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US LNG exports primed to leap as rate arb to Europe widens: Maguire
United States exports of LNG to Europe are set to jump in the coming weeks after the cost spread between domestic gas and Europe's. main gas pricing hub hit oneyear highs. The rate differential between U.S. Henry Center gas. futures - the U.S. gas cost standard - and the TTF gas. trading center in The Netherlands has broadened by over 30% from. the existing 2024 average for shipment during the coming winter season. That's signalling bumper revenue capacity for U.S. exporters. of liquefied gas (LNG), who are increasing the volumes. of gas streams to export centers. The increased LNG shipments to Europe will trigger a profits. rise for the biggest U.S. LNG exporters, consisting of Cheniere. , TotalEnergies and Freeport LNG. But greater demand for gas at LNG export terminals. also raises the capacity for an additional climb in U.S. domestic. gas costs, which are already at their greatest given that January. That means that while U.S. LNG exporters have a strong. chance to boost incomes, they likewise face the threat of. reviving inflation and activating a backlash against the export. of energy items required for power generation in your home. EUROPE BOUND U.S. natural gas prices are currently around 80% lower than. TTF rates, providing LNG exporters the opportunity to make money from. the large rate differential between the gas grades. So far in 2024, Henry Center gas futures have actually averaged around. $ 8 per million British thermal units (MMBtu) less than TTF gas. futures, according to LSEG. That price differential in favour of U.S. providers has. urged continual U.S. LNG exports to Europe, which have. amounted to around 82 million cubic meters over the very first 10 months. of the year, according to Kpler. However, an even broader price spread is predicted through the. coming winter which looks set to spur even bigger deliveries. Forward markets from November through completion of March 2025. suggest that the Henry Hub-TTF rate spread is approximately $11 per. MMBtu. That's a $3 boost over the 2024 average so far, and a. strong incentive for U.S. exporters to improve shipments even more. Europe has actually purchased over two-thirds of U.S. LNG shipments. since 2022, when Russia's intrusion of Ukraine triggered cuts to. Russian gas pipeline flows to Europe and sparked a scramble by. European gas buyers to plug supply spaces with LNG. And U.S. LNG exporters are keen to maintain market share in. Europe as the expense of serving European purchasers is far lower. compared to clients in Asia, due to far longer journey times. to buyers in Japan, China and South Korea. The roughly 12-day trip from Cove Point LNG terminal in. Maryland to Wilhelmshaven in Germany - a major European LNG. import center - is a third of the time of the journey to Guangdong in. China, the world's largest LNG buyer. That reasonably quick turn-around time indicates U.S. exporters. will prefer to prioritise Europe over other locations over. the coming months. Nevertheless, Europe's reasonably strong gas rates means the. continent is likewise prized by other sellers. DIVERSIONS & & CONGESTION? LSEG forward price information indicates that TTF costs are around. $ 2 per MMBtu greater than LNG prices based off Brent-indexed LNG. agreements, which utilize the rate of Brent crude oil in. developing LNG rates. That price premium in Europe has already triggered traders. to divert some freights from other markets, with the goal of. recording the greater prices available in Europe compared to. other areas. Any continual cost strength in Europe relative to other. markets will spur traders with unsold cargoes from Qatar and. in other places to concentrate on finding buyers in Europe. That in turn will supply stiff competitors for U.S. exporters, even if U.S. sail times to Europe are approximately a week. shorter compared to shipments from Qatar. However, more competitors for purchasers in Europe will in time. serve to depress European costs, which need to then erode the. economics of sending out LNG to Europe from remote origins. That bodes well for U.S. exporters, as long as domestic gas. costs remain significantly cheaper than gas materials in other LNG. export hubs. The primary risk for U.S. LNG exporters is that domestic gas. prices rapidly push higher, which could be set off by the. enduring strong gas demand at LNG export terminals along with a. sharp boost in domestic gas use for heating. Such a circumstance might spark reaction amongst U.S. power. customers, who are already reeling from high inflation and could. push for steps that slow the circulation of U.S. natural gas to. abroad customers. That implies U.S. LNG sellers may be require to be content to. make use of the current open sales window to Europe, and after that dial. back sales volumes if domestic costs gather more upside. momentum. The viewpoints expressed here are those of the author, a market. expert .
