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The price of oil shipping has risen due to increased exports from the Middle East and tighter vessel availability
According to industry sources, and LSEG's data, freight rates for Very Large Crude Carriers have risen to their highest level in over two years. This is due to a tightening of tanker supplies, resulting from an increase in Middle East exports, and an increase in arbitrage supplies into Asia. The Middle East to China VLCC Spot Rate, also known as TD3C. LSEG data shows that jumped up to W108, the highest since November 2022. According to industry sources, this is at least $6.6 Million. Since the beginning of this year, the rate has increased nearly 150%. A shipbroker said on Thursday that "we are seeing constant cargoes coming from ex-MEG loading (Middle East) and ex Atlantic while the vessel's tonnage list has been balanced very tightly." Shipping industry sources told the Asia Pacific Petroleum Conference, held in Singapore last week, that robust VLCC freight rates will yield attractive earnings to shipowners this coming year. Data from Kpler, an analytics firm, showed that crude exports from the Middle East will exceed 18 million barrels a day in September, for the first since April 2023. This is after the Organization of the Petroleum Exporting Countries and its allies, a collective known as OPEC+ agreed to increase oil production. The robust Asian demand will also force tankers to travel further distances due to the arbitrage supply. Indian refiners, for example, increased their U.S. crude purchase in October and November while Chinese independent refiners buy oil from Brazil and West Africa. Sentosa Shipbrokers said that the main reason for the September surge was the arbitrage between U.S. Gulf and East Asia flows, as well as the tightness caused by the vessels' commitment to these long-haul journeys. Anoop Singh, global director of shipping research for Oil Brokerage, says Saudi Arabia exports more oil because the demand for burning crude for electricity generation in summer has ceased, while arbitrage opportunities are wide open due to high Dubai crude prices. He said that the short-term forecast is for the momentum in Dubai prices to continue through the end of this year and into the first quarter of next year. The strength could be amplified further if the medium-quality crude supplies, like those from Russia, are reduced due to geopolitical tensions. U.S. president Donald Trump stated on Saturday that he was willing to impose new energy sanctions against Russia, provided all NATO countries stopped purchasing Russian oil.
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Egypt's billboard explosion strains the eyes, but increases profits
Cairo's roads are not for the weak-hearted. They have potholes and obstacles like donkey carts. Now, drivers are faced with a new hazard - a proliferation of mismatched and flashy billboards that compete for their attention. According to AdMazad a media and advertising analytics company, the number of billboards that line Cairo's streets has increased by more than twofold in six years. This is more than 30 ads per square kilometre, and that's without counting the digital flashing ads which have increased more than ten-fold in the past decade to reach more than 300. Ahmed Adel, a resident of Cairo, said that there was no place on the streets without ads as he drove past one of the high-end commercial and residential districts. Advertising is booming in Egypt, largely due to the rapid expansion and modernization of Egypt's transportation network. Since Abdel Fattah al-Sisi took power in 2014, he has invested billions of dollars to build new roads and bridges that now criss-cross Cairo. These ads, which line the roads, promote a variety of products, including detergents, fast foods, and real estate developments. They are often accompanied by bright LED displays, which, according to Adel, strain drivers' eyes at night. Ahmed Afify is the head of MOT Investment and Development (a Transport Ministry investment firm), and he says that this industry has become an important source of revenue for the state. AdMazad's data indicates that revenues from "out of home" advertising (billboards, transit ads and other outdoor media) will grow by over 50% between now and 2024 to reach about 6.3 billion Egyptian Pounds ($130 million). Afify stated that the money is largely