Latest News
-
At the annual summit, global airlines will address net-zero uncertainty and trade war at the annual summit
The annual airline summit in India will feature an unpredictable trade war, and a host of environmental targets. This is due to the concern that geopolitical uncertainties could dampen demand for travel and increase costs. After a full recovery of the passenger market following the pandemic, more people are now flying. However, airlines are faced with rising costs, prolonged plane delivery delays and lingering bottlenecks in their supply chains. The evolving trade war of President Donald Trump has also added to the volatility and risk in the aerospace industry. The U.S. airline industry has recently been affected by a slump in demand. Carriers are struggling to predict passenger behavior and operating costs. New Delhi will host the annual three-day conference of the influential International Air Transport Association, which represents over 300 airlines and more than 80% global air traffic. Air travel in Asia will outpace Europe and North America over the next few decades, according to the summit hosted by India's largest airline IndiGo. India's recent hostilities against Pakistan, which are forcing Indian airlines to make large and expensive detours through Pakistani airspace highlights the increasing burden conflict zones place on airline operations. IATA stated in February that aviation safety is a major concern due to accidents and incidents involving conflict zones. This requires urgent global coordination. Aviation safety is also a focus, following a series of accidents that occurred in Kazakhstan, South Korea, and North America in the last six months. There are also growing concerns in the United States about the air traffic control system. NET-ZERO DOUBTS IATA is warning more and more that airlines won't meet their sustainability goals and that the transition to sustainable aircraft fuel (SAF), and new technologies, will not be funded in a way that makes sense. In 2021, airlines agreed to aim for net-zero emission in 2050. This was based on a gradual shift to SAF (which is made from waste oils and biomass) which costs more than conventional jetfuel. Willie Walsh, Director General of IATA, has said in recent weeks that the industry must reevaluate its commitment. Walsh said that SAF manufacturers are not providing the necessary support to airlines in order for them to pay the higher cost of fuel. Airbus and Boeing delays in delivering more fuel-efficient planes are also causing airlines headaches. IATA reported that 1 million metric tonnes of SAF were produced worldwide in 2024. This was below the forecast of 1.5 million tons and production was described as disappointingly slow. "Demand continues to exceed supply and costs remain prohibitively expensive." Subhas Menon is the director general of Association of Asia Pacific Airlines. He said that regulatory frameworks for encouraging SAF production were still inconsistent or inadequate. Reporting by Lisa Barrington from Seoul and Abhijith Ganapavaram from New Delhi. Editing by Jamie Freed.
-
As the holiday season approaches, uncertainty about tariffs and court battles continues to plague shippers.
The executive director of America's busiest port said that importer uncertainty remains high ahead of the crucial holiday ocean shipping season, as a legal battle over President Donald Trump’s trade tariffs broke out. The U.S. Court of International Trade's ruling on Wednesday night threatened to delay or even kill Trump's "Liberation Day", tariffs, on the majority of U.S. trading partner countries. However, a federal appellate court reinstated these duties on Thursday. Gene Seroka said that business was softer than normal as we enter the traditional ocean shipping seasons for back-to school, Halloween, Thanksgiving, and Christmas merchandise. He expects that the port's volume in May will be down by double digits from a year ago, following 30% drops during the first and fourth week of the month. Seroka said that 10 scheduled arrivals of vessels at the Port of Los Angeles were canceled for June. Five of these cancellations occurred in the first month of the year. "Companies don't know what to do and are on hold," he said. He added that there have been more than 60 announcements since January on tariffs and trade policy. Los Angeles Port is considered the world's No. The Port of Los Angeles is the No. Walmart, Ford and other major automakers are among the key customers. Trump slapped 145% of tariffs on China in the last month. This halted many shipments to the United States. Transit times delayed the drop in cargo volume by 2 to 3 weeks. This month, fewer ships with less cargo dock at the Ports of Los Angeles and elsewhere. This is despite the U.S. & China reaching a temporary reduction in tariffs of 30% on Chinese products earlier this month. The Federal Appeal Court on Thursday ordered the plaintiffs of the legal challenge against the tariffs, to respond before June 5, and the Trump Administration to respond before June 9, indicating that the uncertainty will likely continue. People are betting on whether they should place their order at the higher tariff rate. Could things change with time? Seroka replied. "There is no surge on our way." Reporting by Lisa Baertlein, Los Angeles; editing by Ni Williams
