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US port operators try to reduce the expected high tariffs on Chinese-built cranes
The U.S. Seaport Operators are requesting extra time for the implementation of pending tariffs against towering ship to shore cranes. They expect that President Donald Trump’s administration will follow through with a promise to ban this vital cargo handling equipment. In early this year, the United States Trade Representative proposed tariffs up to 100 percent on these cranes. This was after China sucked up market share to gain commercial and military dominance in the oceans. China, through its state-owned Shanghai Zhenhua Heavy Industries(ZMPC), has now dominated the global market. It has also supplied 80% of ship-to shore cranes to the United States. ZPMC operates more than 200 cranes across two dozen U.S. port locations, including Houston Los Angeles, and New York. Each crane costs between $10 million and $20 million. The Trump administration has made it a priority to stop this trend. In meetings, officials said they would put an end to these purchases. Carl Bentzel is the president of the National Association of Waterfront Employers, which represents terminal operators, and other groups. Bentzel responded, "I have been operating on the assumption that this is the minimum." When asked if he anticipated the tariff rate would be around 100%, Bentzel replied, "I have been operating under that position. This is basically a ban on using Chinese-made cargo equipment." USTR and White House didn't immediately comment. Trump isn't the first U.S. president to pressure ports to purchase cranes at higher prices from manufacturers who have ties with U.S. Allies. These include Konecranes in Finland, Mitsui E&S in Japan, and Liebherr, based out of Switzerland. Joe Biden placed 25% tariffs in 2024 on cranes that connect ship to shore from China after the Federal Bureau of Investigation, the National Security Agency and the Cybersecurity and Infrastructure Security Agency all publicly announced that China had sought to preposition vulnerabilities in American critical infrastructure including port equipment. Officials from the United States also warned that software, modems and other technologies in this equipment could be used to spy on military operations or as kill switches for port operations. Ports and terminal operators continue to buy Chinese cranes despite their lower cost. The inaction of the port operators is based on the desire to save money in the short term. However, they are underestimating the cost in the long run. William Henagan was the director for critical infrastructure in the National Security Council during Biden's tenure. In May, U.S. port operator and ZMPC representatives wrote to USTR to say that security concerns related to cranes were out-of-proportion to the risks. In May, USTR received letters from U.S. port operators and representatives of ZMPC stating that security concerns related to the cranes were out of proportion with the risk. NAWE, an industry organization that represents terminal operators, has been working hard to reduce the impact of new tariffs. They are asking for exemptions on previously ordered cranes, and for a transitional period before the new duties take effect. Bentzel stated, "We have chosen to work together."
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US Senator says United-JetBlue partnership could harm competition
Democratic Senator Richard Blumenthal warned that a partnership between United Airlines, a smaller airline, and JetBlue Airways would harm competition and result in fewer options and higher prices for consumers. Blumenthal, in a letter that was seen on Friday, asked United CEO Scott Kirby to answer questions regarding their "Blue Sky", a tie-up between the two carriers, which allows customers to book flights through both airlines' websites and earn and use points interchangeably. Blumenthal requested that the airlines disclose any records they have about their partnership and future plans. He also expressed concern about any deal which "could harm fair and full airline competition, and result in fewer and higher priced options for travelers," particularly those who travel to the New York City region. United didn't immediately comment. JetBlue didn't immediately respond to an inquiry for comment. Last month, Spirit Airlines, a budget airline, has urged U.S. Transportation Department rejects the United JetBlue partnership. They claim it is anti-competitive, will encourage other large carriers to follow suit and JetBlue will "become a defacto vassal to United." United and JetBlue In May, they said their tie-up will be completed Give United some of JetBlue’s slots at New York’s John F. Kennedy International Airport beginning in 2027, and swap their flight times at Newark’s airport. United and JetBlue said that the complaints' arguments about reduced competition were " You can also read about it here ", adding: "Blue Sky maintains JetBlue's independent and enhances its competitiveness. This will ensure that JetBlue continues to grow and compete independently." JetBlue and Spirit cancelled a $3.8-billion merger agreement in March 2024 after a U.S. court blocked it on the grounds of anti-competition. JetBlue is seeking new partnerships since a federal court judge in 2023 blocked the Northeast Alliance between American Airlines and JetBlue. Blumenthal said JetBlue's failed attempts at a partnership "raise questions about how your airline will ensure Blue Sky doesn't unlawfully restrain the competition." A Senate committee headed by Blumenthal criticised the rising fees charged by airlines for seat assignments, luggage and other services. Other competition concerns
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UN report: Haitian gang violence claimed 5,000 lives within a year.
