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Top shipping executives say they are waiting for "safe and sustainable" strait crossings
Two top executives in the shipping sector said that they wanted to see a safe and sustainable passage through Strait of Hormuz before much oil or cargo leaves or enters the Gulf. We thought that there was some hope when, two weeks ago, the temporary ceasefire came into view. In reality, the agreement did not translate into safety and passage for the vessels", Jotaro Tamura, chief executive officer of Japan's Mitsui O.S.K. Lines in an interview conducted on the sidelines the Singapore Maritime Week. MOL is one of the largest shipping companies in the world and is the leading owner of liquefied gas and oil tankers. Tamura said that questions about safety would remain, even if the Strait were to reopen. The Iranian Islamic Revolutionary Guard Corps warned that there are mines in the area. It's about?the definition of the word open. Is it open or only half-open? "Is it really open or is there a risk?" Tamura spoke. "At some stage, the (voyages will resume) and normalisation is a reality. It's difficult to predict how the reality will be." He said that MOL follows international law which allows for free passage through the Strait. CMB.Tech in Belgium, a large and diversified maritime firm with more than 250 vessels, is also waiting to get more clarity. "We cannot hedge." Alexander Saverys, CEO of Saverys Group, said at the Singapore conference that we should just wait and see what happens in the Middle East. It creates a lot more uncertainty." He said, "We must be confident we can travel without any problems." Today, we are in no way reassured. "We will only be able to'reassurance when we see that the ships can pass through in a safe,?sustainable manner." Saverys stated that "the Strait of Hormuz is normally a free-passage where no toll should have been paid." If that were to change, we would investigate. He refused to comment on how many ships his company has stranded in the Gulf. "We are in constant communication with all the governments to ensure that our ships can navigate. As you may know, right now the situation is still not safe. Since the U.S. - Iran war broke out on February 28, energy supplies from Gulf have been disrupted. About 130 ships a day pass through the strait to enter or exit the Gulf. This translates into about 20% of daily global oil and LNG supply. (Reporting from Siyi Liu in Singapore and Florence Tan; editing by Jason Neely).
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Air quality is affected by fire after Ukrainian attack on Russia's Tuapse Refinery
After a drone attack by Ukraine, a large group of Russian firefighters fought a fire for the third time on Wednesday at the Tuapse Oil Refinery in the Black Sea. Officials said the air quality had deteriorated. Two industry sources reported that the Tuapse refinery had stopped operations after the April 16th attack. The refinery sells its majority of products to export. The general headquarters of Russia’s southern Krasnodar Region said on Wednesday: "In Tuapse firefighting operations continue for the third day at a large blaze at the sea terminal following a drone strike by the Kyiv regime." The command headquarters reported that 276 firefighters and 77 vehicles were drafted into the operation. The company said that byproducts of the fire mixed with rain had caused a "black layer" around the terminal. It said that atmospheric readings showed concentrations of?benzene and xylene two to three-times the permitted levels. Residents were advised to stay indoors and to keep their windows closed. The situation will return to normal as soon as the fire is extinguished, it stated. Ukraine increased its attacks on Russia's infrastructure, as the U.S., who mediated peace talks with Russia to end the conflict, has turned its attention to the war against Iran. According to 'Russian officials', the attacks on the city of Tuapse on April 16 and April 20 damaged the transport infrastructure and set fire to oil product storage. Reporting by Kim Coghill; Editing by Kim Coghill
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Senators express concern about US bailout for Spirit Airlines
A number of U.S. legislators expressed concern about a possible federal government rescue of bankrupt Spirit Airlines. The Republican chair of the Senate Commerce Committee called it a "terrible idea." Ted Cruz, a senator from Texas, said in a social media post that "this is an absolutely horrible idea." He said that "the government knows nothing about running a failing budget airline." Reports said that the Trump administration was close to a deal that would save low-cost airline Spirit Airlines. The deal could include up to 500 million dollars in government-backed funding to help Spirit Airlines exit bankruptcy. This is its second "restructuring" since 2025. Sources said that the package would be a loan for Spirit to continue operating during bankruptcy. This loan?would then become a long-term loan once the airline emerged from bankruptcy. Warrants could give the U.S. Government a stake of up to 90 percent, they added. The White House and Spirit didn't immediately comment. Republican Senator Tom Cotton stated: "I doubt that the U.S. Government could run Spirit profitably after its second bankruptcy in less than two years." "Not the best use for taxpayer dollars." Elizabeth Warren, a Democratic senator from Massachusetts, said that Donald Trump's war against?Iran was responsible for the high fuel prices which led to Spirit Airlines' demise. She asked: "What does the American public get out of this taxpayer bailout?" Will the failed airline executives face accountability? In a?Tuesday interview with the, Transportation Secretary Sean Duffy expressed grave concerns over a possible bailout. "We don't want 'good money' to be wasted, and Spirit has received a lot 'of money, but they still haven't been profitable. Would we then just stop 'the inevitable' and own it? Duffy said. "We can't make dumb investments." Duffy said that it seems no one wants Spirit. What would someone buy? Duffy asked. Why would we buy these if no one else is interested in buying them? (Reporting and editing by David Shepardson)
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CSX's quarterly earnings increase as intermodal volumes grow
?U.S. CSX reported higher first quarter?profits and revenues, thanks to a?strong intermodal volume?and a?firm price, sending its share prices up by nearly 7%. Strong intermodal demand, supported in part by consumer spending, helped U.S. railroad operators like CSX to counter the softness of coal and industrial freight. Intermodal volumes is the amount of freight that can be moved by rail, truck, and ship without having to handle the cargo when changing modes. CSX executives stated in a?post-earnings? call that customers have identified selective opportunities in the face of global disruptions. This is especially true in energy-related and chemical?markets. However, they said it was uncertain whether these trends would last. Steve Angel, CEO of the company, said: "The ongoing conflict in the Middle East and the high energy prices create uncertainty in global supply chains. We're closely monitoring the situation as it could affect inflation and customer demand over the next few months." He said that higher fuel prices would improve rail's relative advantage over trucking. This could lead to a greater volume conversion in the coming year. Fuel costs were up 9.8% during the quarter reported compared to a year earlier, reaching $302 million. The resulting 'increase in -diesel costs' weighs heavily on CSX expenses in the short term. However, most of this impact is 'passed onto customers through fuel surcharges. This will largely neutralize the?impact on earnings in the long run. Jacksonville, Florida based company's revenue for the first quarter rose by 2% to $3.48billion. It reported a profit per share of?43 cents, up from?34 cents the year before The operating margin of the company was 36% in the third quarter, an increase of 560 basis points over the previous period. Apratim Sarkar, Pooja Deai and Apratim Sarkar contributed to this report.
