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Iranian oil continues to flow through the Strait of Hormuz, even as Gulf neighboring countries' exports are shut
A review of tanker-tracking data revealed that Iranian crude oil has 'continued to flow through Strait of Hormuz with a near-normal rate, even though attacks by Tehran on ships in this narrow strait have decimated the exports of other Gulf countries. According to an analysis by TankerTrackers.com a maritime intelligence firm that specializes tracking shadow fleets, a network used to transport oil from countries under Western sanctions, Iran has exported about?13.7 millions barrels of crude since Israel and the U.S. attacked the country on 28 February. Kpler, a vessel tracking service, estimated Iranian exports for the first 11 of March at around 16.5 million barrels. Iran's response to the Israeli-U.S. attacks included strikes on energy infrastructure in?the Middle East and ships in the Strait of Hormuz, which brought non-Iranian vessels transiting through the main gateway of Middle Eastern oil imports to a standstill. This forced producers in the area to reduce output. Iran's ability to continue exporting oil with no reported interceptions is in stark contrast to the U.S. military campaign in Venezuela which included a naval blocade and seizure of vessels attempting to enter Venezuelan waters. David Tannenbaum of Blackstone Compliance Services, a consulting firm, said that he was surprised by the U.S.'s failure to launch a similar campaign before starting this conflict or at this time, after their successful seizure of Venezuela-related ships in December. Matias togni, Next Barrel Oil and Shipping analyst, said that the U.S.'s efforts to stop Iran linked tankers could lead to more attacks against vessels passing through?the Strait of Hormuz. James Lightbourn is the founder and shipping financier of Cavalier Ship, a maritime investment and advisory firm. Lightbourn stated that if the U.S. seizes tankers it would be less of a loss to Iran if the strait was closed completely (for example, with mines). The White House of U.S. president Donald Trump did not respond immediately to a question about whether Washington intends to take any action against Iranian oil exports. IRANIAN EXPORTS ARE COMING AT A SAME RATE AS LAST YEAR TankerTracker.com data and?Kpler indicate that Iran's crude exports range between 1.1 and 1.5 million barrels of oil per day from February 28 to March 11, according to the data. Kpler data shows that the country exported 1.69 million barrels per day on average last year. The pace may pick up in days to come. According to a review of satellite images by TankerTrackers.com, multiple very large crude carriers - the largest oil vessels currently in service - are still loading oil on Iran's Kharg Island. Kpler data shows that Iran increased its exports in anticipation of Israeli and U.S. military action prior to the 28th February strikes. Data showed that Iran exported oil at a record 3.79 million barrels per day in the week of February 16. According to an analysis by Kpler & Lloyd's List Intelligence, six crude oil tankers left Iran between February 28 and March 1, including the U.S. sanctioned vessel Cuma which sailed this week. According to earlier reports, two liquefied gas tankers also subject to U.S. sanctioned departed Iran on Friday after loading their cargoes. A separate analysis revealed that at least 11 million barrels?of?crude crude oil were shipped out of Iran. Four?supertankers, which left Iran with 8 million barrels, arrived in the waters near?Singapore. The vessels are sailing in the same pattern within Iran's exclusive zone economic, which extends to up to 24 nautical miles beyond the local territorial limit of 12 nautical mile. Shipping sources say that this is seen as a way to protect the vessels by keeping them in Iranian waters. Reporting by Shariq KHan in New York, Jonathan Saul, Enes Tunagur and Arathy SOMASEKHAR in Houston, with editing by David Gregorio.
