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Commuter train derails near Barcelona, driver dead, 20 injured
According to a Catalonia Regional Government source and several local media outlets, the commuter train derailment occurred on Tuesday after a containment?wall?fell onto the track due to heavy 'rain near the Spanish City of Barcelona. The driver was killed, while around 20 other people were injured. The accident occurred just two days after the high-speed collision and derailment that killed 42 people near Adamuz, in southern Cordoba Province. Emergency services officials said that twenty ambulances and 38 firefighter units were dispatched along with the site in Gelida, on the outskirts Barcelona. The suburban train derailed in a region that has been plagued with underfunded rail services, and many incidents. Spanish rail operator Adif reported on X that a train axle came off the track in a separate incident on Tuesday night. (Reporting from Joan Faus and Sergio Goncalves, Editing by Aislinn laing and Jamie Freed).
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United Airlines is optimistic about the strong demand for premium travel
United Airlines released a positive outlook on Tuesday for the current quarter as well as the entire year. This was boosted by a strong demand from high-income travelers and corporate travelers. Moreover, the Chicago-based airline also exceeded expectations in terms of profit for the quarter ending December. After-hours, its shares rose by about 4.3%. United's earnings reports highlights how U.S. Airlines are increasingly relying upon premium cabins, business travel, and loyalty programs to grow profits, even though competition and price-sensitive travelers continue to pressure economy class fares. This shift has allowed carriers to stabilize their revenue, offset rising costs and justify continuing investment in aircraft and upgrades of the cabins aimed at higher-yielding passengers. In a?statement, United CEO Scott Kirby stated that "our results are built upon winning more and brand-loyal consumers." United reported that premium revenue rose by 9% from the previous year's December quarter, while loyalty revenue grew by 10%. Delta Air Lines, the rival airline, announced 'last week that revenue from premium cabins surpassed revenue from main cabins for the first quarter. Growth in higher-end seats'more than offset the declines in economy seating. Atlanta-based airline Delta Air Lines has stated that nearly all its seat growth in the near future will come from premium cabins. Low-cost and ultra low-cost carriers that rely on price-sensitive tourists have been struggling with poor profitability and excess capacity. This has led to consolidation and retrenchment. Allegiant announced plans to purchase Sun Country Airlines. Spirit Airlines filed for bankruptcy. UNITED RECORDS RECORD REVENUE United Airlines said that, despite a $250 million drop in pre-tax earnings for the December quarter it had still achieved its highest revenue quarter ever and earned more per seat than any other quarter in the year. The airline said that this momentum will continue into 2026. It reported that the week ending on January 4, 2019 saw the highest revenue in the history of the airline from tickets flown, and a record-breaking week for ticket sales and bookings. United predicted a first-quarter adjusted income of $1 to $1.50 a share. According to LSEG, the midpoint of this range, $1.25 is higher than analysts' average estimates of $1.13. United's 2026 adjusted earnings are projected to be between $12 and $14 per share. This compares with the analysts' average estimate, which is $13.16. The adjusted earnings per share for the fourth quarter was $3.10, exceeding analysts' estimates of $2.94. Total revenue increased 4.8% to $15.4 Billion. The company will hold a conference call on Wednesday morning with analysts and investors to discuss its financial performance. (Reporting and editing by Rod Nickel, Jamie Freed and Rajesh Kumar Singh)
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The US military has seized another Venezuelan-linked tanker off the Caribbean coast
The U.S. Military said that it had seized an?oil tanker linked to Venezuela on Tuesday in Caribbean. This is the seventh apprehension of this kind since the start of U.S. president Donald Trump's campaign for a month to control Venezuelan oil flows. In a statement, the U.S. Southern Command, which oversees nearly a dozen ships and thousands of soldiers in the Caribbean, stated that it had apprehended Motor Vessel Sagitta without incident. The statement said: "The arrest of another tanker that was operating defying President Trump's quarantine established for?sanctioned ships in the Caribbean shows our determination to ensure that only oil leaving Venezuela is oil that has been?coordinated correctly and lawfully." Trump's foreign policy in Latin America has been focused on Venezuela. He initially wanted to remove Venezuelan President Nicolas Maduro. Trump, after failing to find a diplomatic resolution, ordered U.S. forces to fly into Venezuela to capture him and his spouse in a daring overnight raid on January 3, 2019. Trump said that the U.S. planned to control Venezuela's resources for oil indefinitely, as part of a $100 billion plan to rebuild Venezuela's decrepit oil industry. The vessels that have been intercepted previously were either under U.S. sanctions or were part of a shadow fleet of ships which disguised their origins in order to transport oil from major sanctioned producer -- Iran, Russia or Venezuela.
