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Fire at airport cargo facility disrupts Bangladeshi garment exports
Industry leaders stated on Sunday that a massive fire at Dhaka Airport's import cargo complex has caused extensive damages to goods and materials belonging major garment exporters. Losses and impacts on trade are likely to be in the millions of dollars. The fire broke out in the cargo village of the airport on Saturday afternoon, forcing the suspension of flights. On Sunday, smoke continued to rise as firefighters and airport officials assessed damage. The fire destroyed storage areas that housed imported raw materials, ready to export apparel, and sample products, all of which are essential for Bangladesh's $47 Billion garment industry. Inamul Haq Khan is the senior vice-president at the Bangladesh Garment Manufacturers and Exporters Association. "High-value and urgent air shipments were destroyed, including garments ready for shipment, raw material for production and, most important, product samples." He warned that losing samples could affect future business. These samples are crucial for securing buyers and increasing orders. "Our members could miss future opportunities if they lose these samples," he said. ESSENTIAL SAMPLES BURNED in FIRE BGMEA is now gathering information from exporters affected to assess the extent of losses. Khan said that the BGMEA has asked its members to provide detailed lists of damaged products and launched an online portal to accelerate data collection. The airport cargo village, one of Bangladesh's most important logistics hubs handles more than 600 tons of dry goods daily. This figure doubles in the peak season from October to December. Khan stated that "everyday, between 200 and 250 factories ship their products via air." The financial impact of this scale is substantial. An investigation is currently underway to determine the cause of this fire. This is the third major fire in Bangladesh reported this week. On Tuesday, a fire at a Dhaka garment factory and adjacent chemical warehouse killed 16 people and injured many others. Another fire destroyed a seven-storey building of a garment factory in Chittagong's export processing zone on Thursday. Bangladesh is the second largest apparel exporter in the world after China. This sector, which supplies global retailers like Walmart, H&M and Gap, has about 4 million employees and generates $40 billion per year. That's more than 10% of Bangladesh's GDP. Fire, which occurred during peak export season is expected to cause delays in shipments, and make it more difficult for international deliveries to meet deadlines.
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EU Naval Mission says LPG-laden Tanker is on Fire Off Yemen
In a press release, Aspides, the European Union naval force, said that the LPG-laden vessel MV Falcon, was on fire off the coasts of Yemen on Saturday after its crew reported an explosion which forced them to abandon ship. Aspides stated that the cause of explosion was not clear but it most likely an accident based on initial indications. Aspides said that at least 15 percent of the Cameroon flagged vessel was on fire. Aspides warned vessels to maintain a safe distance because the tanker, which was loaded with liquefied gas, could explode. Aspides stated in a press release that "the fire onboard is growing." "MV Falcon is a navigational danger." "Everyone in the area should exercise caution." The 26 crewmembers were being rescued by an operation. Two merchant ships sailing in the area have recovered 24 seafarers so far. Two merchant vessels, one of which was the MV Veda took the seafarers rescued from the ship to Djibouti escorted a Greek frigate. Aspides reported that two crew members have been reported missing. Ambrey, a British security company, said that the MV Falcon was traveling from Oman's Sohar Port towards Djibouti. The explosion happened as the ship was sailing 113 miles south of Aden, Yemen. According to maritime security sources, neither unmanned aerial vehicles nor missiles had been detected. Ambrey stated that the tanker did not match the profile of the Houthi militants in Yemen who are Iran-aligned. According to the Houthi news agency Saba, an official in the Houthi Defence Ministry said that the group has no connection with the incident. Since 2023, Houthi militants claim to have carried out numerous attacks against vessels in the Red Sea in solidarity with Palestinians in response to Israel's Gaza war. The attacks disrupted the flow of trade through the Red Sea, the Suez Canal and one of the busiest shipping routes in the world. Reporting by Enas Al Alashray and Muhammad Al Gebaly; Editing by Jan Harvey, Barbara Lewis and Renee Maltezou
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At least 15 people are killed in a bus crash that occurred in the northeastern region of Brazil
In a statement, the Brazilian Federal Highway Police reported that a bus accident occurred in Pernambuco in northeastern Brazil on Friday evening. The driver of the bus lost control and caused the crash. Accident occurred just before 8 pm. The driver lost control, went into the opposite lane and hit rocks along the side of highway. He then crashed with a sand embankment, overturned, and collided. According to the Federal Highway Police, the Federal Highway Police is investigating the causes of the accident. According to the police list, there were 30 passengers aboard. So far, half have been confirmed as dead, 11 women and 4 men. Total number of injuries has not been revealed. The driver suffered minor injuries. According to the statement, he underwent a test of breathalyzer, and received a normal result. The police said that there were indications some passengers might not have worn seat belts during the accident. (Reporting by Rodrigo Viga Gaier. (Writing by Luciana Magnalhaes Editing Marguerita Choy.
