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Trump withholds $40,6 million from California due to truck driver English rules
The Trump administration announced on Wednesday that it would withhold $40.6 million in federal transportation funds from California for failure to comply with rules governing truck driver English proficiency. In August, the U.S. Transportation Department warned California and Washington states that they might lose their funding if they don't adopt English proficiency standards for commercial truckers. Sean Duffy, U.S. Secretary of Transportation, said that California is the only state to refuse to make sure big rig drivers are able read road signs and can communicate with police. In response to the Transportation Department's request, a spokesperson for California Governor Gavin Newsom stated that the state's laws, regulations and standards were identical or had the same effects as federal safety requirements including English language proficiency. The spokesperson stated that California enforces its requirements through the commercial driver's licensing procedures. They also noted that the fatal accident rate for California license holders was nearly 40% less than the national average. The funds withheld were for roadside inspections and traffic enforcement, audits of trucking firms, public education campaigns, and safety audits. The U.S. administration of President Donald Trump has taken several steps to address concerns regarding foreign truckers who don't speak English. In August, Secretary Marco Rubio announced that the United States would immediately suspend the issuance all worker visas to commercial truck drivers. After a fatal accident in Florida and an audit by the government, the Transportation Department released emergency rules last month to restrict commercial drivers licenses for non-U.S. Citizens. In April, Trump issued an executive order that directed enforcement of a rule that required commercial drivers to meet English proficiency requirements in the U.S. The English proficiency standard for truckers is already a long-standing U.S. Law. However, the order reverses 2016 guidance that inspectors shouldn't remove commercial drivers from service if the only infraction was a lack of English. In 2023, FMCSA reported that approximately 16% of U.S. drivers are born outside of the United States. Duffy announced last month that he would launch a separate enforcement against California and require it to stop issuing certain commercial driver's licenses to citizens of other countries. California has 30 calendar days to comply, or the Trump Administration will begin withholding federal highway funds. The first year the Trump administration withholds nearly $160 million and then doubles it. (Reporting and editing by Nia Freed and Jamie Freed; Reporting by David Shepardson)
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J.B. Hunt reports a 12% increase in its quarterly profit due to cost savings
J.B. Hunt Transport Services, a U.S. trucking company, reported on Wednesday a 12% increase in its third-quarter profits. This was due to ongoing cost-cutting initiatives taken in response a downturn in freight in the industry. After-market trading saw a 11% increase in the shares of the company. Since 2022, the trucking industry is in decline, due to excess capacity, declining freight rates and a modest increase in shipment volume. Experts predict that the recession will continue, and that tariffs imposed on U.S. President Donald Trump by Trump's administration will add pressure to the situation. This could delay recovery. The Arkansas-based firm reported net earnings for the third quarter of $170.9 million, or 1.76 cents per share. This is up from $1.49 cents per share a year earlier. According to LSEG, it reported revenues of $3.05billion, which is slightly less than the $3.07billion in the previous quarter but higher than analysts' estimates of $3.03billion. The company reported that the revenue performance was driven by the 1% and the 4% decreases in gross revenue per truckload in the intermodal segment and the truckload segment, respectively. J.B. Hunt reported a 8% drop in load volume in its Integrated Capacity Solutions and Dedicated Contract Services segments, as well as a 1% decrease in its Final Mile Services. Reporting by Abhinav Paramar and Aatreyee dasgupta from Bengaluru, editing by Shailesh Kumar
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Brazil Postal Service Correios wants a $3.7 billion Treasury-backed Loan from banks
The Brazilian state-run Correios postal service is in discussions with a group of banks to obtain a loan worth about 20 billion reals ($3.67 billion), according to its chief executive. This comes as the company looks to improve short-term liquidity. CEO Emmanoel Rondon who assumed the role at the end of September said that the loan was part of a restructuring program which also included a voluntary dismissal plan, the renegotiation with suppliers, and actions to diversify the company's revenue. Why it's important Rondon said at a press briefing that the talks were about a guarantee loan from the Brazilian Treasury. KEY QUOTES "The logistics industry, where Correios is the leading player in Brazil and operates, has undergone a large transformation," Rondon said. He cited a more competitive environment because of the growth of the ecommerce segment, particularly since the COVID-19 epidemic. He added, "Our company didn't adapt quickly to the new reality. This lack of adaptation led to us struggling in terms of results and cash generation, as well as our operation." CONTEXT In the second quarter of 2018, the company reported a net loss amounting to 2.64 billion reais (US$483.4 million), nearly five times higher than its loss in the previous year. This was due to lower revenue, as well as increased administrative and financial costs. ($1 = $5.4612 reais). (Reporting and editing by Matthew Lewis. Additional reporting by Marcela ayres, Brasilia.