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Petrobras, Brazil's gas company, to purchase five tankers and multiple vessels worth $521 million
Petrobras, the state-owned oil company in Brazil, and its logistics subsidiary Transpetro signed contracts on Tuesday with shipyards to build 'five gas carriers, 18 barges, and 18 pushers for a total of 2.8 billion reals ($521million). At an event held in the southern state of Rio Grande do Sul, Brazil, the companies officially sealed their deal. The ceremony was attended by Brazilian President Luiz Inacio Lula Da Silva, who is committed to boosting Brazil's shipbuilding industry. Petrobras said that a shipyard in Rio do Grande do 'Sul would build five tankers worth 2.2 billion reals to transport liquefied gas (also known as cooking gas) and derivatives. The tankers have a total capacity of 14000 cubic meters. The?state-run company added that the first gas tanker will be delivered in 33 months from when construction starts, and new deliveries will occur every six months thereafter. Transpetro, a Brazilian company, will operate the remaining barges and shovels. Shipyards from two other Brazilian states are expected to build the rest. In a statement, Magda Chambriard, Petrobras' Chief Executive Officer said: "With these contracts we are preparing Petrobras to grow?our production over the next few years and boost the recovery of?the national shipbuilding industry." ($1 = 5,3761 reais). (Reporting and writing by Fernando Cardoso, Sao Paulo. Editing by Lisa Shumaker.)
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US Postal Service bids for last-mile delivery to increase revenue
The U.S. The U.S. Postal Service announced on Tuesday that it will launch an online platform for 'proposals to access its last-mile network. This would allow a wider range of customers to raise funds by opening up more than '18,000 destination delivery units nationwide and local processing centres to a broader audience. USPS had warned that it would run out of money as early as 2027. U.S. postmaster general David Steiner said last month he hoped Amazon.com, and other major retailers, would bid in the auction. Steiner stated that this could add millions of dollars to USPS's revenue. Amazon didn't immediately respond to a comment request on Tuesday. The US Postal Service delivers to over 170 million U.S. address six days a weeks, and the last mile is the most expensive part. The last mile can be very expensive for other companies such as FedEx, UPS, and Amazon. "We definitely?have a?precarious cash situation. Steiner stated in December that we would be out of money within 12-24 months. USPS currently sells about 1.7 billion capacity units from its last mile distribution. However, it has the capacity to deliver 3.5 to 4 billion. These deliveries generate $5.5 to $6 billion annually in revenue. Donald Trump, the Republican president, called USPS "a tremendous loser for our country" in February last year. He said that he would consider merging USPS with the U.S. Commerce Department. Democrats claimed this move would violate federal law. Steiner, the new postal chief who was appointed by the White House in July, said last month that privatizing USPS would be "never feasible." "There is no private company that would be interested in the Postal Service...? The delivery of mail is an unbelievably expensive endeavor." He said that the idea of merging USPS and Commerce "never really made sense from a commercial point of view." Government Accountability Office said USPS has lost $118 billion in net profits since 2007. First-class mail, its most profitable product, is at its lowest level since 1967. In 2022, the U.S. Congress approved legislation that would provide USPS with financial relief of about $57 billion. Reporting by David Shepardson, Washington; Abhinav Paramar, Bengaluru. Editing by Matthew Lewis.
