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Fuel oil from Malaysia PRefChem Refinery is headed to the US for the first time since 2023
Shipping data shows that a fuel oil cargo is heading to the United States from Malaysian company PRefChem for the first time since?2023. This is due to the?disruptions caused by the Iran War?, which are limiting the global supply of refinery feedstocks. The low-sulphur straight-run cargo (LSSR) can be fed to a refinery unit for production of higher-margin products such as gasoline or diesel. According to LSEG and?Kpler data, the last fuel oil shipment from PRefChem was shipped to the U.S. in May 2023. Kpler data shows that the Solomon Sea departed the Vopak Dialog 'Pengerang terminal in August loaded with more than 540,000 barrels LSSR fuel. It is scheduled to arrive in the United States early in September. A source familiar with the matter said that the cargo was headed?to an refinery on the U.S. West Coast. Petronas (owned by the state) did not reply to a comment request. The refinery, PRefChem, in Pengerang produces 300,000 barrels per day. The U.S./Iran conflict has caused a shortage of feedstocks, but margins for refining are strong. U.S. refiners typically import fuel oil from closer regions, such as Mexico or Venezuela. Trade sources say that PRefChem sold fuel oil via recent 'tenders' for the August loading of three cargoes each of 540,000 'barrels? of LSSR atmospheric residual. Ship-tracking data revealed that one cargo was loaded between August 12-13, and the other two were offered for loading on August 21-22 and August 30 and 31, respectively. According to IIR's data, the refinery's atmospheric distillation unit was down from June 21 to July 10. PRefChem produces fuel oil and gasoline sporadically. (Reporting and editing by Tony Munroe, Subhranshu Sahu and Jeslyn Lerh)
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Four people are killed in record-breaking rain at Japan's Narita Airport
Record?rainfall? left thousands of travellers at Tokyo's Narita Airport on Friday, as flooding in the area disrupted transportation and knocked out electricity to homes. At least four people died. In Chiba Prefecture, which is adjacent to?the capital Tokyo and flooded roads and trains during the busiest week of the year, more than 360 millimetres fell in just 24 hours. Four?deaths? have been confirmed by authorities, one of whom is trapped in a submerged car, and another is missing. Soldiers were dispatched in the area to assist with relief efforts. Toshihito kumagai, Chiba governor, told reporters Friday morning that the case presented was "extremely unusual." "I've responded to many disasters in the past, but i've never seen a situation like this." Tokyo Electric Power reported that more than 22,000 homes were still without electricity at 11:00 am (0200 GMT) on Friday. In Chiba, one of Japan's worst-hit areas, hundreds of residents slept under foil blankets in government buildings that served as temporary evacuation centers. A spokesperson for the airport said that the disruption in transport left approximately 7,000 people stranded. All flights are expected to operate normally Friday. Japan Airlines has said that some flights could experience delays, but there are no cancellations expected at this time. According to highway operator NEXCO East, some?major roads in?Chiba are closed, forcing drivers on alternate routes and causing heavy congestion. On Friday morning, several rail services were also suspended, although some trains linking Narita to Tokyo resumed service, helping ease congestion at the international transportation hub. NHK footage showed that hundreds of passengers waited overnight to receive blankets, snacks, and water bottles from airport staff before sleeping in the terminal. NHK reported that an American passenger stranded at the airport with his family said, "We will never forget this trip." (Reporting and editing by Stephen Coates, Hina Suzuki, Mariko Katsumura)
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Brazilian airline Azul cuts capacity in the third quarter, but expects growth thereafter
John Rodgerson, the Chief Executive Officer of Azul Airlines, said that the airline expects to reduce capacity again in the third quarter following recent major cuts. Then it will return to growth for the final three months of the year. Azul reduced its capacity in the second quarter by an unprecedented 10.6% compared to the same period last year, with a reduction of 24.9% in international operations. This was due to the disruptions caused by the U.S. and Israeli war against Iran, which pushed up jet fuel prices. Rodgerson said, "The fuel crisis peaked in the second quarter and it is also the weakest quarter for the year." "We cut capacity because we believed it was the right thing to do." The Brazilian carrier is the largest in terms of number cities served. It expects to reduce its capacity by around 4% during the third quarter, before returning to growth by 'the fourth quarter, as it completes its transition to a widebody aircraft. Rodgerson said that he remains optimistic about Brazil's airline market. He cited the resilient demand. He said, "The fundamentals are good in Brazil at the moment and we think we're well-positioned." "Wars and crisis don't last forever." Azul reported a record operating revenue for the second quarter of 4,98 billion reais (960 million dollars), up 0.7% on a year ago. However, core earnings fell 55.4% to 5010.1 million reais as fuel costs per liter soared by 61.8%. The company said that higher fares offset a part of the cost increase. Was it the final result that we desired? "Of course not. Fuel costs rose?by almost 700 million reais?during the third quarter, and we reduced?capacity. This was always going be a quarter of transition," Rodgerson stated, highlighting higher unit revenues and operational improvements.
