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The trucking industry is stuck in a slump for years because of the rising US diesel prices
U.S. 'diesel' prices have risen by 50% due to the U.S. - Israel war on Iran, which has delayed a much-needed turnaround in the trucking industry and squeezed?cash flows?and profits of independent big-rig operators. According to the American Automobile Association's data, the national average price for diesel fuel reached $5.38 a gallon on Saturday. This is up from $3.61 per gallon a year ago and not too far from the highest price recorded of $5.82 per gallon in June 2022. This was almost four months after Russia's invasion of Ukraine. California, home to the busiest container ports in the U.S., and the state with the highest population, saw its diesel prices hit an all-time high of $7.17 per gallons on Friday. According to AAA, the diesel price in Washington State also reached a record high of $6.55 a gallon. Transportation is at the forefront of the historic energy disruption traced to Iran's chokehold over the Strait of Hormuz. This narrow stretch of water off its southern coast normally carries one-fifth of all oil and natural gas liquefied in the world. The U.S. is well-supplied with diesel but prices have risen because oil is traded on a global scale. The small carriers are really being squeezed because they can't negotiate higher rates, as demand is flat, said Dean Croke. He was referring to the U.S. Trucking Industry's four-year slump. Independent truckers are often paid a rate per load that includes fuel, and have less leverage to negotiate more money when diesel costs soar. Surcharges are used by large contract trucking companies like FedEx, JB Hunt, and CH Robinson to recover higher fuel costs. These big players can also hedge fuel risks and leverage their size to negotiate lower rates. FedEx and analysts say that customers have not resisted diesel prices yet. Experts say that truckers often pay their fuel bills shortly after purchasing them, while customers have to wait 30 days or longer before they can pay for transport. This creates a financial crunch. The off-contract rates are still about 25% higher compared to a year ago due to the thousands of drivers who have left the industry. "That is the cushion," Croke said. If these rates were not higher than last, it would be a catastrophe. The people would be screaming as they did in 2022 when diesel reached a record-high that summer. (Reporting and editing by David Gregorio; Lisa Baertlein)
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DHS pays 50,000 airport workers in the US as part of emergency measures
The U.S. Homeland Security Department of the United States announced on Friday that it would take emergency measures to pay 50,000 airport security officers who had not been paid since mid-February. Work absences caused chaos and long security lines at?U.S. airports. "(The Transportation Security Administration has) immediately begun?the process?of paying its workforce. DHS stated that TSA officers could start receiving their paychecks as soon as Monday. On Thursday, President Donald Trump announced that he would pay TSA employees. He then issued a memorandum directing payments to be made on Friday. TSA announced earlier Friday that nearly 14% of airport security agents did not show up to work on Thursday. This is the highest number since mid-February. On Thursday and Friday, major disruptions were reported, including long airport security lines. The TSA reported that more than 3,450 agents did not report to work on Thursday. This included more than a third of the officers at JFK in New York, and airports located in Baltimore, Houston, and Atlanta. TSA reported that airports in all parts of the country had lines of four hours or longer - the longest lines it has ever seen. Airlines warned that lines and absences could increase this weekend without concrete information on the payment of TSA officers. Since February, nearly 500 airport security personnel have quit their jobs. It's unclear how long funding will last, or if Trump would use the funds for Homeland Security Department that were approved last year in a massive tax-and-spending bill. Democrats in Congress are refusing to fund the?DHS and demanding changes in its immigration rules after agents in Minneapolis "shot and killed" U.S. citizens Renee Good, Alex Pretti. Citizens Renee Good, and Alex Pretti. The Republican leadership in the U.S. House of Representatives rejected on Friday a bipartisan compromise from the Senate to end the six-week funding deadlock for DHS. The Congressional Democrats proposed funding TSA separately, while negotiating reforms to the way Immigration and Customs Enforcement (ICE) agents work. The TSA reiterated Wednesday that it could be forced to close smaller airports, if staffing problems worsened. The airports are dealing with an increase in school-break travel volume of about 5% compared to last year. On Monday, hundreds of U.S. Immigration agents and Homeland Security Investigations (HSI) officers were deployed at 14 U.S. Airports to assist with security screening. (Reporting and editing by Chris Reese, Edmund Klamann, and David Shepardson)