transferred to the state's treasury by the Transport Ministry and its affiliate entities. He said that ad prices are affected by the location, and can increase when competing brands compete for prime spots. Those stuck in traffic may find them amusing or a marketing tool. Others find the billboards a stress-inducing addition to their commute. Khaled Salaheldin, a psychotherapist in Egypt, has pointed out the mental toll that people can take when they are under financial stress. This is a reality Egypt is increasingly experiencing after years of inflation. He said: "When I'm constantly exposed to advertisements and idealized lifestyles it leads to comparisons that make me feel inadequate and insecure." Egypt's prime minister Mostafa Mahbouly convened a meeting on Wednesday to discuss standards for ads and billboards. He said there should be stricter regulations to ensure that ads "preserve urban fabric," "uphold societal norms" and "uphold aesthetic value." Reporting by Jaidaa TAHA and Heba FOUAD in Cairo. Editing by Alexander Dziadosz & Andrew Heavens
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French unions strike against austerity, pressuring Macron
Teachers, train driver, pharmacists, and hospital staff all went on strike in France, and teenagers blocked high schools as part of a protest day against budget cuts. The unions want the fiscal plans of the previous government scrapped. They also want more public spending, higher taxes for the wealthy and an end to the unpopular rule that made people work longer for a pension. Many metro lines in Paris were scheduled to be suspended throughout the day, except during morning and afternoon rush hours. Some students gathered at the entrance of some schools to block them. A student raised a placard in front of Lycee Maurice Ravel in Paris, France. The message read: "Block Your High School Against Austerity." Social unrest occurs as President Emmanuel Macron, and newly appointed Sebastien lecornu, face a political crisis in order to control finances and bring the second largest economy of the eurozone under control. Workers Angry Over Fiscal Plans According to a source in the Interior Ministry, 800 000 people are expected to participate in protests and strikes. The main unions in the country said that "the workers we represent are furious" in a statement where they rejected the fiscal plans of the previous government, which were "brutal" as well as "unfair". Lecornu, who relies on other parties for legislation to pass, will have to fight a political battle in order to get a budget approved by the parliament for 2026. Francois Bayrou was Lecornu’s predecessor. He was voted out of office by the parliament for his plan to squeeze the budget by 44 billion euros. Lecornu hasn't yet stated what he plans to do with Bayrou’s plans. However, he has said that he is open to compromises. Sophie Binet, the CGT union's chief after meeting Lecornu in early this week, said: "We will continue mobilising as long as there are no adequate responses." "The budget decision will be made on the streets." PROtests Hit Schools, Trains The FSU-SNUipp trade union reported that one in three primary school educators were on strike. Officials said that the strike had a major impact on regional trains, but the majority of high-speed TGV lines in the country will be operating. Protesters blocked traffic near Toulon, a city in the south-east of France. Data from EDF showed that nuclear production was down by 1.1 gigawatts on Thursday morning, after workers reduced power output at Flamanville 1. Confederation Paysanne, the farmers' union has also called for mobilization. Pharmacists have been angry about changes that affect their businesses. The USPO pharmacists union conducted a survey among pharmacies and found 98% of them could close the next day. Early on Thursday, Interior Minister Bruno Retailleau informed reporters that some blockades had been removed by police in the Paris area. He said that up to 8,000 people could "sow chaos" and fight with the police. He said that 80,000 police officers and gendarmes would be on duty throughout the day. There will also be riot units, drones, and armoured cars. Reporting by Zhifan LIu, Makini BRICE, Dominique Vidalon Mathias de Rozario Juliette Jabkhiro Gus Trompiz Writing and editing by Ingrid Melander
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Memo says Spirit will cut flight capacity and jobs by 25%.