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The numerous conflicts of Indian billionaire Gautam Adani
Indian billionaire Gautam Adani and his portstopower conglomerate Adani Group were hit by a brand-new controversy on Thursday after U.S. prosecutors charged him in a supposed bribery and scams plan, accusations the group rejected. Below are some other major conflicts including Adani and the group he chairs. HINDENBURG VS ADANI U.S. short-seller Hindenburg Research study alleged in January 2023 that Adani improperly used offshore tax sanctuaries and that certain offshore funds and shell companies connected to Adani Group surreptitiously owned stock in Adani's listed companies. The group described the claims as baseless. In August, Hindenburg declared that the chief of the Indian markets regulator, who was investigating the group after the Hindenburg report, formerly held financial investments in overseas funds likewise used by the Adani Group. The regulator stated examinations into the accusations versus Adani Group were completed in nearly all matters, and that the chief had actually made pertinent disclosures. DHARAVI REDEVELOPMENT TASK Adani's $619 million offer to redevelop Mumbai's Dharavi slum, Asia's largest, into a contemporary city hub has dealt with opposition from locals over his capability to provide. It likewise dealt with claims that Prime Minister Narendra Modi's allies treated Adani positively, allegations the corporation denied. The group struggled to secure land to rehouse the approximately 700,000 homeowners who would be displaced throughout the redevelopment. CARMICHAEL COAL MINE The Carmichael coal mine, owned by Australia-based Adani Mining Pty Ltd and situated in Queensland, fought a seven-year project by environment activists before delivering its very first cargo in December 2021. Green groups fretted about emissions and damage to the Great Barrier Reef opposed the task, and continual demonstrations terrified off lending institutions, insurance companies and engineering firms. The development of the mine was diminished to 10 million metric lots a year from the previously-envisioned 60 million loads a. year. DIFFICULTIES IN KENYA Kenya's high court suspended two Adani Group projects this. year following criticism from stakeholders. On Sept. 10, the court temporarily obstructed a proposed deal. to lease the nation's main airport for thirty years in exchange for. expanding it, after accusations that the lease was unaffordable,. threatened tasks, was a financial threat and did not provide taxpayers. value for cash. A month later, the court suspended another $736 million deal. in between state-owned Kenya Electrical Transmission Company. ( KETRACO) and Adani Energy Solutions after an advocacy group. argued it was a constitutional sham and tainted with. secrecy. MYANMAR PORT SALE In October 2021, Adani Ports deserted plans to. construct a container terminal in Myanmar after rights groups. reported the business would be renting the land for the task. from a military-controlled company under U.S. sanctions. The business sold the job in May 2024 for $30 million,. significantly lower than the $127 million it invested in it. BANGLADESH POWER Adani Power minimized electricity supply to surrounding. Bangladesh this month after stopping working to recover more than $800. million in fees in the middle of a political crisis in the country. The power offer is being studied by a panel established by. Bangladesh's caretaker government which is examining if. agreements signed by its predecessor safeguarded the nation's. interests. The power pact has actually been criticised by Bangladesh's. opposition groups who say it is overpriced. VIZHINJAM PORT PROTESTS Building of the $900-million port in southern India was. halted for about four months in 2022 as fishing workers. opposed, blaming the task for coastal erosion and affecting. their livelihoods. The Adani Group stated the port abided by all laws and. cited studies that revealed it is not linked to shoreline erosion. The building and construction resumed in December 2022.
