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Satellite Chemical and Vinmar receive letters from the US government preventing ethane loading in China
Sources familiar with the situation said that ethane traders Satellite Chemical USA, Vinmar International and Vinmar International received letters from the U.S. Government allowing them to unload ethane without authorization in China. The U.S. Department of Commerce sent the letters on Wednesday in response to a requirement for licensing imposed a few weeks ago, which slowed down shipments to China and caused vessels to drift around the U.S. Gulf Coast or anchor. Analysts and industry sources said that the letter could be interpreted as an indication by the administration of its intention to lift the restrictions. Even though there may be some reluctance in loading ethane, which is extracted from U.S. shale and primarily used for petrochemicals, vessels bound for China could be caught up in limbo, depending on how the full-path restrictions play out. This depends on how long it takes to implement this restriction. Exclusively reported, the U.S. sent similar letters on Wednesday to Enterprise Products Partners (EPP) and Energy Transfer. Vinmar and China's Satellite Chemical Co Ltd (parent of Satellite Chemical USA) declined to comment. The halt of ethane flows in China has caused a drop in ethane price due to concerns about domestic oversupply. These restrictions will likely reduce the profits of ethane's top producers. Ship tracking data from LSEG/Kpler revealed that the supertanker Gas Bluebonnet, which was loaded at Energy Transfer’s Nederland facility near Texas on 12 June for China’s Satellite Chemicals, was in close proximity to the Panama Canal by Thursday. Nine other tankers drifted or were anchored in the U.S. Gulf while two moored to loading docks. Industry sources say that export terminal operators like Energy Transfer and Enterprise, which can encourage their customers to load at docks, could see a near-term benefit. O'Donnell, Tudor Pickering Holt & Co's O'Donnell, said that Enterprises Morgan Point Dock near Houston may still see lower volumes due to the ethane restriction. The U.S. oil industry needs China to purchase its natural gas liquids because the domestic supply is greater than demand. Reporting by Arathy S. Somasekhar, Houston; Trixie Yap, Singapore; and Stephen Coates.
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Virgin Australia's private equity boss believes that it can weather the Middle East volatility.
Mike Murphy, a Bain Capital partner, is confident that Virgin Australia will be able to withstand the travel disruptions caused by Middle East tensions as well as the volatility in oil prices. Bain, who bought Virgin for A$3.5billion ($2.3billion) including liabilities in 2020 raised A$685m when Australia's 2nd largest airline listed on the Australian Securities Exchange Tuesday. In the initial public offering, the private equity firm reduced its stake from 70% to 39.4%. Virgin's debut at the ASX was just hours after Qatar closed its airspace. The airline diverted two Qatar bound flights following the firing of Iranian missiles on a U.S. military base in the state. Virgin launched Doha flights in the first half of this month, under a leasing agreement with Qatar Airways. Qatar Airways owns 23 percent of Virgin. Murphy, speaking by phone, said that "our view on Middle East oil and Middle East issues is that we are pretty well situated geographically and strategically in terms of our domestic focus in order to be as assured as you can be in this sector." We're fully hedged in the short-to-medium term from an oil price volatility standpoint. Virgin announced in a filing to the stock exchange on Tuesday that it had hedged 98% its anticipated fuel consumption in Brent crude oil with a cap at $70 per barrel in the first half 2026. It hedged 86% at the same price for its fuel usage in the second half. A recent report by the Australian Competition and Consumer Commission revealed that Virgin had a 34.4% share of the domestic flight market in March, while Qantas held 37.5%. Murphy said that the decision to reduce Virgin's international routes under Bain ownership and focus on domestic flights had improved Virgin's profitability and balance sheet. Murphy stated that "Long haul international was never a part of business that made money"... the strategic decisions made by the company at that time resulted in an overstretched financial statement, with very low margins. Virgin shares closed Thursday at A$3.25, a 12% increase from the IPO of A$2.90. (1 Australian dollar = 1.5286 dollars) (Reporting and editing by David Evans; Scott Murdoch)
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Canada passes law to expedite resource projects but faces opposition from Indigenous peoples
