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Boeing signs tentative labor agreement with former Spirit AeroSystems employees
The union that represents about 1,600 workers at Spirit AeroSystems, a fuselage supplier, announced on Thursday?that they had reached a tentative deal with Boeing?on a collective bargaining agreement. The team that negotiated for the Society of Professional Engineering Employees of Aerospace (SPEEA), non-engineering division in Wichita Kansas, unanimously recommended to members that they accept Boeing's offer. Boeing completed the $4.7 billion acquisition of Spirit AeroSystems in December, and contract talks began after it closed because of labor law restrictions. James Hatfield, the union's negotiating team chair, said that "the?planemaker’s offer gives us better medical and dental benefits as well as more vacation time." Boeing's proposal included an increase of 20% in wage pools in a period of five years, a 50% increase in promotional funds each year, a $6,000 bonus for ratification, and a 10% match on 401(k)s starting in 2027. We're happy that the union's negotiating committee has endorsed fully our Best and Final Offer, which would provide our teammates with higher wages and better benefits as well as more time off. Boeing's spokesperson encouraged employees to vote "yes". According to the union, members of the union have until 5 pm on 30 January to review and vote on the proposal. The current six-year contract is set to expire January 31, 2026. The talks between Boeing and the?SPEEA have been paused until January 5. Negotiators criticized Boeing for not being prepared for discussions.
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US approves sale of equipment and services for Peruvian Naval Base
The U.S. State Department approved the sale of equipment and services worth $1.5 billion to Peru to help the country move its main naval base from Callao to a nearby seaport. The Peruvian Government plans to relocate the naval base in Callao on the coast, just a few kilometers west of Lima. This will allow the expansion of Peru's largest commercial port, Callao. It is a rival to the Chinese mega-port Chancay located 80 km north of Lima. The U.S. Defense Security Cooperation Agency issued a statement about the proposal. It said that the "proposed sales will contribute to the United States' foreign policy objectives by helping 'to improve security of an important South American partner who promotes political stability and economic progress in South America." The agency confirmed it had sent the required proposal to Congress informing them of this possible sale. Pentagon officials said that the Pentagon will select principal contractors at a future date, most likely by a competitive process. Callao's port is Peru's most important?commercial port. It is operated by two separate companies, APM Terminals (on the north) and DP World Callao (on the south). Callao began offering direct shipping routes to China and South Korea in November. Analysts say that Callao will compete with Chancay for Asian cargo as infrastructure investments increase along Peru's Pacific Coast. The Cosco Shipping Ports port in 'Chancay will begin operating in November 2024. The port can accommodate large vessels and offers direct trips between South America, Asia and Europe. China is Peru’s main trading partner. The Peruvian defense ministry has not responded to an email sent out of regular working hours. (Reporting from Toronto by Ryan Patrick Jones and Marco Aquino; editing by Christian Schmollinger).
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Tokyo commuter trains are disrupted by a power outage
Two?main lines? with some of the busiest stations in the world were shut down after a report of a fire. East Japan Railway said that trains on its Yamanote and Keihin Tohoku lines were stopped in all directions, with no timetable for their resumption. Shortly before 8 am, a fire was reported near Tamachi Station where both lines stop. NHK, the public broadcaster, reported that the fire occurred at 2300 GMT on Thursday. NHK reported that flames were coming out of a transformer near the track. The fire was almost extinguished 30 minutes later. In footage broadcast on the NTV network, passengers were seen walking down the tracks to evacuate from a Keihin Tohoku train that was stuck?between two stations. They were assisted by railway staff and firefighters. Shinjuku is one of the stations on the?Yamanote line, and it handles?3.5 millions passengers per day. The Keihin Tohoku Line connects major hubs like Tokyo and Yokohama. (Reporting and editing by William Mallard; Satoshi Sugiyama)
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CANADA-CRUDE-Discount on Western Canada Select narrows
On Thursday, the discount between West Texas Intermediate crude oil and North American benchmark West Texas Select futures was reduced. WCS for February Delivery?in Hardisty?Alberta settled at $14.10 per barrel below U.S. benchmark WTI according to brokerage CalRock. This compares with $14.30 per barrel on Wednesday. The discount on Canadian heavy crude oil is still more than $1 higher than last month. The price of Canadian heavy crude grades has fallen due to the increased market volatility brought on by U.S. President Donald Trump's stated aim to increase Venezuelan oil production. Investors are watching for a potential increase in Venezuelan heavy oil barrels in order to compete in the long term with Canadian heavy oils of similar quality in the U.S. Gulf Coast. Some analysts believe the market has overreacted because it will take Venezuela years to increase its oil production. The global oil price settled down by 4% or so on Thursday after Trump announced that the crackdown against protesters in Iran had eased. This helped to calm fears of a possible military strike and disruptions in oil supplies. (Reporting and editing by Sahal Muhammad in Houston)
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J.B. Hunt’s profit increases in the fourth quarter on cost reductions
J.B. Hunt Transport Services, a U.S. trucking company, reported an increased profit for the fourth quarter on Thursday. This was largely due to a strong shipping demand during peak season and efforts made by all departments to reduce costs. As volumes increase, carriers add seasonal surcharges. The company is pursuing cost reductions in order to increase efficiency. This is because the trucking industry has been experiencing a downturn for'more than three years, marked by excessive capacity and seasonal volume increases, which have kept rates low. The expectation of a U.S. trucking market turnaround in 2026 is gaining momentum. This is largely due to?federal regulations that restrict the ability to obtain commercial driver's licenses for non-U.S. residents, thereby reducing truckload capacity. Experts warn, however, that the freight volume must increase for any meaningful recovery. J.B. Hunt's intermodal volumes, which include shipping goods?via more than one mode of transport?, dropped 2% over the previous year in the reported third quarter. The Arkansas-based company reported revenues of approximately $3.10 billion in the quarter that ended December 31, compared to roughly $3.15 billion one year earlier. Revenues for its 'final mile services' fell by 10% in the third quarter to $206 million from a year ago. In after-market trading, the company's stock was down by about 4%. J.B. Hunt announced a fourth-quarter profit totaling $181.1m, or 1.90 per share. This is up from $1.53 per shares or $155.4m, a full year ago. (Reporting from Abhinav Paramar and Nathan Gomes, Bengaluru. Editing by Alan Barona.)