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Four people are killed in record-breaking rain at Japan's Narita Airport
On Thursday morning, thousands of passengers were stranded in Tokyo's Narita Airport due to record rainfall. Flooding in the area had disrupted travel and knocked out electricity for homes. At least four people died. In Chiba Prefecture, near the capital Tokyo, more than 360 millimetres rained in just 24 hours, flooding roads and railways, and knocking out electricity to nearly 25,000 homes during one of Japan's most busy holiday weeks. The authorities have confirmed four deaths so far, including one trapped in a submerged vehicle. Soldiers were 'dispatched to assist with relief efforts. Toshihito Kumagai, Chiba governor, told reporters Thursday morning that the situation was "extremely unusual" even compared to Japan's weather history. "I've responded to many disasters, but this is the first time I've seen a situation like this." A spokesperson for the airport said that approximately 7,000 passengers were stranded in Narita due to the transport disruption. All flights are expected to operate "normally" on Thursday. Japan Airlines has said that some flights could experience delays, but there are no cancellations expected at this time. According to NEXCO - East, major highways in Chiba remain closed. This includes routes connecting Narita Airport, one of Japan's most important international transport hubs. On Thursday morning, several rail services were still suspended. However, some trains between Narita and Tokyo resumed service. (Reporting and editing by Mariko Katsumura and Hina Suzuki)
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PJM offers plan to purchase more power for data centres
PJM Interconnection is the largest?U.S. grid operator. Grid operator proposed on Thursday to federal regulators a backstop plan to purchase more?power?generation in order to avoid outages due to the surge of electricity needs for data centers. PJM, the company that manages electricity for 67,000,000 people across a region stretching from Washington, D.C., to Chicago, has filed the proposal at the U.S. Federal Energy Regulatory Commission, who would need to approve any move by the grid operator. The proposal highlights the growing tension between data center expansion and the ability of the power grid to keep pace. If PJM is unable to close the supply gap, residents and businesses will face a greater number of blackouts. The cost of the new generation may be passed onto consumers with no connection to data?centers. PJM recently held a capacity auction where power prices were capped at $325 per megawatt day. PJM's reliability requirement for meeting projected demand was 6.8 gigawatts short despite the high prices meant to encourage the construction of 'new power plants. This'shortfall raises the risks of grid -blackouts. PJM would like to close this gap with its proposed procurement plan. The results of the plan will be revealed in December. Critics of PJM’s proposal claim that the grid operator has failed to attract billions of dollars for new generating sources to meet the increasing energy demand of data centers. Don Mosier is the chief executive officer of East Kentucky Power Cooperative which provides energy to 1.2 million people and businesses. Mosier's comments appear in a letter sent to the U.S. Energy Department on August 6. PJM's proposals, according to the company, are designed to prevent residential customers from being charged higher energy costs due to the expansion of data centres. PJM also proposed creating a "registry" for data centers, and other large energy consumers that would track their location and electricity usage. PJM suggests that for data centers which do not'supply' their own electricity, it should temporarily cut off the electricity at the?sites during periods of extreme grid stress to prevent rolling blackouts. PJM stated that it does not have the power to cut off the electricity to these sites and would need the cooperation of each state government. The rapid growth of data centers has become a political headache for PJM, which includes Virginia, the home of the largest data center collection in the world. Residents are becoming increasingly concerned about the costs of powering data centers they consider noisy and intrusive. (Reporting By Tim McLaughlin; Editing by Sanjeev Miglani)
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Derailment of UK passenger train in southeast England causes 11 injuries
The British Transport Police said that the derailment?of a passenger train near Lewes station in southeast England?on?Thursday?left?two people with serious injuries and nine other persons with less severe injuries. British Transport Police reported that three carriages of the train rolled onto their side after the incident was reported at 3:44 pm local time. The police reported that a number of passengers were trapped at first but they have now been safely evacuated. At the scene, emergency services including Sussex Police, local fire, ambulance and rescue?teams and Sussex Police responded. Some of the injured were treated on site while others were transported to local hospitals. No immediate reports have been made of any injuries. In a press release, Assistant Chief Constable Ian Drummond-Smith said: "We have declared a major accident and an emergency response is ongoing at the scene. All passengers on the train are now safely evacuated from the service." He said that authorities are supporting the Rail Accident Investigation Branch's efforts to determine the cause of the derailment. In a recent post on 'X, Heidi Alexander, the Transport Minister said that the Government was 'working quickly with the rail industry to help passengers. (Reporting and editing by Andrew Heavens and David Goodman, and Aurora Ellis.)
