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Indonesian rescuers fight turbulent seas to find 129 passengers after a passenger ship capsizes
Officials said that hundreds of Indonesian rescuers, including the coastguard and navy, raced to board a passenger vessel that capsized over the weekend in the Java Sea as they searched for 129 people who were still missing. Six deaths have been confirmed. Rescue agency reported that the Virgo transport 8 ship, which was carrying 243 passengers, went missing early Sunday morning due to bad weather. The rescue agency has since rescued 108 passengers from the ship. It was traveling from Surabaya, East Java to Banjarmasin, South Kalimantan. Mohammad Syafii said that Monday's search was hampered by choppy waters, high waves, and strong winds. Syafii?added that the agency had deployed 622 personnel and 17 ships as well as five helicopters, aircraft, and helicopters to search for missing passengers. He said that some of the ships had arrived, but it was hard for the rescuers on board the capsized ship to get in. He said that he would have also deployed a team of specialized personnel with skills in underwater rescue, but that the conditions at present did not permit it. He said that while he waited for the weather to improve, he was identifying personnel with special skills. The death toll, meanwhile, remained at 6. A video released by the rescue agency shows a large ship painted red and black capsized in rough blue water. The red underside of the ship is visible. Near the capsized vessel, two small boats each carrying people were seen floating on rough water. Another official from the rescue agency said that the location of the capsized vessel is approximately 80 nautical miles (nearly 15 kilometres) away from the Trisakti Port command centre in Banjarmasin. Arianto Adi, an official from the port, stated that the wind conditions made it difficult to dock the ship. THREE-METRE WAVE CRASHES? INTO SHIP Syafii stated that the weather conditions were very bad at the time of the incident, with waves up to three metres high crashing into the vessel. In good weather, it takes about five hours to get to the destination from Trisakti Port. However, in bad conditions this can take up to nine. Edy Prakoso (another agency official) said that the ship leaning heavily to one side was caused by strong waves hitting its starboard side. Transport Minister Dudy purwagandhi stated that the capsized boat could hold 500 passengers and was therefore not overloaded. There have been many accidents on Indonesia's ferries, which are used to travel between its 17,000 islands. Sea travel is cheaper and more accessible than flying. Two ferries with hundreds of passengers on board caught fire in separate incidents last month. Five people were killed when a boat caught fire near Madura Island, and one person was killed in an accident on a ferry leaving Bali.
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Hormuz's shipping volume remains below the 10-day average over the weekend, according to data
Preliminary shiptracking data revealed on Monday that the number of commodity vessels transiting the Strait of Hormuz fell to just one digit per day at the weekend. This is well below the 10-day average of 14. Four vessels left the Gulf via the Strait over the weekend, including a Handysize vessel in ballast, an LPG-carrying Handy vessel, a Supramax vessel with fertilizer, and a Suezmax vessel loaded with crude oil or condensate. The data revealed that ten vessels entered the Gulf. These included a Handymax transporting grain, a Panamax transporting metals, and a Supramax transporting dry bulk cargo. The figures do not include any vessels that may have crossed the Strait with their Automatic Identification System (AIS) transponders off in order to avoid detection. The United Kingdom Maritime Trade Operations announced early Sunday morning that a vessel was hit by an unknown projectile as it transited the 'Strait of Hormuz. The status of the crew, damage assessment, and environmental impact are unknown. Saudi officials reported that a drone strike from Iraq temporarily closed down the East-West oil pipe in Saudi Arabia. This pipeline has been instrumental in relieving the blockage in the Strait of Hormuz. Before the Iran War began on February 28, the strait handled about 125 large commercial vessels each day. These included?tankers and gas carriers as well as?bulkers,?bulkers, and container vessels. This accounted for around 20% of the daily supply of crude oil and natural liquefied?gas in the world. Since mid-July, a U.S. ban on Iran-related shipping has halted Iranian crude exports. Tracking data revealed that 24 and 27 cargo?vessels travelled in the Bab el-Mandeb strait respectively on Saturday 'and Sunday compared to an average of 27 vessels over the past 10 days.