The Canadian Senate has passed a bill that will expedite approval of natural resource and infrastructure project despite protests by environmental and Indigenous groups. They have also threatened legal action and protests. Carney's ability to implement the bill and pass it is a test of his leadership. He was elected to office in April on a promise to transform Canada's economic situation in response to what he called a "national crisis" caused by U.S. Tariffs. The proposal of the Liberal government speeds up approval for "national interest" project, which could include mines and oil pipes, and removes some trade barriers among provinces. The proposal passed the lower house last week, with some Conservative backing, and was approved by the Senate right before the summer break. The so-called Henry VIII Clauses allow the Cabinet to decide whether certain laws are applicable to "national interest" projects. Eight environmentalists and Indigenous leaders sounded off on the bill. It threatens to undo years of reconciliation work between Canada's federal government and its First Peoples. Some groups have promised to fight the legislation in court, while others have pledged protests. Sara Mainville, lawyer and former Couchiching First Nation chief, said that if Carney continues in this direction, his clients will likely take legal action. The duty to consult First Nations in Canada is recognized by the courts as a constitutional obligation. Fast-tracking the approval of projects, say indigenous groups, is a way to avoid this obligation and denies them their real voice. Cindy Woodhouse Nepinak, National Chief of the Assembly of First Nations, said that "this bill is a serious threat to First Nations' rights." "We will not give up our fight." Indigenous protesters in the past have been against projects. Protesters in Canada shut down major rail lines and highways for several weeks at the beginning of 2020 to show their solidarity with an Indigenous group from British Columbia who was fighting to prevent a pipeline being built through its land. Carney said that the bill enshrines the right to consult, and he called it the main domestic response to U.S. president Donald Trump's tariffs. Mainville said that consultation alone was not sufficient. Accommodation is needed - an assurance that "you are going to do something because you have heard concerns." The law will become effective when Governor General Mary Simon signs it, as the representative of King Charles Canada's Head of State. British Columbia's legislature passed a bill last month to expedite infrastructure projects. A similar measure in Ontario gives the province's Cabinet greater powers. Canada is the No. Canada is the world's No.4 oil exporter, and it is a mining powerhouse. The Ontario Bill, which was passed earlier this month, is aimed at promoting mining in the "Ring of Fire", in the north of the province. Canada wants to reduce its economic dependency on the United States where it sends 75% of exports. LEGAL CHALLENGES Joshua Ginsberg of the Ecojustice Environmental Law Clinic, University of Ottawa, is director of the Ecojustice Environmental Law Clinic. He says that some environmentalists are concerned about projects being approved before they have been risk-assessed and being pursued regardless of any risk. Carney plans to meet Indigenous leaders in the summer. He did not answer a question asked last week about whether a country could effectively veto a project. The office of the President did not respond when asked for comment. Abram Benedict, Ontario Regional Chief with Chiefs of Ontario said that there would "definitely be" legal challenges. There will be challenges to both the law itself and the constitutionality of legislation. The bill will be operationalized and projects can begin. (Editing by Chris Reese and Caroline Stauffer, Daniel Waller)
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US demand for China's goods drops on tariff concerns; ocean shipping rates fall
Shipping rates for cargo containers to the U.S. from China have fallen by more than 50% since the beginning of the month. Imports recovered less than expected following the initial slump after President Donald Trump imposed 145% tariffs against China. Trump reversed his course quickly by lowering it to 30%. This cost increase for goods coming from the No. 1 ocean trading partner of the United States is significant. The cost increase on goods from the nation's No. The rates on the highly-watched Shanghai-to-U.S. West Coast routes appear to have reached a floor in the near term at about $2,500 per container after reaching a peak early this month of around $6,000. Jefferies shipping analyst Omar Nokta wrote on Thursday. After Trump reduced tariffs against China from 145% to 30%, shipping rates reached their highest levels. This led U.S. Importers to rush new orders for goods that they had stopped ordering because of the astronomical tax. Drewry, a maritime consultancy, said that the decline in shipping rates is a sign the recent surge of imports into the United States will not have the long-lasting impact we initially anticipated. Drewry's World Container Index dropped 9% for a second week in a row after five weeks of gains. Tariffs have not yet had a full impact on the U.S. consumer because importers stocked up goods in anticipation of the new duties, delaying the price increases. The time is now running out. Walmart, the largest retailer in the world and top ocean importer warned that it would begin raising prices by late May or June. Jerome Powell, the Federal Reserve chair, said on Wednesday that he expected tariffs to begin stoking up inflation this summer. Tariffs are already higher on certain goods. However, a deadline of July 9 is approaching for the introduction of new levies against a wide range countries. Analysts are predicting a minimum 10% tariff, but it is unclear whether Trump will go lower or impose something even more aggressive. Some maritime experts claim that Trump's trade war has forced the U.S. to a corner. Imports to the U.S. almost ceased in April due to Trump’s temporary 145% tariffs against China. This volume is now rebounding. The rebound may not be as strong as expected, however, because tariffs are beginning to impact consumer spending and economic growth. "The less volume that goes up, the lower economic activity will be." "The less volume that goes down, the higher the inflation," said John McCown senior fellow at Center for Maritime Strategy. There is no place that you can land comfortably. Reporting by Lisa Baertlein, Los Angeles; editing by David Gregorio
