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Kuehne+Nagel's boss does not see a return to normal Mideast Shipping
Kuehne+Nagel CEO, Kuehne, said on Thursday that a return to normal shipping operations in the Middle East was unlikely in the near future, as little improvement had been seen along the main trade routes. Stefan Paul said that despite the fact that there are still some restrictions in the Strait of Hormuz and that carriers continue to avoid the Suez Canal to a certain extent, ships will continue to be routed around Cape of Good Hope, at the southern tip of Africa. He said, "Nothing fundamentally has changed since the past couple of weeks." The CEO's remarks underscore the fact that despite some tentative signs of recovery,?the industry is still far from returning to normal. Hapag-Lloyd, Maersk and other container carriers announced earlier in July that they would resume some trips through the Suez Canal. Paul said, "I doubt that this will happen." Since years, Middle East security issues have reshaped global supply chains. The Red Sea is a major shipping corridor in the world, and the Suez Canal handles about 12% global trade. It's a vital route for container ships, energy products, and industrial supplies. The repeated attacks of Iranian-aligned Houthi terrorists since late 2023 have prompted many shipping companies to reroute their ships around Africa. This has added about 10 days to Asia to Europe voyages and increased costs. These disruptions have led to shipping and logistics companies imposing emergency fuel surcharges. The French shipping company CMA CGM is among the most recent to do so. Paul stated that fuel surcharges for air freight, ocean cargo and road transportation would continue to be in place. Reporting by Anastasiia Kozolova and Amir Orusov; editing by Milla Nissi-Prussak
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QatarEnergy extends LNG Force Majeure and charters out tankers until October, sources claim
QatarEnergy extended force majeure for liquefied natural gas (LNG), and continued to lease some of its LNG tanks through mid-October. This signals that trade sources expect export disruptions will continue as long as the Strait o fHormuz remains closed. QatarEnergy has been forced by the Iran war, which is a major cause of LNG exports, to close liquefaction tracks, declare force majeure for deliveries, and suspend exports. The renewed Iranian attacks on tankers that transit the Strait this month have lowered expectations for a return of pre-war LNG flows. Qatar is responsible for about a fifth (or more) of the global LNG trade. A prolonged outage could cause a shortage and increase prices. The key Asian buyers as we head into the winter in the Northern Hemisphere. QatarEnergy, according to three trade sources, has extended force majeure for LNG deliveries to South Korea and India. One source said that notices which were due to expire between August and September have now been extended to mid-September. QatarEnergy is expected to extend its force majeure until at least October, according to two?other sources. All sources refused to be identified because they weren't authorised to talk to the media. QatarEnergy didn't immediately respond to an inquiry for comment. TANKERS AVAILABLE FOR RENT THROUGH MID OCTOBER Two shipbrokers report that QatarEnergy's entities QatarEnergy LNG Marketing and QatarEnergy Trading continue to lease some of their LNG tanks through October. QatarEnergy may have chartered only a few vessels out of its fleet?of almost 70 LNG carriers. However, sources in the trade said that the move could indicate a long-term disruption?because the vessels were leased under spot deals lasting 30 to 90 day. According to recent fixture reports, nine QELM/QET LNG carriers were sub-chartered by third parties, including Chevron, BP, EnBW (twice), Kansai SOCAR LMCS Trafigura, EnBW Cheniere Kansai SOCAR and Trafigura, said Ikram Eloumi. She said that the vessels were leased despite falling freight rates in a market for LNG freight that is rapidly deteriorating. She said that Qatar's willingness to fix ships as rates dropped suggests the country is prioritising fleet usage over waiting for market recovery. (Reporting from Marwa Rashad and Emily Chow, both in London; editing by Susan Fenton).
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Crimea brings public street phones back for emergency calls
The Russian-controlled Crimea installed street 'phones to make emergency calls to police and ambulance services. This is an alternative to mobile communications that are frequently 'jammed due to frequent Ukrainian attacks. Ukraine has struck supply lines, bases, and power plants located in Crimea. Crimea was captured by Russia in 2014 and annexed unofficially. Ukraine, under constant Russian missile and drone attacks, claims it's trying to isolate Crimea from Moscow and undermine its?war effort. Local authorities in Crimea reported that 17 civilians had been injured by a 'overnight drone strike on the southern city Yalta. A high-rise apartment was targeted. Both Russia and Ukraine claim they do not deliberately target civilians. Yevpatoriya, on Crimea's West coast, has installed phones throughout the city to call emergency services. Witnesses have reported seeing several of these phones throughout the city. Maria Ushakova, local resident, said that if the phones work in power outages, they are a good option for additional protection. The popular holiday destination of Crimea has suffered from power outages, fuel shortages and oil refineries that were targeted by Ukrainian drones. It has had to cancel summer camps for children and cut back on the hours that cafes and public transportation operate. Mark Trevelyan, Christian Schmollinger and Mark Trevelyan are responsible for the reporting.