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New strikes in the Strait of Hormuz, Saudi Arabia have pushed up oil prices by over 3%
Monday's oil prices increased by more than 3% after the Houthi attacks on Saudi Arabia, and Iranian attacks against ships in the Gulf, compounded the supply concerns caused by the closure of an important Saudi oil pipeline. Brent crude futures increased $3.21 or 3.1% to $107.82 a barrel at 0340 GMT. WTI futures rose $3.17 or 3.2% to $103.22 a barrel. "This is a result of a step up in attacks against Saudi Arabian energy infrastructure. This includes targeting the vital east-west pipe," said ING commodity analysts, but noted that it was not clear how serious any potential 'damage would be or how long the line would be out-of-action. Saudi officials claim that the East-West oil pipe in Saudi Arabia was temporarily closed following a drone attack. Saudi officials say that the shutdown of the East-West oil pipeline, which allows Saudi Arabia to avoid the Strait of Hormuz by rerouting its exports and bypass the Strait of Hormuz, could threaten 4% of the global oil supply. According to industry sources who are familiar with Saudi Arabian exports, Yanbu only has enough inventory to cover five to seven days of exports. Saudi Arabian media released footage on Sunday showing damage to a mosque and homes in the southern Jazan Province. The Saudi state media claimed that this was the result of a Houthi-led attack. The Houthis claimed they also attacked a Saudi military facility in a neighboring province. The British maritime security agency UKMTO reported on Sunday that a vessel was struck by a projectile in the Strait Of Hormuz, which caused a fire, forcing the crew to evacuate. Iran confirmed that one person died and four crew members were injured aboard an Iranian commercial ship struck off its coast. Houthis, who are Iran-aligned, reached the strategic 'island of Perim' on Friday. They now want to consolidate their control over Bab el-Mandeb strait. This is another important oil transit lane, which has carried 4%-5% of global supply recently. Due to the disruptions, oil prices rose 8% last week and reached $100 for first time since July. Badr Albusaidi, the Omani Foreign Ministry, said on X Sunday that a meeting between Gulf countries and Iran scheduled for Monday in Oman to discuss the Strait of Hormuz has been 'postponed. Since the June breakdown of an interim agreement, no peace talks have taken place on the six-month war that was launched by Israel and the United States.
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Gold falls as oil rally fuels rate hike bets before Fed meeting
Gold prices eased Monday, as the?surge in oil prices raised inflation concerns. This boosted expectations that U.S. Federal Reserve will raise interest rates during its meeting this week. After posting its third consecutive weekly drop on Friday, spot gold fell 0.3% to $4334.31 an ounce at 0330 GMT. U.S. Gold Futures fell 0.8% to $4375.00. "Gold doesn't find conditions that are to its liking." "Gold is facing a yield headwind due to rising energy prices and rising rate expectations before the Fed and BoJ meeting," Tim Waterer, Chief Market Analyst at KCM Trade. In the meantime, dips will still be a good investment as a hedge against uncertainty while geopolitics remain fluid and rate policies are flexible. Data last week confirmed that U.S. consumer price growth accelerated in August. A key measure of underlying inflation also posted the largest increase since four months. According to the CME FedWatch Tool, traders are now pricing in an 86.5% probability of a U.S. interest rate hike during the central bank policy meeting scheduled for Tuesday and Wednesday. This is up from 67% before the inflation data released last week. BOJ will also likely raise rates this Friday due to persistent inflation, resilient economic growth, and rising energy prices. Gold is often seen as a hedge against inflation, but higher interest rates can make it less appealing. Oil prices rose more than 2% Monday following fresh Houthi attacks on Saudi Arabia and Iranian attacks against ships in the Gulf. These attacks compounded the supply concerns after the closure of an important?Saudi pipeline. Middle East diplomacy appears to be 'failing' after a meeting was postponed between Iran and other Gulf states. Silver spot fell 0.7%, to $64.02 an ounce. Platinum remained steady at $1796.90 and palladium remained unchanged at $1298.80.