According to a report by the U.N. Office of the High Commissioner for Human Rights published on Friday, nearly 5,000 people were killed in Haiti between October 2024 and January 2125, with hundreds of thousands being displaced as gang violence increased, particularly around Port-au-Prince. Why it's important The violence has exacerbated Haiti's humanitarian situation, destabilizing it and raising fears of spillover effects to other countries. KEY QUOTES The OHCHR reported that violence has increased dramatically in recent months. In a report released by the U.N., resident and human rights coordinator in Haiti Ulrika Richson stated that "Human Rights Abuses are increasing in areas where the presence of State is very limited." She added that "the international community must increase its support for the authorities." By the Numbers Haiti has seen a spike in gang violence between October 2024 and the end of June 2025. Port-au-Prince, and the surrounding area, accounted for over 1,000 deaths. CONTEXT The gangs are increasingly taking control of Haiti. They have overwhelmed the local security forces, forced international aid agencies to reduce their operations and forced tens and thousands of residents out of their homes. Haiti's health sector has been weakened by the closure of hospitals, including Mirebalais University Hospital, due to insecurity. UN estimates show that less than 25% of the health facilities in Port-au-Prince are still operational. What's Next? The UN report warned the violence in Haiti, which is on the rise, could destabilize not only the country itself but also the Caribbean.
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Asian spot LNG prices rise as hot weather increases cooling demand
The Asian spot price of liquefied gas (LNG), which is a form of natural gas, increased this week due to a heatwave that swept Japan and North Korea. Meanwhile, industrial demand in China was subdued. Average LNG price for August deliveries into North-east Asia Industry sources estimate that the price per million British Thermal Units (mmBtu) is now $12.90, up from $12.70/mmBtu a week ago. Estimated price for September was $12.70/mmBtu. Prices have increased this week due to a heatwave across north-east Asia. Seoul experienced its hottest day in 2018 and South Korea and Japan are reducing their LNG stocks to meet the increased cooling demand, said Martin Senior. Senior stated that at least two Atlantic Basin carriers have diverted from Europe towards Asia since the beginning of the month, and two Qatari carriers also changed their course from Europe toward Asia. Klaas Dizeman, a market analyst with Brainchild Commodity Intelligence, stated that the demand in South Asia, China and India remains muted, with a cooling trend for this time of year, and a subdued demand from industry, based on production prices and inflation figures published by Brainchild Commodity Intelligence. Dozeman stated that the import tariffs and the "fluid situation" around them may influence the industrial demand in the coming weeks. The gas market in Europe is stabilizing. Gas prices could be finding a bottom for the summer. "Gas prices may be finding a floor for summer." Froley stated that there is a possibility of a short-term bullishness, if the heatwaves in East Asia continue and if Japan's and Korea’s competition with Europe for fuel to generate summer electricity increases. He added that the fundamentals of the industry are improving, as the second phase Plaquemines, in the United States will bring an additional 7 million tons of oil per year (mtpa), as well as an additional 14 mtpa of LNG Canada. S&P Global Commodity Insights estimated its daily North West Europe LNG Marker price benchmark (NWM) for cargoes to be delivered in August ex-ship on July 10. This represents a $0.440/mmBtu reduction from the August futures prices at the TTF Hub. Spark Commodities set the price at $11.639/mmBtu for August, while Argus put it at $11.670/mmBtu. Spark Commodities analyst Qasim Afghan said that the U.S. Arbitrage to North-East Asia via the Cape of Good Hope is still pointing to Europe while the arbitrage via Panama is pointing to Asia. Afghan said that on the LNG market, Atlantic rates were the lowest since January, and they were at $31,750/day last Friday. Pacific rates, meanwhile, decreased slightly to $38,750/day. (Reporting and editing by Nina Chestney; Marwa Rashad)
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Ships use a message to avoid Red Sea attacks: 'All crew Muslim'
After the Houthis' deadly attacks on commercial ships this week, commercial ships still sailing in the Red Sea broadcast messages about their nationality or even religion to their public tracking systems so as to avoid being targeted. The Red Sea is an important waterway for oil, commodities and other goods. However, traffic has declined sharply ever since the Houthi began their attacks on Yemen's coastline in November 2023. This was in support of the Palestinians during the Gaza War. After months of calm, the group has sunk two ships and Abdul Malik al-Houthi, its leader, reiterated that no company transporting goods to Israel will be allowed passage. Recent days, more ships that sail through the southern Red Sea or the Bab al-Mandab strait added messages to the public tracking profiles of their AIS. These can