-
Sempra Port Arthur Phase 2 receives US approval for LNG export
The Department of Energy announced on Thursday that Sempra’s Port Arthur Phase 2 Project in Texas had won U.S. approval for exporting liquefied gas to Europe and Asia. The first final LNG export approval was issued by U.S. president Donald Trump. He reversed the pause that former president Biden ordered in order to study the economic and environmental impact of this booming industry. According to U.S. Secretary of Energy Chris Wright, the project is "a significant expansion of a first phase that was already under construction – turning more liquid gold underneath our feet into energy for the American public." Justin Bird, CEO, Sempra Infrastructure (a division of Sempra Energy), said that the approval is another important milestone in the development of Port Arthur LNG Phase 2. Since Trump's election, the administration has granted conditional approval for Commonwealth LNG's proposed LNG export facility in Cameron Parish in Louisiana and Venture Global's CP2 Project, also in Louisiana. These projects will sell supercooled gas to Asian and European markets pending the final approval of the Federal Energy Regulatory Commission. Port Arthur Phase 2 was the first approval. Port Arthur LNG Phase 2 is still awaiting a final investment determination (FID). It is estimated that the facility will export 1,91 billion cubic feet of LNG per day once it's completed. Port Arthur Phase 1 construction is underway and it is expected that LNG exports will begin in 2027. Sempra operates Cameron LNG in Louisiana which exports LNG since 2019. Sempra is building the Energia Costa Azul Terminal in Mexico which will start commercial export operations for U.S. gas as LNG by 2026. Sempra stated in a recent earnings call that it expected to have a final investment decision (FID) by the end the year. However, uncertainty about the macroeconomic climate may impact the timing of product developments. (Reporting and editing by Lisa Shumaker, David Gregorio, Curtis Williams from Houston; Additional reporting by Timothy Gardner)
-
US asks Judge to Dismiss Boeing 737 MAX Criminal Fraud Case
The U.S. Justice Department asked a federal judge on Thursday to dismiss criminal fraud charges against Boeing arising from two deadly 737 MAX crashes in which 346 people died, claiming that it had reached an agreement with the planemaker. Boeing avoids being labeled a felon under the agreement, but has agreed to pay $444.5 millions into a fund for crash victims, which will be distributed evenly among each crash victim, on top of a $243.6-million fine. Boeing, who last year agreed to plead guilt as part of an agreement, will pay a total of $1.1 billion, including fines and compensation for families, plus over $455 millions to improve the company's safety, quality, and compliance programs, according to the Justice Department. Families who had lost loved ones in the crashes have harshly criticised the agreement and urged prosecutors to bring Boeing to court. Two U.S. Senators and a lawyer representing family members urged the Justice Department to continue its investigation. Some lawyers have also vowed not to accept the deal. The deal, according to the government, "secures meaningful public accountability, delivers immediate and substantial benefits and finalizes a complex and difficult case whose outcome was otherwise uncertain." Boeing CEO Kelly Ortberg finalized the deal on Thursday. The Justice Department had announced last week that it had reached a principle agreement. The Justice Department stated that the vast majority (of the 346 families) of those killed in the crashes settled civil lawsuits with Boeing, and collectively "paid several billion dollar." Boeing is committed to meeting its obligations under today's resolution, including a substantial fine as well as commitments for further institutional improvements and investment," the company announced on Thursday. Boeing will not be subject to the oversight of an independent monitor as part of the agreement. Instead, Boeing will hire a consultant for compliance. Boeing's board will have to meet the families as a condition of this deal. First reported on 16 May that Boeing had entered into a tentative agreement of non-prosecution with the government. The agreement will prevent a trial scheduled for June 23 against the planemaker over a charge that it misled U.S. regulatory authorities about a critical flight control system in the 737 MAX jet, its most popular model. Boeing pleaded guilty in July to a criminal conspiracy charge of fraud after the two fatal 737 MAX crash in Indonesia and Ethiopia that occurred between 2018 and 2019. In 2023, Judge Reed O'Connor of Texas stated that "Boeing's crimes may be properly considered as the deadliest corporate crimes in U.S. history." (Reporting and editing by David Shepardson, David Gregorio).