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Huawei criticises EU's plan to phase out high-risk technology
According to a draft proposal published by Brussels on February 2, the EU intends to phase out equipment and components from high-risk providers in critical sectors. This move has been criticised by China’s Huawei which will be one of those companies affected. The European Commission's revisions of the EU Cybersecurity Act are a response to a growing number of cyber-attacks and ransomware, as well as concerns about foreign interference, espionage, and Europe's dependence on non EU technology suppliers. The executive arm of the 27-nation bloc, the Commission, has not named any companies or nations. Europe, on the other hand, has been increasing its scrutiny of Chinese technology. Germany appointed an expert committee to reassess its trade policy towards Beijing. It has also banned the use Chinese components in future telecoms networks. The U.S. has banned the approval of new telecoms gear from Huawei and its Chinese rival,?ZTE, in 2022. It has also urged European allies follow suit. NEW MEASURES CREATE MORE SAFETY, TECH SOVEREIGNTY, EU SAYS Henna Vikkunen, EU's tech chief, said in a press release that "with the new Cybersecurity package we will have the means to better protect and combat cyber attacks." Huawei has echoed criticisms made by the Chinese Foreign Ministry. Huawei's spokesperson stated that "a legislative proposal to restrict or exclude non EU suppliers based on their country of origin, instead of factual evidence and technological standards, violates EU basic legal principles such as fairness, nondiscrimination and proportionality as well as WTO obligations." She said, "We will closely follow the development of the legislative processes and reserve all our rights to protect our legitimate interests." New measures will be applied to 18 sectors that were identified by the Commission. These include detection equipment, connected vehicles and automated systems, energy storage and supply systems, water delivery systems, drones, and counter-drones systems. Cloud services, medical devices, surveillance equipment and space services are also classified as crucial. In 2020, the EU will adopt a "5G security toolbox" to reduce the use of vendors perceived as high-risk such as Huawei due to concerns over sabotage or espionage. Some countries are still using this equipment because of its high cost. According to the proposals made on Tuesday, mobile operators have 36 months after the publication of a list of high-risk suppliers to phase out certain components. The phase-out period for fixed networks including fibre-optic cables and submarine cables as well as satellite network will be announced later. "This is a significant step towards securing European technological sovereignty, and ensuring greater'safety for everyone," Virkkunen stated. Restrictions on suppliers from countries that are deemed to be cybersecurity risks will only take effect after a formal assessment of risk initiated by the Commission, or at least three EU member countries. All measures will be based upon market analyses and impact assessments. Connect Europe, a lobby group for the telecoms industry, warned that these proposals would add to the burden of the industry and result in additional regulatory costs ranging into the billions. Before it can become law, the updated Cybersecurity Act will need to be negotiated in the next few months with EU governments and European Parliament. (Reporting and editing by Joe Bavier, Mark Potter, and Foo Yunchee)
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Amtrak receives $2.4 billion in funding to hire 2,500 new air traffic control officers as part of a US budget deal
Bipartisan funding agreement announced by U.S. legislators?Tuesday funds 2,500 air traffic control officers and $2.4 billion for U.S. passenger rail Amtrak while cutting funds for high-speed train and?electric vehicle charging? The funding agreement includes $514 millions to subsidize rural air services, also known as the Essential Air Service Program. This is in contrast to the White House's proposal to reduce the program by half. It also increases annual funding for modernizing air traffic control towers to $824 million. The budget bill includes $2 million for an independent study of the airspace around Washington, D.C. after a crash in January 2025 between a U.S. Army chopper and American Airlines passenger plane that killed 67 and revealed'significant flaws in aviation safety. Federal Aviation Administration has a shortage of about?3,500 controllers, many of whom work six-day weekends and mandatory overtime. Congress approved $12.5 billion last year to modernize an aging U.S. Air Traffic Control System, but Transportation Secretary Sean Duffy is asking for another $19 billion. It also redirects $879 millions in funds for electric vehicle charging networks approved by then-President Joe Biden, to other infrastructure priorities and cuts $928 in high-speed train grants. The bill also provides $100 million in supplemental funding for transit agencies located in 11 U.S. host cities of the FIFA World Cup 2026 and $94 millions for transportation assistance related to the 2028 Olympics. The bill rejects also a funding reduction proposed by the White House for the Transportation Security Administration. They had requested a 3-4% decrease in?TSA personnel levels, with half of that amount going to staffing the exit lanes which allow people to enter public areas after leaving secure areas of an airport. The budget includes $300,000,000 to fund exit-lane personnel. (Reporting and editing by Andrew Heavens, Peter Graff, and David Shepardson from Washington)
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Sources say that Kazakhstan's Tengiz Oil Field will remain closed for 7-10 more days.