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United States airline flight crews positive and upset as unions look for richer agreements
Alaska Airlines flight attendant Rebecca Owens works 10 hours a day but just makes money for half that time a legacy of a typical U.S. airline company policy to pay cabin team members only when airplanes are in movement. Owens, and thousands of cabin crew like her, wants that to modification. In August, 68% of Alaska flight attendants in a ratification vote turned down an agreement that would have increased average pay by 32% over three years. It was also the very first labor arrangement that would have lawfully needed airline companies to begin the clock for paying flight attendants when guests are boarding, not when the flight begins to taxi down the runway. Delta Air Lines, the only significant U.S. airline company whose flight attendants are not in a union, instituted boarding pay for its flight attendants at half of their hourly salaries in 2022 when they were attempting to organize. Alaska and union leaders have actually resumed federally moderated contract settlements today. I want to be made up for my time at work and want a. livable wage so that you can base on your own while working. this job, said Owens, 35. She said that without her other half's. earnings, her family would not be able to pay for basic requirements. Negotiations at Alaska are being carefully enjoyed because one. airline company's contract tends to end up being an industry benchmark. Cabin. teams at United Airlines, Frontier and American. Airlines' regional subsidiary PSA Airlines are likewise. working out brand-new labor contracts. Crews at Southwest Airlines rejected two contract. offers before ratifying a deal in April that consisted of a 22% pay. raise this year and 3% per year raises through 2027. Flight attendants have actually been working out with more self-confidence. this year, encouraged by improved airline profits and bumper. pay offers worked out by pilot unions in the past 2 years and. Boeing factory workers this year, according to interviews with a. dozen airline crew and union officials. Airplane team told Reuters these settlements are also notified. by years of resentment over pay that has actually lagged inflation while. working hours have increased, hurting their quality of life. Cabin crew at Alaska and United have authorized their. unions to call strikes if negotiators can not reach a contract. arrangement. Alaska Airlines reacted to a question from Reuters stating. its goal is to provide flight attendants-- and all employees--. with market-competitive salaries and advantages. United did not respond to an ask for remark. BURN OUT In previous contract settlements, airlines secured. concessions from workers as the market was struggling due to. financial declines or fallout from the COVID pandemic. However, this year, numerous U.S. airlines have posted healthy. revenues and cabin teams feel they have actually more than made a larger. piece of that pie. United's cabin teams have not had a raise since 2020. The Chicago-based airline in October unveiled a $1.5 billion. stock buyback strategy. Flight attendants are truly, truly angry, stated Sara. Nelson, global president of the Association of Flight. Attendants-CWA (AFA), which represents over 50,000 cabin team at. 20 airline companies including Alaska and United. They can't pay for to pay their costs. Some brand-new hires are forced to live in their cars due to the fact that they. can not manage lease, said Ken Diaz, head of the flight. attendants' union at United. A beginning salary at United is $28.88 an hour. At Alaska,. the base pay rate for a newly worked with flight attendant is $27.69. High on the top priority list for attendants is being paid for hours. worked, not just when the airplane remains in movement. One San Francisco-based United flight attendant informed Reuters. he makes simply $2,400-$ 2,500 a month before taxes regardless of working. over 200 hours. A number of his associates supplement their. income by driving for Uber and DoorDash, he stated. A flight attendant who was onboard Alaska's Boeing 737 MAX. aircraft that lost its door panel mid-air in January had a second. job as an Amazon delivery chauffeur, according to testament. launched by private investigators. The flight attendant, who was not. called, had worked two package-delivery shifts the day of the. door blowout. Some airline companies blanch at the added expenses of paying flight. crews for jobs like boarding passengers and lingering the. airport before and in between flights. The union at American has. estimated that crews will make an extra $4.2 billion under its. brand-new five-year flight attendant contract, that includes. retroactive along with boarding pay, and compensation for some. hours between flights. Owen says airline companies require to reconsider their strategy or face an. progressively hostile response from team members. Individuals can just take so much, Owens stated. They are tired. They are burnt out..
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Argentina's Vaca Muerta gas-export strategy is a pipeline dream
Gas production is flourishing in Argentina's huge Vaca Muerta shale lands, however complete pipelines and the federal government's freemarket method to spending for brand-new ones might avoid the nation from ending up being a major gas exporter by early next years. About $58 billion worth of new or updated pipelines, processing plants and export terminals is needed to deal with Argentina's. growing production from the world's secondlargest shale gas. reserves Vaca Muerta, which is Spanish for dead cow. But libertarian President Javier Milei has actually changed direct. financial investment by the national government in gas infrastructure with. tax breaks and other incentives, an extreme shift from his. predecessors. The federal government's goal is to export $15 billion worth of. liquefied gas annually by 2032, up from absolutely no presently. Previously, all gas jobs were done by the state as. public works. Now that's not an