Spirit Airlines will cut jobs in November as it plans to reduce its capacity by 25% compared to the previous year, according to an internal memo. This is a further blow to the low-cost carrier. In a memo to employees, CEO Dave Davis explained that the cutbacks are intended to "optimize [our] network in order to focus on our most important markets". The memo stated that "These evaluations are bound to affect the size our teams, as we become an efficient airline." Uncertain is the number of roles which could be affected. According to the memo, the low-cost airline continues to evaluate its fleet size and plans to meet the leaders of the airlines' unions in the next few weeks. CNBC reported earlier on the restructuring plan. Spirit filed for bankruptcy last month, the second time within a year. A previous reorganization had failed to give it a more stable financial foundation. Spirit's financial troubles, along with a rush by U.S. carriers in pursuit of premium travelers, has raised fears that the cheap flight era might be coming to an end for budget-conscious travelers. United Airlines had earlier on Tuesday ruled out the possibility of bidding for Spirit's assets if and when they became available. This is expected to happen as part of Spirit's restructuring. Reporting by Gursimran K. Kaur in Bengaluru and Angela Christy; Editing by Alan Barona, Rashmi Aich
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France prepares for protests and strikes against budget cuts
Teachers, pharmacists, and train drivers are among the workers who will be striking in France on Friday as part of a protest against budget cuts. The unions want more public spending, higher taxes on the rich and the scrapping an unpopular pension change. Social unrest occurs as President Emmanuel Macron, and newly appointed Sebastien lecornu, face a political crisis in order to control finances and bring the second largest economy of the eurozone under control. According to a source in the Interior Ministry, 800 000 people are expected to participate in protests and strikes. Workers Angry Over Fiscal Plans The main unions in the country said that "the workers we represent are furious" in a statement where they rejected the fiscal plans of the previous government, which were "brutal" as well as "unfair". Lecornu, who relies on other parties for legislation to pass, will have to fight a political battle in order to get a budget approved by the parliament for 2026. Lecornu became prime minister after Francois Bayrou was ousted by the parliament last week over his plan to squeeze the budget by 44 billion euros. Lecornu hasn't yet stated what he plans to do with Bayrou’s plans but has said that he is open to compromise. Sophie Binet, the CGT union's chief after meeting Lecornu in early this week, said: "We will continue mobilising as long as there are no adequate responses." "The budget decision will be made on the streets." PROTESTS TO HIT SCHOOL, TRAIN The FSU-SNUipp said that one in three primary teachers will be on strike. The power company EDF announced that some of its employees would be on strike. Officials said that the Metro network in Paris will experience widespread disruptions, and regional trains as well. However, the majority of high-speed TGV lines will continue to operate. Confederation Paysanne, the farmers' union has also called for mobilization. Pharmacists have been angry about changes that affect their businesses. The USPO pharmacists union conducted a survey among pharmacies and found 98% of them could close the next day. BFM TV reported that Interior Minister Bruno Retailleau said 80,000 police officers and gendarmes would be deployed. Retailleau stated that riot units, drones and armored vehicles would be present to combat what he described as possible sabotage or attempts to block different sites in the early morning. He also said that he expected violent troublemakers to attempt to clash with the police. (Reporting by Dominique Vidalon, Mathias de Rozario, Juliette Jabkhiro Writing by Ingrid Melander Editing by Frances Kerry)
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Peru President signss contract to allow Chevron and Westlawn entry
Dina Boluarte, the president of Peru, announced on Wednesday that she had modified a contract for hydrocarbon exploration and extraction. This would allow U.S. companies Westlawn and Chevron to enter the country. The contract formalizes their entry through a consortium run by Texas-based Anadarko (APCFC. UL, a subsidiary company of Occidental Petroleum Corporation. The agreement allows the companies to work in three offshore blocks, Z-61, Z62, and Z63, off Peru's La Libertad area, located north of Lima. Boluarte, at a government palace ceremony, said that the arrival of Chevron - the third largest oil company in the world - sends a clear and strong message. Peru is a stable, reliable and serious country for large-scale investments. She added, "If the exploration confirms that oil and gas deposits exist, we'll be facing a real energy renaissance which will have the potential to guarantee our economic growth for many decades." According to government data, Chevron, Anadarko, and Westlawn each will hold 35% of the consortium. The government announced an initial investment of $100 million dollars in the exploration phase. Executives from the three oil firms and Perupetro, the state regulator, signed off on the contract amendment. Pedro Romero said he is optimistic about this project. In a speech, he stated that "this is a project on which we have worked for years." It is the start of a brand new adventure. Reporting by Marco Aquino, Editing by Richard Chang
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Executive says that holiday season imports are already arriving at the busiest US port.