-
Wells Fargo signss deal to sell $4.4 Billion Rail Assets Portfolio
Wells Fargo announced on Thursday that it had signed a contract to sell its rail-equipment leasing business to the newly formed joint venture of railcar lessor GATX Corporation with Brookfield Infrastructure. The entire rail operating lease portfolio, valued at $4.4 billion and the rail finance leasing portfolio are included in the deal. David Marks is executive vice president of Wells Fargo Commercial Banking. He said that the transaction was in line with Wells Fargo’s strategy to simplify our businesses, and focus on products and service offerings that are important to our customers. GATX, Brookfield Infrastructure and other companies have released a statement stating that the rail operating leasing portfolio consists of approximately 105,000 railcars. Brookfield Infrastructure also has agreed to purchase Wells Fargo’s rail finance leasing portfolio. This includes approximately 23,000 railcars, and 440 locomotives. GATX initially will own 30% of the joint venture and Brookfield Infrastructure 70%, with the latter having the option to purchase the full ownership at a later date. GATX will be in charge of all commercial and operational aspects, as well as managing the joint venture assets. The companies expect that the deal will close by the first quarter of the year 2026, or earlier. (Reporting by Manya Saini in Bengaluru; Editing by Vijay Kishore)
-
United, American Airlines both back Azul restructuring, eyeing Brazil market
United Airlines and American Airlines are fierce competitors in the U.S., but have decided to support Azul after the Brazilian airline filed for bankruptcy earlier this week. This move is being made as major U.S. carriers look to improve connections in Latin America’s largest country. American's support of Azul is noteworthy given its own ties with its local competitor Gol, which has just emerged from its own Chapter 11 proceedings. According to a filing by Azul, U.S. firms are planning to invest up $300 million in a equity offering for Azul to repay its debtor-in possession financing after it emerges from bankruptcy. John Rodgerson, Azul's Chief executive officer, said that the company believes in its long-term viability and our network strategy. "Brazil will be very important for United and American." Both airlines will have codeshare agreements and serve on the board of directors for Azul when it emerges out of Chapter 11. Azul filed for bankruptcy in the United States Wednesday. This followed similar moves made by Gol, and LATAM Airlines, who had spent months trying to restructure debts mainly from pandemic years. Rodgerson pointed out that, although United and American both have "great franchises" throughout Latin America their routes connect Brazil with different U.S. city. American Airlines flies to Dallas, Miami, and New York JFK Airport while United flies to Chicago, Houston and Washington. United is an Azul shareholder. It bought a stake as part of a strategy in 2015 to catch up with U.S. competitors who had a stronger foothold on South America's largest air travel market. Andrew Nocella said that the new deal was an opportunity for United to expand their business with Azul. American has been a partner of Brazilian carrier Gol for many years. Gol holds roughly the same market share as Azul in Brazil, at around 30%. Azul offers a much wider range of destinations than Gol, which focuses on the big cities like Sao Paulo and Rio de Janeiro. Stephen Johnson, American Airlines' Chief Strategy Officer, said in a press release that Gol was still a major partner and praised Azul for its plans. He called them "extremely beneficial" to the Brazilian aviation industry. Gabriel Araujo, Mexico City. Editing by Aurora Ellis.
-
Fuel shortages in the US add to supply risk during an above-average hurricane season
Analysts said that low fuel stock levels in the United States had fueled supply anxiety ahead of an expected hurricane season above average. The U.S. gasoline and diesel stock levels have been at or below their five-year average, partly because of a series of refinery shutdowns and unplanned maintenance over the past few weeks. Forecasters predict that this year's Atlantic Hurricane Season will produce over 17 named storms. This could threaten the majority of U.S. refineries and a large part of the oil production along the U.S. Gulf Coast. The latest Energy Information Administration data showed that U.S. stocks of distillate fuel oil fell to the lowest level since April 2005. The week's gasoline stocks dropped by 2.4m barrels, while analysts expected a 527k-barrel drop. A major disruption in Gulf Coast refinery would be quickly felt by Eastern demand centers, and could cause prices to spike there as the region scrambles to import additional products to meet demand. Chowdhury said that the Gulf Coast is the main source of inbound transfer for the East Coast. Colonial Pipeline is the main conduit for fuel moving from the U.S. Gulf Coast up to the East Coast. A new S&P Global Commodity Analysis shows that if a major hurricane hit the Gulf Coast in this season, gasoline stocks and diesel inventories could fall below their seasonal range of five years. Fuel demand could be a factor that limits the volatility of refined products prices. Joe DeLaura is a senior energy strategist with Rabobank. He said: "I think that if we have a strong storm season this year - and it is supposed to be one of the biggest ones ever - it will negatively impact prices and logistics." "Some refineries are out of service for a few days or even a week, but the product demand is also lower during this time."
