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Vehicle Carriers Seek Relief from Wide US Port Fees
Three sources said that operators of hulking cars carriers were seeking relief from U.S. trade representative's surprise plan that would levy port charges on all foreign-built vessels in this segment, including the 20 vessels that guarantee transportation for the U.S. Military during a national emergency or war. USTR announced these fees on April 17, as part of a continuing effort to charge certain China-linked vessels calling at U.S. port fees in order to fund domestic shipbuilding and counter China's dominant position on the high seas. The fees were a shock to the industry because they did not only target ships built in China or owned by Chinese companies. According to two lawyers who asked to remain anonymous for fear of reprisals, the fees on vehicle carriers would affect the 20 U.S. flagged and U.S. crewed vehicle carriers that are admitted to the U.S. Maritime Security Program, which supports Washington's readiness. These fees would also impose massive costs on customers of vehicle carriers, who are already suffering from the 25% auto tariffs that President Donald Trump imposed. As the levies weren't mentioned in the USTR port fees proposal of February, vessel carriers did not have an opportunity to provide feedback. One of the lawyers said, "The fee for the car carrier came out of nowhere." Both parties said that the USTR had overreached, because the fees were levied on ships that are made in countries not included in the Biden administration’s fast-tracked investigation which found that China unfairly dominates global maritime, logistic and shipbuilding sectors. The World Shipping Council warned that on April 18, the new fees would affect almost all car carriers and could have unintended effects. WSC has declined to provide any further comment. Attorneys and an industry group have asked to meet with USTR in order to express their concerns. USTR has not yet commented on whether it will meet with representatives of vessel carriers. USTR will begin charging foreign-built vehicles carriers $150 per car they can carry. This fee will be implemented on October 14, 2014. The USTR plans to charge foreign-built vehicle carriers $150 for every car the ship has capacity to carry, beginning on October 14. MILITARY RISK? Vehicle carriers are essential to the U.S. Military's readiness, as they can transport large items such as aircraft, tanks and helicopters. American Roll-On Roll-Off Carrier Group of Florida, an operator of vehicle carriers under the U.S. flag, is a part of Wallenius Wilhelmsen Group. Liberty Global Logistics is a New York-based provider. Wallenius Wilhelmsen and ARC did not respond immediately to Wallenius's request for comment. Maersk Line Ltd., the U.S. division of the Danish container shipping company, which is part of MSP, has said that it is reviewing USTR's most recent information and is preparing for various scenarios. Port fees are not charged to operators of container ships, tankers, and other vessels that fall within the MSP. Alphaliner data shows that there are currently 1,466 vehicle carriers in use. Alphaliner reported that only 39 of these ships were constructed in the United States. (Reporting and editing by Peter Graff, Mark Potter, and Lisa Baertlein)
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Vehicle Carriers Seek Relief from Wide US Port Fees
Three sources said that operators of hulking cars carriers were seeking relief from U.S. trade representative's surprise plan that would levy port charges on all foreign-built vessels in this segment, including the 20 vessels that guarantee transportation for the U.S. Military during a national emergency or war. USTR announced these fees on April 17, as part of a continuing effort to charge certain China-linked vessels calling at U.S. port fees in order to fund domestic shipbuilding and counter China's dominant position on the high seas. The fees were a shock to the industry because they did not only target ships built in China or owned by Chinese companies. According to two lawyers who asked to remain anonymous for fear of reprisals, the fees on vehicle carriers would affect the 20 U.S. flagged and U.S. crewed vehicle carriers that are admitted to the U.S. Maritime Security Program that supports Washington's readiness. These fees would also impose massive costs on U.S. automobile manufacturers, already suffering from President Donald Trump's tariff policy. As the levies weren't mentioned in the USTR's original port fee proposal of February, vessel carriers did not have an opportunity to provide feedback. One of the lawyers said, "The fee for the car carrier came out of nowhere." Both parties said that the USTR had overreached, because the fees were levied on ships that are made in countries not included in the Biden administration’s fast-tracked investigation which found that China unfairly dominates global maritime, logistic and shipbuilding sectors. The World Shipping Council, whose members include Swedish car transporter Wallenius Wilhemsen on April 18, warned that the new fees would affect almost all car carriers and could have unintended effects. WSC has declined to provide any further comment. Attorneys and a group of industry representatives have asked to meet with USTR in order to express their concerns. USTR has not yet commented on whether it will meet with representatives of vessel carriers. USTR will begin charging foreign-built vehicles carriers $150 per car they can carry. This fee will be implemented on October 14th. The USTR plans to charge foreign-built vehicle carriers $150 for every car the ship has capacity to carry, beginning on October 14. MILITARY RISK? Vehicle carriers are essential to the U.S. Military's readiness, as they can transport large items such as aircraft, tanks and helicopters. American Roll-On Roll-Off Carrier Group of Florida, an operator of vehicle carriers under the U.S. flag, is a part of Wallenius Wilhelmsen Group. Liberty Global Logistics is a New York-based provider. Wallenius Wilhelmsen and ARC did not respond immediately to Wallenius's request for comment. Maersk Line Ltd., the U.S. division of the Danish container shipping company, which is part of MSP, has said that it is reviewing USTR's most recent information and is preparing for various scenarios. Alphaliner data shows that there are currently 1,466 vehicle carriers in use. Alphaliner reported that only 39 of these ships were constructed in the United States. (Reporting and editing by Peter Graff.)