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Fire at Dhaka Airport cargo terminal causes flight delays and diversions
Officials said that flights out of Bangladesh’s main airport on Saturday were either delayed or diverted after a large fire broke out at the cargo terminal. Talha Bin Zassim, an officer with the Fire Service and Civil Defence Media Cell said that 36 firefighting units were working to put out the flames. Airport official Masudul Hasan informed reporters that operations at Dhaka’s Hazrat Shahjalal International Airport have been suspended. He added that all aircraft were safe. The cause of the fire was not immediately known. The problem affects both domestic and international flights. Air Arabia from Sharjah, United Arab Emirates, diverted a flight from Delhi bound for Dhaka to Chittagong and IndiGo from Delhi bound for Dhaka to Kolkata. Officials said that a Cathay Pacific plane from Hong Kong circled in the air after it failed to land at Dhaka Airport. The fire service, army, navy and air force all worked together to put out the fire. This is the third fire in Bangladesh reported this week. The fire that broke out at a Bangladeshi garment factory and adjacent chemical storage facility on Tuesday killed four people. At least 16 people Others were injured. Another fire destroyed a building of a Chittagong export processing zone garment factory on Thursday.
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Security firm reports that a tanker with a Cameroon flag issued a distress call to Ahwar in Yemen.
Ambrey, a British maritime security company, said that a tanker flying the flag of Cameroon issued a distress signal on Saturday following an explosion aboard as it passed around 60 nautical miles south-southeast of Ahwar in Yemen. The cause of explosion is unclear. Ambrey confirmed that it had received radio communications from the crew indicating their intention to abandon ship. A search and rescue effort was in progress. Ambrey said that the vessel was traveling from Oman's Sohar Port, to Djibouti. The tanker is not thought to have been linked to the Houthis, Yemen's Iran aligned militia. Since 2023 they have attacked numerous vessels in the Red Sea, targeting vessels they believe are linked to Israel as a show of solidarity with Palestinians in response to Israel's Gaza war. The attacks disrupted the flow of trade through the Red Sea, the Suez Canal and one of the busiest shipping routes in the world. Reporting by Enas Al Gebaly and Muhammad Al Gebaly, Editing by Jan Harvey & Barbara Lewis
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Sky News reports that Heathrow is considering WPP boss Jansen to be chairman.