option, said Daniel Dreizzen,. Argentina's former secretary of energy planning and now director. of Aleph Energy, a consulting firm. The nation's most recent, $710-million pipeline opened this month,. funded by the federal government and a loan from the Advancement Bank of. Latin America and the Caribbean. Milei's federal government called it. the last state job. Milei's austerity drive has actually driven down inflation and decreased. Argentina's financial investment risk, however some financiers are still. waiting to see if the changes will last to pay off long-term. investments. They fear a swing back to leftist Peronism that. intervened in the energy industry before Milei took workplace last. year, setting prices and breaking global agreements. This has actually happened lots of times in Argentina's history and. totally stopped development, Dreizzen said. The most significant. risk is that destabilization. FALLING PRICES While Argentina has enough oil-export infrastructure and. privately-funded expansions under method, Dreizzen said financiers. view gas as less rewarding, its markets harder to reach. and based on tougher government guidelines. Global gas costs have to do with a third of their peak in 2022 due to. increased supply and lower need from a milder-than-expected. winter season. The long-lasting agreements required to justify building new. infrastructure could be obstructed by the early 2030s by LNG. export capability coming online in Qatar and the United States,. buyers' preference for area agreements and the European Union's. goals of minimizing greenhouse-gas emissions, stated Alex Jones, an. LNG expert at research company Energy Aspects. Vaca Muerta's gas output has actually increased five-fold to nearly. 100 million cubic meters each day considering that 2018, however the country's. pipelines can not even deliver enough for usage by Argentina and. neighboring countries. Argentina can transfer around 130 MCM per day and another. 20-40 MCM daily is required to meet present domestic and. local demand, stated Daniel Ridelener, executive president of. the country's biggest gas pipeline operator TGN. Pipeline capacity would need to expand by an additional. 40-130 MCM to support the nation's plans to export LNG,. Ridelener stated. Investment interest from U.S. oil and gas companies in. expanding Argentina's production is at an all-time high, said. Ariel Bosio, founder and vice president of the U.S.-based. Argentina-Texas Chamber of Commerce. This does not suggest they're going to invest right away, but. there's interest, Bosio said, including that business wish to see. the result of 2025 legal elections and currency controls. lifted before committing. TGS, Argentina's other main pipeline business, has actually a. $ 700-million plan to enhance its capacity out of Vaca Muerta by 14. MCM daily. The project is waiting for government approval. before seeking funding. A $2-billion strategy to expand a state-owned pipeline by 20 MCM. per day is expected to go to an international tender procedure. The pipeline prepares depend on building and construction of LNG export. terminals to buy and export the gas. Argentina state-owned energy business YPF plans on. utilizing floating LNG barges as early as 2027 with Pan American. Energy, but YPF's crown gem is Argentina LNG, a. proposed $55-billion megaproject in partnership with Malaysia's. Petronas that would produce 30 million metric heaps. annually onshore by 2032. Jones sees the floating LNG barges as realistic however he is. hesitant about Argentina LNG. It's a coin flip ... less than a coin flip, Jones said. Argentina LNG talks have actually been fluctuating between the partners,. according to local media, although YPF CEO Horacio Marin stated. the company would move forward even if Petronas pulls out. Milei's cabinet chief stated this month that Shell had. strong interest in investing in the terminal. The company stated. in a declaration it is constantly checking out opportunities. During an October oil and gas conference in Neuquen, Shell. senior vice president German Burmeister said Vaca Muerta's. possessions are technically competitive, however Argentina requires more. infrastructure, including roadways, that need foreign-exchange. restrictions to be raised. The world will talk more about Vaca Muerta when we're a. more reliable and credible nation, Burmeister stated.
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NEWSMAKER - Gautam Adani is a controversial Indian first-generation tycoon who was indicted by the US.
Indian billionaire Gautam Adan, who was indicted by the New York court over a $265-million bribery scam, is a tycoon of first generation whose meteoric rise has been accompanied with a series damaging controversies both at home and abroad. Asia's second richest person, who narrowly avoided death as one of the many people trapped inside Mumbai's Taj Mahal Palace Hotel in 2008 when gunmen went killing sprees, now faces an arrest warrant from the United States and criminal penalties for fraud and bribery. Adani's business, which ranged from sugar and soybeans to power and ports, lost over $150 billion last year in market value after U.S. based short seller Hindenburg Research alleged that his eponymous company had used offshore tax havens inappropriately. The group has recovered some of its losses and is now valued at $141 billion. It denies all allegations. Adani, a 62-year old high school dropout who had dropped out of high school in the 1960s, briefly became the richest person on the planet after Tesla CEO Elon Musk. Forbes reports that Adani has a net-worth of $57.6 billion and is the 25th wealthiest person in the world. Adani's power and coal projects, as well as other deals, have been questioned by countries like Australia and Bangladesh. Indian opposition leaders, however, have used Adani in their attacks on the Prime Minister Narendra modi government, accusing them of favouritism. Both sides have denied the allegations. U.S. officials said Wednesday that Adani, along with seven other defendants, had agreed to pay bribes in order to get supply contracts