Latest News
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Sources say that Riyadh Air is looking at ordering 25-30 Boeing 787s as well as more Airbus.
Industry sources say that Riyadh Air is looking at acquiring between 25 and 30 additional Boeing 787 Dreamliners, by utilizing its contractual rights with the U.S. aircraft manufacturer. It may also increase its Airbus order list. The airline, which last week conducted 'its first commercial revenue flight', has ordered up to 72 Boeing Dreamliners by 2023. This includes 39 definitive orders and options for another 33. Sources said that Riyadh Air could announce its intention to convert the majority of these options into outright purchase as soon as next week at the Farnborough Airshow. However, they warned that details are still being discussed. Riyadh Air and Boeing declined to comment. Riyadh Air has also placed an order for?25 Airbus A350 - 1000 long-haul 'jets, with options to purchase another 25. Industry sources claim that some of those?orders may also be turned into firm orders. Airbus declined comment. (Reporting and editing by Louise Heavens, Tim Hepher)
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Hapag-Lloyd's outlook for the year is raised on the back of strong demand and freight rates
Hapag-Lloyd, the German'shipping company', raised its financial -year outlook on Monday. It cited strong market -demand and positive freight rate developments. Hapag-Lloyd now expects its earnings before interest tax, depreciation, and amortisation for the full fiscal year to range from $2.7 billion to $3.7 billion. This is up from the previous forecast of between $1.1 billion to $3.1 billion. The company has also increased its group's?earnings prior to interest and taxes (EBIT), for the year, to a range of $100 million to $1 billion. The forecast was subject to high uncertainty due to the volatility of freight rates, as well as major geopolitical issues. Hapag-Lloyd & Maersk will resume some sailings through the Suez Canal. This Asia-Europe trade route was abandoned by most shippers after Yemeni Houthi rebels destroyed vessels in 'the Red Sea. Shippers were forced to use the much longer route around Africa's Cape of Good Hope. However, firms are considering returning to the Red Sea Route. Shipping rates increased as a result of the longer trips?around Africa.
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US lawmakers debate whether to end twice-yearly clock switching
The U.S. House of Representatives will vote this week on a measure to extend daylight saving time year-round. Another group of legislators wants standard 'time to be permanent. The House Rules Committee will meet at 4:00 p.m. Monday, the House Rules Committee will meet to determine if any amendments are needed before the House takes up the measure this week. The House Energy and Commerce Committee approved the Sunshine Protection Act 48-1 on May 1. In March 2022, the U.S. Senate voted to permanently extend?daylight savings time but the House did not take up the issue due to opposition. Hawaii and Arizona don't observe daylight saving time. The supporters of the measure claim that the time change causes sleep disruptions, increased workplace injuries and car crashes. They believe that brighter evenings will also spur more economic activity in winter. Since the 1960s, daylight saving time has been implemented in the United States. This involves moving the clocks one hour forward during the summer months. Two lawmakers introduced the Sunshine for Our Kids Act last week. The act makes standard time the default time for all states, but allows them to opt in for daylight saving time if that is what they prefer. Reps Pat Harrigan, Mary Gay Scanlon and others argue that standard time is better for mornings to be in sync with the natural light?and circadian rhythms. Donald Trump has been aggressive in his push to end the?bi-annual clock-?switching. The U.S. Senate will need to decide again if it wants to consider the measure, which is opposed by U.S. Senator Tom Cotton of Arkansas, a Republican, and others. Cotton said that it would lead to absurdly late winter dawns and force many children to attend school in darkness. In World War II, the United States implemented a year-round daylight savings time. They did it again in 1975 to reduce energy consumption. It was unpopular, and Congress repealed the law later that same year. (Reporting and editing by Nick Zieminski.)