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Asian spot prices remain at a 1-year low due to a tepid demand
The price of Asian spot LNG (liquefied natural gases) increased this week despite production problems in Asia and Europe. However, it was still at a near-year-low due to tepid overall demand. Average LNG price for delivery to North-east Asia in June Industry sources estimate that the price of a million British thermal unit (mmBtu) is now $11.80, up from last week's $11.50/mmBtu which was its lowest level since mid-May. Martin Senior, Argus' head of LNG pricing, stated that there are only a few buyers for immediate cargoes. Chinese and Indian importers are largely ignoring the market because prices are over $11.00/mmBtu. South Korea, however, is currently Asia's main spot buyer. He said that the South Korean demand was strong. Stocks held by Kogas (the country's state-owned company) were last heard of as being around 20 percent filled. This has led to interest from not only Kogas but also Komipo and Kospo, as well Prism. Private importers can benefit from buying cargoes at a lower price than Kogas' tariff. Siamak Adibi said that despite a recent outage of the Bintulu LNG Complex owned by Petronas, the supply situation is still good. Equinor's Hammerfest Terminal, Europe's biggest LNG export facility, was also offline for scheduled annual maintenance on Tuesday until July 19. Adibi said that the exports from Venture Global’s Plaquemines facility in the U.S. reached 1 million tonnes per month. BP also loaded the first cargo from its Greater Tortue Ahmeyim offshore Mauritania, and Senegal. He added that "we also expect the start-up of LNG Canada by mid-year, and a ramp up in supply from Corpus Christi" - referring to Cheniere Energy’s plant in the U.S. S&P Global Commodity Insights' daily North West Europe Gas Marker benchmark price for cargoes to be delivered in June was $10.49/mmBtu ex-ship on April 24. This represents a $0.70/mmBtu reduction from the gas price in June at the Dutch TTF Hub. Argus estimated the price for delivery in June at $10.58/mmBtu. Spark Commodities estimated the price for May at $10.376/mmBtu. Florence Schmit is an energy strategist with Rabobank London. She said that while Europe's demand for gas has begun to decline due to seasonal trends, there are still concerns about storage injections in the summer. She said that the winter premium on summer contracts was still trading at only 0.50 euros per Megawatt Hour, which is not enough incentive to encourage full injections. The EU's roadmap for the phase-out of Russian fuel supplies will also scupper any expectations that Russian pipeline supplies would return, and push European buyers even further to seaborne imports. According to Spark Commodities analyst Qasim Afghan, the Atlantic LNG freight rates increased to $35,750/day last Friday while Pacific LNG rates dropped to $22,250/day. He added that despite pointing towards Asia earlier in the week, the U.S. arbitrage for the front month to North-East Asia via Cape of Good Hope is now closed, and it's marginally pointing toward Europe.