Three industry sources have said that oil production in Kazakhstan's vast Tengiz field, which is one of the largest in the world, may be stopped for 7-10 days after it shut down on Sunday. This would cut crude exports through the Caspian Pipeline Consortium. Tengizchevroil, the operator of Tengiz-Korolevskoye Field, announced on Monday that production had been halted due to problems with power supply. According to KazMunayGas, the state-owned KazMunayGas, a fire had broken out on January 18 at two turbine transformers located at GTES-4, the power station for this field. One source stated that "TCO's production is down until the end of the week but this could continue until February." Three sources said that, due to the incident?TCO already cancelled five cargoes totaling 600,000-700,000.00 metric tons of CPC Blend crude scheduled to be shipped out from CPC's terminal at Black Sea in January and Feb. Chevron, the largest shareholder of TCO, did not respond immediately to a comment request. Sources spoke on condition of anonymity. TCO's press service responded to an inquiry Tuesday by confirming that production has temporarily been suspended at?Tengiz & Korolevskoye, as a "precautionary measure". They did not specify the cause of fire or when production will resume. Source: Other producers are raising output. One source familiar with the data stated that the fall in Tengiz's oil production has not yet affected Kazakhstan’s overall production, as other producers have increased their extraction. Kazakhstan's crude oil production dropped by 35% between December and the first 12 days in January due to restrictions on CPC exports. According to the source, the output of two huge Caspian fields, Kashagan & Karachaganak began to increase rapidly in the days following. Kashagan's average daily production increased by 28% to 197,000 barrels between January 1-12 and January 1-19, while Karachaganak saw a 21% increase to 156,000 barrels. Tengiz's production increased by 6% in the period to 360,000 barrels a day. The press offices of Karachaganak Petroleum Operating, and NCOC did not reply to requests for comments. The source stated that "NCOC, KPO and CPC are partially compensating the Tengiz shut down. But in a few days CPC will start to reduce throughput." Kazakhstan exports the majority of its oil through CPC. However, due to damage at the marine terminal located in Yuzhnaya Ozereyevka to the infrastructure, some crude is redirected into the Baku-Tbilisi Ceyhan (BTC), and then to Germany via Druzhba. ExxonMobil, KazMunayGas, and Lukoil are also project partners. KazMunayGas holds 20% of TCO while ExxonMobil has 25%. (reporters in MOSCOW; additional reporting by Robert Harvey, LONDON. Editing by Guy Faulconbridge & Jan Harvey).
Singapore port blockage reveals worldwide ripple impact of Red Sea attacks
Congestion at Singapore's container port is at its worst because the COVID19 pandemic, a sign of how extended vessel rerouting to avoid Red Sea attacks has actually disrupted worldwide ocean shipping with bottlenecks likewise appearing in other Asian and European ports.
Merchants, producers and other markets that rely on massive box ships are once again fighting surging rates, port backups and scarcities of empty containers, even as many consumer-oriented companies seek to develop inventories heading into the peak year-end shopping season.
International port congestion has reached an 18-month high, with 60% of ships waiting at anchor situated in Asia, maritime information company Linerlytica said this month. Ships with a total capability of over 2.4 million twenty-foot comparable container systems (TEUs). were waiting at anchorages as of mid-June.
However, unlike during the pandemic, it is not a purchasing flurry. by house-bound consumers that is swamping ports.
Rather, ship schedules are being interrupted with missed out on. sailing schedules and fewer port calls, as vessels take longer. paths around Africa to prevent the Red Sea, where Yemen's Houthi. group has actually been attacking shipping because November.