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Canada's Oil Sands Alliance signs agreement to advance Pathways Carbon Capture and Storage Project
The Oil Sands Alliance, the Alberta government and the federal government of Canada announced on Monday that they had reached an agreement for the 'Pathways carbon capture and storage 'Project. This was a condition set by the government to'move forward with the new West Coast oil pipe. The Oil Sands Alliance said that the Pathways Project, when operational, will be able to transport and safely store approximately 6 million metric tonnes of CO2 per year by the mid-2030s. Early July, Canada announced plans to build a pipeline from Alberta to the Pacific Coast. This would allow the fourth largest oil producer in the world to have greater export capacity to Asia. It would also reduce its dependence on the United States. Mark Carney has tried to strike a balance between Alberta's goal of increasing oil production and?environmental concerns. He has said repeatedly that federal support for the new crude pipeline in Canada depends on oil sands producers in Canada implementing a large-scale project to capture and store carbon emissions. This would reduce emissions from Canada's most polluting sector. The biggest Canadian oil sands companies -- Suncor Energy and Canadian Natural Resources, Cenovus Energy Imperial Oil, ConocoPhillips Canada, ConocoPhillips Canada, Cenovus Energy -- proposed the Pathways Project in 2022 but refused to assume?the cost of its construction. The initial estimate was C$16.5 billion. However, the companies and the government have agreed to scale down the project and build it in phases. The government-owned Trans Mountain ?Corp will build a new 1-million-barrel-per-day pipeline in coordination with Pembina Pipeline Corp PPL.TO. Pembina will have a 10% stake during construction and the opportunity to increase that up to 10% after the project is operational. The government of Premier Danielle Smith has stated that construction could begin as soon as September 2027.
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First time in Brazil, container ship is refueled with ethanol
The container carrier, operated by CMA CGM, refuelled?with the ethanol during a port stop in Santos, Brazil. This is the first time this type of fuel has been used to move the engines of deep-sea vessels in Brazil. CMA CGM IRON received 650,000 liters anhydrous alcohol from Brazilian ethanol and Sugar merchant Copersucar in a refueling service provided by Danish marine services group Bunker One. The CMA vessel, one of the 12 vessels operated by the group, is equipped with a trifuel engine. This engine can run on any combination of bunker fuels or methanol. The CMA vessel is a tiny part of the 700-vessel fleet, but it's used to test lower-carbon fuels. "We view bioethanol as an additional solution to reduce greenhouse gas emissions. The Santos test facility shows that bioethanol can be used in a safe and efficient manner under real commercial conditions, said Christine Cabau Woehrel. "We want to demonstrate with this operation that the ethanol is already available as a solution to decarbonize maritime industry", said Copersucar?Chief executive Tomas Manzano. Copersucar manages the Evolua Etanol distributor, which is owned by dozens of sugar and ethanol producers in Brazil. The company estimates that ethanol reduces carbon emissions from a vessel by 70% compared to bunker fuel derived from oil. However, they said that the price was higher. The companies believe this could be offset by creating and selling carbon credits. Marine?transportation is one of those sectors that are harder to reduce carbon emissions. The International Maritime Organization has a?net-zero carbon goal for 2050. The IMO has not yet reached an agreement with companies on legally binding measures. This makes any initiative like CMA's a voluntary one. Reporting by Marcelo Téixeira, Editing by Chizu Nômiyama
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UN shipping agency opposes any fees in the straits after Trump plans Hormuz fee
The?U.N. The 'U.N. Trump stated in a post on Truth Social that the process would start immediately. He did not elaborate. A spokesperson for the United Nations said, "We're aware of this post and are awaiting more details." International Maritime Organization. "We've always maintained a consistent stance against fees - IMO is opposed to charging fees for the passage through straits that are used for international navigation." There is "no legal basis" to introduce tolls for transiting through a strait. Officials from the shipping industry expressed their concern at?the newest development. They added that, in their opinion, such a move would violate international law. "How will this make it safer for people to travel through the water and what guarantees will this provide?" One official who declined to be named said about Trump's position. (Reporting and editing by Sharon Singleton, Susan Fenton, and Jonathan Saul)
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Residents say that gunmen have killed at least 18 people, in the state of Benue, Nigeria.