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CPC Blend Oil offered at wider discounts
The differential between Urals and Brent oil was stable on Thursday despite a low trading volume, but the discount for CPC Blend oil continued to widen when compared with Brent oil, traders reported. Urals cargoes were slow to load in January and many tankers had already been on the water?without a destination?, traders reported. Demand for 'the volumes in Asia wasn't high due to?the availability of alternatives? CPC Blend Oil values are under pressure due to recent attacks on tankers heading for the CPC terminal and the instability of the grade's oil exports. PLATTS WINDOW * ExxonMobil has offered to load 120,000 tons CPC Blend on February 10-14 for a price of minus $1.35 a barrel, almost $1 below yesterday's bid, but traders claim that they have not found a buyer. The traders reported that no bids or offers for Urals or Azeri BTC were made on Thursday. Trade data shows that India's 'Russian oil imports' fell to their lowest level for two years in December as Western sanctions pushed refiners into alternative sources of fuel, resulting in an increase in OPEC imports. Diane Craft (reporting)
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Greece warns its shipping fleet about increased risks following Black Sea drone attacks
According to shipping ministry advisories, Greece warned its shipping fleet to take the most stringent security measures when sailing into Russian Black Sea ports following drone attacks this week on two Greek-operated oil tankers. Drones hit two oil tankers, including one chartered from U.S. oil giant Chevron as they approached the marine terminal of the Caspian Pipeline Consortium on the Black Sea coast of Russia. Greek-operated tankers are among the largest in the world. They are crucial for trade along the Black Sea, where Bulgaria,?Georgia?, Romania?, Turkey?, and Russia?, who are at war with Ukraine?, which Moscow invaded?in February 2022?. It is strongly recommended that all Greek ships that are docked, anchored, or about to dock in the terminal take the highest possible security measures. The shipping ministry released a document on Thursday that included a warning to avoid being outside of the ship. After the attacks, in documents published this week, the ministry advised that security managers for shipping companies and Greek vessels conduct an updated threat analysis of ships located near the Black Sea and other maritime areas. The cost of war insurance for ships sailing into the Black Sea has risen this week due to the deteriorating risk environment. Two drones hit the Matilda tanker, which was operated by Thenamaris in Greece. Thenamaris officials said that while there were no serious injuries or damage to the ship, the company has since taken additional security precautions and instructed crews on their vessels to be more vigilant and avoid unnecessary exposure. In previous advisories the ministry had also directed shipping companies to a document that it published in April of 2022, which recommended that additional protective security measures should be maintained for a period of time due to the increased risk of the Russian Black Sea Ports of Novorossiysk, Taman, Tuapse, and Kavkaz. Reporting by Renee Maltezou and Yannis Souliotis, Editing and rewriting by Mark Heinrich, Timothy Heritage and Mark Heinrich
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Mayor of Kharkiv says that Russia has destroyed a large energy facility at Kharkiv
The mayor of Kharkiv said that Russian forces destroyed a large power plant in Ukraine's second largest?city. This is the latest target of the winter air campaign launched by Moscow, which has left millions of Ukrainians in darkness and cold. The Russians have attacked Ukraine's power grid, and other energy infrastructures while launching a military offensive. Kyiv is now on the defensive as it faces U.S. demands to ensure peace. Ihor Terekhov wrote on the Telegram app that he did not know what kind of facility was 'hit', but that emergency crews are on the scene, working round the clock. Kharkiv is a city that has been regularly targeted with drones, missiles and glide-bombs during the five year war. The regional governor Oleh Synehubov stated that officials are still trying to determine the extent of damages from Thursday's attacks. In the last week, power outages have increased and there are now cuts in heating and water supply. This is because Ukraine has been battling a cold spell that has weakened its already strained energy system. Vitali Klitschko, the mayor of Kyiv, said on Thursday that there are still around 300 apartment blocks in the Ukrainian capital without heat. An attack on January 9 knocked out the heating to half of the city's tall buildings. Russia has also intensified its attacks on the ports of southern Odesa, Ukraine. Oleksiy Kulba, deputy prime minister of Ukraine, reported that a missile attack on Thursday in Chornomorsk damaged shipping containers and injured one person.