be viewed by clicking on a ship. The messages have mentioned an all-Chinese management and crew, as well as the presence of armed guards. MarineTraffic's and LSEG's ship tracking AIS data show that some messages read "All crew Muslim" while others make it clear that the ships have no connection with Israel. Sources in maritime security said that this was an indication of growing desperation, but also believed it would not make a difference. One source claimed that Houthi intelligence was "much more advanced and forward-looking". Shipping analysis revealed that vessels in the larger fleets of the two ships attacked and sunk this week by the Houthis had called on Israeli ports over the last year. Sources in maritime security said that even though shipping companies are required to do a thorough due diligence check on any possible tangential links with Israel before they sail through the Red Sea the risk of an attack is still high. The U.S. Central Command reported that in March 2024 the Houthis fired ballistic missiles at the Chinese-operated Huang Pu despite having previously said they would not target Chinese vessels. Houthis also targetted vessels that trade with Russia. In a recent report, Aon Insurance Brokers stated that despite declared ceasefires areas like the Red Sea or Bab al-Mandab Strait are still considered high-risk. Ship operators must take continuous monitoring and adaptable security measures. Insurance costs for goods shipping through the Red Sea have more than doubled in recent weeks, and some underwriters are suspending coverage on certain voyages. According to Lloyd's List Intelligence, the number of vessels passing through the Strait of Aden at the southernmost tip of the Red Sea, which is a gateway into the Gulf of Aden was 35 on July 10 and 32 on July 9. This compares with 43 vessels on the first of July. This compares to a daily average sailing of 79 in October 2023 before the Houthi attacks started. Seafarers are essential to global trade. They keep countries stocked with fuel, food and medicine. The UK-based Seafarers' Charity stated this week that seafarers should not be required to risk their life to do their jobs. (Reporting and editing by Andrew Cawthorne, with additional reporting by Renee Maltezou)
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Sources say that Macquarie has shortlisted Brookfield, Stonepeak, and Air Liquide for its $3.6 billion S. Korean Gas firm.
Three people familiar with the matter have confirmed that Macquarie Asset Management is shortlisting Brookfield Asset Management, Stonepeak, and French gas supplier Air Liquide to compete in the final round of bidding for South Korean industrial gases firm DIG Airgas. Sources who declined to name themselves because the information was confidential said that binding bids are expected around the end or early August for South Korea's largest industrial gas producer. Macquarie hired Goldman Sachs to manage the sale. The deal could be worth up to $3.6 Billion, according to a report in June. Macquarie Air Liquide Brookfield Stonepeak Goldman JPMorgan and JPMorgan all declined to comment. If the deal is successful, it would be the biggest investment for Brookfield and Stonepeak in South Korea, as both companies have a strong focus on infrastructure. Brookfield acquired SK Airplus in 2022, a gas-production facility that supplies SK Hynix (the world's 2nd largest memory semiconductor manufacturer). Stonepeak, based in New York, does not appear to have a portfolio of industrial gases in Asia on its website. According to its website, Air Liquide, based in Paris, has been operating in South Korea since 1996. It supplies gases for a variety of industries including chemical, construction and food and beverage. DIG Airgas, located in Seoul, has earnings of between $170 and $180 million before interest, tax, depreciation and amortization (EBITDA). Macquarie anticipates that a sale will value the company at 18-20 multiples core earnings, according to a previous source. DIG Airgas, a company founded in 1979, produces industrial gases, electronic gasses and gas equipment. Macquarie purchased the company formerly known Dausung Industrial Gases from South Korean private equity group MBK Partners in 2019 for 2,5 trillion won ($1,85 billion), local media reported. Reporting by Kane Wu, Yantoultra ngui. Mark Potter (Editing)
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UK's Warehouse REIT switches allegiance from Tritax to Blackstone
On Friday, Britain's Warehouse REIT recommended Blackstone to its shareholders the sweetened offer. Tritax Big Box REIT had previously supported this bid. Blackstone increased its offer to the London-listed firm on Thursday from 485.2 pounds in cash and stock, to approximately 489 million pounds. Due to the strong demand for warehouse space from eCommerce retailers to better serve their clients, logistics has remained an attractive property investment in a market that is otherwise lacking in vibrancy. Real estate investment funds - listed property funds - are also undergoing a dealmaking wave as they seek to increase profitability during tough trading conditions. Tritax said on Thursday that it still believed its buyout offer was "a compelling proposition" for Warehouse investors. The company didn't respond immediately to a comment request on Friday.