Residents and local officials reported that gunmen had killed at least 18 people in Nigeria's northern state of?Benue in a weekend assault. This prompted a protest march by angry locals, who blocked the roads to protest against the violence. Benue is a frequent site of conflict between farming communities, cattle?herders and armed groups. These conflicts are often fueled by competition for land and resources. Udeme Edet, Benue Police spokesperson, gave a lower toll of deaths for the attack that took place in the early hours of Sunday morning. He said: "Eight people were killed and five others wounded." Residents in Otukpo Nobi, a community within the Otukpo Local Government Area said that armed men who were suspected by the?locals as Fulani herders opened fire between 3:30 and 4:30 a.m. Maxwell Ogiri, the local government chair, 'linked the violence to the murder of the head of the herders association two weeks ago. The attack was not immediately claimed by any group. Women and youths protested in 'the town of Otukpo. Reporting by Ahmed Kingimi and Hamza Ibrahim; Writing by Chijioke Ahuocha; Editing Helen Popper
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Italian judge rejects INWIT's bid to stop Telecom Italia from exiting tower contract
The company confirmed that an Italian judge rejected INWIT's urgent request to suspend Telecom Italia from withdrawing from a lease agreement. INWIT is Italy's largest tower operator and it has been embroiled in a dispute with two of its main customers, TIM &?Fastweb. Both have begun legal proceedings to terminate the contracts of their respective clients as part of an effort?to renegotiate these on more favourable conditions. INWIT's two main anchor tenants, TIM and Fastweb, account for almost 85% of the EUR1 billion in revenue. INWIT is not happy with the judge's decision, according to a spokesperson. The company also reserved the right?to challenge the ruling?and would fight to defend its stance when the case was finally heard in full. The suspension request was made as part of an expedited procedure. TIM declined comment. INWIT shares reversed gains made earlier and went negative following the news. At 1305 GMT, they were down by 1.63%. According to two sources who are familiar with the case, the court denied the request to halt the withdrawal process because it found that there was no imminent danger of irreparable damage to the company. Sources familiar with the matter said that a court decision on INWIT's separate request to stop Fastweb from terminating?its tower contract? is still pending. INWIT had previously stated that the?contract, following a change in control due to a shareholder reshuffle, was extended up until 2038 without a break option. Fastweb has disputed this interpretation. Fastweb believes that the current contracts could expire in 2028. This would give the company the option to?issue a withdrawal notification two years earlier. TIM stated that the termination would 'take effect' in 2030 when the contract expires, or 2028 if a judge upholds Fastweb’s interpretation.
US port workers' dispute threatens bananas, clothes, and cars
On Oct. 1, 45,000 unionized workers may walk off their jobs at seaports along the U.S. East Coast and Gulf Coast, cutting off vital trade routes just weeks before the presidential election.
JPMorgan estimated that a strike would cost the U.S. $5 billion per day.
The strike may affect 36 ports, which handle approximately half of U.S. imports by ocean. This could impact the availability of bananas, clothing and cars that are shipped in containers. It may also create weeks-long queues at ports. Logistics experts say that it could also cause shipping costs to rise, which may be passed onto voters who are already frustrated by housing and food inflation.
What's the issue?
There appears to be a deadlock over wages between the United States Maritime Alliance and International Longshoremen's Association, a union that represents workers in ports from Maine to Texas. The current six-year agreement expires midnight on September 30.
The ILA's first strike since 1977 would be a general strike on the East Coast and Gulf of Mexico.
A Biden administration official said that the President would not use federal powers to stop a strike.
A long and widespread strike could lead to shortages and increased costs in a wide range of industries.
What do longshoremen do?
Longshoremen are also known as stevedores and they handle the cargo of incoming ships. Most of their work is on container ships. However, they also work on car carriers and cruise liners.
The crane operators secure cargo containers in transit by "lashing" them to the ship. They also process paperwork.
AUTOS, MACHINERY & PARTS
According to S&P Global Market Intelligence, the ports covered by this contract imported vehicles worth $37.8 Billion during the 12-month period ending June 30, 2024. Baltimore, Maryland is the leading port in the country for car shipments.
