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Kuehne+Nagel's boss does not see a return to normal Mideast Shipping
Kuehne+Nagel CEO, Kuehne, said on Thursday that a return to normal shipping operations in the Middle East was unlikely in the near future, as little improvement had been seen along the main trade routes. Stefan Paul said that despite the fact that there are still some restrictions in the Strait of Hormuz and that carriers continue to avoid the Suez Canal to a certain extent, ships will continue to be routed around Cape of Good Hope, at the southern tip of Africa. He said, "Nothing fundamentally has changed since the past couple of weeks." The CEO's remarks underscore the fact that despite some tentative signs of recovery,?the industry is still far from returning to normal. Hapag-Lloyd, Maersk and other container carriers announced earlier in July that they would resume some trips through the Suez Canal. Paul said, "I doubt that this will happen." Since years, Middle East security issues have reshaped global supply chains. The Red Sea is a major shipping corridor in the world, and the Suez Canal handles about 12% global trade. It's a vital route for container ships, energy products, and industrial supplies. The repeated attacks of Iranian-aligned Houthi terrorists since late 2023 have prompted many shipping companies to reroute their ships around Africa. This has added about 10 days to Asia to Europe voyages and increased costs. These disruptions have led to shipping and logistics companies imposing emergency fuel surcharges. The French shipping company CMA CGM is among the most recent to do so. Paul stated that fuel surcharges for air freight, ocean cargo and road transportation would continue to be in place. Reporting by Anastasiia Kozolova and Amir Orusov; editing by Milla Nissi-Prussak
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QatarEnergy extends LNG Force Majeure and charters out tankers until October, sources claim
QatarEnergy extended force majeure for liquefied natural gas (LNG), and continued to lease some of its LNG tanks through mid-October. This signals that trade sources expect export disruptions will continue as long as the Strait o fHormuz remains closed. QatarEnergy has been forced by the Iran war, which is a major cause of LNG exports, to close liquefaction tracks, declare force majeure for deliveries, and suspend exports. The renewed Iranian attacks on tankers that transit the Strait this month have lowered expectations for a return of pre-war LNG flows. Qatar is responsible for about a fifth (or more) of the global LNG trade. A prolonged outage could cause a shortage and increase prices. The key Asian buyers as we head into the winter in the Northern Hemisphere. QatarEnergy, according to three trade sources, has extended force majeure for LNG deliveries to South Korea and India. One source said that notices which were due to expire between August and September have now been extended to mid-September. QatarEnergy is expected to extend its force majeure until at least October, according to two?other sources. All sources refused to be identified because they weren't authorised to talk to the media. QatarEnergy didn't immediately respond to an inquiry for comment. TANKERS AVAILABLE FOR RENT THROUGH MID OCTOBER Two shipbrokers report that QatarEnergy's entities QatarEnergy LNG Marketing and QatarEnergy Trading continue to lease some of their LNG tanks through October. QatarEnergy may have chartered only a few vessels out of its fleet?of almost 70 LNG carriers. However, sources in the trade said that the move could indicate a long-term disruption?because the vessels were leased under spot deals lasting 30 to 90 day. According to recent fixture reports, nine QELM/QET LNG carriers were sub-chartered by third parties, including Chevron, BP, EnBW (twice), Kansai SOCAR LMCS Trafigura, EnBW Cheniere Kansai SOCAR and Trafigura, said Ikram Eloumi. She said that the vessels were leased despite falling freight rates in a market for LNG freight that is rapidly deteriorating. She said that Qatar's willingness to fix ships as rates dropped suggests the country is prioritising fleet usage over waiting for market recovery. (Reporting from Marwa Rashad and Emily Chow, both in London; editing by Susan Fenton).
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Crimea brings public street phones back for emergency calls
The Russian-controlled Crimea installed street 'phones to make emergency calls to police and ambulance services. This is an alternative to mobile communications that are frequently 'jammed due to frequent Ukrainian attacks. Ukraine has struck supply lines, bases, and power plants located in Crimea. Crimea was captured by Russia in 2014 and annexed unofficially. Ukraine, under constant Russian missile and drone attacks, claims it's trying to isolate Crimea from Moscow and undermine its?war effort. Local authorities in Crimea reported that 17 civilians had been injured by a 'overnight drone strike on the southern city Yalta. A high-rise apartment was targeted. Both Russia and Ukraine claim they do not deliberately target civilians. Yevpatoriya, on Crimea's West coast, has installed phones throughout the city to call emergency services. Witnesses have reported seeing several of these phones throughout the city. Maria Ushakova, local resident, said that if the phones work in power outages, they are a good option for additional protection. The popular holiday destination of Crimea has suffered from power outages, fuel shortages and oil refineries that were targeted by Ukrainian drones. It has had to cancel summer camps for children and cut back on the hours that cafes and public transportation operate. Mark Trevelyan, Christian Schmollinger and Mark Trevelyan are responsible for the reporting.
