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What plans do shipping companies have for the return of Suez Canal to sea?
After two years of "disruptions" due to security concerns in the Red Sea, major shipping companies are developing strategies to return to the Suez Canal. Since November 2023 they have rerouted vessels to longer and more expensive?routes? around Africa, after Houthi forces in Yemen attacked commercial ships, in solidarity with Palestinians in Gaza during the war. Some companies are exploring resumption of operations after a ceasefire agreement was reached in October, but security is still a major concern. Here are the latest developments: MAERSK, the Danish shipping company, announced on Friday that one of their vessels had successfully navigated through the Red Sea and Bab El-Mandeb Strait 'for the first time in almost two years. Maersk has said that it does not have immediate plans to reopen the entire route. It is also not considering changing the East-West network back to the Trans-Suez Corridor. However, it considers this feat as a "step-by-step approach" in resuming the passage. CMA CGM According to a schedule posted on its website, the world's third largest container shipping line will begin using this passage in January for its India-U.S. service, INDAMEX. HAPAG - LLOYD The CEO of the German shipping company said earlier in December that the return of shipping to the Suez Canal would take place gradually and would require a period of 60-90 days for logistics to be adjusted and to avoid sudden congestion at ports. Requests for comment from the world's fifth largest container company were not immediately answered. Hapag-Lloyd & Maersk had called for caution back in November and said they were watching the situation to see if there was any evidence of increased security. WALLENIUS ?WILHELMSEN A spokesperson for the Norwegian Car Shipping Group said that they are still assessing their situation and won't resume sailing until certain conditions have been met.
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Croatian JANAF is expecting to sign a MOL oil transport deal in January
A JANAF board-member told regional 'N1' television on Friday that the Croatian pipeline operator JANAF is expecting to sign a new agreement for oil transport with Hungarian oil company MOL by?mid January. Vladislav Veselica stated that MOL had requested that the contract reflect the prices for transporting larger volumes of oil than before. MOL has accused JANAF of breaking the contract. This would end months of discussions. The existing agreement, which expires December 31, sees JANAF transport?2.1 millions metric tons crude oil annually to MOL's refining plants in?Hungary?and Slovakia. The Croatian firm has offered to increase volumes as Hungary attempts to reduce its reliance on Russian crude oil via the Druzhba Pipeline. Veselica stated that MOL had requested higher volumes of crude oil for the first time. The request ranged from 2 to 11 millions tons. "We are preparing an offer that we will present to MOL within the next few days." MOL had asked if JANAF could supply enough oil to its refineries and accused the company repeatedly of violating the terms of the contract. JANAF has denied that it has violated the terms of its contract, and said that MOL has used?its pipeline at a significantly lower level than expected. MOL's representative was not available to comment immediately.
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Ukraine strikes Russian "shadow fleet" tanker in Mediterranean
Ukraine has used aerial drones to strike a "Russian shadow fleet" oil tanker on the Mediterranean Sea for the first-ever time, an official announced on Friday. This reflects the increasing intensity of Kyiv’s attacks against Russian oil shipping. In a written report, an official from the SBU said that the vessel, Qendil, was empty when it sustained critical damage after being struck by drones more than 2,000 km (1,243 mi) away from Ukraine. MarineTraffic's ship tracking data revealed that the tanker was last seen sailing parallel to Libyan coast off Crete on Friday morning. The Ukrainian official who refused to be named did not specify where and when the tanker was at the time of attack. Ukraine has attacked?Russian refineries since 2025. But in recent weeks it has widened the scope of its campaign, attacking oil rigs at the Caspian Sea, and claiming responsibility for three sea-drone attacks on tankers in Black Sea. These tankers, along with the Qendil flying under Oman's flag, are all part of Russia's "shadow fleet", unregulated vessels that Kyiv claims are helping Moscow export large amounts of oil to fund its war against Ukraine despite Western sanctions. Vladimir Putin, the Russian