Sky News reported that Philip Jansen, former CEO of BT Group and now chairman of marketing services group WPP is in advanced discussions with Heathrow’s board of directors and shareholders about becoming the chairman of the airport. The report cited sources to say that Jansen was the clear frontrunner of the shortlisted candidates. An announcement could be made within weeks, if discussions are successful. Could not verify the report immediately. Heathrow Airport didn't immediately respond to an inquiry for comment. Sky News reported in July that the British aviation hub had been working with headhunter Russell Reynolds Associates on recruiting a successor for Paul Deighton who assumed the position in 2016. Deighton’s term as chairman would have ended on April 30th, 2025 after nine years. Due to recent board changes, and the relatively new appointments of leadership, Deighton was asked to extend his tenure. Deighton stated in the annual report of the company that "I have... accepted to extend my role for a limited time as Chair to ensure continuity and security on the HAHL Board throughout this period transition". Sky News reported that Jansen’s experience as CEO of BT Group – a regulated company – from early 2019 until the end of 2024 was a key factor in his selection as he preferred candidate. According to his WPP profile, the executive began his career with Procter & Gamble and has held leadership positions at Sodexo Group and Telewest. He also worked at MyTravel, Travis Perkins and Sodexo Group. Rhea rose Abraham, Bengaluru reporter; Jan Harvey, editor
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China Eastern Airlines resumes flights as China and India restore air connections
China Eastern Airlines, a state-owned airline, will resume Shanghai to Delhi flights on November 9, according to the website of the airline. This comes as China and India resume their direct air links after a five year diplomatic freeze. According to the airline's ticketing platform, flights will be operated three times per week, on Wednesdays. Saturdays and Sundays. China Eastern Airlines didn't immediately respond to a request for comment sent via email. The Indian Foreign Ministry announced earlier this month the resumption of commercial flights between India and its neighbours after a 5-year-long freeze. The announcement came after Indian Prime Minister Narendra Modi visited China for the first time in seven years to attend a regional security summit of the Shanghai Cooperation Organisation. Both sides discussed how to improve their trade relations, and Modi expressed concern about India's growing bilateral trade deficit. The Indian and Chinese foreign ministers did not respond immediately to requests for comments on the Shanghai-Delhi flight. IndiGo, India's largest airline, announced previously that it would begin daily non-stop flight between Kolkata and Guangzhou. Guangzhou Baiyun International Airport, a state-backed airport, said that when IndiGo announced its plans to expand direct flights between Guangzhou (China) and Delhi (India), it would encourage airlines like IndiGo to offer more routes. After deadly clashes on their Himalayan border, the two countries suspended direct flights in 2020. This led to a long-lasting military standoff. (Reporting and editing by Tom Hogue; Amy Lv and Colleen howe)
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Ship tracking data shows Sinopec diverts supertanker away from US-sanctioned ports
According to Chinese consultants and ship tracking data, the latest U.S. sanction on a major Chinese crude terminal has forced Sinopec to divert one supertanker from its route and to ask certain plants to reduce crude processing rates. LSEG data revealed that a supertanker transporting oil to the Chinese Port of Rizhao, in Shandong Province, changed its destination at the weekend after U.S. sanctions were imposed on Friday on an import terminal located there. JLC Consultancy estimated that Sinopec’s October runs could drop by 3.36% compared to earlier plans, and may be around 5.16 million barrels a day. Sinopec has not responded to comments immediately. LSEG data revealed that the supertanker New Vista chartered by Sinopec’s trading arm Unipec, originally scheduled to discharge in Rizhao, on Sunday, has changed its destination to Ningbo or Zhoushan, for arrival on 15 October. New Vista is capable of carrying 2 million barrels and currently carries Abu Dhabi's Upper Zakum crude. The U.S. Treasury listed the Rizhao Shihua crude oil terminal, which is half owned by a Sinopec logistic unit, in a series of sanctions, including ships that transport Iranian crude and liquefied petrol gas. The U.S. announced that the terminal in Lanshan, in Shandong Province, a major Chinese oil refinery hub, had been sanctioned because it received Iranian oil aboard vessels sanctioned by the U.S. According to analysts and industry executives, one-fifth (or a fifth) of Sinopec’s crude oil imports passes through the Rizhao Terminal.
Key worldwide natural gas prices set to keep increasing into 2025: Maguire
Gas prices in Asia, Europe and The United States and Canada have climbed up by around 30% to 50% so far in 2024, and look set to keep increasing over the coming months as forecasts for winter trigger higher heating demand in essential customer hubs.
Active restocking of rapidly-declining gas stocks in Europe and Asia should likewise stimulate strong gas need, even if temperature levels turn mild again in those locations.