Logistics experts say that auto parts are a major import for the East Coast of the United States and Gulf of Mexico. They also said that shipments coming from Europe were more difficult to reroute compared to those coming from China.
S&P Global Market Intelligence showed that the ports are also leading in the U.S. for shipments of machinery and precision instruments. The figures were $97.4 Billion, $16.2 Billion and $15.7 Billion respectively.
Agriculture and pharmaceuticals
A strike would put at risk about 14% of the total volume of U.S. agricultural exports that are waterborne. The American Farm Bureau Federation estimates that the value of these exports could reach $318 million over a period of one week.
The Farm Bureau reported that 53% of U.S. agricultural imports transported by water are susceptible to a strike. This could have an economic impact of more than $1.1 billion per a week.
According to Jason Miller, the interim chair of Michigan State University’s Department of Supply Chain Management, three-quarters (75%) of the United States' banana imports come from countries such as Guatemala and Ecuador.
Separately the U.S. exports cotton and imports large quantities of coffee and cocoa.
Mike Steenhoek said that a strike would also affect the container exports for soybeans, soy meal, and other products, and have a major impact on meat or eggs, whether they are chilled or frozen.
Refrigerated containers are essential for the $18 billion-per-year U.S. market of beef, pork and poultry exports and $5.8 million-per-year egg and poultry exports.
Joe Schuele, spokesperson for the U.S. Meat Export Federation, stated that in the first seven month of this year about 45% of pork and beef exports from America were shipped through East Coast and Gulf Coast port.
Customs data, and the USA Poultry & Egg Export Council, show that more than a quarter (25%) of U.S. exports of eggs and egg products and about 70% of poultry meat are shipped out of ports on the East Coast and Gulf Coast.
According to Everstream Analytics, the affected ports handle 91% of all containerized imports from the United States and 69% containerized exports.
Nearly one third of the containerized pharmaceutical imports into the U.S. enter through the Charleston, South Carolina port, while more than one-third leave the U.S. via the Norfolk, Virginia port.
ENERGY & MILITARY, CRUISES AND CONSUMER GOODS
About half of container volumes are shipped by retailers. Retailers in the United States have already rushed to ship holiday merchandise.
According to S&P Global Market Intelligence, the ports that could be affected by an upcoming strike would bring in over half of all knitted and nonknitted clothing, worth $32.8 billion. They also carry furniture, valued at $23.4 million, which is valued at more than half.
Although the Gulf Coast ports in Houston and New Orleans, which are important hubs for oil and gas shipments, these commodities would be largely unaffected if a strike affected more labor-intensive containers. Experts said that the same is true for coal exports out of Norfolk, Virginia.
The ILA has, however, pledged to work on passenger cruise ships and handle military cargo during a strike.
HIGHER COSTS AND BIG DELAYS
A strike could increase shipping costs and cause long delays.
John McCown of the Center for Maritime Strategy, a senior fellow, said that the top five ports within the negotiating group – New York and New Jersey, Savannah, Georgia, Houston, Norfolk, and Charleston – handled more than 1,5 million 20-foot-equivalent units (TEUs), valued at $83.7billion, in August. He said that two-thirds were inbound cargo, and the rest was outbound.
Logistics experts warned that trade disruptions caused by a stoppage of work would start immediately and send rates up, affecting the entire U.S. economic system.
Sea-Intelligence analysts, a Copenhagen-based shipping consultancy, estimate that it will take between four and six days to clear up the backlog after a strike of one day.
Maersk, a major ocean transporter and member of the Employer Group, has warned that an unplanned shutdown of one week could take up to six weeks, with "significant backlogs and delay compounding each day." (Reporting from Lisa Baertlein, Tom Polansek and Karl Plume in Chicago, Marcelo Téixeira in New York, and David Shepardson, Jarrett Renshaw and Anna Driver in Washington. Editing by William Maclean, Anna Driver and Deepa Babington.
(source: Reuters)