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Mexico's largest port expands as it bets global trade despite Trump’s tariffs
Mexico is expanding its largest seaport as it bets on global trade and positive economic growth despite the grim outlook caused by U.S. president Donald Trump's tariff wars. According to the Mexican Navy which operates the facility, the Mexican Government aims to turn the Port of Manzanillo, on Mexico's Pacific Coast, into the busiest port in Latin America. It will be able to process 10 million 20-foot containers (6.1-meter-long) and can handle up to 10,000,000 cargoes. In 2024, it will be the largest port in Mexico and the third-largest in Latin America. It will handle nearly 4 million 20 foot containers. Claudia Sheinbaum, the Mexican president, has a major infrastructure project in mind. It is a multi-billion dollar port extension. Mexico is investing in order to combat an economic slump caused by Trump's trade conflicts. The International Monetary Fund cut its growth predictions for the majority of countries earlier this week. Mexico was one of the countries that saw their growth forecasts slashed by 0.3%. This is due to U.S. Tariffs affecting exports. Sheinbaum disagreed with the IMF's forecast and said that public investments would stop the economy from contracting. She also praised her government's Plan Mexico, an initiative to boost the domestic industry. According to a document released by the government earlier this month, the success of the plan depends in part on modernizing the country's port facilities, including Manzanillo. Julieta Juarez Ochoa is the commercialization manager at Manzanillo. She says that the U.S. Tariffs haven't slowed down trade in the port. She stated that the majority of imports to Manzanillo are from Asia, and they are used primarily in manufacturing at home. She said, "We don’t see any impact (of U.S. Tariffs) and we don’t anticipate a significant one." She said that the expansion would increase Manzanillo’s ability to handle containerized goods and hydrocarbon products. Sheinbaum said that the project is expected to be completed by 2030. Reporting by Diego Delgado in Manzanillo Mexico; Writing and Editing by Laura Gottesdiener
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Iranian Oil Minister in Moscow seeks to strengthen ties with Russia
Mohsen Paknejad, the Iranian Oil Minister, said that during his visit to Moscow last Friday, Iran would increase cooperation with Russia in banking and agriculture. He also stated that he would remove all barriers between Russia and Iran in any sphere of cooperation. Since the beginning of the conflict in Ukraine, Russia has strengthened its ties with Iran and signed an agreement for strategic partnership with Tehran in January. Both countries are subject to Western sanctions. Paknejad, speaking on state television earlier on Friday said that Iran would sign a $4-billion agreement with Russian companies for the development of seven Iranian oilfields. Russia and Iran have a long-standing history of co-operation. In fact, the first nuclear reactor in Iran was built at Bushehr, in the southern part of the country. At a January meeting in the Kremlin with his Iranian counterpart Masoud Peshkian, Russian President Vladimir Putin said that Russia could eventually supply Iran up to 55 billion cubic meters (bcm), though initially at lower volumes up to 2 bcm. The 55 bcm figure is similar to that of the Nord Stream 1 pipelines, which were damaged in blasts and stopped delivering gas to Europe after 2022. Gazprom, the Russian gas giant, signed a Memorandum with National Iranian Gas Company in June last year to supply Russian pipeline natural gas to Iran. The possible routes of the pipeline are not known. Paknejad said, in a speech to a Russia-Iran Intergovernmental Commission at Moscow, that Iran would implement agreements with Gazprom. This included a regional hub of distribution for gas. Both countries have been discussing the possibility of setting up a regional hub for gas distribution in Iran. Paknejad, Putin's representative for relations with the Organization of Petroleum Exporting Countries(OPEC), met Alexander Novak on Thursday. Three sources familiar with OPEC+ discussions said that the meeting was held as several members of OPEC+ - the group consisting of OPEC, its allies, and Russia - suggested that the group increase oil production in June by a second month running. The proposed increases highlight a growing dispute between members about compliance with production quotas. The announcements come in response to President Donald Trump's calls for OPEC members to lower oil costs and his return to a "maximum-pressure" policy on Iran, whose exports Washington wishes to reduce to zero. (Reporting and writing by Olesya Aastakhova, Anastasia Teterevleva, Vladimir Soldatkin, editing by Mark Trevelyan).