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MSC, a shipper, secures a 45-year concession at the Lagos port with Nigerdock
The Swiss-based shipping company, 'MSC,' has signed a 45 year?concession contract with Nigerian maritime firm Nigerdock to develop, operate and maintain a new container terminal in the Snake Island Port of Lagos. The MSC terminal will be part of a $1 billion investment in infrastructure and logistics that the company has announced in Nigeria. As supply chains change around the world, global shipping companies are attempting to establish long-term footholds on emerging markets. Nigeria, Africa's biggest economy, struggles with chronic congestion in Lagos' ports. MSC said the terminal, which will be built by ITB Nigeria & DEME Group is expected to be completed by 2028. The terminal will cover 30 hectares (74 acre) and include a 910 metre (3000 ft) quay that can handle ship-to shore cranes as well as mobile harbour cranes. It is expected to be ready by 2028. The new terminal will "open up opportunities and enhance efficiency" while elevating Snake Island Port to a major global shipping hub, said MSC President Diego Aponte. Snake Island Port, an '85-hectare facility, is operated by Nigerdock a maritime and logistics company. It consists of three terminals that serve the Lagos port complex. (Reporting and editing by Edmund Klamann; Isaac Anyaogu)
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Oman tries to control fires at Salalah Port after drones strike
Oman’s civil defence is working to contain a fire in 'fuel tanks' at the country's Salalah Port, Oman’s state news agency announced on Wednesday. Drones had struck oil storage areas at the port. Citing Oman's Civil Defence, the state news agency said that it "might" take some time to contain the fire, without giving any further details. Oman's State TV reported earlier on Wednesday that drones had struck fuel tanks "in the port". Oman's official news agency, citing the energy ministry, said that there had been no interruption to oil supplies in the country. Ambrey, a British maritime security company, reported that oil storage tanks were "struck" in the Omani port on Wednesday. Ambrey reported that no damage was done to any merchant vessels. Maersk announced on Wednesday that operations in the Port of Salalah, Oman, have been suspended until further notice. Iranian media reported that Masoud Pezeshkian, the president of Iran, told Oman's Sultan in a telephone call that an investigation would be conducted into the incident at Salalah Port. Oman's official news agency published a readout of the phone call between the two leaders. The sultan of Oman expressed his displeasure and condemned attacks against Oman without mentioning the attack on Omani 'port. The video circulated on social media confirmed that the location was Salalah port?in Raysut.
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Appeals court rules that Trump must pay for New York tunnel payments
After a 'court of appeals' ruled against the Trump administration on Wednesday, the U.S. will have to continue paying for the $16 billion New York Hudson Tunnel. The Hudson Tunnel Project will build a new commuter train tunnel between Manhattan and New Jersey, and repair an existing tunnel that is used daily by over 200,000 people and 425 trains. The existing tunnel was heavily damaged by hurricane Sandy in '2012 and requires frequent emergency repairs. This disrupts travel on America's busiest passenger rail line. The 2nd U.S. Circuit Court of Appeals has a three-judge panel. The Appeals Court of the Circuit ruled that if the temporary restraining orders were overturned pending appeal, then the U.S. Transportation Department could suspend payments in the future and tunnel construction sites would become inactive. This, they said, would pose a serious risk of injury and deterioration, which the states will be responsible for preventing at great expense. The Justice Department asked the U.S. district judge Jeannette Vargas to put her decision on hold until the Justice Department appealed. Construction halted in February, but was resumed in October after the Trump administration released funding of $235 million that it had withheld since October 1. The U.S. Transportation Department has not yet commented on the decision. (Reporting and editing by Chris Sanders; David Shepardson, reporting)
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As conflict risks increase, sea drones are targeting oil tankers in the Middle East.
According to maritime authorities and analysts, naval drones were used in at least two attacks against oil tankers in Gulf region after war broke out between the U.S.?Israel, and Iran. This is a new dangerous threat for the 'key' shipping lane. Ukraine's use of unmanned surface ships armed with explosives in its war against Russia is now being used by Iran to stop oil shipments transiting the Strait of Hormuz. This crucial strait accounts for a fifth of all the world's crude oil. British maritime agency reported that the first sea-based drone strike occurred on March 1, when an oil tanker named MKD VYOM was struck about 44 nautical mile off Oman and one crew member was killed. In a public announcement, the United Kingdom Maritime Trade Operations agency (UKMTO), said that an unmanned surface vessel had struck a tanker flying the flag of the Marshall Islands 'just above the waterline. This caused an explosion and fire to start in the engine room. Sonangol Marine Services, the