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Sources say that the demand for Russian Urals crude oil is increasing, which has led to an increase in freight rates.
According to calculations and source data, tanker freight rates for the shipment of Urals crude oil from Russia's western ports to India firmed up this week due a?recovering?demand, as port loadings slowly re-invigorate after drone attacks. Sources said that freight costs for Urals cargoes transported from the Baltic port of Primorsk to India by Aframax tankers with 100,000 tons are currently at $18 million, compared to $16 million for a one-way trip in mid-April. Transport costs of Urals shipments from the Black Sea port Novorossiisk in India via Suezmax tankers with a capacity of?about 140,000 tons per voyage have firmed up to $20-21 million, compared to?roughly $19million a few weeks ago. Drone attacks by Ukraine could threaten supplies from Russia's west ports, and thus revenues. Early April saw an increase in exports from March, but ports like?Novorossiisk & Ust-Luga still operate below capacity. After a drone strike on Thursday, a fire broke out in a Transneft oil-pumping facility that supplies crude to Russia's biggest?export terminal?in the Baltic Port of Primorsk. Urals shipments are currently handled by shadow fleet tankers that try to avoid Western restrictions. Greek shipowners are still cautious about working with Russia because of sanctions. EU countries did not approve a complete ban on Russian oil maritime services - one the most prominent restrictions in the 20th package Russia sanctions.
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Tinubu, the Nigerian leader, seeks approval from Parliament for a $516 million road loan
Nigerian President Bola Tinubu asked the Nigerian parliament to approve a $516m foreign loan for a?help to finance a?first section?of a national highway. This is a major transportation corridor connecting the country's southwest to its northwest. Tinubu stated in a letter that was read out by the Senate president on Thursday during a plenary meeting, the 'government' was seeking approval from Deutsche Bank for the'syndicated financing facility'. He added the loan was a part of the'medium-term borrowing program' approved by lawmakers. Tinubu wrote in his letter that the loan would be for nine years, with a grace period of up to three. The highway, which is about 1,000 km (600 miles) long, will connect Sokoto, located in the northwest of Nigeria, with the central Niger, Kwara, and coastal towns of Badagry, located in Lagos, the commercial center. Tinubu stated that the highway would improve north-south connections, reduce travel times and haulage expenses, boost trade and food security, as well as bolster national integration. Last year, Nigeria raised $747 million in a syndicated loan led by Deutsche Bank to?fund a 700 km (435 mile) coastal highway. (Reporting and writing by Elisha Gbogbo, Editing by Emelia Matarise Sithole)
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US Senators demand an investigation into FAA Administrator Stock Sale
Three Democratic U.S. Senators have asked a federal watchdog to investigate whether the head of the Federal Aviation Administration broke his ethics agreement by delaying the sale of stock in order to increase 'his 'payout following his departure from Republic Airways as CEO. On Thursday, Senators Maria Cantwell and Tammy Duckworth asked if FAA administrator Bryan Bedford had misled Congress by explaining why he failed to divest fully his significant equity stakes in Republic before October 7, as per?his ethics contract. The senators claimed that "Bedford deliberately held onto his shares until his airline completed a 'lucrative merger which likely increased the value of his stock holdings". They asked the Office of the Inspector General of the Department of Transportation to conduct an investigation. Bedford completed his divestiture by February. The FAA stated that it would directly respond to senators. Bedford held Republic stock worth between $6 million and $30 million at the time of his confirmation. On November 25, 'Republic completed the merger with Mesa Air Group. Senators had earlier asked Bedford to forfeit any profits if it did not sell the stake by a certain date. Senators claim that Bedford could have made more than $25m from the sale. The senators stated that Bedford's profit would have been higher had he sold his shares in a timely manner on the private markets. Bedford, however, refused to disclose the exact amount he paid for the shares and whether he made any money from the delay. Bedford said he would continue to'recuse himself' from any issues that might impact the airline’s finances, as he sold his holdings. Bedford said he was confident he followed the rules earlier when he asked for a?delayed deadline, and he relied on the advice of career ethics officials. Cantwell had earlier released an?letter? from the Office for Government Ethics?dated December 8, which stated that Bedford had not?complied?with his ethics agreement?and had requested an amendment?to extend the divestiture timeline? OGE stated that the request was not up to the standard required for an amendment. Reporting by David Shepardson, Editing by Chizu nomiyama and Louise Heavens
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UK landlord Segro expands data centre drive to ride AI boom
British 'warehouse owner'?Segro has expanded its efforts into data centres. It is lining up new sites in France and Germany as well as in Italy and Poland to take advantage of the global boom in artificial-intelligence spending. David Sleath, in an interview on Thursday, said: "We think that there will be a very strong demand in the future in and around other large cities." We are working to secure planning permissions on some of these sites and power. Segro, which has around 10.9m square metres of space to its name, is betting that the?demand for AI-based data centres will continue to grow despite concerns from industry about power supply constraints. Power Supplies Sleath stated that the group is well-positioned in terms of its ability to provide power for its sites located in London and Slough (west of the capital), where it has upgraded 400 megawatts. Segro signed a contract for a data centre of 30,000 square metres in Slough during the first quarter. The company also won approval from planning authorities for a 56-megawatt data center in West London, worth $1.35 billion. Amazon and other technology companies have been slowed down by long electricity queues in Europe, causing them to delay or cancel their data center expansion plans. Sleath claimed that some developers built speculatively, without pre-let agreement, leaving them vulnerable to planning changes. He said that "we are very clear that we will not do that". Segro would only commit to capital after it had secured a prelease with a hyperscaler. Last year, data centre operators made up about 7% of Segro's clients. Transport & logistics, retail, and food manufacturing make up the majority of their clientele.