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Korean Air's quarterly cargo revenue drops amid volatile U.S. Tariffs
Korean Air announced on Friday that its cargo revenue fell by 4% for the second quarter. The company attributed this to market volatility caused by U.S. Tariff policies. South Korea's biggest airline is one of Asia's most important cargo carriers. It has also benefited from the rise in e-commerce coming out of China over the past few years. The airline's cargo revenue grew by 14% in the same quarter of last year. Since then, it has grown on an annual basis, and the airline attributed this to the increasing e-commerce volume. Reports indicate that air cargo shipment volumes to the United States in Asia dropped by double-digits between May and June after the U.S. ended a tax exemption for low value packages coming from China at the beginning of the month. E-commerce shipments were particularly hard hit. Korean Air stated that it had managed to navigate the market volatility brought on by U.S. Tariff Policies by diversifying their product offerings and focusing primarily on high-yield freight. The list included semi-conductors and batteries, as well as seasonal perishables. Korean Air reported that its quarterly revenue was the same as last year's quarter, which was 4 trillion won. However, operating profit dropped 3.5%, despite lower fuel costs, due to rising expenses, such as personnel, depreciation and other overheads. After completing the $1.3 billion acquisition of Asiana Airlines, it became Asia's largest carrier.
United States judge to hold hearing on family objections to Boeing plea deal
U.S. District Judge Reed O'Connor stated Friday he will hold a hearing on Oct. 11 to think about objections from family members of those eliminated in 2 Boeing 737 MAX crashes to the planemaker's arrangement to plead guilty to criminal fraud conspiracy.
On July 24, the planemaker completed an arrangement to plead guilty to conspiring to defraud the Federal Aviation Administration and pay up to $487 million after breaching a 2021 delayed prosecution arrangement.
Member of the family of a few of the 346 individuals eliminated in 2 Boeing 737 MAX crashes in 2018 and 2019 argue the fine is too low and raised other objections to the plea deal. O'Connor will also consider objections to the arrangement filed by Polish nationwide airline company LOT before he decides whether to accept the plea deal.
LOT formerly argued it must have the same rights in the case as victims' households, and stated it sustained a minimum of $250. million in damages related to the 14 737 MAX aircraft it owned. and rented at the time that design was grounded worldwide in. March 2019 following the two crashes.
Boeing and the Justice Department did not immediately. talk about O'Connor's announcement. The Justice Department in. August advised the judge in Fort Worth, Texas, to accept the deal. it says is a strong and significant resolution that holds. Boeing liable and serves the general public interest.
Family members have mentioned O'Connor's declaration in a February. 2023 ruling in looking for harsher penalties: Boeing's crime may. correctly be considered the deadliest corporate crime in U.S. history.
The planemaker enabled possibly dangerous work at its. factories and did not guarantee essential plane record-keeping was. precise or complete, the Justice Department said in July in. describing why it believed Boeing broke the 2021 arrangement.
The finding followed a January in-flight panel blowout on an. Alaska Airlines 737 MAX that exposed continuing security. and quality problems at Boeing, just 2 days before the 2021. arrangement protecting it from prosecution expired.
The plea offer needs Boeing to spend $455 million to. strengthen its compliance, safety and quality programs over. 3 years of court-supervised probation. Boeing will likewise deal with. oversight from an independent display for 3 years.
O'Connor can likewise choose to require Boeing to pay. restitution, which could include compensation to victims'. families beyond what many have actually currently gotten in settlements. or as part of $500 million for loved ones under the 2021. contract.
(source: Reuters)