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United Airlines expects strong profits in Q4 driven by premium travel demand
United Airlines forecast on Wednesday a profit higher than expected in the fourth quarter, thanks to a robust demand for premium travel as well as improved pricing power. Chicago-based airline American Airlines expects a profit adjusted in the range between $3.00 and $3.50 a share for the quarter ending December. According to LSEG, the midpoint of forecast is $3.25 a share. This compares with an average analyst estimate of $2.86. United's adjusted third-quarter profit was $2.78 per share, exceeding analysts' expectations of just $2.63. The earnings report is released just a week following the rival Delta Air Lines' forecast of record earnings for the December quarter. Since the pandemic, United and Delta consistently outperformed other airlines by focusing on revenue streams with high margins that take advantage of the financial strength and loyalty of corporate and international travelers, as well as premium and corporate passengers. The earnings of U.S. carriers are now more divided. While Delta and United generate most of the profits for the industry, other budget carriers and domestic carriers are struggling with lower demand and increased pricing pressure. United's revenue for the third quarter was $15.2 billion, a 2.6% increase from a year earlier. Premium revenue grew by 6% and loyalty revenue by 9%. (Reporting and editing by Chris Reese; Rajesh Kumar Singh)
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US airline group calls for an end to the government shutdown citing aviation safety risks
The head of an airline trade group in the United States called for an end to the government shutdown after expressing concern about increasing pressure on air traffic controllers who are working without pay. In an interview, Chris Sununu said, "It has to stop now. Every day, the pressures, and risks, get higher." Sununu is the CEO of Airlines for America. The group represents American Airlines, Delta Air Lines, and United Airlines. "You are getting closer to the day when air traffic controllers will only feel financial pressure." The aviation industry is growing increasingly concerned about the impact of a prolonged government shutdown. Since the shutdown began, thousands of delays have been caused by the mounting number of sick calls made by controllers. The Air Line Pilots Association National Air Traffic Controllers Both associations have called for an end to the shutdown as soon as possible. In recent days, more than 13,000 air-traffic controllers and 50,000 Transportation Security Administration (TSA) officers received partial paychecks. They will not be paid the rest of this month if there is no resolution to the standoff. Sununu said that things could get worse. Sununu stated, "I believe it will really hit ahead in about a week-and-a-half, when the first zero paycheck arrives." "Most people are able to survive for a few weeks but after three, it puts a real strain on the system." Sununu is in favor of a continuing resolution that would reopen government, but he acknowledged the Democrats' desire for a healthcare discussion. "I'm not interested in politics." Sununu stated that he was only concerned with the easiest method to ensure the system's resilience. "If for some reason the system grinds to a halt, it's felt worldwide." "Hopefully, they'll see it before we reach that point." During a 35-day government shutdown in 2019, the number of controllers and TSA agents absent increased as they missed paychecks. This led to longer waits at checkpoints. The Federal Aviation Administration had to slow down air traffic in New York to put pressure on legislators to end the standoff. Reporting by David Shepardson, Editing by Mark Porter & David Gregorio
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California Governor vetoes Bill that would have Limited Air Quality Regulation
California Governor Gavin Newsom vetoed this week a bill that would have restricted the regulatory powers for air quality agencies in the ports of Los Angeles and Long Beach - the two busiest ports complexes in the country - which are the main sources of local air pollution. California Senate Bill No. 34 prohibited the South Coast Air Quality Management District, located in the logistic hub counties of Los Angeles Orange Riverside and San Bernardino, from taking any actions that would, for example, impose a limit on the cargo throughput at ports or the number of cruise ship passengers. Newsom, in a Monday veto declaration, said: "With the federal administration directly undermining state and local air pollution reduction strategies and encouraging cooperative action at all level to avoid the worst climate and health impacts."
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Canada's transport safety agency raises alarm over a record number of runway incidents
MONTREAL - October 15, The Transportation Safety Board of Canada raised new concerns on Wednesday about near-misses after the number of cases of runway incursions reached a record in Canada last year. This was despite there being no actual collisions. In its annual watchlist, the transport safety agency calls for better use of technology and infrastructure. Data from the air traffic service provider NAV Canada shows that runway incursions increased to 639 in 2018 from 566 by 2023. This is the highest number recorded in the 15-year period for which data is available. When an aircraft or vehicle lands or takes off on a runway that is not intended for it, this is called a runway incursion. In the past few years, several near-misses have raised concerns about aviation safety, especially in the United States, where the understaffed air traffic controls are a concern. Southwest Airlines was only 200 feet behind the business jet in February when the pilot of the commercial airline aborted his landing to avoid a collision. Recent high-profile runway accidents are increasing pressure on aviation authorities, who want to mandate cockpit alert systems that prevent incursions.