which would yield $2 billion profit over 20 years and to develop India's biggest solar power project. Adani Group did not respond to requests for comment about the charges. Adani, who was born on June 24, 1962, in Ahmedabad in Gujarat's western state - Modi’s home state – dropped out of high school after finishing the 10th grade. Adani Group was founded in 1988. He began with commodities trading. He was born into a textile middle class family and built his wealth, unlike other billionaires that inherit their wealth. He is married to Priti Adani and has two sons Karan, Jeet. Both are active in the business of the family company, as many other members. One person who has direct knowledge of the man's dealings said that he runs his empire in a "very hand-on" manner, and he intends to pass this style on to the next family generation when he turns seventy. Adani, in interviews with both local and international media, has described himself as a shy individual and has attributed the rise in his popularity to the political assaults he has endured. He was quick to praise politicians as well. Adani stated on X shortly after Donald Trump won the U.S. presidential election that Trump was "the embodiment" of unbreakable tenacity and unshakeable grit. He also said Trump had the courage to remain true to his convictions. Adani, who congratulated Trump last week, said his group would invest in U.S. infrastructure and energy projects worth $10 billion, but did not provide any details, other than that the investment was intended to create 15,000 new jobs. (Reporting and editing by Munsif Vengattil, Krishna N. Das)
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As geopolitical concerns rise, most Gulf shares are falling
Investors became cautious after geopolitical tensions increased, and most stock markets in the Gulf were quiet in early trading Thursday. Ukraine's Air Force said Thursday that Russia launched an intercontinental missile during a morning assault from the Astrakhan area. Dubai's benchmark index fell by 1.1%, after rising to its highest level in over 10 years during the previous session. Almost all sectors were in the red. Emaar Properties fell 1.8%, while Gulf Navigation dropped 9.8% to 4,49 dirhams per shares, the lowest in almost 1-1/2 years. GULFNAV, the maritime and shipping company, has continued to slide after it reported an 84% decline in quarterly net profits on Friday. Abu Dhabi's benchmark index fell 0.6%, with the majority of its constituents reporting losses. Aldar Properties dropped 1.1%, and Lulu Retail fell 1%. Lulu Middle East, the largest hypermarket chain operator in the Middle East, reported an increase of 126% on its net profit for the third quarter compared to the previous year. However, the profit fell 38% from the previous quarter. International Holding (IHC), Abu Dhabi's biggest listed company, lost 0.2% and Alpha Dhabi Holding (an IHC subsidiary) fell 1.7%. Gautam Adani, the owner of the conglomerate, has been indicted for his role in an alleged bribery scheme by U.S. authorities, plunging it into crisis for a second time in just two years. Saudi Arabia's benchmark index fell 0.2%, with all sectors falling. ACWA Power dropped 1.3% while Jabal Omar rose 1.9%. The developer announced that it had sold a land parcel in Makkah valued at 1.07 billion Riyals. United Development and Qatar National Bank both saw gains of 1.2%, which helped boost the benchmark index by 0.2%. UDC, a developer, announced that it had sold its 40% share in Qatar District Cooling to a third party for QAR 793.5 (US$217.93) million. $1 = 3.6410 Qatari riyals (Reporting and Editing by Bernadette B. Baum)
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Serbia arrests 11 over train station roofing system collapse
The High Prosecutors Workplace in the Serbian city of Novi Sad said on Thursday that 11 people were apprehended in connection with the collapse of a railway station roofing system earlier this month that has actually left 15 individuals dead. The recently remodelled roofing of the station in the northern city collapsed on Nov. 1, eliminating 14 at the time and injuring 3. On Sunday, one of the hurt passed away, bringing total fatalities to 15. The district attorney's workplace stated in a declaration that the 11 were jailed for devoting criminal acts versus public safety following interrogation of a number of citizens and expert analysis of the incident. The statement only offered the initials of those jailed. The catastrophe activated a wave of demonstrations in Serbia, with protesters blaming the mishap on corruption and nepotism amongst the ruling coalition.
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Royal Mail owner IDS returns to benefit however warns on cost environment
International Circulation Services reported a firsthalf adjusted operating profit on Thursday, as sustained parcel need helped the British company narrow losses at its Royal Mail company despite a. weakerthanexpected market. Royal Mail's noted losses consist of a problems charge,. mainly due to anticipated extra tax problem reflected in an. about 120 million pound yearly increase in companies nationwide. insurance from fiscal 2025-26. Royal Mail uses about 130,000 individuals in Britain. We are delivering on the changes we can manage, but the. cost environment is getting worse simply at the time when we require to. invest, CEO Martin Seidenberg stated in a declaration, referring to. the increase in national insurance coverage. The group, which likewise owns global parcels network. GLS, said its adjusted operating profit was 61 million pounds. ($ 77.13 million) for the 6 months ended Sept. 26, compared to. a loss of 169 million pounds a year previously. IDS, which accepted a 3.57 billion pound takeover by Czech. billionaire Daniel Kretinsky in May, said it continued to anticipate. the offer to close in the first quarter of 2025. Kretinsky's quote of IDS, the owner of one of the world's. oldest postal firms Royal Mail, is presently being reviewed. under the National Security and Financial investment Act to evaluate any. possible concerns.