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Italy will see revenue from the sale of state assets worth 0.8% GDP by 2028
A government document published on Thursday showed that Italy expects to earn a revenue of?0.8% or?19.21 billion euros from the sale of state assets through 2028. Sources familiar with Rome's thinking on the issue said that Rome is considering options such as selling stakes in the air traffic controller ENAV and the bailed-out bank Monte dei Paschi di Siena. In its multi-year plan (DFP), the Treasury stated that asset sales of 0.2 percentage points will be factored into projections for debt-to GDP ratios this year. This figure is expected to rise to 0.5 percentage points in 2027, and 0.1 percent in 2028. The International Monetary Fund predicts that Italy's debt will rise from 137.1% to 138.6% of GDP by 2026. This is above the 138.4% forecast. The?DFP project Italy's debt to remain almost stable at 138.5% by 2027 before falling to 137.9% by 2028, and then to 136.3% in the following year. Giorgia Melons, the Prime Minister of Italy, announced that the government would be able to raise 20 billion Euros from the sale of assets in order to "keep the debt under control" after she assumed office at the end 2022. Rome, however, has gradually scaled back its plans since then. The previous budget plan, unveiled in Septembre, did not contain official targets. Italy has collected just over 4 billion Euros under Meloni by selling 52.5% MPS and 2.8% Eni via share placements. WINDOW DRESSENESSING? The DFP, published on Thursday, anticipates that asset sales will generate almost 5 billion euro this year, and 12 billion more in 2027 - the year of the scheduled general election. However, it does not provide any guidance as to the types of assets expected to be sold. In recent years, Italy's independent auditor court said that selling off plans could be "window dressing" to paint a more favourable budget picture. Meloni told Bloomberg in February in an interview that Rome's involvement in MPS was?over,' raising the prospect of a possible sale of the remaining 4,9% stake of the state, worth 1,36 billion euros based on Thursday's prices. Sources said that Rome would have to issue a decree to allow the sale of an ENAV stake, since current legislation requires the Treasury to'maintain a minimum of 51% in the company. Sources say that, in relation to Eni and the Treasury, investment bankers suggested that Italy sell its 2.17% stake directly to pocket 1.5 billion euros. Sources said that under such a scheme Italy would retain complete?control over Eni via the indirect stake of 30.92% held by the state lender Cassa Depositi e Prestiti. The government also took steps to return BDM to private ownership, a small banking institution that was rescued by the government in multiple steps since 2010.