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Sources: India refuses entry to UN aviation expert in Air India crash investigation
Aditya KALA, Allison LAMPERT and David Shepardson Two senior sources with knowledge of the issue said that India would not permit a UN investigator join an investigation into a crashed Air India plane. Safety experts had criticised India for delaying analysis of black box data. Earlier this month, the United Nations Aviation Agency took an unusual step by offering India the services of one of their investigators in the wake of the Boeing 787-8 Dreamliner accident that killed 260 people on June 12 in Ahmedabad. The International Civil Aviation Organization (ICAO) has sent investigators in the past to assist with investigations, including the downings of a Malaysian jetliner in 2014 and an Ukrainian jetliner, in 2020. However, those were requests for help. Sources said that ICAO asked Indian authorities to grant observer status to the investigator in India, but they refused. Indian news channel Times Now broke the news on Thursday. The Aircraft Accident Investigation Bureau of India (AAIB), the agency that is leading the investigation into the deadliest aviation incident in the last decade, has not responded to a comment request. ICAO did not respond to a request for comment. The Indian civil aviation ministry announced on Thursday that investigators had downloaded the flight data about two weeks after a crash. Safety experts had previously questioned the lack of information regarding the investigation, including the state of the black box unit that was recovered on the 13th of June, along with the second set found on the 16th. The National Transportation Safety Board, which is involved in the investigation, has also been asked if the recorders will be read in India or the U.S. There was only one press briefing on the incident by the Indian government, at which no questions were asked. According to international regulations known by the legal name "Annex 13" throughout the industry, the decision on where to read flight records should be made as soon as possible in the event that the evidence obtained can prevent future tragedies. Earlier in the week, a senior official from the Indian Aviation Ministry who refused to be identified said that the department "followed all ICAO protocol." The official also said that media representatives had provided updates on major events. The majority of air crashes have multiple causes. A preliminary report is expected within 30 days. (Aditya K. Kalra, in New Delhi; Allison Lampert, in Montreal; and David Shepardson, in Washington. Editing by David Gregorio.)
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Spanish court suspends fines against two airlines for cabin bag fees
A Spanish court ordered on Thursday a temporary suspension of a fine levied by the government against two budget airlines including Ryanair for practices like charging for larger cabin luggage, which, according to the Consumer Ministry, violated the rights of customers. The airlines appealed this decision and the court stated that it was not possible to resolve the matter at the present time. Paying the fine as the case is being litigated would put financial strain on the companies. This injunction order maintains the airline's policies until a decision is made. It represents a major victory for the airlines. Ryanair and Norwegian Air filed an appeal after being fined 109.6 millions euros ($128.40million) last year. They said they believed the fine had no basis. The Madrid administrative court has ordered that both airlines issue bank guarantees in the amount of 111.8 million Euros, which is equivalent to the sanction plus interest. This order will be in effect while the suspension remains in place. The industry group ALA praised this decision, claiming that the fines are unjustified. The group argued that the fines "limit (customers') ability to choose and distort(the European Union's] common market". The EU said that airlines will continue to charge until a final decision is made. Last year, the Spanish Ministry of Consumer Rights also fined other airlines. ALA expressed its hope that the court's ruling would be applied to all airlines in the future. The Ministry of Transport imposed a combined fine of 179 millions euros on all airlines. This included IAG’s low-cost unit Vueling as well as easyJet and Volotea. They claimed they were violating customers' rights by charging for larger carry on bags, selecting seats or printing boarding passes and not allowing payment in cash at check-in or when buying items aboard. $1 = 0.8536 Euros (Reporting and editing by Joan Faus, Inti Landauro and Aurora Ellis).