That ought to guarantee gas market sentiment stays broadly bullish till the upcoming winter is over, which prices may have little scope to retreat till well into 2025.
High and rising gas prices in turn look set to raise power expenses across key international markets, jeopardising vulnerable financial development in China, Europe and elsewhere and raising fresh issues about inflation.
Quickly climbing up gas-fired generation costs likewise raise the likelihood of higher generation by coal-fired power plants, which are already less expensive to run than gas-fired plants but produce around 55% more emissions per unit of power output.
COLD WINTER COMING
Greater gas-fired generation for heating throughout North America, Europe and North Asia is the main near-term chauffeur of international gas costs.
Those regions represent over two-thirds of worldwide gas use, and are all set to get in the peak duration for heating demand over the coming months.
What's more, for the first time in years, average temperature levels across the key gas markets of China, Japan and mainland Europe are all set to slip listed below long-lasting averages this month.
This will snap the recent run of fairly moderate winter weather across those locations seen over the previous couple of years, and will lead to an integrated rise in gas-fired heating need that should even more lift gas market prices and sentiment.
In Seoul, South Korea, average temperature levels during December are set to typical around negative 2.17 degrees Celsius (28. degrees Fahrenheit), compared to a long-term average of unfavorable. 0.7 degrees Celsius, according to LSEG.
Shanghai, Tokyo and Hong Kong are likewise set to record average. temperatures of well below-normal this month.
The resulting increase in heating need throughout those greater. cities - home to over 100 million individuals - will. trigger faster burn rates of gas and coal, and an. accelerated make use of power fuel stockpiles over the rest of 2024.
In Europe, a drop in temperatures to below-normal levels is. likewise anticipated this month, particularly in the gas-heavy power. markets of Italy and Germany, according to LSEG.
STOCKS DRAW
The pick-up in gas usage throughout Europe has already triggered a. rapid drawdown in the region's natural gas stockpiles.
Between October 1 and completion of November, cumulative gas. inventories held in Germany, the Netherlands, Belgium and France. decreased by 11%, according to LSEG.
That compares to relatively flat gas inventories over that. period in 2023, a 3.5% increase in gas stocks in 2022, and an. typical draw of just 2% over that duration since 2017.
The outright level of cumulative gas stocks in those. nations since December 1 is also the lowest for that date. given that 2021, which was before Russia's intrusion of Ukraine caused. cuts in pipelined gas streams to the area.
As a result, power firms will be under pressure to try to. rebuild those inventories over the coming months even as they. boost gas burn-rates due to increasing heating need.
In the United States, present natural gas stocks are. the greatest in over five years, according to the U.S. Energy. Info Administration.
Nevertheless, they are likewise on the cusp of the conventional. draw-down duration when stockpiles decrease by an average of 9%. over the last five weeks of the year.
This suggests that even the apparently plentiful gas stocks held. in the U.S. will tighten up substantially heading into 2025, and. will further underpin gas market sentiment.
FUEL CHANGING
Numerous power systems throughout Asia have the freedom to burn more. coal rather of gas to satisfy the higher heating need, and will. decide to do so if the expense of gas-fired generation increases too far. above coal generation.
In Japan, the expense of spot melted gas (LNG) is. currently around 44% above the average coal-to-gas switching. cost, and suggests that coal-fired power producers will be. incentivized to raise output faster than gas-fired producers.
Power firms in China, South Korea and other parts of Asia. that also have the versatility to utilize either gas or coal for. generation will likewise likely decide to raise coal output faster.
That might trigger a slowdown in the rate of gas use in. Asia, and set the phase for prospective cost pull-backs in Asian. markets.
Nevertheless, increasing gas demand by power companies in Europe will. likely more than balanced out any need drops in Asia, and guarantee. that worldwide gas costs stay fairly well supported through. the coming winter.
That implies that even though many crucial natural gas markets. have actually already climbed up by 50% currently this year, more cost. increases are likely coming.
The viewpoints expressed here are those of the author, a market. expert .
(source: Reuters)