Latest News
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FedEx and Advent-led consortium secures more than 89% of InPost's shares in the takeover offer
InPost, a Polish parcel locker operator, announced on Friday that FedEx International, Advent International as well as other InPost shareholders had offered 89.81% of its shares. InPost?reported in a press release that the minimum acceptance threshold of 80% shares had been reached. The consortium agreed in February to purchase InPost for approximately EUR7.8 Billion ($8.95 Billion)?in a cash-only offer of EUR15.60 per equity share. After the transaction is completed, InPost's shares will be removed from Euronext Amsterdam. It is one of Europe's biggest networks of automated parcel lockers. The company operates in nine countries, including Poland. The company will continue to be known as InPost and keep its headquarters and management structure in Poland. Since 2021, the shares of 'its company have been under pressure due to intense competition in its home market and heavy investment expenditure?to support rapid growth.
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Major US airlines reject Air China's bid to schedule more US flights
Air China has been criticized by a group of major US airlines for its plans to schedule additional flights between Beijing and New York, Washington, as part of the President Xi Jinping meeting with Donald Trump. Airlines for America, which represents American Airlines, Delta Air Lines and United Airlines, opposed the request. US carriers are effectively prohibited from flying to China from the US eastcoast because they can't access Russian airspace. Chinese carriers, however, have the ability to fly some US flights. US Airlines said that adding two flights to the schedule would allow Chinese carriers to request additional regular flights, and they should be classified a 'charter flight. The US Transportation Department has proposed that in October 2025 Chinese airlines be banned from flying over Russia on routes between the United States and China. They claim the shorter flight times this practice allows puts American carriers at an unfair disadvantage. The proposal was withdrawn after it faced opposition from US agencies. USDOT and an attorney for Air China did not comment immediately. US airlines have long been critical of the decision to let Chinese carriers use Russian airspace to fly on US routes, because it allows them to reduce their flying time. It also burns less fuel and lowers costs. In its filing, released on Friday, the airline group said that Chinese carriers offer "shorter and less expensive routes?to and from China, as well as more economical flights?from and to the United States." In retaliation to Washington's ban on Russian flights over the US in March 2022, after Ukraine invaded, Russia has banned US airlines as well as many other foreign carriers. Chinese airlines are not banned, and they have used this advantage to gain market share over non-Chinese carriers in international routes.
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Brazil Police seize devices from former iFood Employee in Trade Secrets Probe
According to the investigator, Brazilian police conducted a search and seizure this week on a former iFood worker who was suspected of downloading confidential commercial data before leaving the company to 'join rival 99Food. This case is the latest in a larger investigation into allegations of corporate espionage within Brazil's multi-billion dollar delivery industry. Competition has increased since the entry Chinese-backed platforms Keeta and 99Food owned by ride-hailing company DiDi Global. Angelo Lages is the 'police inspector in charge of the investigation, who led the operation on Wednesday. He said that the purpose of the search is to collect electronic devices to conduct forensic analyses and determine what has happened to the data. 99Food stated that it takes these reports seriously and does not tolerate the use illegally obtained data. It also said the person targeted by this operation is not a member of its staff. Theft of Information Alleged According to the industry group Abrasel, iFood is owned by Dutch investment company Prosus and controls about 80%. Last year, it processed orders totaling about $20 billion. iFood, in recent months, has publicly accused rivals of attempting to gain confidential business information by paying third-party firms for paid consultations and former employees. iFood stated that this week's operations were the result of a complaint they filed involving a?alleged theft by a former worker of confidential and strategic commercial information. They also added that they are pursuing legal measures in order to protect their data and partners. Inspector Lages stated that the former employee resigned iFood by 2025, after informing them he was joining 99Food. He also noted that a later internal review revealed the download of strategic files just before his departure. According to Lages, the former employee informed officers that he was no longer employed by 99Food. He is now working as an independent consultant. Investigators also want to know if other individuals or companies had access to this information. ANTITRUST DISSPUTES Cade, Brazil's antitrust regulator, is currently dealing with a number of competition disputes. Keeta accused 99Food using exclusivity clauses and contract provisions which allegedly made it harder for restaurants operating across multiple platforms. Separately iFood asked Cade earlier this year to examine the expansion strategies Keeta's and 99Food's, alleging that they rely heavily on subsidies and sustained losses in order to gain market shares.
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Virginia tightens restrictions on data centers amid political backlash
Abigail Spanberger, the Governor of Virginia, said that as a result of increasing political backlash against'server warehouses and technology developed in them, Virginia is tightening its environmental, commercial, and permitting controls. Virginia, the state with the highest concentration of data centres in the world, has unveiled plans that include a ban on non-disclosure contracts and clean energy mandates for the projects. This move is in line with a series of similar measures taken by the governors of New York, Texas, and Pennsylvania recently to curb the rapid expansion of data centres, which are increasingly being built?to train artificial intelligence and deploy it. Spanberger said at a press briefing that Virginia's "Data Center Accountability Framework", which was announced in April, is intended to ease public concerns about the secrecy surrounding data centers' development and their impact on energy bills and the environment. "Community members demand action," Spanberger said. Data centers with a capacity of 25 megawatts and above would be exempt from the ban on non-disclosure contracts. The governor also said that data centers would be given incentives to develop solar and wind backup generators instead of diesel or natural gas-fired ones to help power their operations. The state legislatures will have to approve a part of the framework next year.
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Bloomberg reports that Aramco has halted October crude oil deliveries to certain European refiners following a pipeline attack.
