Corporation also sold soft white. The reports reflect the assessments of traders, and it is still possible to estimate prices and volume later. (Reporting and editing by Susan Fenton, with Michael Hogan)
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Sources say that Indonesia's Karimun Terminal is a key Russian oil hub
According to eight sources in the industry and data from ship tracking, Indonesia's Karimun Terminal has increased imports of Russian oil to become a major transshipment hub. This is where traders store cargoes that are rebranded to reflect their countries of origin before being reexported. After Moscow's invasion of Ukraine in 2022, Russian oil exports shifted from Europe to Asia. Western sanctions meant to limit Moscow's oil revenues make direct imports of Russian oil difficult for many buyers. The system of traders and shippers, as well as the transshipment points in Fujairah, United Arab Emirates and the floating hubs along the Malacca Straits, Singapore Straits, and the Straits of Malacca, has helped to keep Russian oil flowing despite sanctions. Kpler's ship tracking data showed that since October, the terminal located in a free-trade zone on an island 37 km (23 mi) southwest of Singapore has received Russian oil every month. The exports were to Malaysia, Singapore, and China. The data indicates that before this, Russian oil products were arriving at Karimun only on a sporadic basis. Kpler data shows that more than 500,000 tons of fuel oil (3.2 million barrels), loaded at Russia's Ust Luga terminal, have arrived in Karimun this year. This is nearly five times as much as the volume for the same period in 2024. Karimun has received 217,000 tons of Russian diesel this year, as opposed to none last year. The imports of Russian naphtha this year are also up from the previous year. Kpler data shows Karimun exporting a record amount of oil products. This helped keep Asia supplied with refined products. Sources spoke under condition of anonymity, as this is a sensitive matter. Indonesia's Energy Ministry said that it had no information about activities in Karimun, as it was a free-trade zone outside its jurisdiction. Requests for comments were not responded to by officials at Indonesia's Coordinating Ministry of Economics, which is a part of the Special Economic Zone and the Free Trade Zone Board. Novus Middle East DMCC of Dubai, which purchased the 720,000 cubic metre PT Oil Terminal Karimun from Germany's Oiltanking in the second quarter of last year, has not responded to a comment request. PT Oil Terminal Karimun did not also respond to a comment request. SANCTIONED TANKERS Kpler data shows that the share of Russian oil imports to the Karimun Terminal has jumped from 0-26% per month during the first half 2024, to over 60% in October, and as high as 100 percent in April. Kpler data shows that at least three cargoes were delivered to Karimun between March and April by tankers sanctioned either by the European Union (EU) or Britain. Three sources claim that some of these cargoes get blended before being re-exported. Eight sources confirmed that cargos are transported through intermediaries - often unidentified trading firms whose names change frequently - before reaching their final destination. Tan Albayrak is an international trade attorney specializing in economic sanctions and export control at Reed Smith LLP. He said that a storage facility can be exposed to sanctions if it receives cargoes from a vessel sanctioned, but blending or refining products would give a new country as the source. Albayrak stated that if the oil product received was transformed into another oil-product, it would be considered Indonesian and the sanctions against Russia will not apply. He added that "at this point, there wouldn't be any exposure to players further down the chain such as buyers or traders."
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Initial report: Cause of Heathrow fire shutdown still unknown
In an interim report released on Thursday, the National Energy System Operator stated that the cause of the fire in the substation at Heathrow Airport was still unknown. The Heathrow airport closure on March 21, the busiest in Europe, cost airlines tens and millions of pounds. It also left thousands of passengers stranded. The incident also raised concerns about the resilience and stability of Britain's transport infrastructure. NESO, the company that manages the electricity network in the country, announced it would release a final report about the outage by June. The report will include recommendations regarding the resilience of the energy systems, as well as plans for restoration and response. The police reported In March, The fire was not suspicious. NESO's interim report stated that the London Fire Brigade, National Grid Electricity Transmission and other investigators are continuing to investigate the cause of fire. The power outage caused a stir among passengers, the government and airlines. They questioned why Heathrow had to close all four terminals and why it was 18 hours before power was restored. Heathrow expressed its hope that the final report will provide answers as to the cause of this fire. The airport stated that "further clarification on how the fire began and why two converters were then impacted can ensure greater resilience of the UK's electricity grid going forward," in a press release. (Reporting and editing by Muvija M., Sarah Young. Catarina demony aqnd Paul Sandle.
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South Korea's KFA purchased up to 70,000 T of corn in a private deal, traders claim
According to European traders, the Korea Feed Association in South Korea purchased between 65,000 and 70,000 metric tonnes of animal feed corn from optional origins on Wednesday in a private transaction without issuing a tender. It is believed that the KFA Incheon Section purchased corn from CHS for an estimated price of $242.90 per ton (cost and freight included) to be shipped to a single port. Incheon's section of the KFA is also known as the Feed Buyers' Group. Arrival of corn in South Korea is expected around August 30. The reports reflect the opinions of traders, and it is still possible to estimate prices and volume later. If the corn comes from the U.S. Pacific Northwest Coast, the shipment will take place between July 15 and Aug. 15, and between June 21 to July 20 for corn originating from the U.S. Gulf. Shipping from South America is sought between June 21 to July 20 or from South Africa between July 1 and 31. By June 1, the volume of 65,000-70,000 tons must be declared. This deal is a continuation of the heavy corn purchases by South Korean importers in the last two weeks following a decline in Chicago corn prices. South Korean buyers are traditionally active ahead of the U.S. Department of Agriculture's (USDA) monthly report on world grains and oilseeds, which can create market turmoil. The USDA report will be released on Monday, 12 May. On Wednesday, a separate tender was held by South Korea's Major Feedmill Group to buy up to 140,000 tonnes of feed corn that is sourced exclusively from South America or South Africa. Michael Hogan, Varun H. K. and Michael Hogan reported on the event.