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The chair of the US House Transportation panel will not run for re-election
The veteran Republican U.S. legislator?Sam?Graves said Friday that he would not run for re-election in this year. He joins more than 50 incumbents who have left the chamber. Graves has been representing a Missouri congressional district since 2001. The Republican colleagues of President Donald Trump are trying to keep their narrow majority in the House and Senate during the midterm elections in November. According to a House count, 57 House members - 36 Republicans & 21 Democrats – have declared they won't run for reelection. Graves has been a leading legislator in aviation issues, including the safety legislation the House unanimously passed on Thursday following the mid-air collision that occurred between a regional American Airlines jet and a Black 'Hawk Army helicopter last year that resulted in the deaths of 67 people. The congressman is working on a five year reauthorization for highway spending. This legislation could be delayed until the midterm elections. Graves, a member of the U.S. Senate, said this month that he supports a fee on electric vehicle owners to pay for highway repairs in the U.S. The majority of federally-funded?road repair revenue is collected by diesel and gasoline tax, but EVs don't use these fuels. The House Republicans proposed a new annual fee of $250 for owners of EVs, and $100 hybrid EVs. However, it was not included within the'massive tax bill and spending bill approved by Congress. Graves co-authored legislation that Congress passed in 2020 to increase U.S. Air Traffic Controller staffing. It also increased funding to prevent runway close-calls and speed up refunds on canceled flights. The 2024 FAA reauthorization measures prohibit airlines from charging fees for families to travel together. They also require airplanes to have cockpit recording devices that record for 25 hours. Maximum civil penalties for airline consumer violation are increased from $25,000 to $75,000, and aircraft production is scrutinized more closely.
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UN Aviation Agency limits the use of power banks on flights to two per passenger
As part of the new rules for using these 'devices in the air,' the United Nations Aviation Agency has announced that the use of portable, rechargeable battery packs, or power banks, will be limited to only two per passenger. The International Civil Aviation Organization (ICAO)?issued a?statement that passengers will be prohibited from charging their?power banks? during flights. After incidents such as the fire that occurred on Air Busan's plane in 2025, airlines like the Lufthansa Group and countries like South Korea have already introduced restrictions on power banks. Federal Aviation Administration was not immediately available for comment. The Federal Aviation Administration was not immediately available to comment. The Montreal-based ICAO usually sets global standards 'for aviation, which are mostly 'approved by its 193 member states. However, the new specifications relating to power banks are effective immediately. Reporting by Allison Lampert and David Shepardson, both in Montreal; editing by Chizu Nomiyama
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Train 5 of Cheniere Energy in Texas is operating at maximum capacity
The company announced on Friday that Train 5 of the Corpus Christi Liquefied Natural Gas expansion project, operated by Cheniere Energy, is now at full capacity. Train 5 is a part of the seven-train development that will add 10 million tons of export capacity per year to Corpus Christi LNG in Texas. According to documents from the company, this new unit is expected to increase output by a little under 1.5 million tonnes per year. LNG trains are units that cool natural gas to a super-cooled, liquid form for export. The global LNG supply is currently being hamstrung by Iran's attack on Qatar's facilities, which are one of the largest producers of this fuel. Cheniere says that contractor Bechtel has handed over the operation of Train 5 to Cheniere on Friday. LSEG data shows that feedgas flows into Corpus Christi were near record levels on Friday. The facility received almost 2.5 billion cubic foot of gas. Jack Fusco, CEO of Cheniere Energy,?said at the CERAWeek conference on energy that Cheniere planned to?send?more cargoes? to Asia. The region is experiencing shortages due the attacks which shut down QatarEnergy’s LNG facilities. QatarEnergy?accounts about 20% of the global LNG supply?and warned that it could lose up to 17% of production for 'five years?after its sites were hit by an Iranian missile? Cheniere, America's largest LNG exporter, has said that it will work to complete the two remaining trains of the Corpus Christi Expansion as quickly as possible.