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US Senators demand an investigation into FAA Administrator Stock Sale
Three Democratic U.S. Senators asked a federal watchdog to investigate if the head of 'the Federal Aviation Administration' violated his ethics agreement after he left his position as CEO of Republic Airways. On Thursday, Senators Maria Cantwell and Tammy?Duckworth asked if FAA Administrator Bryan Bedford had misled Congress?in his explanation of why he failed to divest?his substantial equity stake in?Republic before?October 7 - the date set in his ethics agreement. Senators claimed that "Beford deliberately held onto his shares until his airline completed a lucrative merger, likely boosting his holdings' value significantly." Bedford completed his divestiture by February. The FAA said it would directly respond to senators. Bedford held stock in Republic valued between $6 and $30 million at the time of his confirmation. On?November 25th, Republic completed a merger with Mesa Air Group. Reporting by David Shepardson, Editing by Chizu nomiyama
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Chernihiv wins Ukrainian Cup semi-finals without firing a shot at the opponent's goal
FC Chernihiv, of Ukraine's second-tier league, reached the final of the Ukrainian Cup after beating Metalist 1925 on penalties following a goalless semi-final on Wednesday. Chernihiv was reduced to 10 men when defender Pavlo Shusko was sent off after only five minutes. Metalist, who had 31 shots, including 13 on goal, was able to score once, but it was disallowed for offside. Maksym?Tatarenko led Chernihiv?to a?6-5 victory in the penalty shootout and brought the club into the Ukrainian Cup finals for the first ever. Chernihiv also defeated Mariupol after their quarter-final match ended in a goalless draw. The Ukrainian Football Association (?FA) overturned the results to give Chernihiv the 3-0 victory. This was because Kryvbas had fielded more than seven foreign players simultaneously, which violated a tournament rule. Chernihiv is set to face 13-time champions Dynamo Kyiv on 20 May. (Reporting by Chiranjit Ojha in Bengaluru, editing by Pritha Sarkar)
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Airline cancels flights due to Middle East conflict
The global air travel industry is still severely affected by the Iran War. Many people are unable to fly to their destinations as planned after major Middle Eastern hubs such as Dubai, Doha and Abu Dhabi were closed. The latest flight information is listed below alphabetically: AEGEAN AIRLINES The largest airline in Greece will resume its flights to Tel Aviv on April 28 from Athens, Heraklion and Rhodes. Thessaloniki-Tel Aviv flights are cancelled until June 26. Riyadh will resume its flights on June 21. The flights to Beirut will be cancelled until June 26. Flights to Dubai until June 29. Erbil and Baghdad are not scheduled to fly until July 2. AIRBALTIC AirBaltic, a Latvian airline, has announced that flights to Tel Aviv are cancelled until May 31, 2019. Dubai flights are canceled until October 24. AIR CANADA The Canadian carrier has canceled flights to Tel Aviv, Dubai and Abu Dhabi until September 7. AIR EUROPA Spanish Airlines has cancelled all flights to Tel Aviv till May 31. AIR FRANCE-KLM Air France has suspended Tel Aviv flights to Beirut, Dubai, and Riyadh until May 3. KLM suspends flights to Riyadh and Dubai until the 14th of June. CATHAY PACIFIC Hong Kong Airlines has suspended its flights to Dubai, Riyadh and cargo freighter service to Dubai, Riyadh and Dubai until May 31, and will resume them on June 30. In April, the airline will add extra passenger flights to London Paris and Zurich to meet the surge in demand for travel to Europe. It intends to continue operating all scheduled flights after June. The U.S. carrier cancelled flights between New York and Tel Aviv, and has delayed the start of its Atlanta to Tel Aviv route till September 5. The airline said that the launch of Boston-Tel Aviv, which was originally scheduled for late October, had been postponed until further notice. EL AL ISRAEL AIRLINES From April 27, the Israeli carrier will be operating flights to around 40 active gateways. All flights to Dubai have been cancelled until May 31, 2019. EMIRATES The UAE airline announced that it will be operating a reduced schedule and flying to over 100 destinations. ETIHAD AERWAYS The UAE carrier has announced that it operates a commercial flight schedule from Abu Dhabi to around 80 destinations. FINNAIR The Finnish airline has cancelled all Doha flights until July 2 and continues to avoid the airspaces of Iraq, Iran Syria, and Israel. The airline will only resume its Dubai flights by October. British Airways, owned by IAG, will reduce flights to the Middle East once?services are resumed. Jeddah is no longer a destination and it will be permanently dropped. Plans to reduce service to Dubai, Doha, and Tel Aviv from two daily flights to one daily flight by July? Riyadh service will be reduced from two to one daily flight from mid-May. The changes will apply until the end of the summer season on October 24. One Dubai service