-
Williams works with federal and state regulators in Pennsylvania to revive natgas pipelines between New York and Pennsylvania
Williams Cos, a U.S.-based energy company, said Thursday that it is working with state and federal regulators to revive the two natural gas pipelines previously canceled from Pennsylvania to New York. The Northeast Supply Enhancement Pipeline (NESE), which runs from Pennsylvania through New Jersey to New York, and the Constitution Pipeline, which runs from Pennsylvania to New York. Williams canceled Constitution after years of fighting to get permits from New York regulators, and canceled NESE after years of fighting to get permits from New York and New Jersey regulators. After gaining a lot of money, the company wanted to revive its projects. Support from the Trump Administration On May 19, the administration lifted an order that had been in place for a month to stop work on the $5 billion Empire Wind offshore project of Norwegian energy company Equinor off New York. U.S. Interior Secretary Doug Burgum who had issued the Empire Wind stop-work order in April said that he was pleased to see New York Governor Kathy Hochul allowing new gas pipeline capacities to be built. Hochul, who asked the Trump administration for the lifting of the stop-work orders on the offshore wind farm did not endorse the gas pipelines but stated in a press release that New York will work with private entities and the U.S. Administration on projects that comply with state law. In an email, a Williams spokesperson said that the company had "submitted a petition to Federal Energy Regulatory Commission for reinstatement of certificate of public necessity and convenience for the Northeast Supply Enhancement Project (NESE)." The company said that it had begun to work with state environmental regulators of New Jersey, Pennsylvania, and New York on permitting issues and would be filing applications as soon as possible with these agencies in order to obtain the permits necessary for the NESE Pipeline and Constitution Pipeline Projects. Williams said that the projects were "essential" to address the persistent shortages of natural gas in the Northeast. These shortages have resulted in higher energy prices for consumers, and a greater reliance on fuels with higher emissions like fuel oil. (Reporting and editing by Chris Reese, Mark Porter and Scott DiSavino)
Sources say that Chevron will terminate contracts but keep its staff in Venezuela.
Sources close to the decision said that Chevron had terminated its oil production, service, and procurement contracts in Venezuela. It has delegated its joint venture governance to PDVSA. However, it intends to retain the direct staff it employs in Venezuela.
The U.S. government of President Donald Trump revoked a key license that Chevron needed to operate in Venezuela in March. A two-month window granted for the winding down of transactions ended this week and the license was officially canceled, according to the company.
In recent days, the U.S. manufacturer received a limited authorization from the Trump Administration allowing it preserve assets, including its joint venture stakes, and retain staff that it had expanded over the past few years.
The guidelines are similar in terms to a U.S. licence Chevron held between 2020 and 2022, before the administration of President Joe Biden broadened it so that the company could expand into Venezuela and resume crude oil exports to America.
Chevron, along with several European firms, had
Requested
Trump's policy of restriction towards the country has led to the U.S. issuing permits for assets to remain in South America. It was unclear if any other companies had received similar instructions.
Sources said that Chevron executives met this week with top Venezuelan officials, including Delcy Rodrguez, oil minister, to inform them about the next steps.
Chevron is prohibited from operating oilfields, exporting its oil, or expanding its activities in Venezuela under the new authorization. This is because Chevron wants to avoid paying any payments to President Nicolas Maduro and his administration.
PDVSA and the U.S. Treasury Department did not respond to requests for comments. Chevron says it is in full compliance with all laws and regulations applicable, including those imposed by the U.S.
Venezuela cancelled cargoes to Chevron in April, citing payment uncertainty related to U.S. Sanctions. This shortened a deadline of May 27 to close transactions. Chevron exported as much as 290,000. barrels of Venezuelan crude oil per day before the sanctions.
Three sources indicated that the extra compensation bonuses Chevron implemented for its joint venture workers may be suspended.
PDVSA is also taking over the sales of crude oil produced by these ventures. This could result in a new accumulation owed to their partner. The state-owned firm
began exporting
A heavy crude produced jointly.
Trump accuses Maduro that he has not made progress in the return of migrants and on electoral reforms. Maduro rejects sanctions imposed by the U.S., and other countries. He says they are an economic war. (Reporting and editing by Staff; Chris Reese, Nick Zieminski).
(source: Reuters)