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Jordan purchases about 60,000 tons of feed barley at tender, traders claim
European traders reported that Jordan's state grain purchaser purchased approximately 60,000 metric tonnes of animal feed barley on Wednesday in an international bid seeking up to 120,00 tons. The trading house Olam was reported to have purchased the grain at a cost and freight included of $235.00 per ton. It is expected to be shipped during the second half July. The reports reflect the opinions of traders and it is still possible to estimate prices and volume later. Traders said that a new tender of 120,000 tons feed barley will be released by Jordan within the next few days. They said that the new tender will close on 16 April and is expected to request shipment for the entire month of August or September. The barley purchased on Wednesday may come from a variety of origins. Other trading houses also participated in the tender on Wednesday. Their estimated offers per ton were: CHS 242,78, Cargill 239.35, Viterra 239.89, Ameropa 244,90, Al Dahra 241 and Dreyfus 239,50. Jordan also announced a tender on Wednesday to purchase 120,000 tons milling wheat, which closes April 15. (Reporting and editing by Michael Hogan)
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US pulls out of carbon talks with shipping and urges others to do the same - document
A diplomatic note stated that the United States had withdrawn from London talks on decarbonisation of shipping and Washington would consider "reciprocal actions" to offset any fees assessed to U.S. vessels. This week, delegates are meeting at the UN Shipping Agency's headquarters to discuss decarbonisation measures that will enable the shipping industry worldwide to achieve net zero emissions by "around 2020". A proposal submitted by a group of countries, including the European Union to the UN International Maritime Organization was aimed at reaching agreement on the first carbon levy in shipping for greenhouse gas (GHG). The United States has sent a diplomatic message to its ambassadors that stated, "The U.S. rejects all attempts to impose economic sanctions against its ships on the basis of GHG emissions or fuel choices." "These reasons, the U.S. will not be participating in the negotiations at the IMO 3rd Marine Environment Protection Committee between 7-11 April. We urge your government to reconsider their support for the GHG emission measures that are under consideration." The note did not specify how many countries of the 176 members of the IMO received it. The note from Washington stated that "should such an egregiously unfair measure be implemented, our government would consider reciprocal actions so as to offset any fee charged to U.S. vessels and compensate the American public for any economic harm caused by any adopted GHG emission measures." Washington is also against "any proposal that would fund any other environmental or other projects outside of the shipping sector", according to the note. When contacted by phone late Tuesday, U.S. officials at Washington declined to comment immediately. A spokesperson for the IMO said that no communication had yet been received by the IMO. Environmentalists and investors have called for more concrete actions, such as a carbon tax, to be taken by shipping, which accounts for 90% of global trade and nearly 3% the carbon dioxide emissions. Delegates involved in the IMO said that despite the US move, the discussions on Wednesday continued. "The US is among 176 IMO members states. Albon Ishoda is the Marshall Islands' special envoy to maritime decarbonisation. In this period of market instability, a clear directive from the IMO meeting is more important than ever. We will continue to negotiate with those who are willing to talk. China and Brazil were among the countries who opposed a flat tax on carbon emissions for shipping, arguing that it would penalise emerging economies which are heavily dependent on trade. President Donald Trump ordered that the U.S. Withdrawal The United States has withdrawn from the Paris Climate Agreement for the second time. This means that the nation is no longer part of the global pact to push nations to combat climate change. Reporting by Jonathan Saul and Michelle Nichols; editing by Sharon Singleton, Chizu Nomiyama, and Gram Slattery.
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Shipping group Mitsui O.S.K. CEO of shipping group Mitsui O.S.K.