The top executive of the nation's busiest port said that U.S. retailers had finished importing holiday goods at least one month earlier in an effort to reduce costs associated with President Donald Trump's changing tariff policies. Port of Los Angeles Director Gene Seroka said that "a large amount of holiday cargo is already here and moving through the supply chain." He said that the traditional holiday rush, also known as peak season, which is traditionally driven by retail, happened early. About half of the cargo volume is handled by retailers at the Port Los Angeles. Dockworkers handled 1,019 837 20-foot-equivalent units (TEUs), the highest monthly cargo volume the Port of Los Angeles has ever seen in its 117 year history. The total volume at the Port of Los Angeles in August was 958.355 TEUs. This is down 0.2% compared to a year earlier. Seroka anticipates that import volumes will continue to decline throughout the rest of the year. He said that September will be about 850,000 TEUs. This is 10% less than the previous year. Forecasters say that several trends point to a drab holiday season in 2025. This month, the National Retail Federation (which represents companies such as Walmart and Target) said that it expects container imports will continue to decline throughout the rest of the year, due to the rising U.S. Tariffs. "Shifting Trade Policies Continue to Create Uncertainty for Businesses and Consumers," Mario Cordero said, CEO of Port of Long Beach which borders the Port of Los Angeles. Seroka explained that this is contributing to a slowdown in job growth, and the lingering of inflation. This makes importers and customers a bit more cautious. Retail sales in the United States increased more than anticipated in August. This is the third consecutive month that retail sales have increased, despite a backdrop of price hikes fueled by tariffs. But a PricewaterhouseCoopers survey released this month showed that holiday spending by U.S. consumers is set for its steepest drop since the pandemic as shoppers -- particularly Gen Z -- pull back amid economic uncertainty. (Reporting by Lisa Baertlein in Los Angeles; Editing by Jamie Freed)
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Families of Air India crash victims sue Honeywell and Boeing
Families of four passengers who died in the crash June 12 crash In a lawsuit, the owner of an Air India Boeing 787-8 said that the accident was caused by allegedly defective fuel switches. The U.S. Federal Aviation Administration Has said that the accident which killed 260 people does not appear to be caused by him. The lawsuit filed in Delaware Superior Court on Tuesday blames Honeywell and Boeing, who made the switches, as the cause of the crash that occurred seconds after Flight 171 left Ahmedabad, India, bound for London. Plaintiffs cite a 2018 FAA advisor that suggested, but did no mandate, that operators of various Boeing models, such as the 787, check the locking mechanism on the fuel cutoff switches to ensure they could not accidentally be moved. The Air Accident Investigation Bureau (AAIB), India Report of preliminary investigation The investigation into the crash found that Air India did not perform the recommended inspections and that maintenance records indicated that the throttle control modules, which include the fuel switches, were replaced on the aircraft involved in the accident in 2019 and in 2023. The report stated that "all applicable airworthiness instructions and alert service bulletins on the aircraft, as well as engine" were adhered to. Honeywell and Boeing both declined to comment. The cockpit recording between the two pilots of the jet suggests that, contrary to previous reports, the captain had cut off the fuel flow to the engines. The lawsuit claims that the switches were placed in an area of the cockpit that was more likely to have been accidentally pushed. This "effectively guaranteed" that normal cockpit activities could lead to inadvertently cutting off fuel. Experts in aviation safety told us that this could not happen. Flip Based on their design and location. This lawsuit is the first to have been filed in the United States regarding the crash. The lawsuit seeks damages that are not specified for the deaths suffered by Naavya Dhirubhai, Kuberbhai, and Babiben, all of whom were passengers. Also, 19 passengers and 12 crew members were killed. One passenger survived. The plaintiffs are Indian or British citizens and reside in India or Britain. The preliminary report of Indian investigators appeared to exonerate Boeing, and engine manufacturer GE Aerospace. However, some family groups have criticized the investigators and press for being too focused on pilots' behavior. Legal experts state that, although most accidents are the result of a variety of factors, lawyers who represent victims' families often target manufacturers as they don't have to face the same limitations on liability as airlines. These strategies may also increase the likelihood of bringing a case in U.S. court, which is widely regarded as being more generous to plaintiffs compared to many foreign courts. Paghadal et al v Boeing Co et al is the case at Delaware Superior Court No. N25C-09-145. (Reporting and editing by Les Adler, Marguerita Choy, and Les Adler; Additional reporting in Seattle by Dan Catchpole; Reporting by Jonathan Stempel).
What new taxes can help raise money for climate change?
The COP29 Climate Talks in Azerbaijan are aiming to reach an agreement on a finance target of at least $1 trillion a year for poorer countries to combat global warming. New taxes are one option.