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Ships near Strait of Hormuz send unusual messages to avoid attacks
According to Windward, a maritime risk analysis firm and data from ship tracking on Thursday, vessels near the Strait of Hormuz are broadcasting unusual nationality messages in an attempt to avoid being targeted as doubts persist over the ceasefire agreement between Israel and Iran. Since the conflict between Israel and Iran broke out early this month, U.S. forces have attacked Iranian nuclear sites. The Joint Maritime Information Center said that the U.S. president Donald Trump brokered a truce after 12 days in war, but the maritime threat remained elevated. Ami Daniel is the chief executive officer at Windward. She said that shipowners believe it's difficult to determine the ownership of nationalities in shipping which are more vulnerable, such as the UK, U.S., and Israel. Windward reported that 55 vessels sent 101 atypical signals across the Gulf of Aden and Red Sea between June 12-24. These included "China owned" (owned by China) and "Russian crude", with the aim to prevent attacks, as these countries are less likely than Western ships to be targeted. According to JMIC, the JMIC reported that the commercial maritime traffic increased by 30% the next day following the ceasefire. The Strait of Hormuz is the route of about a fifth of all fuel and oil consumed in the world. Vessels usually announce their destinations, or state "For orders". Sometimes, ships will also broadcast messages like "Armed Guards on Board", to deter attacks or pirates. Daniel from Windward said that unusual messages were seen almost exclusively in the Red Sea prior to June 12. Since the Israel-Gaza conflict broke out, Houthi rebels have focused a number of attacks on the Red Sea. Daniel stated, "I have never seen anything like it in the Persian Gulf." According to LSEG, the Panama-flagged Yuan Xiang Fa Zhan container ship, bound for Pakistan broadcast "PKKHI in all Chinese" as it crossed over the Strait of Hormuz on Thursday. The supertanker Yuan Yang Hu, which is China-flagged, broadcasted "Chinese Ship" Thursday morning as it crossed the Strait of Hormuz. Once the vessel cleared the Strait, it changed the signal to "CN NBG", which is the Chinese port of Ningbo Zhoushan. As it passed through the Red Sea, Singapore-flagged Kota Cabar signaled "Vsl No Link Israel". JMIC warned that electronic interference in the area could affect Global Navigation Satellite System. A jammed GNSS could cause ships to lose their course and increase the risk of collisions with other vessels. Reporting by Georgina and Arathy in Houston; Lisa Baertlein and Ed Osmond in Los Angeles.
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Acciona confirms that the contracts referred to in a Spanish corruption probe are not irregular.
The Spanish construction firm Acciona announced on Thursday that it found no evidence to support allegations of corruption in the public works contracts which are at the center of an investigation into the Socialist Party. According to Acciona's CEO Jose Manuel Entrecanales, the case involves a former Acciona employee who left in 2021. He contracted Servinabar 2000 as a partner for a joint venture with a company that is being investigated by the police over allegations of corruption. Acciona, according to him, has over 30,000 partners. Local media reported that Servinabar had denied any criminal activity. Servinabar could not be reached for comment. After a police report was published in the media, which included recordings of former members of Sanchez's inner circle discussing kickbacks for public infrastructure projects, Prime Minister Pedro Sanchez promised a complete overhaul of his political party. The contents of a leaked report have not been confirmed by the police, who has seen a scanned copy. Acciona's legal team said that it had not found any evidence of irregularities or bribery in the awarding process of the contracts cited in the report. The company said that no complaints had been made by other companies about the tenders held in different Spanish regions. Santos Cerdan, the third-ranked Socialist Party member, resigned last week after leaked recordings showed him discussing bribes in a meeting with the former Transport Minister Jose Luis Abalos. Both men have claimed innocence and said that the recordings may have been manipulated. At least three shareholders expressed concern about the investigation during Acciona’s annual meeting. However, Entrecanales stated that the probe would not impact the Spanish construction business of the company, which only accounts for 3% in its global construction business. Acciona said it has terminated contracts with Servinabar, and dismissed the head its construction department in Spain because he failed to supervise the former employee adequately. Corina Poins is the reporter. (Editing by Charlie Devereux, Mark Potter and Mark Potter.)
Hawaiian Airlines cyber-attacked
Hawaiian Airlines announced on Thursday that a hacker had disrupted some of its IT system, but added that its flights continued to operate as planned.
Hawaiian Airlines released a statement in which it said that "some of our systems" were affected by "a cybersecurity event". The event's nature was not revealed, but this kind of language is often used to describe ransomware attacks, when digital extortionists cripple a victim’s computer network until they receive a cryptocurrency ransom.
Alaska Air Group owns the airline. It said that it has "taken measures to safeguard our operations and our flights operate safely and on schedule."
Could not immediately determine the extent of disruption at Hawaiian. However, a representative who was contacted for further information responded by using a Gmail account.
Hawaiian Airlines is in touch with the Federal Aviation Administration's safety office, which is responsible for airline supervision. The airline is continuing to operate in a safe manner. There has been no impact. The agency issued a statement saying that it was monitoring the situation. Reporting by Raphael Satter, David Shepardson and Chris Reese
(source: Reuters)