Mitsui O.S.K. Lines (MOL), Japan's second largest shipping company, is looking to capitalize on the opportunities created by a shift in routes due to new U.S. Tariffs, said CEO Takeshi Hashimoto. The U.S.'s highest tariffs in over a century came into effect on Wednesday, shaking the global markets. Hashimoto said in an interview with Reuters on Tuesday that "Trade routes are bound to be reshuffled". He said that we'd likely see an increase in trade with low-tariff nations and a decline from high-tariff countries. Some cargos might be rerouted to Mexico or Canada where tariffs are lower. MOL will monitor changing trade patterns, and take advantage of new opportunities. Hashimoto stated that U.S. grain and energy exports to Asia may be affected, and countries such as China could turn to alternative suppliers like Brazil or Argentina for grain and Qatar for LNG. Hashimoto stated that MOL may open a Washington office to collect information and lobby for MOL. He added that trade routes were also re-routed during the first Trump Administration in response to tariffs. He said that during the first Trump administration, trade routes were also rearranged in response to tariffs. The CEO thinks Trump's aim is to reach favourable trade agreements, which makes a full-scale war on tariffs unlikely. LNG FLEET EXPANSION MOL, which is the largest LNG carrier in the world, plans to increase its fleet of LNG vessels from 108 to 150 by 2030. Hashimoto expects the demand to continue to rise into the 2030s, before it begins to decline. Hashimoto added that global LNG use could be significant in 2050. MOL has signed charter agreements for three LNG icebreakers and one condensate-icebreaker between 2020 and early 2022 for the Arctic LNG 2 Project in Russia. However, Hashimoto stated that delivery of these vessels are on hold because of Western sanctions. Hashimoto stated that MOL and Alaska have been in intermittent contact for some time on the subject of Alaska LNG. However, pipeline issues are still unresolved. He did not attend the Alaskan delegation's recent visit to Japan but expressed his willingness to take part in LNG transport if the Alaska LNG project is successful. Hashimoto stated that the company could raise shareholder returns in 2025/06 after the company generated strong profits in the last two years. The equity capital has also increased to over 2.5 trillion yen (17.20 billion dollars) Hashimoto stated that they were considering a slight increase in shareholder returns, but a final decision would only be made once the tariffs from the United States are assessed. ($1 = 145.3200 yen) (Reporting by Yuka Obayashi. Editing by Jane Merriman
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US pulls out of carbon talks with shipping and urges others to do the same - document
A diplomatic note stated that the United States had withdrawn from London's talks on decarbonisation of shipping and Washington would consider "reciprocal" measures to offset any fees levied to U.S. vessels. This week, delegates are in the UN Shipping Agency's headquarters for discussions on decarbonisation initiatives aimed at helping the shipping industry reach net zero emissions by "around 2020". A proposal submitted by a group of countries, including the European Union to the UN International Maritime Organization was aimed at reaching agreement on the first carbon levy in shipping for greenhouse gas (GHG). The United States has sent a diplomatic message to its ambassadors that stated, "We reject any and all attempts to impose economic sanctions against our ships based upon GHG emissions or fuel choices." "For these reason, the U.S. will not be participating in negotiations at IMO 3rd Marine Environment Protection Committee (7-11 April) and urges your Government to reconsider its support of the GHG emission measures being considered." The note did not specify how many countries of the 176 members of the IMO received it. The note from Washington stated that "should such an egregiously unfair measure be implemented, our government would consider reciprocal actions so as to offset any fee charged to U.S. vessels and compensate the American public for any economic harm caused by any adopted GHG emission measures." Washington is also against "any proposal that would fund any other environmental or other projects outside of the shipping sector", according to the note. When contacted by phone late Tuesday, U.S. officials at Washington declined to comment immediately. A spokesperson for the IMO said that no communication had yet been received by the IMO. Environmentalists and investors have called for more concrete actions, such as a carbon tax, to be taken by shipping, which accounts for almost 3% of global carbon dioxide emissions. (Reporting and editing by Sharon Singleton, Michelle Nichols, Gram Slattery, Kate Abnett, Jonathan Saul)
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Strike by Greek workers over wages stops ships, planes, and trains