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China's demand for long-range Hybrids is surging, and automakers are rushing to meet it
Chinese automakers are competing with foreign automakers to launch ever-more advanced hybrids that can travel long distances. This is in response to the growing demand for cars on the largest auto market. China, unlike many other markets, treats EVs and Hybrids as a single "new energy vehicle sector" where brands compete to offer consumers a range of electrified vehicles with longer driving distances. Zeekr, a Geely division, unveiled this week the 9X, a large plug in hybrid SUV, which can travel 400 km (249 mi) on its own electric power before the gasoline engine kicks into action. This is a range that rivals many electric cars and is far greater than the typical plug-in hybrids sold in America, Europe and elsewhere. Chinese automakers also have a flourishing business in the so-called "extended-range electric vehicles" (EREVs), with small petrol engines which serve as generators to extend their large batteries' range. According to the China Passenger Car Association, both EREVs (electric hybrid vehicles) and plug-ins (plug-in hybrids) grew faster in China than pure EVs last year. The whole electrified segment now accounts for about half of the new cars sold. EREVs sales grew 79%, to 1.2 millions vehicles. Plug-in hybrids sales jumped by 76%, to 3.4million units. EV sales grew by 23% to 6.3million units. In the first quarter, fully electric models outgrew both hybrids and led China's new energy sector. The hybrid boom in China, and worldwide, has led to more traditional automakers including gasoline-electric models into their lineups. Previously they had focused solely on expanding EV options. Volkswagen is planning a new platform for full EVs, EREVs, and hybrids to help reverse the slowdown in sales of foreign automakers in China. VW board member Ralf brandstaetter said that drivetrain flexibility is critical for the German automaker's efforts to "find its edge." Ola Kaellenius, CEO of Mercedes-Benz, told reporters at the Shanghai auto show that hybrids were "definitely" a trend. He predicted they would "coexist for a longer time with battery-electric cars." TRANSITIONAL TECHNOLOGY Some automakers, notably Tesla, have dismissed hybrids. They claim that they are a technology in transition and will only slow down the rapid EV switchover needed to reduce climate change. This view is shared by many environmentalists in the U.S. Pure-play Chinese EV manufacturers are also sceptical about hybrids, especially in China where the government and industry built a massive EV charging network. William Li, CEO at Nio Electric Vehicles, said: "It doesn't even make sense." Many Chinese automakers want to give their customers whatever they ask for amid a price war with consumers that is continuing to threaten their profitability. Plug-in hybrids are also a way to get around trade barriers, especially in Europe. The European Union has placed tariffs on Chinese electric vehicles and hybrids. In February, Geely's Lynk & Co announced that in June, it would launch a plug in hybrid SUV called the 08 with a range of only 200 km. This is the longest in Europe. Felix Kuhnert is an automotive analyst with PwC Germany. He said that China's auto industry was "technologically more dogmatic" than other global competitors. This is the position taken by Chinese EV manufacturer Leapmotor. It has launched four EREVs, despite its CEO Zhu Jiangming saying that typical EV ranges of 500 km allow consumers to buy an electric car "without a problem." The company sees EREVs in the market as a way to offer consumers more range for a higher price. "We think this is only for luxury cars," an area where consumers are willing to pay an additional 20,000 yuan (2,744) in order to relieve range anxiety. MORE HYBRIDS COMING According to research firm JATO Dynamic, China's automakers will launch 16 new EREVs, 37 new plug-ins, and 32 new fully electric vehicles in 2024. According to a major automaker, EREVs, plug-in hybrids, and EVs together will account for approximately 35% of the sales in China, which is the largest auto market in the world, compared with about 45% for electric vehicles. CATL, a Chinese battery manufacturer, has invested in the sector. In October, it launched its first battery for extended-range hybrids with a 400 km range. CATL stated that the battery was used by several Chinese EV brands including Li Auto and would be installed into nearly 30 models by industry giants such as Geely or Chery. Bo Yu, an expert in China's market for research firm Jato Dynamics predicted that automakers would continue to invest and innovate in the segment of hybrid vehicles for the foreseeable. She said, "We will see them more."