Bloomberg News reported that Saudi?Aramco informed at least two European refinery?customers on Friday that they would not receive any crude?oil in the next?month due to an attack on Saudi Arabia’s main pipeline into the Red Sea. The report stated that European refiners usually buy Saudi crude under term contracts that guarantee monthly deliveries, but Aramco informed its customers that the next month's delivery will not take place. Saudi Arabia informed European customers earlier that some crude cargoes will be cancelled due to a 'drone attack' which shut down its East-West pipeline, damaged three pumping station and disrupted oil loading at the Red Sea Port of Yanbu. Orlen, a Polish refinery, has sought alternative crudes after the disruption. According to traders, Orlen purchased North Sea grades in order to replace disrupted Saudi imports. Could not verify the information. Saudi Aramco didn't immediately respond to a comment request outside of regular business hours. Bloomberg reported that Aramco is working to 'partially restart the pipeline in days and return it back to full capacity within six weeks. Saudi Aramco also increased crude exports from the Gulf via ship-to-ship transfers off Oman's Sohar port to offset volume losses due to reduced Red Sea shipments.
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London's marine insurance companies expand high-risk zone in the Black Sea as shipping attacks increase
According to a recent advisory, London's marine insurers have widened their high-risk area for the Black Sea as the conflict between Ukraine and Russia escalates. The Black Sea is an important route for the shipment of grain, crude oils and refined products. Russia, Ukraine, Bulgaria, Georgia and Romania all share its waters. In the last two months, Russia and Ukraine have intensified their attacks on each others' commercial shipping, escalating their five-year war. The Joint 'War Committee' (JWC), which is made up of syndicate members in the Lloyd's Market Association, and representatives from the London Insurance Company market, provides guidance to underwriters on insurance premiums. The JWC expanded its reporting requirements for the Black Sea to include the entire Black Sea area this week. "The coastal waters of Russia, Ukraine, and the Baltic States were already listed," Neil Roberts said in a note that accompanied the advisory on Thursday. Roberts is the head of marine and aviation at the LMA, and the secretary of the Joint War Committee. "However voyages in the territorial waters of neighboring countries still do not require notification." In recent weeks, war risk premiums have risen dramatically as a result of the attacks on dozens of ships in the Black Sea.
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The small English club Oxford Utd apologizes for the 'United 93 clothing line'
Oxford United, a third-tier English club, has withdrawn its clothing line featuring the slogan "United 93%" and apologized for not knowing 'its historical context. United 93 is the callsign of one of the hijacked passenger jets in the 9/11 Al Qaeda attack on the United States. The merchandise was meant to be a nod to the club's founding date of 1893. A club statement stated that the range was released "without an understanding of its historical context and associated associations." "It should not have been sold and we take full responsibility for failing to do proper due diligence. We have immediately removed the collection and are reviewing our processes to make sure that nothing similar happens again. We would like to record our'sincere apologies' for this mistake and any?offence that may have been caused. After being hijacked by terrorists on September 11, 2001, United Airlines Flight 93 crashed into rural Pennsylvania in Shanksville. All 44 passengers and crew were killed. The 2006 documentary "United 93" chronicled the tragic events of the plane's flight towards the US Capitol Building.
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Malaysian regulator will ask publicly traded firms to submit El Nino plans and is looking for deeper Middle East relations
Malaysia's Securities Commission will ask companies how they are preparing for El Nino, as it is concerned that businesses in the country may not be prepared for its effects. Forecasters warn of a super El Nino that could bring heat and drought to Southeast Asia. Conditions that are hotter and drier can affect crop yields, straining water supplies. This poses a risk to Malaysia's palm oil industry. "We are going to write to all major companies and ask: What is your El Nino Plan?" Mohammad Faiz said in an interview during an investor roadshow held in the UK. "And we'll then?have a conversation with them next to see if it worked or failed." Since a while, a number of regulators have required that companies disclose information about climate and weather impact. However, requests for specific events are typically not made public, even when they're made. Mohammad Faiz stated that the initiative will test whether climate-risk disclosures by companies translate into effective preparation. He argued many firms have not "seriously" considered how they would deal with drought, because Malaysia has historically abundant water resources. Separately he stated that the commission was?exploring closer ties with regulatory?in the Middle East in order to deepen Islamic financial links and channel more funds into Southeast Asia. In a first step regulators will examine the differences between how different jurisdictions classify stock as being compliant with Islamic Law, or Sharia. In July, Malaysia's Securities Commission signed an agreement that allows companies seeking dual listing to use one prospectus and a set of submission documents starting this month. Mohammad Faiz stated that Sarawak Energy is one of the IPO candidates which the commission encourages to consider a dual listing in order to achieve a higher valuation. He claimed that the company could reach a market valuation of $10 billion. Sarawak Energy didn't?respond to an?request for comments outside of office hours. Mohammad Faiz, when asked if AirAsia is on the regulator's watch list, said that he "neither confirmed nor denied" this. He added that the government has hired?consultants who will review the carrier's financials, though he wasn't aware of any plans to?takeover. AirAsia has not responded to a request for a comment. Tony Fernandes, AirAsia co-founder, said that the company had not been in contact with the government and that they did not require any bailout or rescue. Mohammad Faiz, speaking of the plans for the stock exchange, said that the government planned to increase the capitalisation of Bursa to 6.3 trillion Ringgit ($1.55 trillion), from the current 4.5 trillion Ringgit.
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)