The strike of Greek workers, which began on Wednesday, caused ferries to dock at ports, flights into and out of the country to be grounded, and trains to stop running. Greece's biggest trade unions demanded higher wages in order to deal with rising costs. Greece is now out of its debt crisis from 2009-2018, which resulted in wage and pension cuts that were repaid by bailouts totaling 290 billion euro. The economic growth rate of 2.3% in this year is outpacing that of other economies within the eurozone. Since 2019, the conservative government has raised the minimum wage monthly by 35%, to 880 Euros. The labour unions claim that many households are still struggling to pay their bills due to rising costs for food, electricity and housing. In a press release, GSEE (which represents over 2 million workers in the private sector) said that "we're buying fewer products by 10% compared with 2019". "We are striking to make the obvious clear." "Pay rises and collective labor contracts now!" Around noon, striking protesters are expected to gather in Athens' central area. Eurostat data shows that Greece's minimum wage in terms of purchasing-power was the second lowest in the European Union, after Portugal and Lithuania. According to data from the labour ministry, Greece's average gross monthly salary is still 10% less than it was in 2010, when Greece agreed to its first bailout. The government is saying that it is prudent to limit the interest charged on its debt which is the highest in eurozone. The government has pledged to raise the minimum wage to 950 euros in 2027. It aims to reach a gross monthly average of 1,500 euro, which is closer to the EU's average. The monthly costs for housing, utilities, and food have been rising rapidly. Angelos Galanopoulos, from the Seafarers Union, said: "It is a gap which keeps growing because of price increases and inflation that impacts energy and medicine." The public sector workers who have been hit by the measures taken to curb a spending state joined the strike and demanded annual bonuses which were abolished over the last decade. (Reporting and editing by Angeliki Koutantou; Lefteris papadimas, Renee Maltezou)
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Algeria purchases durum wheat at tender, traders claim
European traders reported on Wednesday that Algeria's state grain agency OAIC was believed to have bought durum wheat at an international auction on Tuesday. Estimates of the tonnage purchased were a bit vague, with a range. The volume was estimated to be between 300,000 and 450,000 metric tonnes. Other estimates were as low as 200,000 metric tons. The initial estimates for the purchase price ranged from $356 to $357 per ton, including freight. It was thought that the origin could be either from Canada, United States or Australia. The bidder requested shipment over four dates: May 1-15 and May 16-31. The tender sought shipment in four periods: May 1-15, 16-30 and 31-June. Algeria does not reveal the results of its bids, and those reported are based solely on traders' assessments. Later, more detailed estimates on prices and volumes are possible. Reporting by Michael Hogan, Hamburg, and Gus Trompiz, Paris
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Greek strikes stop trains, planes and ships
The strike of Greek workers, which began on Wednesday, caused ferries to dock at ports, flights into and out of the country to be grounded, and trains to stop running. Greece's biggest trade unions demanded higher wages in order to deal with rising costs. Greece is emerging from the 2009-2018 debt crises that saw wage and pension cuts and bailouts of 290 billion euro. The economic growth in Greece this year was 2.3%, which has been higher than other economies in the Eurozone. The conservative government, recognizing the progress of the country, has raised the minimum monthly wage to 880 Euros. The labour unions claim that many households are still struggling to pay their bills due to rising costs for food, electricity and housing. In a press release, GSEE (which represents over 2 million private workers) said that prices have risen so high that people are buying 10% less goods than they did in 2019. "We are striking to make the obvious clear." "Pay rises and collective labor contracts now!" Athens bus and metro workers also stopped work during the one-day strike. Eurostat, the EU statistics office, reported that Greece's minimum wage in terms of purchasing-power was the third lowest in the European Union, after Portugal and Lithuania. The average monthly salary in Greece is 1,342 euro, which is 10% less than it was when the financial crises broke out in 2010. The government has pledged to increase the minimum wage to 950 euro, as it aims to reach a monthly average salary of 1,500 euro to be closer to the EU's average. The public sector workers claim that monthly expenses such as food, utilities, and housing are increasing rapidly. They demand the immediate reinstatement the annual bonuses which were scrapped over the last decade. The government rejected their request, citing fiscal constraints. (Reporting and editing by Angeliki Koutantou, Renee Maltezou)