will restart on October 16. Iberia Express, the Spanish low-cost carrier of IAG, has cancelled all flights to Tel Aviv until May 31. JAPAN AIRLINES Japan Airlines suspends scheduled Doha-Tokyo and Tokyo-Doha flight schedules until June 1. Japan Airlines will operate additional flights between Tokyo, London and Doha on April 25. The Polish airline has suspended flights to Tel Aviv till May 31. The airline also cancelled flights from March 31 through May 30 to Beirut and Riyadh. The airline will operate its winter route to Dubai in October. LUFTHANSA GROUP Lufthansa and other airlines, including Swiss, Austrian Airlines and Brussels Airlines, have suspended flights from Dubai and Tel Aviv to Dubai until May 31. Flights to Abu Dhabi and Amman, Beirut Dammam, Riyadh Erbil Muscat Tehran, Riyadh Erbil, Brussels Airlines, Swiss, Austrian Airlines, and Edelweiss have been suspended until May 31. Eurowings, a low-cost airline, has suspended its flights to Tel Aviv and Erbil through May 14, and to Dubai and Abu Dhabi until October 24. ITA Airways has extended the suspension of flights from Tel Aviv, Riyadh, and Dubai to May 31. MALAYSIA AIRLINES Malaysian Airlines has suspended all flights to Doha until June 14 NORWEGIAN AIR The low-cost carrier has delayed the launch of its Tel Aviv & Beirut services until June 15 PEGASUS Pegasus Airlines, Turkey's national airline, has cancelled all flights to Iran, Iraq, Amman Beirut, Kuwait Bahrain Doha Dammam Riyadh Dubai Abu Dhabi Sharjah and Abu Dhabi until June 1. QANTAS Australia's flag-carrier is increasing flights to Rome, Paris and other European destinations to meet a surge in demand. The number of flights to Paris will rise from three to five per week, and the Perth to Singapore service will go from daily to ten flights per a week. A new schedule will be implemented gradually for flights starting in mid-April. It will run through late July. QATAR AIRWAYS From April 23, the carrier will resume daily flights from Damascus to Dubai, Sharjah and Abu Dhabi. ROYAL MAROC Moroccan airline said that flights to Doha were cancelled until June 30, and those to Dubai till May 31. SINGAPORE Airlines In response to increased demand, the carrier has extended the suspension of its Singapore-Dubai flights until May 31. It also added services on Singapore-London Gatwick?and Singapore - Melbourne routes from late march until October 24. TURKISH AIRLINES SunExpress, Turkish Airlines joint venture with Lufthansa has cancelled flights from Dubai to April 30. WIZZ AIR Low-cost carrier suspends flights from Europe to Amman, Dubai and Abu Dhabi until mid-September. All flights to Medina are suspended indefinitely. (Compiled by Josephine Mason and Jamie Freed. Elviira Loma, Tiago Branao, Agnieszka Olenka, Bernadette HOG, Boleslaw LaSocki, Romolo Tosiani. Sumana Nady, Joe Bavier Mark Potter Milla Nissi -Prussak, Susan Fenton and Susan Fenton edited the book.
Panama Canal says $1 million-plus auction slots reflect temporary surge in demand
The Panama Canal Authority announced on Thursday that some ships paid over $1 million at an auction for crossing slots, but the high prices were due to a temporary increase in demand rather than a persistent congestion of 'the waterway.
After the Middle East conflict began, the authority reported that the average auction price had increased to $385,000, up from $135,000-$140,000. This was due to the increase in traffic, which boosted the demand for reservations.
Last week, the authority downplayed reports stating that a LPG vessel paid up to $4 million in an auction for faster passage.
Victor Vial is the vice president of finance at the canal. He said in a press release that certain vessels have paid over $1 million during recent auctions. However, he described these results as exceptional, and linked to a temporary rise in demand.
He said that many ships pre-book their transits, avoiding queues.
The canal offers a variety of booking methods, including long-term slot allocations as well as a system specifically designed for LNG vessels. It also offers auctions and last-minute bookings for ships who do not make reservations in advance. Between three and five slots are currently available each day.
The Canal Administrator Ricaurte Vazquez stated that container and liquefied gas shipments were among the best-performing segments, with energy products playing a larger role in the volumes handled by this waterway.
EL NINO RISK
The authority said that it had also 'taken steps to preserve the water levels in its retention lakes, as 'it monitors a?risk of an El Nino potentially strong later this year.
Ilya Espino de Marotta, the deputy administrator of the Canal Authority said that unusual rainfall in 'the dry season' kept Gatun Lake and Alhajuela Lake at their maximum levels. This allowed for the canal to accumulate reserves.
She explained that they were continuing to monitor 'the situation' and that their goal was to maintain the lake levels at the highest possible level before the next dry period.
The canal has cut its daily crossings in the past due to drought. (Reporting and editing by Aida Pelaez-Fernandez; Elida Moreno)
(source: Reuters)