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Ardian and Finint Infrastrutture agree to jointly buy Venice's airport operator
Ardian, an investment firm, and Finint Infrastrutture, a company that manages assets in Italy, have agreed to acquire Milione Spa together, which is the holding company of Save, which operates several airports, including Venice Marco Polo. According to a source familiar with the transaction, the equity value for the company is approximately 1.2 billion euro ($1.4 billion). The value of the company increases to 2.1 billion euro when debt is included. Milione is controlled by DWS Infrastructure & Infravia Capital Partners. The two companies announced their partnership on Wednesday. It was "designed to support the growth of Save and (Italian North-East Airport System) as well as establish a strategic operator who would pursue new acquisitions in order to achieve an external growth strategy." Save operates a network including Venice, Verona and Treviso in northern Italy. It also holds a stake at Charleroi Airport in Belgium. Banca Finint, Goldman Sachs and Mediobanca acted as advisors for Ardian. Rothschild, Morgan Stanley and Infravia assisted DWS and Infravia.
Turkey cements position as Europe's leading coal-fired power system: Maguire
Turkey has spent eight of the very first 9 months of 2024 as Europe's biggest manufacturer of coalfired electricity, surpassing Germany and Poland as it cranked coal burning for power.
Turkey generated a record 88 terawatt hours (TWh) of electrical power from coal during January through September, according to energy think tank Coal, which was 2% more than during the exact same duration in 2023.
That overall was 28% above the 69 TWh generated in Germany and 36% above the 65 TWh produced in Poland, Europe's next biggest coal-fired power producers.
With power systems across Northern Europe set to make further cuts to coal use in power generation moving forward, Turkey's lead in Europe looks set broaden, and may establish southern Europe as a major center for coal use in the region.
EMISSIONS IMPACT
Turkey's emissions from coal-fired power also scaled new highs up until now in 2024, striking 88.4 million lots of carbon dioxide and 1.5 million heaps more than in the same months last year.
Coal-fired emissions in Germany were 71.5 million tons of CO2, and were 67 million tons in Poland, which in both cases were the most affordable on record for the January to September period.
With coal-fired generation and emissions declining in most other European nations, Turkey's share of the region's. coal-fired use and emissions climbed to a record of just over. 19% so far this year, Ash information shows.
Continued coal burning during the winter season - when need for. heating in Turkey peaks - may push Turkey's share of local. emissions above 20% for the very first time, specifically if power. systems elsewhere continue to curb coal usage during that period.
IMPORT RELIANCE
Around 35% of Turkey's electricity so far this year was. generated from coal, which was the country's largest single. power fuel source.
That share was down from around 37% in 2023, due to higher. output this year from both hydro dams and solar farms which. permitted power firms to lift output from tidy energy sources.
Nevertheless, both hydro and solar output are set to be up to. their yearly lows over the coming winter season in Turkey, which will. force power suppliers to boost coal usage towards year-end to satisfy. system demand.
And Turkey needs to import coal to meet approximately 40% of its. coal-fired needs, due to a persistent shortage in domestic coal. supply compared to domestic coal need.
Over the first nine months of 2024, Turkey's overall coal. imports were 16.7 million metric tons, according to. ship-tracking information from Kpler.
That overall is 5% less than throughout the exact same months in 2023,. but volumes are likely to climb up over the final months of the. year as power companies stock up ahead of peak heating demand.
Russia is Turkey's primary coal provider, accounting for around. 70% of Turkey's coal imports, followed by Colombia, Australia. and the United States.
INCREASING NEED
Turkey's reliance on coal for 35% of its electricity is. greater than the 20% share in Germany and 13% share for Europe. as a whole, but is less than the 56 % coal-share in Poland.
However, Poland's coal share is below near 74% in. 2022, and looks set to continue falling quickly as Poland's. power companies deploy growing volumes of sustainable power throughout the. nation's grids.
In contrast, Turkey's dependence on coal for power looks set. to keep increasing, specifically as the country's overall power need. continues to rise quicker than power firms can raise clean. supplies.
So far in 2024, Turkey's electrical power need has actually climbed by. 5% from the exact same months in 2023, compared to 2.4% growth for. Europe as a whole, 3% development in Poland and 0.4% development in. Germany.
Over the longer term, Turkey's electrical energy demand growth has. outmatched peer nations by an even larger degree.
Turkey's electrical power need has actually grown by 13.3% considering that 2019,. which contrasts dramatically with a 1.7% contraction in electrical power. demand for Europe over the same duration, and an 8.2% contraction. in demand in Germany.
Continued growth in Turkey's export-oriented production. economy looks set to preserve pressure on power companies to keep. developing cheap energy supplies.
Nevertheless, Turkey's economic sector has high levels of foreign. debt that look set to keep business costs in check, and may. suggest that only restricted upgrades to power generation systems may. be seen over the near term.
That suggests that coal's location as Turkey's primary power. source might continue to grow over the near to medium term, and. will likely lead to the nation further widening its coal. use lead over nations elsewhere in Europe.
<< The opinions expressed here are those of the author, a. writer .>
(source: Reuters)