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US revises Jones Act compliance rules and extends waiver of 90-day Jones Act.
U.S. Customs and Border Protection announced on Thursday that the Department of Homeland Security approved a second 90-day extension to a Jones Act waiver originally issued on March 17, 2026. This will allow certain cargoes covered by the Jones Act to continue moving between U.S. port on foreign flagged vessels under specified conditions. The waiver will begin on August 17, 2026 at 12 a.m. The CBP guidance stated that the waiver will begin on August 17, 2026, at 12:00 a.m. ET. CBP stated that any product covered must be loaded onto a vessel by 11:59 pm ET on November 15, 2026. ET, November 15, 2026. The agency also released a list of updated potentially covered products on August 17. CBP stated that "this?guidance serves as a notice of significant changes to the waiver requests process." Before a voyage starts, parties wishing to use a vessel flying a foreign flag under the waiver must submit a "vessel availabilty request" to the Department of War(DOW), Maritime Administration(MARAD) and CBP. CBP stated that the request must include information such as the vessel owner, the date of the voyage, the ports of loading and discharging, the cargo description, the frequency of shipment, the identity of the vessel, etc. MARAD will conduct a survey to determine if a U.S. vessel with coastwise qualifications is available for the transport. DOW will then decide if the waiver is applicable to the proposed trip based on the survey results. CBP said that the trade?community member initiating the request would contact the appropriate carriers to arrange transport. Carriers who operate foreign-flagged ships under the waiver must submit voyage information to CBP, and MARAD post-voyage report within 10 days after the completion of the voyage. This includes cargo details and the justification for waiver.
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UAE claims Iran attacked two ADNOC ships in Strait of Hormuz, but there were no injuries
The Abu Dhabi National Oil Company reported that two of its vessels were attacked Thursday evening while they transited the Strait of Hormuz. No injuries were reported. This was the second incident in which ADNOC vessels were involved in less than one week. The UAE condemned an alleged Iranian attack against a vessel associated with the state oil company on Saturday as it crossed the strait. According to WAM, the state news agency of the UAE, ADNOC has confirmed that the situation is under control. The UAE Foreign Ministry condemned a "hostile Iranian assault" on the two ADNOC ships. The UAE Foreign Ministry said that Iran's Revolutionary Guards committed "acts piracy" in targeting commercial shipping, and using the Strait of Hormuz as a means of economic pressure or extortion. This posed a threat to regional stability and global energy safety. WAM and the Foreign Ministry did not provide any details on the ships, their cargo or any possible damage. There were no reported injuries. The IRGC or Iran's Foreign Ministry did not immediately comment. Before the conflict, a fifth (or more) of the world's oil & liquefied gas was transported through the narrow waterway that connects Oman to Iran. Shipping has been disrupted repeatedly since the U.S. and Israel war against Iran began on February '28. This has increased freight rates, and raised security concerns. Iran's Revolutionary?Guards had previously threatened to take action against vessels that transited the strait if their crews were linked with Tehran's enemies or failed to?obey Iranian directives. ADNOC stated on Friday that it had been'significantly affected' by unprovoked attacks against its personnel and assets. It continued to meet customer demands in an "exceptionally difficult environment." ADNOC is Abu Dhabi's state oil company. It is the largest energy producer in the world and exports crude, natural gas, and refined products to countries around. Reporting by Enas Alashray and Eman Aboushassira, Editing by Chris Reese and Rod Nickel
As Valentine's Day flowers arrive, the US trucking industry shows signs of a recovery.