president who ordered a full scale invasion of Ukraine on?February 20, 2022 has threatened to cut off Ukraine's access into the Black Sea as a response to attacks against tankers that he has referred to as piracy. Moscow has not yet commented on the latest incident. MarineTraffic showed that the Qendil had departed the Indian port Sikka on its way to Ust Luga, a Russian port in the Baltic Sea. India is one of the largest consumers of Russian oil. However, it is under pressure from U.S. president Donald Trump to cut back on its purchases in order to reduce oil revenues that Ukraine claims are fueling Russia's full scale war. MULTI STAGE MEASURES The Qendil strike is noteworthy not only because the drones used were long-range and it was farther away in the Mediterranean. Vanguard, a British maritime risk management group, said that the development "reflects a dramatic expansion of Ukraine's usage of uncrewed aircraft systems?against marine assets associated with Russia’s sanctioned network of oil exports". The Ukrainian official didn't say how drones got to the ship but did mention that the operation was "multi-stage". SBU, the massive security agency that was behind the attack, smuggled in dozens of drones to Russia earlier this year for an operation designed to destroy strategic bombers on air bases deep within Russia. Since December 2024, there have been other unaccounted for explosions on tankers that have visited Russian ports. Ukraine has not confirmed or denied its involvement, but maritime security experts suspect Kyiv. Two crew members of the Russian flagged tanker Valeriy Gorchakov were killed earlier this week in an attack by a Ukrainian drone on the southern Russian city of Rostov. (Reporting and writing by Tom Balmforth, Jonathan Saul and Olena Hartmash. Editing and proofreading by Joe Bavier and Tomaszjanowski.
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Embraer's Eve makes its maiden flight with a 'flying vehicle' prototype
Eve, an electric aircraft unit from Embraer, announced on Friday that its full-scale, "flying car" prototype had completed its first test flight. This is a significant milestone towards certification. Eve is one of?several? firms developing battery-powered aircraft that can take off and land vertically for short trips in urban areas, a market analysts believe will be crucial to Embraer's growth. The company expects to receive type certification and first deliveries in 2027. This is a year behind the original schedule. Eve's flight testing phase begins with the first flight at Embraer's Gaviao Peixoto facility. "Hundreds" of flights are scheduled for next year to support certification. Eve stated that the test validated aircraft design, integrated propulsion and?fly by wire controls. Eve said that the timing of this test was in line its previous plan to complete a first flight by late 2025 or 2026. Luiz Valentini, Eve's Chief Tech Officer, said that the prototype behaved exactly as predicted by Eve's models. With?these data, we will expand our envelope and progress towards transition to wingborne flights in a?disciplined?manner. Eve plans on building six conforming prototypes to test. The head of Brazil's civil Aviation regulator ANAC said earlier this year that he considered 2027 as a realistic time frame for the certification of the 'aircraft', which he called the regulator's highest priority. Eve will debut on the New York Stock Exchange in 2022. This year, Embraer and Brazil's development bank BNDES raised additional funding. United Airlines, BAE Systems and Thales are also investors. Gabriel Araujo is reporting; Louise Heavens is editing.
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Union Pacific and Norfolk submit documents for regulatory review of $85 Billion Merger
Union Pacific and Norfolk Southern filed a?application on Friday with the 'U.S. Transport regulator to review $85 billion merger proposal. This would create the first coast-tocoast freight railroad in the U.S. The Surface Transportation Board will be closely scrutinizing the merger announced in July. This could take up to 12-18 months. The companies aim to close by early 2027. The board was created in 1996 and rarely rejects mergers outright. In 2021, however, it rejected Canadian National’s plan to put Kansas City Southern into a temporary “voting trust” that would have allowed Kansas City Southern shareholders the opportunity to receive consideration for the deal without having to wait until full regulatory approval. Since its announcement, the 'proposed merger', which would allow for faster shipping through reducing handoffs and delays, has been criticized by unions, legislators, and rival railways. In November, the two companies were approved by shareholders.