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EasyJet CEO: Once the takeover is formalised, EasyJet will adhere to EU regulations
EasyJet will contact the regulators in the European Union over ownership regulations as soon as the 'British carrier' has received a formal offer from one of its potential suitors. CEO Kenton Jarvis responded to the report on Thursday. Reports on Wednesday said that the EU could tighten airline ownership regulations, which would potentially complicate easyJet's takeover. Both of easyJet’s bidders, Apollo and Castlelake, are based in the United States. The airline has chosen Apollo's PS5.7billion ($7.6billion) bid over Castlelake's?lower offer. Jarvis explained that the board would consider both value and deliverability in evaluating any 'offer. Deliverability includes, for example, being an ally of Europe and being regulated as such." Jarvis added that easyJet,?Apollo and regulators will likely work "hand-in hand".
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Sources say that Kazakhstan's oil production plummets following drone attacks which forced the exporting terminal to close.
Two industry sources reported on Thursday that oil production in Kazakhstan has decreased?since?the closure?of a Black Sea Terminal, which serves as a main outlet for the nation's crude shipments. The terminal was also recently targeted by drone strikes. Tengiz, Kazakhstan's biggest oilfield, is the field where the decline was most pronounced. Sources claim that the production there has more than halved to 406,000 barrels a day on Wednesday, from an average of 925,000 bpd in July. According to a source, the average oil and gas condensate production in Kazakhstan fell on Wednesday from 2.07 million bpd to 1.63 millions bpd. Chevron's and Kazakhstan's Energy Ministry did not immediately respond to requests for comments. After suspending loadings Monday, the Caspian Pipeline Consortium has stopped receiving oil from Kazakhstan due to attacks against oil tankers at their Black Sea?terminal. CPC, the company that accounts for over 80% of Kazakhstan's oil exports, had suspended loadings at this outlet earlier. Russia accused Ukraine of targeting CPC tankers in its "ambition" to further destabilise global oil markets. Ukraine has not made any comments on the attacks, despite a recent escalation in its attacks on Russia's infrastructure for energy. The suspension of loads from the CPC pipeline, which exports 2% of the 'global' oil, is a further concern for the 'global? oil market, as the war in Iran already has disrupted the supply from Saudi Arabia, and other Gulf producers. (Reporting and Editing by Alexandra Hudson, Louise Heavens).
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Minister: Shipowners stop vessel calls for exports of farm products at Ukraine's Black Sea ports
The country's Agriculture Minister said that shipowners temporarily halted vessel arrivals in?Ukraine?s Black Sea ports?for agricultural exports?after a recent surge?in russian attacks against ports and merchant ships? According to traders and analysts, the Russian drone and missile attacks have caused Ukraine to lose about a third its ability to export grain through Black Sea ports. "As from today, entry of ships is suspended. The shipowners made this decision. Ukraine as a country has not imposed restrictions," Interfax Ukraine quoted Taras Vysotskyi on Wednesday. Interfax-Ukraine reported that Vysotskyi also added that alternative routes as well as infrastructure are currently underutilised. Since 2023, Ukraine has been exporting a large amount of grain via its Black Sea shipping route. This is because Russia reneged on a deal which had guaranteed "safe passage" for agricultural exports following its invasion of Ukraine in 2022. In recent weeks, Russian?attacks? on Ukraine's deepwater port?and international ships have increased. Brokers say that shipowners refuse to enter Ukrainian port due to the sharply increased concerns about war risks, and traders have stopped purchases. Ukrainian authorities reported that a Russian missile attack on a ship transporting corn near Odesa, Ukraine on Sunday resulted in the deaths of nine crew members from India, Syria and one Ukrainian maritime pilot. UKRAINE REQUESTS URGENTE? A SECURITY CONSULTAN MEETING Andrii Sybiha said that the Russians have attacked at least three civilian cargo vessels in recent days. Today, no vessels crossed Ukraine's Black Sea Maritime Corridor - just as harvest was at its peak. Sybiha wrote in a X post that this was a deliberate act of economic and humanitarian terror. Ukraine had also requested an urgent 'United Nations Security Council Meeting for Monday. Moscow claims it is targeting port infrastructure and vessels that are supporting the Ukrainian military. Ukraine also intensifies its attacks on vessels in?the Black Sea and the Sea of Azov, as part of a broader?campaign to isolate Russia-occupied Crimea while undermining Moscow's main revenue sources. Russia banned vessel movements into and out of Novorossiysk, its largest port in terms of volume, which handles about a third of the country's grain exports, on Wednesday. (Reporting and editing by Emelia Sithole Matarise; Anna Pruchnicka)
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EasyJet's Q3 profits lower as Iran War raises costs
EasyJet, the target of a takeover, reported a PS85million ($113.8million) profit in its 'third quarter' on Thursday. This was a significant drop from a year earlier due to disruptions caused by Iran war, but said that consumer confidence is increasing as we enter 'peak summer season. The British budget airline, which has backed U.S. investor firm Apollo's PS5.7billion?takeover?offer over Castlelake's?repeated?approaches, stated that there was a strong demand for bookings made late in the month before departure, throughout the entire quarter. It also said it had 68% of its seats sold during the fourth quarter. The 'five-month war' has a dreary effect on the travel industry, as its quarterly earnings are a far cry from the PS286million profit it logged last year.