U.S. representative of Sonangol, reported that a small vessel hit the Bahamas flagged crude oil tanker Sonangol Namibe as it was anchored near Iraq's Khor al Zubair Port. Sonangol Marine Services, the U.S. representative company, said that all 23 crew members of the tanker were safe. They did not elaborate on what type of vessel struck it, citing a continuing investigation. Online footage shows a speedboat-shaped object racing towards the side of the ship, before slamming it into it. The explosion sent thick plumes of smoke into the sky. According to two UK-based experts, Sidharth kaushal, research fellow at RUSI think tank, and Robert Peters, of maritime security company Ambrey, the vessel in this video appears to have been a drone that exploded upon impact. SEA DRONES CAN IMMOBILIZE SHIPPING Peters believes Iran is responsible for the Sonangol Namibe attacks, noting that Tehran previously displayed its naval drone capability at military demonstrations. Peters cited the timing of the attack. According to Iran's semiofficial Mehr news agency, the Iranian Islamic Revolutionary Guard Corps claimed to have set ablaze an American oil tanker that was in the northern Persian Gulf. Mehr reported that the IRGC claimed "missiles were used" in this attack. Iran said that the world must be prepared for oil priced at $200 per barrel after its forces smashed into merchant ships on Wednesday. Shipping through the Strait has also come to a standstill. It was not possible to determine the identity of those responsible for these two attacks. The Iranian Mission to the UN in New York did not immediately respond to an inquiry for comment. Peters says that if Iran's involvement in the attack is confirmed, this would be the first time the Islamic Republic has used naval drones directly to target commercial vessels. Houthi militants in Yemen, who are aligned with Iran, have used drone boats to attack 'commercial ships' in the Red Sea. Peters stated that'sea drones could carry more explosives than those used in aerial drones, possibly equaling the payloads of ballistic missiles. Sea drones, he explained, can "immobilize" ships if they strike the right spot. While aerial drones are capable of killing crew members above them from above. If your ship is incapacitated, you're highly vulnerable if someone wants to follow up. (Reporting and editing by Joe Brock, David Gaffen and David Jeans; Additional reporting by Cassell Bryn-Low from London; Additional reporting by David Jeans from New York)
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Sources claim that Iran has planted about 12 mines along the Strait of Hormuz.
Two sources familiar with the issue said that Iran had deployed about a dozen mines in the Strait of Hormuz. This move was 'likely' to complicate the reopening of this narrow waterway. It is an important route for shipping liquefied gas and oil. The 'war' launched by Israel and the United States 12 days ago has effectively halted the exports of LNG and oil through the strategic chokepoint on the Iranian coast, which is helping to?drive up world energy prices. Iran's military leadership said on Wednesday that the world should prepare for oil prices to reach $200 per barrel. According to one source, the mines had been?deployed in the past few days and most of their locations were known. The source refused to reveal how the U.S. intended to deal with these mines. CNN reported on the mining of the Strait for the first time Tuesday. Iran has threatened for years to mine the Strait in retaliation against any military attack. The strait is normally the route of a fifth of the world's oil and LNG. Tehran has the ability to block shipping in the channel, giving it a huge advantage over the U.S. The U.S. military says it has eliminated 16 Iranian mine-laying vessels on Tuesday. The?U.S. The?U.S. Navy has declined to provide 'protective escorts for commercial ships through this strait. Donald Trump, the U.S. president, demanded on Tuesday that Iran remove all mines deployed in the Strait of Hormuz. He also warned it could face military consequences. (Reporting and editing by Jonathan Landay, Erin Banco and Timothy Heritage).
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Canada seeks ways to boost oil production in order to reduce price spikes caused by the Iran war
Tim Hodgson, Minister of Natural Resources, said that Canada would look for ways to boost its crude production in order to stabilize oil prices globally as a result of the Iran War. Hodgson, a reporter in Ottawa, said that the Canadian government has been talking to oil producers in Canada about delaying planned maintenance at oil sands plants in order to temporarily boost output. The Canadian government is also urging refineries in Canada that use imported oil to switch to domestic oil in order to increase supply to other regions. The International Energy Agency agreed on Wednesday to release 400,000,000 barrels of oil. This is the largest move in the agency's history. It was made to curb the rise in crude prices caused by the supply shocks caused by the U.S. and Israel war with Iran. Canada, the fourth-largest oil producer in the world, is a member the IEA but it does not have its own strategic oil reserve as the country is a net oil exporter. Rory Johnston is the founder of Commodity Context, a newsletter that focuses on commodities. He said it's?highly unlikely? that Canada can make any difference in terms of global supply. Johnston stated, "Let's face it: Canada has