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US sanctions still hit Serbian oil company NIS operations despite waivers
Sources familiar with the situation say that Serbian oil company NIS struggles to find oil traders overseas, and its former clients in Serbia are looking for alternative fuel suppliers because of the impact of U.S. sanctions on operations. NIS is owned by Gazprom Neft, a subsidiary of Gazprom, and is therefore one of Russia's remaining oil assets in Europe. The only oil refinery in the Balkan nation is vital to Serbia's energy safety. NIS's dominant position on the Serbian market, combined with the logistical challenges of the landlocked nation, makes it difficult for other companies. NIS is the supplier of around 80% or more of Serbian gasoline, diesel and jet fuel, as well as 90% of heavy fuel oil and jet fuel, according to a trader. The company's recent struggles are a warning of what could happen if U.S. Sanctions take effect. President Aleksandar Vucic has warned that Serbia may lose its access to oil imports. On January 10, the Office of Foreign Assets Control of the U.S. Treasury designated NIS AD Novi Sad as a sanctioned organization. It gave Gazprom Neft a 45-day deadline to withdraw its investment. This deadline was then extended by 30 days in two consecutive waivers. NIS, which normally buys crude oil in long-term agreements, has cancelled its tender for 2025, according to the site of its procurement. Two sources said that it is making short-term purchases on the spot market, from international trading companies still willing to work with it. The crude changes in NIS's procurement have never been reported before. NIS stated that it had recently closed a successful deal to purchase oil according to the waiver and that they were sourcing crude from a number of suppliers. It didn't give any details. The company said that it was adapting to new circumstances. According to Kpler, the global provider of real-time data analytics and data, NIS has imported around 28,000 barrels of crude oil per day via Croatia's Omisalj Port. This is where 80% the company's supply comes via the Janaf Pipeline. This compares to 40,000 bpd by 2024 and 70,000 in 2023. Fuel suppliers OMV from Austria and Greek-owned Eko import key transport fuels to their Serbian retail network instead of buying them from NIS. This move was not previously reported. OMV imports fuels from other European refineries on barges along the Danube River, according to its statement. Meanwhile, Eko supplies products from Greece, said a company official who asked not to be identified. The U.S. sanctions have caused both companies to suspend fuel purchases from NIS, they stated. One Serbian fuel dealer said that imports would not be able to meet Serbia's demand for diesel and gasoline, which is between 44,000 and 49,000 bpd, due to the limited infrastructure and capacity of barges, trucks and railcars. NIS said it was "prepared" to fulfill its contractual obligations with clients, such as corporate buyers and major purchasers like other oil companies. It also stated that the Pancevo oil refining plant was running normally. Reporting by Robert Harvey from London and Aleksandar Vasovic from Belgrade. Ahmad Ghaddar contributed additional reporting. Dmitry Zhdannikov, Mark Potter and Mark Potter (Editing)
China sets brand-new rules for decreasing expenses of fuel transportation by pipeline
China is introducing new guidelines from January for lowering costs of carrying oil products by pipeline, state coordinator National Development and Reform Commission (NDRC) said on Tuesday.
NDRC said in a notification on its site that under a new mechanism, it will set the optimum permitted profits level for oil product transport by state-owned China Oil and Gas Pipeline Network Corp, known as PipeChina, for three years.
PipeChina was formed in 2020 in a push to restructure the industry, expand products and reduce costs for end-users, with pipeline possessions from China's state-owned oil giants transferred to the new business.
Inter-provincial pipeline transportation rates will then be figured out through yearly consultations in between PipeChina and users.
If the parties fail to agree on a price, NDRC will set the cost based on the minimum expense of alternative transport techniques.
If the pipeline operator's annual typical income surpasses the optimum permitted profits, the excess will be subtracted.
The rule also specifies that pipeline transport rates for oil items should not go beyond those of other transport approaches, such as rail.
China is the world's biggest importer of crude oil and second-largest consumer of oil after the U.S. However its refineries are battling with low earnings margins and decreasing need.
The new mechanism is meant to lower pipeline transportation costs and guarantee the stable supply and effective shipping of refined oil products, NDRC said.
(source: Reuters)