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US Senator presses oil tanker giants on cartel fuel smuggling in the sea
U.S. U.S. Senator Ron Wyden contacted seven maritime companies in an investigation into cartel fuel smuggling from the United States to Mexico. He asked the firms to explain how they ensure their tankers don't get used to transport illicit hydrocarbons. The letters were dated on Friday. Wyden is the senior Democratic member in the Senate Finance Committee. The letters were sent on Friday, when Wyden was the most senior Democratic member of the Senate Finance Committee. Narcos has achieved this by embedding itself in the vast energy sector of North America and mastering logistics for moving petroleum products via truck, rail and more recently tankers. Sources in law enforcement say that Mexico's cartels have displayed a remarkable amount of innovation by enlisting a number of legitimate oil companies to assist them with the procurement and transportation of products. Some of these players are participating unknowingly, while others are actively involved. Wyden, Oregon's senior senator, wrote in an email: "I want to make sure that both shipping companies, and the U.S. Government, are doing all they can to stop this revenue stream." These letters are my first step to learning more about the criminal networks and how they operate. Wyden's letter referred to an investigation that uncovered how the alleged scheme worked and exploited loopholes within the vast, complex U.S. Energy sector. This investigation touched a number of entities, including oil companies, shipping companies, and government agencies. Seven of the largest players in the oil tanker industry were sent the letters: Torm International Seaways, Norden CMB.Tech Frontline Teekay Scorpio Scorpio Scorpio Scorpio Wyden requested that detailed information be provided by January. The letter stated that by January 10, 2026 each company must provide detailed information about its due diligence to "ensure their oil tankers do not transport illicit fuel." No one has been accused of wrongdoing by any of these?firms. According to an investigation conducted on October 22, which cited security sources and documents, Torm was the manager of two vessels allegedly used in oil smuggling this year. CMB.Tech stated that it follows due diligence standards, adheres to know-your customer standards and complies all applicable regulations. The Belgian-based company announced that it would respond to Wyden's inquiries. Norden has confirmed that it received Wyden's email and stated that its sea transports are in accordance with the applicable laws. Other companies have not responded to Wyden's request for comment. The news agency found that Mexican cartels are increasingly involved in the multi-billion-dollar trade of smuggling gasoline from the United States into Mexico. The scheme is essentially a tax avoidance scam. Mexico levies an IEPS tax on many goods including gasoline and diesel imported from abroad. The tax is charged per liter, and can cost up to 50% of the cargo value. Crooks avoid the tax by declaring that the fuel imported from abroad is a different type of petroleum product, which has no duty. Calculations based on tax rates and the volume of fuel carried by tankers showed that a single load could save millions in taxes. According to Mexican and U.S. sources, the Jalisco New Generation Cartel is Mexico's undisputed leader in crude oil and fuel smuggling. It also uses tankers. Five current and former Mexican Government sources said earlier this year that fuel smuggling had grown so quickly that it now accounts for as much as a third of Mexico's gasoline and diesel market. This is stealing profits from some the largest names in the oil sector. According to one of those who assisted Mexico's Treasury in calculating the size of illicit trade, the illegal fuel entering the country now is valued at over $20 billion per year. Wyden wrote that the scope of illicit fuel smuggling is astounding in his letters. The international shipping industry has a role to play in ending this illegal practice.