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Sri Lanka begins talks with India and UAE about a new energy hub
Sri Lanka's energy minister announced on Friday that the country will begin work on plans next month to create an energy hub in collaboration with India and United Arab Emirates. The nation is looking to leverage its strategic position to cement a return from the financial crisis. The three signed the deal during the visit of India's PM Narendra Modi to the island this month. He was the first world leader to visit since Anura Kumara dissanayake became president last September. Dissanayake was elected with promises of stability, after the worst financial crises in decades three year ago caused runaway inflation and sent the local currency into freefall. Trincomalee, a harbour city in eastern Sri Lanka, will be the hub for the construction of the multi-product pipeline and bunkering facilities. A refinery could also be built. The project will also involve the development of an old storage tank farm from World War II, which is partly owned by a Sri Lankan subsidiary Indian Oil. Udayanga Hemiapala, Energy Ministry Secretary, announced that representatives from the state-run Ceylon Petroleum and Indian Oil, as well as AD Ports, will meet in Sri Lanka at the end of May to begin discussions on a business plan for a hub. Hemapala said that a joint project monitoring group has been formed to monitor the development of business plans and finalise detailed proposal. The president's office reported that President Dissanayake and UAE Deputy Premier Sheikh Abdullah Bin Zayed Al Nahyan also discussed energy co-operation in Colombo with each other this week. Sinopec, the Chinese state-owned energy company, has signed an agreement to build a $3.2billion oil refinery in Hambantota, a port city located on Sri Lanka's south coast. (Reporting and editing by Christopher Cushing; Uditha Jayasinghe)
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Rhine River levels rise again, allowing sailings to resume in the north
After rains in Germany, the Rhine River levels have increased, allowing ships to carry more cargo, and sailings at normal speeds with full loads, in northern parts. Traders said that the extreme lack of rainfall in March and April had resulted in low water levels on the entire river south of Duisburg, Cologne and the choke point at Kaub. Traders reported that in the northern region around Duisburg vessels could sail with a full load on Friday. In previous weeks they were less than half-full. The Kaub was 70% full after rain in southern Germany. In shallow water, vessel operators charge surcharges to compensate for not fully loading the vessels. This increases costs for cargo owners. The cost of shipping cargo increases when it is shipped on multiple vessels rather than one. The Rhine is a major shipping route for grains, minerals and ores. It also carries coal, oil products and heating oil. German companies were faced with production and supply problems in the summer of 2022, after a heatwave and drought caused unusually low levels of water on the Rhine. (Reporting and editing by David Goodman.)
Maguire: Europe is on course to break solar energy output records in 2025.
The solar electricity production in Europe in the first quarter 2025 increased by more than 30% compared to the same period in 2024. This sets the stage for a record-breaking performance in the full year from the region's farms.
Ember data shows that the total solar electricity generated from January to March was almost 68 terawatt-hours (TWh), which is 32% higher than the same time period last year.
Solar assets provided 8.2% of Europe’s utility-supplied electricty in March. This is up from 6% a year earlier. This shows that solar power has become a major source of electricity for regional utilities, even during winter.
The peak period for solar production in Europe occurs during summertime in the northern hemisphere. This means that the total output of solar energy and the share of solar electricity will continue to grow over the next few months.
CLEAN DRIVE
The increase in European solar production forms part of an overall push to reduce dependency on fossil fuels, and increase electricity production through clean energy sources. Clean energy sources accounted for record-breaking 61.3% in Europe's electricity by 2024.
In the first quarter 2025, Europe’s clean share of the production fell to 57% because of low wind speeds. This caused a 15% decrease in wind power generation from the same quarter 2024.
In order to meet system demands, utilities have had to increase output of gas and coal plants this year. Wind farms are Europe's largest source of clean energy (after nuclear plants or hydro dams).
As solar farms reach peak production, the share of clean energy in the total generation mix will increase as fossil fuel plants' output drops due to lower heating demand and as they reduce their output.
WIDE SPREAD
Germany and Spain were responsible for more than 80% of the solar power generation in Europe up until 2010.
Several other countries have increased their solar power in the last decade due to cost reductions and improvements in system efficiency.
Solar farms in Europe are now widely spread across the continent. In recent years, multiple countries have seen double-digit growth.
In the first quarter 2025, several nations saw their solar output increase more than the average for the region. These included Turkey (+54%) the Netherlands (+63%) Poland (+44%) and Switzerland (+43%).
Germany, Greece and the Netherlands all registered solar electricity share of over 10% in the first quarter of this year. This highlights the growing importance of solar power within Europe's energy mix.
These share levels are likely to more than double in the next few months, as solar radiation levels increase and daylight hours extend over the summer.
Greece, Germany and the Netherlands will likely produce over 25% of the total electricity they use during the months of June, July, and August. This should boost the European average to 14% for these months.
Italy, Bulgaria and Croatia will likely also register double-digit solar electricity share this summer. This will ensure that almost every major regional economy records a record deployment of solar power for electricity by 2025.
These are the opinions of a market analyst at.
(source: Reuters)