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MSC will introduce an emergency fuel surcharge for all cargoes from Northern Europe to the Red Sea and East Africa
The shipping company MSC announced on Thursday that it would implement a fuel surcharge for 'all cargo' from Northern Europe (including UK, Scandinavian and Baltic) to the Red Sea and East Africa. This will be effective March 16, 2019. MSC will charge $40 per twenty-foot equivalent (TEU), from Northern Europe, including the UK to the Red Sea for dry containers and $60 for refrigerated ones. The world's largest ocean container carrier said that dry containers from Northern Europe (including the UK) to East Africa would be charged at $65 per TEU while refrigerated ones would be charged at $100 per TEU. MSC will also charge $50 per TEU to transport dry containers from the Scanbaltic region into the Red Sea, and $75 for refrigerated ones. The rate would be $75 for dry containers and $120 for refrigerated ones from the Scanbaltic area to East Africa. Reporting by Kanjyik?Ghosh from Barcelona. (Editing by Jane Merriman.
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Travel and airline groups warn about risks to air travel as partial shutdown continues
Major?U.S. Airlines and travel groups warned Thursday that a partial government shutdown would snarl the air traffic just as spring break, a busy season for U.S. travelers, approaches. The funding for the Department of Homeland Security lapsed in February after Congress failed reach an agreement on immigration enforcement reforms requested by Democrats. This halted funding for several government departments, including the Transportation Security Administration. Around 50,000 TSA airport screeners work without pay. As the'shutdown' continues, more workers may be unable to or unwilling to report to work due to financial hardship. Chris Sununu is the CEO of Airlines for America, which represents trade associations. He said that carriers are anticipating a record spring travel season, with 171 millions passengers flying, up 4% from last year's same two-month period. He accused lawmakers of not voting to end shutdown. Sununu stated that the fear was, "once again, the government won't act until there is a real crisis, or until long lines form." He added that the frequent shutdowns put the U.S. Aviation system at risk. Sununu says that spring break travel will be a flurry as TSA employees get their first zero-paycheck on March 13. Sununu urged the Trump Administration to reinstate Global Entry which allows low-risk, pre-approved travelers into the United States to bypass customs and immigration. Geoff Freeman, CEO of the U.S. Travel Association, said that it is unacceptable to not pay airport security staff. "TSA officers screen almost a billion passengers every year." Freeman stated that with an average salary of $35,000, workers like these simply cannot afford to miss a paycheck. Every time Washington fails in funding the government, these workers pay the cost. So do travelers. "So does the economy. Ha Nguyen McNeill told Congress last month that 1,110 'transportation security officers' left the TSA after a 43-day shutdown of the government in October and Nov 2025. This was a 25% increase compared to the same period in 2024.
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US House Committee wants travel companies to provide answers on AI pricing
The chairman of the U.S. House Oversight Committee asked the CEOs?of?five major companies, including Uber, Lyft, and?Expedia? on Thursday to disclose whether they used surveillance pricing of customers to increase costs. In letters to companies, Republican Chair James Comer expressed concern that the use of highly personalized consumer data and the growth of surveillance pricing algorithms could create opportunities for companies to "weaponize personal data" and increase their profits at the expense providing transparency to consumers. Surveillance Pricing is a pricing strategy that uses a consumer's data, such as their browsing history, location, and shopping habits, to set individualized algorithmic prices. This is an alternative to standard market pricing. Comer stated in letters reported first by that travel firms use?surveillance prices' to deploy algorithms which determine a customer's emotional state and purchase intent, as well as their maximum willingness to pay. A tailored price is then determined based on this information. Comer cited?a media report that Uber used AI-based pricing to offer different prices for identical products. Uber stated?on Thursday that it does not engage in surveillance pricing or personalize prices. Uber stated that "fares are determined based on factors such as location, time and demand. Not by individual characteristics, previous behavior or device information." Booking.com, Instacart and the other companies who received letters did not respond immediately to comments. In response to Comer's letter, documents must be submitted by March 19, including communications detailing revenue-management algorithms and their financial impact. Comer wrote that "often this happens in a black?box environment" where consumers are unaware of the personalized pricing or which information is being collected about them. Comer pointed out that companies use data from consumers to create "profiles" based upon individualized information such as "geolocations, demographics and browsing histories, purchase histories, device types, battery life...and even mouse clicks to assign different prices to individuals." California Attorney General Rob Bonta launched a wide-ranging investigation in January into the use of personal data for setting individualized prices. Delta Air Lines was asked by two dozen U.S. House Democratic Members in November to provide answers to questions about the use of artificial intelligence for setting ticket prices. Lawmakers are concerned that airlines may use AI, consumer data, or internet usage to determine when people want to travel, then increase air fares and other prices. Delta said that "no fare product Delta ever used, tested or intends to use targets customers with personalized offers based upon personal information or other factors." Reporting by David Shepardson, Washington; editing by Chizu nomiyama and Matthew Lewis
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Shipping data shows that Iranian bulker ships sail from Gulf despite the war
Ship tracking data revealed on Thursday that Iranian dry bulk'vessels' are trying to transport their cargoes through the Gulf to the export markets for the first time since the U.S. launched an attack? on Iran at the weekend. Since the start of the conflict, international shipping has been largely shut out of Strait of Hormuz. Vessels are wary of being shot at. According to MarineTraffic, two Iran-flagged?bulk ships - the Parshad? and the Parisan? - left Iranian port Bandar Imam?Khomeini? and Bandar Abbas on Thursday and were on water heading towards Kuantan in?Malaysia. The two ships that were sanctioned by the United States had previously transported iron ore - used to make steel - from?Asia to China, one of the largest producers of the metal in the world. Both vessels were in the exclusive economic zone of Iran, which extends to up to 38 km (24 miles) and is beyond local territorial boundaries of 12 nautical mile. This could have provided them with protection from attacks while they attempted to pass through Hormuz. The U.S. sub sank a warship of the Iranian navy in international waters off Sri Lanka on Wednesday, killing 87. Ship-tracking data showed that a third dry bulk vessel, Liberia's Lacon, left Bandar Imam Khomeini on its way to Santos, Brazil, where a major soybean loading terminal is located. Alphamar data reported that ten ships will be leaving Brazil in the coming days with more than 600,000.0 tons of soybeans and soymeal. However, it is possible the cargoes could be diverted. (Reporting and editing by Veronica Brown, Susan Fenton and Tom Daly)
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State Dept. says that flights for US citizens trapped in the Middle East are increasing.