Why a Canadian freight rail stop would roil North American supply chains
Canada's two main freight rail business are set to lock out around 10,000 of their Canadian unionized workers on Thursday at 12:01 a.m. ET (0401. GMT), starting an unprecedented synchronised work interruption that. would grind practically all railway freight movement in the nation. to a halt.
HOW INTEGRATED ARE THE RAIL NETWORKS THROUGHOUT NORTH AMERICA?
Canadian National Train Co and Canadian Pacific. Kansas City have said their rail networks south of the. border will continue to run, however market groups fear that a. work stoppage would have far-reaching impacts on the motion of. goods and commodities across The United States and Canada.
CN and CPKC's coast-to-coast rail networks in Canada connect. south of the border and act as crucial supply chain links to. trade corridors and ports throughout North America.
The networks intersect with those of U.S. rail operators. such as BNSF Railway, Union Pacific, Norfolk. Southern and CSX, helping with the motion of. billions of dollars' worth of products and products through. ports and storage facilities throughout the continent.
CN's network stretches south to New Orleans. CPKC's network. links to the U.S. ports of Corpus Christi, New Orleans and. Gulfport, and it extends more south to the ports of Tampico. and Lázaro Cárdenas on the east and west coasts of Mexico.
HOW WOULD A CANADIAN RAIL STOPPAGE AFFECT THE UNITED STATES?
Around a third of the traffic moved by the two Canadian rail. business crosses the border with the United States.
Lots of U.S. business and manufacturers, particularly those in the. Midwest, use Canadian ports for imports and exports, as Montreal. can be faster for deliveries to and from Europe, while Vancouver. can be much faster for ocean service to and from Asia.
Union Pacific, the No. 2 U.S. railroad operator, has cautioned. that a simultaneous interruption would have destructive effects. for the U.S. and Canadian economies.
Ratings agency Moody's said the blockage could cost over. C$ 341 million ($ 251.14 million) daily.
Dozens of groups representing miners, farmers, exporters,. and fertilizer manufacturers, to name a few, have warned that their. sectors face crippling supply-chain hold-ups, increased costs,. cash-flow constraints and potential shutdowns in a drawn-out. stoppage.
HOW WOULD THE U.S. AND CANADIAN FARM SECTORS BE IMPACTED?
An interruption would strike the motion of everything from wheat. to ethanol, potash fertilizer and meat.
In specific, it would crimp deliveries of U.S. spring wheat. from Minnesota, North Dakota and South Dakota to the Pacific. Northwest for export. An interruption would also hit Canadian potash. and grain exports.
The U.S. exported $28.3 billion of farming products to. Canada in 2023, making it the third-largest location for U.S. agricultural exports behind China and Mexico. The U.S. imported. $ 40.1 billion of Canadian agricultural items last year,. making Canada the second-largest source of U.S. farming. imports.
Ethanol, potash, corn, cereals, food grains, cooking oils,. and meat are amongst the agricultural items traded in between the. two nations.
WILL TRADE WITH MEXICO BE AFFLICTED TOO?
Mexico is Canada's third-largest single-country product. trading partner behind the U.S. and China, while Canada was. Mexico's fourth-largest product trading partner in 2023.
Mexico exports trucks, automobiles and lorry parts to Canada,. along with mangoes and avocados. Canada exports wheat, meat,. aluminum, vehicles and parts to Mexico.
Two-way trade in between the 2 nations, much of which moves. by means of the rails, was nearly C$ 55 billion in 2023.
CAN THE TRUCKING INDUSTRY ENTER THE BREACH?
Truckers state they are facing a rise in demand which roadway. freight rates are increasing for shippers in Canada. Nevertheless,. market insiders say that while the trucking sector can manage. a few of the need, it can not replace rail circulation. In some. cases, the industry does not have the equipment, nor the. capacity, to handle bulk commodity cargoes such as potash, food. grains, or coal.
(source: Reuters)