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New York Times Business News - July 23,
These are the 'top stories' from?the New York Times?business?pages. The?New York Times has not verified the accuracy of these stories. The Florida teenager who sued Meta for claiming that the company's social media apps caused his depression and anxiety dropped his lawsuit. Sony Pictures Entertainment announced that it will reopen the Cinerama Dome, Hollywood by 2028 after a renovation. This was in response to a growing demand from younger audiences for premium movie experiences. Three U.S. Airports are the first to adopt the new "private screening" model of the Transportation Security Administration, despite the staunch opposition from the union representing thousands of T.S.A. workers. workers. - ?U.S. Trade Representative Jamieson Greer said to Congress on Wednesday, that there was a "national emergency" in trade and that the administration was still determined to use tariffs as a tool for economic transformation.
Fuel costs are increasing, so airlines are reducing their prices and cutting back on their outlook.
The U.S. and Israeli war against Iran, which has pushed up jet fuel prices, has shook the aviation industry around the world. Airlines have been forced to increase fares and re-evaluate their financial forecasts.
In recent weeks, jet fuel prices have increased from $85-$90 per barrel up to $150-$200 per barrel. This is a major financial blow to an industry that relies on fuel for about a quarter or more of its operating costs.
Here is an alphabetical list of the ways airlines are responding to this issue:
AEGEAN AIRLINES
The Greek airline anticipates that the suspension of Middle East flights and the spike in fuel costs will have a "notable" impact on its first quarter results.
AIRASIA X
Malaysian Airlines executives announced that the company has cut 10% of its flights in the group and imposed a fuel surcharge of around 20%.
AIR FRANCE-KLM
The airline group?said that it planned to raise long-haul ticket fares to deal with surging fuel prices, and cabin?fares are set to rise by 58 euros (50 euros) per round trip.
AIR INDIA
The Indian flag carrier announced it would change its fuel surcharge system from a "flat domestic surcharge" to a grid based on distance. The airline said that surcharges for international routes do not compensate the steep rise in jet fuel costs.
AIR NEW ZEALAND On April 7, the airline announced that it would cut flights in May and June, and raise fares. It was one of the first airlines to announce a large increase in ticket prices after the conflict began. The airline also suspended its earnings forecast for the full year due to volatility in the fuel markets.
AKASA AIR
Akasa Airlines, based in India, announced that it would be introducing fuel surcharges ranging from 199 to 1,300 Indian Rupees ($2 - $14) for domestic and international flights.
ALASKA AIR
The U.S. carrier said that it would raise fees by $5 for the first bag and $10 for the second for flights in North America, as well for Hawaiian Airlines. The third checked bag was raised from $50 to 200 dollars.
AMERICAN AIRLINES
The U.S. carrier announced that it would increase the fees for checked baggage by $10 for each of the first two bags, and $150 for the third bag on short-haul and domestic international flights. The airline has also reduced certain benefits for passengers in economy class.
The fuel price increase was expected to cause a $400 million increase in the first quarter expenses.
CATHAY PACIFIC
Hong Kong Airlines announced that it will increase its fuel surcharges by 34% on all routes starting April 1, and to review them every 2 weeks. The CEO of the carrier said that it would maintain its flight capacity despite high fuel costs, but warned that its 10% growth plan for passenger capacity could be altered if demand drops due to high fuel prices.
CEBU AIR
The Philippines-based carrier said that the sharp increase in fuel prices is a major concern. It will continue to review pricing and network strategies and try to minimize the impact.
CHINA EASTERN EXPRESS AIRLINES
Air China said that it would increase fuel surcharges on domestic flights starting April 5. Flights of less than 800km will be charged a surcharge of 60 yuan, and flights over 800km will be charged a surcharge 120 yuan.
DELTA AIR LINES
Delta announced that it would reduce capacity by around 3.5 percent points from its initial plan, and increase fees for checked baggage in order to offset the rising costs of jet fuel. The price increase will be $10 for the first and second bags, and $50 on the third bag.