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Iberdrola to receive $800 million from the National Wealth Fund of Britain for UK grid upgrades
In a statement released on Thursday, the National Wealth Fund of Britain will provide a loan to ScottishPower owned by Iberdrola to fund upgrades to Scotland's electricity grid. The announcement follows a week of widespread blackouts in Spain and Portugal, which industry experts claim highlight the need to massively invest across Europe's electrical infrastructure. Britain plans to decarbonise the power sector in its country by 2030. This will require significant grid upgrades to integrate renewable energy sources, such as wind and solar, to the system. The statement by Britain's Energy Minister Ed Miliband stated that the investment would help deliver clean energy by 2030 through grid upgrades. This will bring cheaper, locally-produced renewable power to homes and businesses while supporting skilled employment across the country. The funding will be used to accelerate seven ScottishPower transmission grid upgrades projects that are high priority, including the Eastern Green Link Projects 1 and 4 which will transport renewable energy generated in Scotland from Scotland to England. According to the statement, the funding will also be used for grid upgrades at five Scottish locations. This includes the construction of new substations and overhead lines, as well as the reconfiguration of overhead transmission lines and improvements of overhead cables in order to increase resilience and capacity. The National Wealth Fund of Britain was established in 2024 in order to invest in clean energy and spur economic growth. The statement stated that the investment was part of a financing package worth 1.35 billion pounds, which included Bank of America and BankInter as debt arrangers, as well as BNP Paribas and Lloyds Bank as lenders.
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US states sue Trump over his freeze on funding for electric vehicle charging stations
California and 15 other state sued the Trump Administration on Wednesday. They claimed that the federal government illegally withheld billions of dollars from states to build electric vehicle charging stations. In February, the U.S. Transportation Department suspended its EV charging program. It also revoked state plans pending a thorough review. Senate Democrats claimed that President Donald Trump withheld more than $3 billion of the program approved by former President Joe Biden as part his Inflation Reduction Act. The lawsuit was filed by U.S. District Court, Washington State, with the District of Columbia and other states, including New York, New Jersey, Colorado, among others. The states stated that the decision of the administration "will destroy the ability of the states to build charging infrastructure necessary to make EVs available to more consumers and combat climate change. It will also reduce other harmful pollution as well as support the states' green economy." Sean Duffy's spokesperson did not respond to a request for comment. In February, an association representing automakers as well as electric vehicle charging companies urged the Transportation Department to quickly restore funding. Since his January inauguration, Trump has reversed Biden's policies that promoted a switch from fossil fuels and clean energy to combat climate change. Trump has called for the return of coal-fired plants and an increased domestic oil exploration. The president's stance on electric vehicles has been to stop the distribution of funds from the $5 billion allocated for vehicle charging stations. National Electric Vehicle Infrastructure Fund Trump has revoked an order issued by Biden in 2021 that called for half of new vehicles sold to be electric by 2030. He demanded that the state stop its efforts to adopt zero emission vehicle rules, and to stop funding high-speed rails in California.
US seeks UN sanctions against ships bringing North Korean coal into China
The United States announced on Wednesday that it intends to request U.N. sanction against vessels that are identified as participating in circumventions of United Nations Resolutions to counter North Korea's missile and nuclear programs.
Open Source Center, a British organization, released a report Wednesday stating that it had tracked in the last year a number non-Korean-flagged vessels transporting North Korean iron ore and coal to ports in China in violation of U.N. sanction.
James Byrne of Open Source Network identified several vessels at a U.N. Security Council meeting, including the Tanzanian flagged Armani and Sophia; the falsely flagged Cartier and Casio; and the unflagged Yi Li 1 & An Yu.
Byrne claimed that the vessels were using sophisticated "spoofing techniques", such as presenting digital tracks which indicated they were in another country, even though satellite imagery showed they loaded in North Korea.
U.S. Dorothy Camille Shea, the U.N. Ambassador, said that the Security Council will continue to draw attention to sanctions violations in spite of Russia's last-year veto of the mandate for the panel of expert who monitored violations on behalf the U.N. 1718 Committee on North Korea.
She said: "In the next few days, we will be submitting nominations for the 1718 Committee vessels that were clearly identified in the Briefing to which Mr. Byrne refered for violations of U.N. sanction restrictions."
Shea accused Russia "cynically" obstructing the implementation of sanctions, including through importation of North Korean shells and missiles to be used in its war against Ukraine.
She claimed that Chinese authorities "looked the other way" when Chinese companies imported North Korean coal, iron ore and even though Beijing insisted it fully implemented the U.N. Resolutions.
Geng Shuang said that China rejects "accusations" and "smearings" from the United States and that Washington is using the North Korea problem as a pretext to deploy strategic military forces that threaten the security of countries in the region, including China.
Vasily Nebenzya, the Russian ambassador to the United Nations, dismissed criticisms of Russia's relationship and cooperation with North Korea. He said that it was Moscow’s sovereign right. Russia is "very grateful" to its Korean brothers for their assistance.
Kim Song, North Korea's U.N. Ambassador, accused the United States in a statement of "highhandedness and arbitrariness", which should not be tolerated within the international community. (Reporting and editing by Deepa Babyington, with David Brunnstromm)
(source: Reuters)