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The FOREX Dollar is on the rise, and yen is near a 7-month high before Fed, BOJ Meetings
The dollar strengthened on Monday. The yen wobbled near a seven-month peak as investors considered possible rate hikes by the Federal Reserve and Bank of Japan this week. Meanwhile, rising oil prices due the intensifying conflict in the Gulf drained sentiment. The six-month long U.S./Israeli war against Iran has caused erratic price pressures that have pushed oil well above $100 a barrel. This has also shifted the rate path due to bouts of selling off in long-end bond. The European Central Bank increased rates last week, and warned that there would be more hikes. This set the stage for Wednesday's Fed policy announcement and the widely anticipated rate hike by the BOJ this Friday. The Bank of England will likely remain unchanged on Thursday. However, the vote is likely to come down to a close call. CME FedWatch showed that traders 'upped their bets on a Fed rate increase after Friday data showed U.S. Consumer Prices accelerated in August. They priced in an 86 percent chance of a rise this week and another later in the year. Shane Oliver is chief economist and head investment strategy at AMP. He said that the Fed may decide to delay, but it would be a mistake to wait until December. The euro fell by 0.1% to $1.1585 while the last price of sterling was $1.3516. After two weeks of a small decline, the U.S. Dollar Index, which measures the "greenback" against six other currencies was 0.12% higher, at 99.22. U.S. Treasury Yields remain near multi-year heights. The 2-year 'yield, which usually moves in line with Fed?rate expectation, eased a bit to 4.6148% after increasing 26 basis points last weekend. Despite the rising yields, and changing rate expectations, the dollar has not yet risen as major central banks are expected to also raise rates. In a recent note, Commonwealth Bank of Australia strategists said that Fed Chair Kevin Warsh must match his tough rhetoric and policy actions or risk further damaging his credibility in controlling inflation. They said that "there is a slight chance that the USD will ease if the FOMC raises, but Warsh downplays the risk of a follow-up increase in the press conference." Brent crude futures rose 3% to $107.6 a barrel, after Houthi attacks on Saudi Arabia and Iranian strikes on ships in Gulf compounded concerns over supply following the closure a Saudi oil pipeline. BOJ RECKONING: RISING YEN FACES BOJ RISE The?Japanese currency yen fell 0.3% to 154.03 against the U.S. Dollar, but it was still not far off its seven-month high at 152.89 which it reached last week. There are signs of a change in the market's sentiment towards the currency. Speculators have taken a net-long position for the first since February. Analysts at MUFG said in a recent note that a 25-bps increase was already priced. "For the yen's strength to continue, the BOJ must signal that it is planning to stick to the faster pace of increases." Analysts at TD Securities said that if a rate hike is not included in the agenda for the October or the December meeting, the dollar/yen could rally to 157-160. They expect the BOJ to raise rates roughly every quarter and move away from its semi-annual, gradual pace. The yen has risen 4% in the last month as investors expect the BOJ to be more aggressive with rate increases and show signs of repatriation. "Another hike would be catastrophic." James Athey said that failing to communicate effectively will be a major own goal. He added that expectations regarding repatriation of funds and GPIF asset changes are playing a key role in the yen's move.
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Soybeans are on the rise due to Chinese demand and higher crude oil prices
Chicago soybeans rose Monday on the back of strong Chinese demand, and higher crude oil prices. The Chicago Board of Trade's (CBOT) most-active soybean contract edged up 0.31% to $13-1/2 per bushel by 0231 GMT. Chinese state buyers 'have stepped up?their purchases of U.S. soya beans ahead of Chinese president Xi Jinping’s visit to Washington, DC later this month. The markets are waiting for more clarity on the future demand of the top soybean importer in the world. Due to their role in biofuel production, soybeans received additional support due to higher soyoil price. Soyoil prices rose 0.57%, to 70.08 cents a pound. This was due to higher crude oil costs. Oil prices rose?more? than 2% following fresh Houthi attacks on Saudi Arabia, and Iranian attacks against ships in the Gulf. These attacks compounded the supply concerns after the closure of an important Saudi oil pipeline. The gains in soybeans have been limited since the U.S. Department of Agriculture raised its forecast for soybean production on Friday. Department of Agriculture increased its soybean production forecast Friday. Traders assessed the risks in the Black Sea Region, which led to a 0.03% rise in wheat prices. Prices have been affected by renewed diplomatic efforts to end Russia’s war in Ukraine, but fresh Russian attacks are keeping markets focused on the disruption of vital Black Sea grain routes. The seemingly abundant stock levels of world wheat continue to be a distraction from the ongoing conflict between Russia and Ukraine, said Josh Lawrence an analyst with IKON Commodities. He added that "attention on demand" will now be focused on increased tender activities, including this week's with Pakistan as well as on any changes in the buying activity of key?importers throughout Southeast Asia. European traders reported that a government agency in Pakistan has issued an international tender for the purchase and import of 750,000 metric tons of wheat. Corn fell 0.09%, to $5.29-3/4 per bushel despite higher oil prices. The U.S. Department of Agriculture announced on Friday that the corn harvest this fall will be less than previously forecast. This is after the hot summer weather caused concern about crop damage. Traders reported on Friday that commodity funds sold CBOT corn and soy at a net profit.