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EU and operators agree on tariffs to make the gas corridor more competitive
The European Commission and the natural gas grid operators of Bulgaria, Greece, Romania, Moldova and Ukraine agreed on Friday to tariffs for the corridor that carries gas from Greece to Ukraine, in an effort to increase competition and diversify supply. The Greek gas grid operator DESFA announced in a press release that operators and EU executive have agreed on 'tariffs which will be implemented from October and are in line with EU rules. Greece, Bulgaria Romania and Hungary have agreed to develop the necessary infrastructure in order to realise the so-called Vertical gas Corridor, which would allow bidirectional gas transmission between the countries. Ukraine and Moldova will join in 2024. The report said that "the agreed trade approach introduces a new tariff which makes the Vertical Corridor an extremely competitive and strategic energy corridor for Southeastern Europe and Central Europe in a time of particular importance for?the continent’s energy security". DESFA announced that the five natural gas operators would offer for the first time daily, monthly and quarterly capacity?products beginning with?the 2026-2027 Gas Year (October 2026). The statement stated that "for the transitional period, until the full implementation of the new product, the operators shall submit a request for the national regulatory authorities to prolong?the availability?of existing products?until the end of October 2026 to?support Ukraine's supply security during the period of transition." (Reporting and editing by Angeliki Koutantou, Ivana Skularac)
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France shares the U.S. goal of reopening the Hormuz Strait with its foreign minister
Jean-Noel Barrot, France's Foreign Minister, said Friday that the U.S. Secretary of State Marco?Rubio?suggested Washington's goal was to destroy Iran’s ballistic capability and that Paris had the same objective of restoring freedom of navigation in the Strait of Hormuz. Barrot, speaking on the sidelines of the G7 in France, said: "I will not speak for Marco Rubio, but I will happily refer to his 'public statements,' which correspond to our conversations today about the stated U.S. objectives. These include the neutralization Iran's missile capabilities. Barrot responded that France shares the same goals as the U.S. regarding the Hormuz region and that an escort for tankers will be necessary once the height of the 'hostilities' in the.region has passed. (Reporting and writing by John Irish, Gianluca Nostro, Editing by Sudip K. Gupta).
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Ship data indicates that a Russian-origin tanker headed for Cuba has arrived in Venezuelan waters
LSEG's ship monitoring data on Friday showed that a tanker?carrying about?200,000 barrels originally bound for Cuba, has arrived in Venezuelan water. After being stuck in the Atlantic Ocean, the Hong Kong-flagged ship Sea Horse rerouted to Venezuela earlier this month after spending weeks there. This is a major blow for an oil-hungry?island which has experienced several blackouts during this month. The Sea Horse's stranding at sea and its sudden change of course to Venezuela were not clear. Cuban government oil imports are being blocked by the administration of U.S. president Donald Trump, who is increasingly restricting fuel supplies for Cuba's private sector. This includes its usual suppliers Venezuela, Mexico, and Russia. The U.S. Blockade has worsened an energy crisis that has been affecting electricity generation in Cuba and fuel distribution, including cooking gas, jet fuel, gasoline and diesel. The Sea Horse was positioned between El Palito (Venezuela) and Puerto Cabello (Venezuela) on Friday. According to LSEG, it has not discharged any cargo. On Friday, another?Russian-origin shipment, aboard the U.S. sanctioned tanker Anatoly Kolodkin was en route to Cuba. The data also showed that the tanker could reach Cuban water by the weekend, if it doesn't reroute or slow its speed. The vessel left Russia's Primorsk Port with?about 650,000 barrels crude oil. Two vessels from Mexico that were scheduled to deliver humanitarian aid, such as medicines and energy-related products, to Cuba, failed to arrive at Havana on Thursday. Mexico's Navy said that there has been no confirmation or communication of their arrival.
UN creates mechanism to protect Hormuz trade against Iran war
The United Nations announced on Friday that it was establishing a taskforce to design a mechanism for keeping trade flowing through the Strait of Hormuz. They warned that disruptions due to the Iran War could lead worldwide food shortages and humanitarian crisis.
Stephane Dujarric, U.N. spokesperson, said: "Immediate actions are essential to mitigate these effects."
U.N. Under-Secretary-General Jorge Moreira da Silva, executive director ?of the United Nations Office for Project Services, will lead ?the project, Dujarric said.
He said that the task force envisioned would be inspired by other U.N. initiatives such as the Black Sea 'Grain Initiative for Ukraine' and the UN2720 Mechanism in Gaza.
Dujarric stated that the task force would be in contact with all relevant member states, to determine how it could be operationalized. "We hope all the member?states will support this initiative, especially in the interest of those... already impacted."
U.N. experts and others warn that disrupted fertilizer deliveries and rising energy prices are threatening to cause new 'food price surges' in countries vulnerable. This could lead to a setback of years, just as some were emerging from successive global shocks.
A report released last week by the U.N. World Food Programme warned that up to tens of millions more people will suffer from acute hunger if Iran's war continues until June. (Reporting and editing by Jasper Ward, Howard Goller, and David Brunnstrom)
(source: Reuters)