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Asia spot prices drop to a 20-month low due to weak demand
The price of Asian spot liquefied gas fell to a new 20-month low last week due to weak demand and abundant supplies in the region. The average LNG price for February deliveries into Northeast Asia Industry sources estimate that the price per million British thermal units was $9.50, down from $10 last week and its lowest level since April 2024. The decline was driven by the continued weakness in Northeast Asian gas consumption, said Nelson Xiong of data and analytics company Kpler. He added that strong Japanese renewable energy generation and firm Chinese pipeline gas supply contributed to LNG demand weakening. "We expect JKM to remain slightly lower. Heating demand is likely to be affected by warmer-than-seasonal temperatures in Northeast Asia, "while Pacific LNG supplies remain ample", he said. He was referring to the Japan-Korea Marker price assessment of spot physical cargoes across Asia. Last week, the?drop in prices had prompted some importers who were price-sensitive to buy LNG. The demand for LNG from China is not significant, and many are aiming to import LNG at a price of $8/mmBtu or lower, according to Martin Senior, Argus' head of LNG pricing. S&P Global Energy's daily Northwest Europe LNG Marker price benchmark (NWM) for cargoes to be delivered in February, on a de-ship basis (DES), was $8.881/mmBtu?on 18 December. This is a $0.54/mmBtu reduction from the price at TTF hub. Spark Commodities rated the January price as $9.009/mmBtu. The market is fundamentally well-supplied, thanks to robust pipeline gas flows, and an influx of U.S. spot LNG into Europe. The market has been cautious despite forecasts of colder weather in the first few months of 2019. Aly Blakeway is manager for Atlantic LNG at S&P. Blakeway said that as Europe's storage levels are lower than they were in the past, buyers could be forced to increase their LNG purchases in January and Febraury. The surge in offers has affected the pricing of gas, but there has been a strong increase in interest from buyers, especially for delivery early 2026, mainly due to lower renewable production and rapidly depleting gas stocks. Seb Kennedy, an independent gas analyst, says that hedge funds increased their net short positions in TTF futures last week but lowered the rate at which they bought short as cooler temperatures and supply disruptions curbed the bearish sentiment. He added that commercial operators have continued to buy the dip and their net long position has reached a new record high. Qasim Afghanistan, Spark Commodities analyst, stated that in LNG freight, Atlantic rates dropped for the third consecutive week to $92,000/day while Pacific rates decreased to $75,750/day. Both the U.S. front month arbitrage to Northeast Asia via Cape of Good Hope, and the arbitrage via Panama point towards Europe, he said.
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Black Sea CPC Blend oil exported at 1.65M bpd in January, according to sources
Two industry sources have confirmed that the Caspian Pipeline Consortium plans to reduce CPC Blend crude oil exports to 1.65 million barrels per day (bpd), from 1.7 millions bpd planned for?December. Calculations showed that the January plan represented a 3% decrease from this month's goal. The sources stated that the actual shipments are uncertain due to repairs being done on single-point docking (SPM). CPC currently loads oil from only one of three moorings, SPM-1. SPM-2 has been out of service due to a drone attack by Ukraine and SPM-3 needs maintenance. The two people said that CPC was working at about a half capacity. In December, exports may fall below initial expectations, but January volumes might increase if SPM-3 is brought back into service and allows roll-over cargoes. The traders say that supplies from Russia's Caspian oil fields could decline in January due to recent drone attacks by Ukraine. CPC refused to comment on operational shipment numbers. Exporters have been forced to find alternative routes due to the drop in CPC output, such as China and Germany. However, these options are limited. CPC is responsible for more than 80% of Kazakhstan’s oil exports. It links the Tengiz and other deposits to a marine terminal in Yuzhnaya Ozereevka, near Novorossiysk. The company's shareholders include Russia with a stake of 31%, Kazakhstan with 20,75%, Chevron at 15% and other companies. (Reporting and Editing by Tomaszjanowski)
Three people are killed by a knife-wielding assailant in Taipei. The attacker dies after he is chased by police.
The premier revealed that three people died and five were injured after a knife-wielding assailant went on a rampage in central Taipei,?Friday. He then died during a police pursuit, after falling from a high building.
Premier Cho Jung Tai said that the man had thrown smoke bombs in Taipei's main station and then run to a subway station nearby?in a bustling shopping district?, attacking people along the way.
Cho, a reporter, said that the deceased suspect attacker had a criminal record and outstanding warrants. His house was also searched. Taiwan is a country where violent crime is rare.
"We will examine his background and related relationships to understand his motivations and determine whether there are any other connected factors," he said, identifying only the man by his lastname, Chang.
Cho said that besides?smoke bombs, he probably had petrol?bombs, which appeared to be burning at the scene. He was also wearing what looked like body armor and a mask.
It appears that he deliberately threw smoke-bombs and used a long knife in order to attack the public without discrimination." (Reporting and editing by Alex Richardson, Alison Williams and Ben Blanchard)
(source: Reuters)