The Global Solidarity Levies Task Force, led by France Barbados and Kenya is exploring this issue. The following are excerpts from the latest report of its Global Solidarity Levies Task Force (GSLT), led by France, Barbados and Kenya.
Shipping
A levy for shipping could be the closest to agreement, as it is responsible for about 3% of global emission. Governments will debate a number of measures during a meeting of International Maritime Organization (IMO) in April.
The GSLT has proposed several models for a levy, including a Pacific Islands and Caribbean proposal of a flat rate $150/ton CO2e (carbon dioxide equivalent), increasing every five years.
The European Union, Japan and other countries such as Bahamas and Liberia are in favour of a $100/ton levy by 2027.
The GSLT, citing a U.N. Trade and Development study, said that a levy between $150 and $300 per ton could generate $127 billion a yearly in 2027-2030. As ships become less polluting, revenue would drop to $103 billion between 2031-2040. It would then fall to $36 billion from 2041-2050.
AVIATION
The aviation industry accounts for only 2% of all global emissions, but is exempt from value-added taxes (VATs) and sales taxes. The GSLT is considering levying taxes on kerosene, private jet fuel and luxury tickets, as well as frequent flyers. These could collectively generate between $19 billion and $164 billion a yearly, according to the estimates.
Around 29 countries tax aviation fuel via excise taxes, carbon levies, or emission permits. In 2021, the average price per ton among G20 countries was $9.50 euros.
The biggest obstacles to a wider tax are ensuring that industry players have a level playing ground and removing legal barriers.
The GSLT reported that at least 21 other countries have a similar levy, ranging in price from 2 euros per ticket in Portugal up to 500 euros for some flights departing Britain.
FOSSIL FUELS
Many countries already charge a tax on fossil fuels. This can be done in several ways, such as through the purchase of gasoline at the gas station, VAT, carbon taxes, emissions trading schemes, royalties, or taxes paid by oil companies.
GSLT stated that revenues could be generated by a levy or windfall tax on profits of energy companies in the future. Greenpeace's report from this year estimated that a "Climate Damages Tax", of $5/ton, would generate $216 billion in 2024. A report by ActionAid said that a 50% tax would have been levied on the windfall profit of the 14 largest fossil fuel companies based on their market value over the two-year period up to July 2023. This would have raised $173 billion.
FINANCIAL TRANSACTIONS
Over 30 countries impose a tax on financial transactions, including Britain, France and Italy. However, establishing a cross-border tax has proven difficult. Austrian Institute of Economic Research estimates that a 0.1% tax on stocks, bonds, and derivatives could generate $238 billion to $400 billion annually.
CARBON
According to the GSLT, there are 75 carbon pricing mechanisms in 83 countries. Of these, 36 are carbon taxation and 39 are emissions trading systems. They cover 24% global emissions.
Most are cheaper than the $40 to $80 per ton that is needed to curb global warming. This is due to the political concerns about the impact of the product on businesses and households.
The International Monetary Fund proposed a plan where countries would agree to a minimum price per ton of $50, or $25, $50, and $75 depending on the country's stage of development.
Another option, according to the GSLT, could be linking existing trading schemes.
WEALTH
This year, the Group of 20 largest countries discussed raising taxes on super-rich people. The current G20 leader Brazil backed a report that proposed a minimum global tax of 2% on wealth for the roughly 3,000 billionaires in the world. This would raise $250 billion per year.
You could also change the threshold and rate of taxation.
CRYPTO
The creation of cryptocurrency such as bitcoin is based on the use of energy that produces emissions.
The GSLT stated that Kazakhstan will charge crypto-miners 1 to 25 Tenge ($0.002-0.056) for each kilowatt hour in 2022. The IMF estimated that a global tax of $0.045/kWh on electricity could raise $5 billion.
IMF research suggests that a 0.1% tax on crypto trading could generate $15.8 billion and a 20% capital gains tax could raise $323 billion.
PLASTICS
Next week, a group of countries will meet in South Korea to reach an agreement on reducing plastic pollution. Ghana and other countries have called for a tax on virgin polymers.
The GSLT, citing an analysis by the Australian non-profit Minderoo Foundation, said that a fee of $60-90 a tonne for primary polymer production would raise between $25-35 billion yearly.
(source: Reuters)