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EasyJet CEO: Once the takeover is formalised, EasyJet will adhere to EU regulations
EasyJet will contact the regulators in the European Union over ownership regulations as soon as the 'British carrier' has received a formal offer from one of its potential suitors. CEO Kenton Jarvis responded to the report on Thursday. Reports on Wednesday said that the EU could tighten airline ownership regulations, which would potentially complicate easyJet's takeover. Both of easyJet’s bidders, Apollo and Castlelake, are based in the United States. The airline has chosen Apollo's PS5.7billion ($7.6billion) bid over Castlelake's?lower offer. Jarvis explained that the board would consider both value and deliverability in evaluating any 'offer. Deliverability includes, for example, being an ally of Europe and being regulated as such." Jarvis added that easyJet,?Apollo and regulators will likely work "hand-in hand".
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Sources say that Kazakhstan's oil production plummets following drone attacks which forced the exporting terminal to close.
Two industry sources reported on Thursday that oil production in Kazakhstan has decreased?since?the closure?of a Black Sea Terminal, which serves as a main outlet for the nation's crude shipments. The terminal was also recently targeted by drone strikes. Tengiz, Kazakhstan's biggest oilfield, is the field where the decline was most pronounced. Sources claim that the production there has more than halved to 406,000 barrels a day on Wednesday, from an average of 925,000 bpd in July. According to a source, the average oil and gas condensate production in Kazakhstan fell on Wednesday from 2.07 million bpd to 1.63 millions bpd. Chevron's and Kazakhstan's Energy Ministry did not immediately respond to requests for comments. After suspending loadings Monday, the Caspian Pipeline Consortium has stopped receiving oil from Kazakhstan due to attacks against oil tankers at their Black Sea?terminal. CPC, the company that accounts for over 80% of Kazakhstan's oil exports, had suspended loadings at this outlet earlier. Russia accused Ukraine of targeting CPC tankers in its "ambition" to further destabilise global oil markets. Ukraine has not made any comments on the attacks, despite a recent escalation in its attacks on Russia's infrastructure for energy. The suspension of loads from the CPC pipeline, which exports 2% of the 'global' oil, is a further concern for the 'global? oil market, as the war in Iran already has disrupted the supply from Saudi Arabia, and other Gulf producers. (Reporting and Editing by Alexandra Hudson, Louise Heavens).
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Minister: Shipowners stop vessel calls for exports of farm products at Ukraine's Black Sea ports
The country's Agriculture Minister said that shipowners temporarily halted vessel arrivals in?Ukraine?s Black Sea ports?for agricultural exports?after a recent surge?in russian attacks against ports and merchant ships? According to traders and analysts, the Russian drone and missile attacks have caused Ukraine to lose about a third its ability to export grain through Black Sea ports. "As from today, entry of ships is suspended. The shipowners made this decision. Ukraine as a country has not imposed restrictions," Interfax Ukraine quoted Taras Vysotskyi on Wednesday. Interfax-Ukraine reported that Vysotskyi also added that alternative routes as well as infrastructure are currently underutilised. Since 2023, Ukraine has been exporting a large amount of grain via its Black Sea shipping route. This is because Russia reneged on a deal which had guaranteed "safe passage" for agricultural exports following its invasion of Ukraine in 2022. In recent weeks, Russian?attacks? on Ukraine's deepwater port?and international ships have increased. Brokers say that shipowners refuse to enter Ukrainian port due to the sharply increased concerns about war risks, and traders have stopped purchases. Ukrainian authorities reported that a Russian missile attack on a ship transporting corn near Odesa, Ukraine on Sunday resulted in the deaths of nine crew members from India, Syria and one Ukrainian maritime pilot. UKRAINE REQUESTS URGENTE? A SECURITY CONSULTAN MEETING Andrii Sybiha said that the Russians have attacked at least three civilian cargo vessels in recent days. Today, no vessels crossed Ukraine's Black Sea Maritime Corridor - just as harvest was at its peak. Sybiha wrote in a X post that this was a deliberate act of economic and humanitarian terror. Ukraine had also requested an urgent 'United Nations Security Council Meeting for Monday. Moscow claims it is targeting port infrastructure and vessels that are supporting the Ukrainian military. Ukraine also intensifies its attacks on vessels in?the Black Sea and the Sea of Azov, as part of a broader?campaign to isolate Russia-occupied Crimea while undermining Moscow's main revenue sources. Russia banned vessel movements into and out of Novorossiysk, its largest port in terms of volume, which handles about a third of the country's grain exports, on Wednesday. (Reporting and editing by Emelia Sithole Matarise; Anna Pruchnicka)
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EasyJet's Q3 profits lower as Iran War raises costs
EasyJet, the target of a takeover, reported a PS85million ($113.8million) profit in its 'third quarter' on Thursday. This was a significant drop from a year earlier due to disruptions caused by Iran war, but said that consumer confidence is increasing as we enter 'peak summer season. The British budget airline, which has backed U.S. investor firm Apollo's PS5.7billion?takeover?offer over Castlelake's?repeated?approaches, stated that there was a strong demand for bookings made late in the month before departure, throughout the entire quarter. It also said it had 68% of its seats sold during the fourth quarter. The 'five-month war' has a dreary effect on the travel industry, as its quarterly earnings are a far cry from the PS286million profit it logged last year.