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Amazon suspends its operations with 21 Air following the Miami cargo plane crash
Amazon announced on Sunday that it was suspending operations with Miami's 21 Air, the cargo airline that operated the Amazon branded plane that crashed in Miami and killed?five people. Amazon spokesperson Kelly Nantel stated in a statement to customers that "after the tragic 'incident' last weekend, we have spent time supporting and reviewing the investigation, and we've made the decision to pause operations with 21 Air as the operator of Flight. We'll continue to work with everyone involved in the investigation. Last week, an Amazon Prime Air cargo plane crashed after it overran the runway at Miami International Airport. Prime Air Flight 7598 reportedly overran the diagonal runway of the airport shortly before 2 pm?EDT (1800 GMT) and hit multiple vehicles on the surface, according to officials. Flightradar24's flight tracking service said that the plane was a 32-year-old Boeing 767-3000 freighter, which had been used as a passenger jet by various airlines between 1994 and 2015. According to the National Transportation Safety Board (NTSB), which is investigating this crash, the pilots of an Amazon Prime?Air cargo aircraft considered abandoning the landing once the plane touched down. This was based on evidence found in a flight recorder. The 'NTSB' also reported that one pilot warned that they were "flying too fast" just over a minute prior to touching down on runway they overran. As the investigation continues, we remain committed to'supporting families and loved ones impacted by the accident. We also continue to work closely with NTSB, and our partners, such as Amazon. 21 Air stated that they were confident in their safety policies, training and procedures.
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Indonesian rescuers are still searching for 129 missing people after a passenger ship capsized.
An official said on Monday that more than 600 Indonesian rescuers are searching for 129 people still missing, after a passenger vessel capsized in the Java Sea at the weekend. The death toll remains the same, at six. Rescue agency reported that the Virgo transport 8 ship, which was carrying 243 passengers, went missing early Sunday morning due to bad weather. The authorities have rescued 108 passengers from the ship that was traveling from Surabaya, East Java, to Banjarmasin, South Kalimantan. We have been searching for the missing ever since early morning. "We are deploying around 12 ships and 622 personnel," I Putu?Sudayana told reporters. As of Monday, the six-person death toll had not increased. A large ship painted red and black lies partially submerged, capsized, in rough blue water. The red underside of the ship is visible. In rough waters, two small boats carrying people were seen floating close to the capsized vessel. Edy Prakoso said that the ship leaning heavily to the starboard side was caused by strong waves hitting the starboard'side. Transport Minister Dudy Purwagandhi stated that the cause of the capsize is still under investigation. Indonesia uses ferries to travel between its 17,000 islands. Sea travel is more affordable and accessible than flying, but there have been many accidents. Two ferries, each carrying hundreds of passengers, caught fire in the water last month. Five people were killed when a boat caught fire near Madura Island, and one person was killed in an accident on a ferry leaving Bali.
After drone sinks vessel, FESCO Russia halts all new Black Sea orders
The company announced on Tuesday that the Ukrainian drone attack last 'week on one of FESCO's vessels forced them to stop accepting new orders for shipments via the Black Sea. The announcement highlights the increasing disruption in shipping caused by a sharp increase in attacks between Russia and Ukraine on each other's ships, which have pushed up wheat prices globally. The Russian state nuclear corporation Rosatom owns 92.5% in FESCO. It announced earlier that the ship Yanina was damaged by Ukrainian drones flying over the Black Sea and sank overnight between Friday and Saturday. FESCO, a Russian 'logistics operator' that specializes in rail and maritime container shipments, is one of Russia's largest?logistics companies. In recent weeks, Russia, which is the largest exporter of wheat in the world, reported that its agricultural export facilities, as well as commercial vessels, were attacked in the Black Sea. Last week, Russia's largest grain lobby group warned that Ukrainian drone attacks on Russian ports and ships could cause a shutdown of grain exports through the Black Sea within the next few months. This would push up prices. Both Russia and Ukraine claim that they only strike military targets. Ukraine's agriculture minister said that alternative grain export routes would be able to reach the?required capacities at the end?of August?the latest, and cover only half of the volumes handled by Black Sea port disrupted by Russian attacks. In July, Ukraine reported 35 'attacks' on its vessels in ports, 22 on ships at sea and 67 strikes against port facilities.
(source: Reuters)