nothing to do." Johnston explained that Canada's oil sands sites are not able to increase production overnight. Some companies may decide to delay maintenance plans this spring in order to take advantage of higher oil prices. However, Johnston said that they would only do so if the market dictated it, and not if government directives were given. Johnston stated that it is possible for a higher demand by Asian customers to result in more Canadian barrels being exported overseas via the Trans Mountain pipeline as opposed to moving to U.S. refinery destinations. He said that?would be helpful since the epicenter of supply loss is Asia. But if this happened, the decision would not have been made by the government, but rather based on the market. The Iran crisis may not have much impact on Canada in the near future, but it will increase calls for a new crude oil pipeline along the Pacific coast. This would allow Canada to expand its exports and provide the oil sands sector with the ability to plan long-term growth. Johnston stated that "there is not much we can do right now, but we can prepare more for the next crisis." Canada Energy Regulator estimates that Canada will produce 5.3 million barrels of crude oil per day on average by 2025. Reporting by Amanda Stephenson, Calgary; Editing and production by Caroline Stauffer & David Gregorio
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Maersk redistributing fuel to ships as Iran war disrupts supplies
Maersk, a container shipping company, said it was redistributing fuel on Wednesday to ensure that its vessels are supplied with fuel. The war in Iran has disrupted the storage and flow of marine fuel in the Middle East. Maersk also has 10 ships stuck in the Gulf. Maersk's spokesperson stated, "We are proactive in redistributing fuel so that vessels can continue to bunker wherever they need to and maintain our ocean network without interruptions." Bunkering, or refueling in the maritime industry, is what's called. A security firm and Oman TV reported that drones had struck oil storage in Salalah on Wednesday. Oman's official news agency, citing a ministry of energy official, stated that there was no disruption in the supply of oil or petroleum derivatives to the country. Maersk said separately that it halted all operations in the Port of?Salalah, on Wednesday, until further notice "in response to an ongoing incident near general cargo terminal." The company did not give any further details. In the United Arab Emirates, a drone intercepted by the UAE's military caused a fire to start in the Fujairah fueling station. The fire damaged the storage area and halted the operations. The U.S., Israel and other countries have intensified their attacks against Iran. This has led to hostilities which threaten one-fifth of world oil that is sailed out of the Strait of Hormuz via this region - the most important energy chokepoint on the planet. While the focus of attention is on the threat of 'attacks on oil tanks,' some of the 100 container ships stranded in the gulf have been attacked. Two maritime security companies said that the Japan-flagged ONE Majesty suffered minor damage from a projectile on Wednesday, 25 nautical miles (46km) northwest of 'Ras Al Khaimah, in the UAE. Its Japanese owner ?Mitsui O.S.K. A spokesperson for Ocean Network Express, its charterer and Lines said that the vessel suffered minor damage above waterline after being struck by a ship while at anchor. The ONE spokesperson reported that all crew members were accounted for. Hapag-Lloyd of Germany, Maersk’s alliance partner in the Strait of Hormuz has a “single-digit” number, according to a spokesperson. MSC, world's biggest container carrier, didn't immediately respond to comments.
Costco customers seek refunds for Trump tariffs
Costco Wholesale has been sued in a nationwide class action on Wednesday, seeking refunds to U.S. 'customers for higher prices charged.
A Costco shopper filed a lawsuit in federal court, Illinois, seeking a declaration that any refunds received by the company for tariffs paid under the International 'Emergency Economic powers Act (IEEPA) must be returned to the customers.
The Supreme Court ruled that Trump overstepped his authority when he used the emergency powers act to impose tariffs on a large scale last year. The order has set up a sprawling litigation at the U.S. Court of International Trade where more than 2,000 companies are suing the Administration to recover duties that they paid.
FedEx, a global shipper, is currently facing a consumer class action that was filed last month in a federal court in Florida.
Costco didn't immediately respond to an inquiry for comment. Matthew Stockov's lawyer did not respond immediately to a question for comment.
The complaint stated that "this lawsuit seeks prevent Costco, third largest retailer in the World, from a double recovery." Costco has not committed to refund any part of the anticipated 'tariff refunds' to the consumers who incurred those costs.
Costco CEO Ron Vachris said to analysts last week it was still unclear if and when businesses would receive a refund for the IEEPA tariffs that they had previously paid. He said that if Costco receives refunds, it will use them to lower prices and improve value for shoppers.
The lawsuit filed on Wednesday claimed that the company had only promised "a potential future benefit to a group of future customers indeterminate." (Reporting and editing by David Bario, Aurora Ellis and Mike Scarcella)
(source: Reuters)