Ships are therefore offloading larger amounts at once at big. transhipment centers like Singapore, where freights are unloaded and. refilled on various ships for the final leg of their journey,. and forgoing subsequent trips to catch up on schedules.
( Shippers) are attempting to handle the situation by dropping. packages at transhipment hubs, stated Jayendu Krishna, deputy. head of Singapore-based consultancy Drewry Maritime Advisors.
Liners have been collecting boxes in Singapore and other. centers.
Typical Singapore cargo offload volume leapt 22% between. January and May, substantially affecting port efficiency,. Drewry said.
SERIOUS CONGESTION
Singapore, the world's second-largest container port,. has seen particularly severe congestion in recent weeks.
The typical wait time to berth a container ship was two to. three days, Singapore's Maritime and Port Authority (MPA) said. in end-May, while container trackers Linerlytica and PortCast. said hold-ups might last up to a week. Usually, berthing should. take less than a day.
Neighbouring ports are likewise backing up as some ships skip. Singapore.
The strain has actually moved to Malaysia's Port Klang and Tanjung. Pelepas, said Linerlytica, while wait times have actually also climbed up at. Chinese ports, with Shanghai and Qingdao seeing the longest. delays.
Drewry anticipates congestion at significant transhipment ports to. remain high, however anticipates some reducing as carriers add. capability and restore schedules.
Singapore's MPA stated that port operator PSA had actually re-opened. older berths and backyards at Keppel Terminal and would open more. berths at Tuas Port to tackle extended waits.
Maersk, the world's second-largest container. provider, stated this month it would avoid 2 westbound cruisings. from China and South Korea in early July due to serious. blockage in Asian and Mediterranean ports.
PEAK SEASON
The annual peak shipping season has also shown up earlier. than anticipated, exacerbating port congestion, carriers and. research companies stated
This seems to be driven by restocking activities,. particularly in the U.S., and by consumers delivering items early. in anticipation of stronger need, said Niki Frank, CEO of DHL. Global Forwarding Asia Pacific.
Container rates, meanwhile, have surged, raising the danger of. another spate of price boosts for purchasers like the. post-pandemic inflation spike which reserve banks are still. attempting to tame.
Rates had actually stabilised into April however in May there was a. significant boost in ocean freight exports of Chinese. e-commerce, electrical lorries, and sustainable energy-related. products, Asia-focussed freight forwarder Dimerco stated.
The peak season, which traditionally starts in June, was. advanced by a full month, causing ocean freight rates to skyrocket.
Container import volume at the 10 biggest U.S. seaports in. May increased 12%, sustained by the second-highest monthly import. volumes considering that January 2023, stated data service provider Descartes.
( U.S.) customers are continuing to spend more than last. year, and sellers are stocking up to fulfill demand, said. Jonathan Gold, a National Retail Federation vice president.
Ocean imports into Europe from Asia are likewise revealing signs. of a re-stocking season running into peak season - pressing rates. to 2024 highs, Judah Levine of freight platform Freightos stated.
Container freight prices from Asia to the U.S. and Europe. have actually tripled because early 2024.
Rates from Asia and Singapore to the U.S. East Coast are at. their highest considering that September 2022, while rates into the U.S. West Coast are highest because August 2022, freight platform. Xeneta stated.
Some industry players believe part of the reason for the. bottlenecks at China ports is sustained by U.S. importers rushing. to purchase Chinese items such as steel and medical products that. will go through steep tariff walkings from Aug. 1.
However recently enforced U.S. tariffs would impact only about 4% of. Chinese imports to the U.S., said Jared Bernstein, chair of the. Council of Economic Advisers.
Gene Seroka, executive director of the Port of Los Angeles,. the largest U.S. gateway for Chinese ocean imports, also anticipates. a restricted effect.
We might see some of this cargo been available in, but it is not going. to be a deluge, he said.
Issues about possible strikes at U.S. ports this year. could also be pulling the peak season forward, while DHL said. German port strikes were adding to the gridlock.
All of those interruptions will likely indicate higher rates for. consumers, specialists warn.
These are substantial monetary hits for carriers to take in,. stated Peter Sand, primary expert at Xeneta.
(source: Reuters)