Trump-led oil & gas export boom may fold in Europe trade spat: Maguire
Oil and gas producers in the United States expect to discover it easier to ramp up output and exploration under the inbound second administration of Donald Trump. Finding local and profitable markets for their products might be the bigger difficulty.
Producers expect the new administration to improve permit procedures connecting to nonrenewable fuel source extraction and circulation that ought to lead to a climb in U.S. oil and natural gas output, which is already at record highs.
That bodes well for firms that export melted natural gas, petroleum and refined fuels and will likely encourage even more growth in U.S. export capacity of those products.
However, energy exporters also run the risk of getting caught in trade-related crossfire needs to Trump's plan to impose steep tariffs on a multitude of imported items set off vindictive actions in consumer markets.
EUROPEAN TARGET
European nations are particularly most likely to be targeted with tariffs by the inbound administration as the enduring U.S. trade deficit with Europe - around $240 billion annually - is a. major irritant for Trump allies.
President-elect Trump said last month that Europe would pay. a big rate for not buying adequate American exports and has. threatened to impose blanket tariffs on European goods.
However, Europe is likewise the single largest market for both. U.S. LNG and crude oil exports, representing 49% of all U.S. LNG shipments and 47% of U.S. crude exports this year, according. to ship-tracking information from Kpler.
Considering that Russia's invasion of Ukraine in 2022, Europe has had. to import record volumes of fuels and oil from other providers,. and the U.S. has been the primary beneficiary by shipping. record volumes of those commodities.
In 2023, U.S. LNG export earnings was over $30 billion and. two-thirds of all U.S. LNG shipments went to Europe, according. to the U.S. Energy Information Administration and Kpler.
The U.S. exported around $10 billion of crude oil in 2023,. with simply under half sent out to Europe, EIA data showed.
BIG MONEY
Those U.S. LNG and oil deliveries have actually led to a revenue. boom for U.S. exporters and valuable tax revenue for the U.S. Treasury which the next administration will wish to secure.
Nevertheless, the high price tag of energy imports has likewise injured. European customers and is accelerating Europe's energy. transition far from nonrenewable fuel sources.
A slowdown in financial activity has also suppressed industrial. gas use and power intake and has actually set off a more than 20%. drop in Europe's LNG imports over the first 10 months of 2024. from the exact same period of 2023.
Europe's imports of U.S. crude oil have actually reached a record. up until now in 2024 however the continent's overall crude imports have. contracted by around 1%, showed information from Kpler.
This indicates that European energy item importers have. scope to decrease purchases of U.S. LNG and unrefined as overall gas. usage remains stunted while unrefined materials from alternative. sellers are plentiful.
IN THE CROSSHAIRS?
European policymakers are currently planning actions to. Trump's intended tariff impositions, cautious of a potential. degeneration in financial ties with a key trade partner while. embroiled in a trade spat with China.
Trade professionals in Brussels - home to the European Union's. policy arm - will want to prevent any additional souring in the. region's economy and will likely seek to keep strong ties. with the U.S. during Trump's next term.
However, they will not shy away from proposing tariff. measures of their own throughout settlements, if only to prevent. being steam-rolled by blanket tariff dangers from the U.S.
U.S. energy products are likely to be an appealing option. for vindictive tariffs as Europe can readily source LNG and oil. from other keen sellers and thereby injured U.S. suppliers without. harming their own customers.
U.S. THREAT
On paper, U.S. energy item exporters could redirect. freights to other buyers if Europe somehow ends up being shut off. during a trade scuffle.
But in reality, the loss of European buyers would be a heavy. blow to U.S. companies, particularly LNG exporters.
All current U.S. LNG export terminals are located on either. the East Coast or in the U.S. Gulf therefore are much better positioned to. service a Pan-Atlantic trade path than throughout the Pacific to. purchasers in Asia.
The U.S. to Europe journey is also only a fraction of the. distance and time to major purchasers in Asia.
The approximately 12-day journey from Cove Point LNG terminal in. Maryland to Wilhelmshaven in Germany - a significant European LNG. import hub - is a third of the time of the journey to Guangdong in. China, the world's biggest LNG purchaser.
Longer journeys imply longer turnaround times for LNG. sellers, who require fast vessel turnover to maximise earnings.
So while U.S. sellers might probably maintain total export. volumes by redirecting freights if Europe ended up being off limits, they. would more than likely sustain greatly higher shipping expenses and longer. return times if they had to go to Asia instead.
Crude sellers would deal with similar issues if European buyers. likewise selected other sellers as global oil consumers are already. well served by exporters from the Middle East and elsewhere.
This indicates that while U.S. energy exporters can anticipate to. boost output volumes under the next administration, they likewise. deal with a growing danger of a trade skirmish with key European buyers. that may make selling those extra volumes a challenge. << The opinions revealed here are those of the author, a. writer .>
(source: Reuters)