The U.S. carrier pulled all planned growth in capacity for the current quarter, and forecast profits below Wall Street expectations. Delta CEO stated that it would not update the full-year forecast due to uncertainty about how long fuel prices would continue.
EASYJET
EasyJet CEO Kentonjarvis says European consumers can expect to pay higher ticket prices at the end of summer when fuel hedges end.
FRONTIER AÉRIENS
Fuel prices have risen significantly since the airline's last forecast, prompting it to review its full-year outlook.
GREATER BAY Airlines
The Hong Kong-based firm said that it would increase fuel surcharges for most routes on April 1 while maintaining them at the same level on routes to mainland China and Japan.
The carrier has announced that the surcharge on flights between Hong Kong, Philippines and other destinations will be more than doubled.
HONG KONG Airlines
The airline announced that it would increase fuel surcharges up to 35% starting March 12. The biggest increases would be on flights between Hong Kong, Bangladesh, and Nepal where the charges would go from HK$284 to HK$384 (US$49).
British Airways' owner IAG stated on March 10, that it does not intend to increase ticket price immediately as it has hedged a large amount of fuel in the short to medium term.
INDIGO
India's largest airline announced that it will begin charging fuel fees on both domestic and international flights as of March 14. The charges include 900 rupees per flight to the Middle East, and 2,300 rupees per flight to Europe. Sources say that the company is lobbying for fuel tax reductions by the Indian government.
JETBLUE AERWAYS
Low-cost airline based in the United States has announced that it will increase fees for optional services, such as checked luggage, due to "rising operating expenses". The airline said that baggage prices would rise either by $4 or $9.
Sources with knowledge of this matter have confirmed that KOREAN Air will be in emergency mode as soon as April begins, due to the rising cost of oil. The airline will implement a phased response based on the oil price level and increase company-wide efficiency to offset rising fuel costs.
PAKISTAN INTERNATIONAL FLIGHTS
Fuel surcharges are cited as the reason for raising domestic fares up to $20, and international fares up to $100.
Scandinavian Airlines announced that it would cancel 1,00 flights in April due to high jet fuel and oil prices. In March, the airline had cancelled "a couple hundred" flights.
SAS, which has already raised flight prices, stated that the surge in fuel costs would be a major blow to the aviation sector, even if they tried to absorb them.
SPRING AIRLINES
Budget Chinese airline announced that it will increase fuel surcharges for domestic flights starting April 5. Details to be announced in due course.
SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWAST AIRLINES
The American carrier announced that it would increase checked baggage fees by $10 per bag for the first one and the second. This will bring the cost to $45 and $55 respectively for the first bag.
The Portuguese airline claimed that its price increases would partially offset the impact of fuel prices changes on its revenues.
THAI AIRWAYS
The Thailand-based airline said that it would increase fares between 10% and 15% in order to combat rising fuel prices.
TURKISH AIRLINES LUFTHANSA
SunExpress, the joint venture between Turkish Airlines, Lufthansa and Lufthansa announced that it would be imposing a temporary fuel charge of 10 euros per person on routes between Turkey, Europe and Canada from May 1. The fuel surcharge will be applied to all bookings made after April 1, for departures after May 1.
Turkish Airlines announced on April 10, that it would not be distributing any dividends from its net profit for 2025, instead choosing to keep the earnings and preserve cash.
T'WAY AIR
South Korean low-cost carrier announced on April 13 that it will furlough cabin crew in May and/or June without pay as part of measures to combat the effects of the Middle East war.
UNITED AIRLINES
Scott Kirby, CEO of the U.S. carrier, said that the airline will cut unprofitable flights in the next two quarters to prepare for the oil price remaining above $100 by the end 2027.
Andrew Nocella, Chief Commercial Officer at United Airlines, said that the airline was able to raise fares in response to a rapid rise in jet fuel and oil prices.
In an email, the carrier said that it would also be increasing the first and second checked bags fees by $10 to customers traveling in Mexico, Canada, and Latin America.
VIETJET
A potential fuel shortage has led to the Vietnamese budget airline reducing flight frequencies on certain routes.
VIETNAM Airlines
Vietnam's Aviation Authority announced that the carrier will cancel 23 flights per day on domestic routes starting in April after it requested assistance from the government to remove an environment tax on jet fuel.
VIRGIN AUSTRALIA
Virgin Australia announced that it would be adjusting its fares in order to reflect the rising costs across the aviation industry, which were reportedly being exacerbated by the Middle East situation.
WESTJET
Canadian Press reported that the airline would add a fuel surcharge of C$60 ($43), and will combine some flights to reduce costs.
(source: Reuters)