After criticism of the Trump administration’s initial planning and assistance to U.S. citizens who were trying to leave the Middle East since the U.S. - Israel war on Iran started, the U.S. State Department announced on Thursday that it was 'intensifying the provision of charter flight services' from the Middle East. Airspace has been closed in the entire region due to the strikes which began on Saturday, and Iran's retaliatory actions against its neighbors. The Department of State, led by Secretary Marco Rubio, announced Wednesday that the first U.S. Government charter flight?left the region bound for America, but gave few details. Dylan 'Johnson, Assistant Secretary of State for Global Public Affairs and a spokesperson for the Department of State, said that additional flights and ground transports will be taking place today under the direction of SecRubio. Charter flights were not known to depart from which countries. Johnson advised that American citizens living in Kuwait, Bahrain and the United Arab Emirates as well as Qatar, Saudi Arabia and Israel, should complete a crisis intake form for information on upcoming flights and ground transportation options. He added that a task force had provided guidance to more than 10,000 Americans since the crisis began. As tensions grew, the State Department only warned U.S. citizens in Israel and Lebanon, but Iran has responded by targeting U.S. civilian infrastructure and missions in many other?places. This includes Gulf Arab nations, which are major transportation?hubs. After the conflict started, U.S. Security Alerts were sent to Americans in Kuwait and the United Arab Emirates. They also went out to Americans in Iraq, Qatar, Bahrain, and the United Arab Emirates. The?U.S. on Monday urged Americans ?across 14 countries in the Middle East to immediately depart the region using "available commercial transportation" without offering any U.S.-government-vouched means, drawing the ire of U.S. lawmakers.
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Israeli ambassador says that in a few short days, it will be more difficult for Iran to interfere with shipping.
Israel's ambassador at the United Nations stated?on Thursday? that it would be much more difficult for Iran to disrupt vessels that are?coming through?the Strait of?Hormuz? and that the?volume? of missiles fired by Tehran is already declining. Danny Danon, speaking to reporters at the United Nations in New York, urged Israelis to be patient as it would only take a short time for Iran's missile fire to be?minimized' and its military capability to be dismantled. Danon said that the results of hundreds of missile attacks on Iranian launchers are showing. "You saw around 100 missiles at the start of the war ending up in Israel. You are now talking about 20 or so. "I'm certain we will see that going in this direction," he said. Every day, the?capabilities of their adversaries are reducing. Together with the U.S. we degrade, destroy, and dismantle launch sites and stockpiles every hour. We are six days into the operation and already, we have seen a reduction in the number of missiles that are being fired. Danon stated that Iran was becoming weaker, and it wasn't yet time to engage in diplomacy. He said, "I believe diplomacy is going to be put into action (but) it's not quite there yet." "We must finish the job. We must continue. It won't take months, but it may only be a few weeks or days. We must continue to hammer and dismantle capabilities. Then, we need to use diplomacy in order to make sure that others are not doing the same. Danon stated that when Iranians look up at the sky, they can only see Israeli and American aircraft. He said, "We must be patient." "Give us a few days more and it will be much, MUCH harder for the Iranians disrupt the vessels that are coming through the Strait of Hormuz." (Reporting and Editing by Bill Berkrot.)
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The U.S. railways can now win back freight because of the limited truck capacity.