David Armellini, owner of a Florida trucking firm, is paying an extra 20% for each additional driver he hires to transport fresh-cut Valentine's Day Flowers to wholesale florists and grocery distribution centers across the country.
If sellers pass on the increased cost, it could result in a slight increase in price for a bouquet at this weekend. Armellini believes that it could be an indication of the end of the U.S.'s longest and deepest trucking slump. Shippers across the United States are paying more to truck flowers, ?fresh ?produce, and other temperature-sensitive cargo, after deep cold this winter hiked demand for the temperature-controlled trucks called reefers needed to protect them from extreme temperatures. According to industry experts, job cuts caused by trucking company bankruptcy and increased immigration checkpoints has also led to a reduction in the number of drivers.
Where have all the trucks disappeared? "Where have all the trucks gone?"
Rates for Refrigerated Trucks JUMP
DAT data revealed that the average January spot rate for moving goods in a refrigerator trailer was $2.81 per miles, an increase of 10% from the previous year and the highest since December 2022 when the pandemic boom in trucking ended. Since April 2022, reefer contract rates were higher than spot rates, but they reached parity in the month of January, signaling a balance between supply and demand. Croke reported that the average increase in off-contract rates for routes departing from Miami, which is the main port of entry for Valentine's Day Flowers, was 40% last week. Around 90% of Valentine's Day Flowers sold in the U.S. are shipped from Ecuador and Colombia, to Miami International Airport. This typically generates around 4,500 chilled truckloads?in the weeks leading up until February 14.
Over the past three years, more trucks than there were loads to be carried, lowered rates and erased profits. Armellini said that the trend is changing.
"We are starting to see larger?shippers wanting to submit full-year offers, which is an indication that they have seen the market turn. They are locking in prices because they expect them to rise," said Armellini who relies primarily on contracts.
Some trucking executives and industry analysts say the strength of the'reefer market may only last a short time once the weather is back to normal. They also point out that the trucking industry as a whole still suffers from low demand by domestic manufacturers and builders.
Avery Vise is the vice president for trucking at FTR Transportation Intelligence.
DRIVER CRACKDOWN, BITTER COLD
The recent Arctic blast boosted the demand for reefers, as shippers of cosmetics, beverages and latex painted used them to shield their cargo from freezing. This left fewer trucks and driver to haul Valentine's Day Flowers.
The trucks are also known as refrigerated reefers, but they can keep the cargo warm even when temperatures outside plummet.
"The driver pool this year is more selective or picky than last," said Carlos Oramas CEO of Florida's Gems group, which grows flowers and imports them for the?U.S. Grocers Kroger, Wegmans and Walmart.
Oramas says that flower shippers are planning ahead to meet their special needs, and they have experienced marginal, but not disruptive, rate increases.
The cold weather has reduced the availability of drivers at a time that trucking companies are failing and there is a federal crackdown against immigrant driver.
FTR estimates that there are currently 3.5 million heavy-duty truckers in the U.S. This is down by 110,000 from the peak of the industry in early 2023.
Truck drivers are included in the Trump administration's crackdown on immigration, which includes efforts to enforce English language proficiency and commercial license?requirements.
Texas, Oklahoma Wyoming, and Florida are among the states that have the strictest enforcement.
U.S. Customs and Border Protection said it did not have any information on the number detained drivers. CBP is part of Homeland Security and does not share this information.
Some drivers are afraid to work
Some 'drivers' have been discouraged to work because their colleagues are swept away.
Attorneys advise drivers with valid work permit to limit their travel or to stay off the roads to avoid being detained,? said Mannirmal Kaur senior federal policy manager of the Sikh Coalition. The coalition estimates that there are approximately 150,000 Sikhs drivers in the U.S.
A California independent long-haul trucker who asked to remain anonymous for fear of repercussions said that increased enforcement has led him to stop driving outside his state.
"We can't go because we are afraid of ICE," he stated, referring specifically to U.S. Immigration and Customs Enforcement (ICE), which is overseen by the Department of Homeland Security.
Armellini, who is based in Florida, said that he supports efforts to remove unsafe or unqualified motorists from the road. He also believes he stands to gain from the crackdown on regulations. His company, which has about 150 trucks in the U.S. and operates all over the country, hasn't lost any drivers as a result of the crackdown.
He said that he received a number of calls from California shippers asking us to transport loads to Florida because many of their carriers would not go to Florida any longer.
(source: Reuters)