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New York Times Business News - July 23,
These are the 'top stories' from?the New York Times?business?pages. The?New York Times has not verified the accuracy of these stories. The Florida teenager who sued Meta for claiming that the company's social media apps caused his depression and anxiety dropped his lawsuit. Sony Pictures Entertainment announced that it will reopen the Cinerama Dome, Hollywood by 2028 after a renovation. This was in response to a growing demand from younger audiences for premium movie experiences. Three U.S. Airports are the first to adopt the new "private screening" model of the Transportation Security Administration, despite the staunch opposition from the union representing thousands of T.S.A. workers. workers. - ?U.S. Trade Representative Jamieson Greer said to Congress on Wednesday, that there was a "national emergency" in trade and that the administration was still determined to use tariffs as a tool for economic transformation.
-Ancora demands U.S. Steel Board records and escalates proxy battle
Ancora Holdings, an activist investor, is requesting access to documents from U.S. Steel. This includes board minutes and financial documents. The letter was seen by, which reveals that the investor has intensified its campaign to replace certain board members of U.S. Steel as well as its chief executive. Ancora launched a boardroom battle against U.S. Steel last month, as the iconic American firm fought in court to save a planned merger between Japan's Nippon Steel. The company wants the U.S. Court of Appeals overturn the order of former U.S. president Joe Biden that blocked the merger citing national-security concerns. U.S. Steel said that it would have to lay off workers and close factories if the deal was canceled.
Ancora’s decision to issue a “books and records” request demonstrates how the activist uses one of the available legal tools to win a potentially bitter battle in the boardroom.
Ancora sent Megan Bombick Associate General Counsel Securities & Corporate Secretary, U.S. Steel, a letter in which it said that U.S. Steel should investigate "potential wrongdoing" relating to "the futile (lawsuit of) the company and "the unusual (trading plan) of the CEO (David Burritt).
Ancora, according to the letter is seeking information to determine if the board violated their fiduciary duty by filing the suit and whether Burritt “tried to trade on material information that was not public.” U.S. Steel described Ancora's letter as a "distraction" that repeated its baseless allegations. A representative of the company said that the board has "been and remains unwavering" in its commitment to act in the best interest of all stakeholders including stockholders. U.S. Steel would review the request and respond "in accordance with applicable law and regulations."
Investor currently holds less than 1% of U.S. Steel, which is approximately 500,000 shares. However, it has stated that they plan to significantly increase their position. The market value of the company, once the largest steel producer in the world, is $8.7 billion. Ancora will hold a conference call with investors to discuss the campaign on Wednesday at 10 am.
Ancora, a group of activists, nominated nine candidates for the 12-member board of U.S. Steel last month, including a senior executive who might replace the CEO. The activist wants the company also to drop its lawsuit asking a federal appellate court to overturn Biden’s decision to cancel the $14.9 billion transaction.
Ancora, in a letter to U.S. Steel, argued that by pursuing this lawsuit, U.S. Steel hurts shareholders. It also stated it wanted management and the board of directors to focus on fixing the company.
The letter stated that "By continuing to litigate (the Petition for Review), the Board wastes time and resources in their desperate hope that the Merger will bring them significant personal benefit."
According to a letter, Ancora gave the company until the 24th of February to provide typically confidential documents relating to the proposed merger between Nippon and Burritt Trading Plan.
It is looking into whether the directors and officers "breached the fiduciary duty to the company and stockholders". They also want to know more about Burritt trading U.S. Steel shares "in relation with merger discussions", and how he made use of his 10b5-1 predetermined plan, which allows insiders the ability to sell their stock. Donald Trump, the U.S. president, said earlier this month that Nippon would make a bid in the form of a sale instead of an investment. A Japanese government spokeswoman said earlier this month that Nippon was considering a radical change from its previous plan of trying to buy U.S. Steel. Prime Minister Shigeru ishiba also called the decision to stop the deal as "unjustified political interference."
Ancora already identified Alan Kestenbaum as the ideal replacement for Burritt. Kestenbaum was previously the CEO of Canadian steel firm Stelco. Stelco, a Canadian steel company, was acquired by Cleveland-Cliffs in the past year.
The date of the company's annual meeting has yet to be set. Last year, it was held on 30 April.
Ancora has won board seats at a number big companies. Earlier this year, Norfolk Southern shareholders elected Ancora nominees to three board seats. Norfolk Southern promised to work with Ancora in order to find a new director, to avoid a fight with the company. (Reporting and editing by Aurora Ellis, Chizu Nomiyama, and Svea Herbst Bayliss)
(source: Reuters)