As trucking capacity is tightening and road haul rates are rising, U.S. rail companies such as CSX Corp., Union Pacific and BNSF are attempting to capture freight from trucks. Low trucking rates and increased flexibility allowed road carriers to capture cargo that would have otherwise been transported by rail. This weighed on?rail volume and limited pricing power. This?dynamic has now shifted, at least temporarly. Freight ?broker ?C.H. Robinson stated that trucking capacity is decreasing as small carriers leave the market, and as federal scrutiny of driver licenses, safety and insurance requirements increases. This added pressure reduces the supply of drivers and increases operating costs. According to DAT Freight & Analytics (a benchmark for spot market pricing), the national van spot rate rose from $2.03 per mile a year ago to $2.43 in February. Because railroads don't publish spot rates that are standardized, direct comparisons can be difficult. Fadi Chamoun, analyst at BMO Capital Markets, said that a tightening truckload markets could support intermodal volumes and prices in the domestic market. This is especially true on shorter routes with a longer average distance where there's a lot of competition from over-the-road trucks. The battleground for intermodal freight is between the two sectors. This involves cargo that is transported in containers and can be moved between trucks, ships and trains. BENEFICIAL PRINCIPALS Chamoun stated that eastern railroads CSX Corp. and Norfolk Southern would benefit disproportionately due to their greater exposure to intermodal freight in densely populated areas. CSX said that converting freight from trucks is a top priority for their intermodal business. It now sees "opportunities" to capture profitable volume after years of excess capacity on the highway. The company stated that it was working with port authorities and expanding terminals to create inland hubs nearer to end markets. Union Pacific's Chief Financial Officer Jennifer Hamann said at a Barclays Conference that she expects 75% of the new business growth will be coming from "off the highway." The company said that the pending purchase of Norfolk Southern by its parent company, which would create the first coast to coast rail network in America, could ultimately remove 2 million trucks off U.S. highways. BNSF, owned by Berkshire Hathaway, has announced that it has invested in terminal 'expansions' in Chicago and Dallas-Fort Worth as well as Phoenix in order to prepare for a possible rebound. Jon Gabriel, vice president for consumer products at the group, said that both new shippers as well as our traditional large customers were leaning on rail to take advantage of its capacity, lower costs and benefits in terms of sustainability. He said that the Los Angeles to Chicago corridor would be a major driver of growth, as it will allow freight to move off the highways. STRUCTURAL CHANGE - OR CYCLICAL Drew Roy, Director of Intermodal at freight broker Traffix said that what initially appeared as a "seasonal tightening" in trucking capacities may reflect a more profound shift. "A few months ago, I would have thought this was seasonal. "But with the loss CDL (Commercial Driver's License), I think we're experiencing a structural change," he said. He noted that capacity started tightening in mid-January, as winter storms struck and spot rates rose. Roy explained that intermodal rail needs a cost advantage of about 15% to be competitive. However, as truck prices rise, rail is becoming more competitive, even on short hauls up to 750 miles. He warned that the advantage might not last. Roy noted that when truck capacity increases, the pricing power tends to swing back towards highways.
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Bunge explores alternative routes amid worsening shipping crisis in the wake of Iran war
Bunge, the global grains trader, is looking at alternative shipping routes to reduce disruptions caused by the Middle East conflict. The company has not provided details about any alternate routes but said that it has seen so far a "limited impact" on its ocean-going ships. After U.S. and Israeli strikes against Iran, the Strait of Hormuz has been severely constrained in terms of trade. The International Grains Council estimates around 22 million metric tonnes?of grain, oilseeds, and products deliveries into the Persian Gulf flowed through the Strait of Hormuz in the last five years. This represents about 3% of the global trade. Bunge's logistics network handles shipments of fertilizers as well as grains, oilseeds and grain products. Analysts warn that the Strait is responsible for 25% to 35%?of?the world’s raw-material fertilizer trade. Its closure could disrupt?supply chain and increase production costs, a rise that would?ultimately?be felt?by consumers. Nutrien, Canada’s largest agricultural chemical company, announced on Wednesday that it is?closely engaging with customers as the conditions in?the Middle East continues to evolve. Commodities traders Trafigura and Glencore declined to comment on ?any impact from the ?conflict, while Bunge rivals Archer-Daniels-Midland ?and Cargill did not immediately respond to ' requests for comment. Reporting by Sumit S. Saha in Bengaluru, Katha Kalia in Chennai and Vallari Srivastava at the University of California. Editing by Shilpa Majumdar
Advent rejects Senior bid, which valued UK Engineer at $1.52 Billion
U.S. Private Equity Firm 'Advent International' has revealed its rebuffed takeover offer for British aerospace engineering firm Senior Plc. The?company is valued at around 1.14 billion pounds ($1.52 million), or 272 pence each share.
The shareholders would be entitled to a final dividend of up to 2 pences for fiscal year 2025.
Advent's offer is a 5.6% increase over Senior's closing price of February 26, the day before Advent made its approach.
Advent confirmed that it is one of the interested parties in Senior. It has until 27 March to decide if they will?make an offer firm' under UK takeover regulations.
Senior, a supplier of aircraft?parts to Boeing and Airbus said that it received five proposals in February.
At the time, three bidders, Tinicum Blackstone, Advent and Arcline Investment Management, were identified.
Senior and other bidders?have not yet disclosed the value of the?bids.
(source: Reuters)