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CSX's quarterly earnings increase as intermodal volumes grow
CSX, the U.S. railroad company, reported higher 'first-quarter revenue and profit, thanks to a strong intermodal volume and firm pricing. Shares rose more than 6% after 'bell. The results show that the U.S. rail freight sector is improving as operators rely on price discipline and operational efficiencies to manage uneven demand trends. CSX and other U.S. railroad operators are able to counter the softness in coal and industrial freight because of strong intermodal demand. The intermodal volume is the total amount of freight that can be moved by multiple modes, including rail, truck, and ship, without having to handle the cargo when changing modes. CSX has reported higher fuel 'expenses' during the third quarter, as fuel prices climbed amid increased geopolitical tensions throughout the Middle East. This raised concerns about potential disruptions to crude supplies and shipping routes. Fuel costs were up 9.8% during the first quarter of this year to 302 million dollars. Fuel surcharges are a major part of the resulting rise in diesel costs, which will have a neutral effect on CSX earnings over time. Revenue for the first quarter of this Florida-based firm grew by 2%, to $3.48 Billion. The company posted a profit per share of 43 cents, up from 34 cents a year ago The operating margin of the?company was 36% in the third quarter, an increase of 560 basis points compared to the previous period. Apratim Sarkar, Pooja Deai and Apratim Sakar contributed to this report.
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Kinder Morgan's profits in the first quarter beat estimates due to strong gas demand
Kinder 'Morgan exceeded Wall Street expectations for first-quarter profits on Wednesday. This was aided?by the higher volumes of?natural gas transported through its pipelines. U.S. Pipeline companies benefit from the booming oil and natural gas production in the Permian basin, and from rising?natural?gas demands due to record LNG shipments and increasing electricity usage from AI operations and cryptocurrency mining. The company reported that it transported approximately 49,475 billion British thermal units (Btu) of natural gas per day during the quarter. This compares to 45,978 Btu/day a year earlier. Natural gas futures in the U.S. averaged $9.54 for a million British thermal unit (btu) during the quarter of January-March, an increase of 9.5% over last year. Natgas prices were boosted by the surge in spot prices that occurred during Winter Storm Fern in early quarter. According to LSEG, the Houston-based company posted an 'adjusted' profit of 48 cents per share for three months ending March 31. This was compared to analysts' estimates?of 40 cents per share. Varun Sahay, Bengaluru. Vijay Kishore, editing.
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Southwest Airlines' second-quarter profits are expected to be below estimates due to fuel prices.
Southwest Airlines predicted a second-quarter loss below analysts' expectations on Wednesday as rising jet fuel costs due to the war in Iran have pushed up costs and reduced margins. In extended trading, the shares of?company fell 2.9%. According to data compiled by LSEG, the Texas-based carrier is expecting a profit per share between $0.35 and $0.65 during the April-June period. This mid-point is below analysts' expectations, which were for a profit of 55 cents. After U.S. and Israeli strikes on 'Iran,' the Strait of Hormuz was closed. This caused a rise in jet fuel prices for airlines worldwide. Jet fuel prices have nearly doubled since the Iran conflict started, and airlines are now dealing with one of the biggest financial shocks they've experienced since the COVID-19 epidemic. Fuel costs account for about a quarter of the operating expenses of airlines. The rise in fuel prices has made it impossible for carriers to re-price tickets that were sold months prior to the conflict. Southwest Airlines and its competitors are raising their fares to reflect the increased costs. They also increase fees for extra services, such as checked baggage. In its annual report, the airline stated that it expected to consume approximately?2.2 billion gallons jet fuel by 2026. The cost of fuel would increase by $22 million if the price of jet fuel increased one cent per gallon. The company expects fuel prices to be between $4.10 - $4.15 per gallon during the second quarter. Southwest used to hedge jet fuel, but stopped doing so in 2025 because it was too expensive and unreliable. Southwest reported a net profit of $227m, or $0.45 a share, which was lower than the analysts' expectations of 47c, according to LSEG data. (Reporting by Nandan Mandayam in Bengaluru; Editing by Maju Samuel)
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Argentina truckers, farmers to hold talks on Quequen port protest
Julian Kristansen of the Necochea City Council, the chair of the Transportation Committee, said on Wednesday that Argentine truckers who have protested 'higher freight rates' have agreed to meet with farmers in order to resolve the dispute. Truck drivers protesting have camped along a road leading into the port. They are blocking grain trucks and disrupting logistics. The Quequen Terminal handles 20 percent of Argentina's soy exports. Argentina is the world's?third-largest soybean exporter and the biggest global supplier of soy oil and meal. On Monday, the Argentine Chamber of Private Commercial Ports announced that?the protests had?originally affected the port of Bahiablanca. Exports of approximately $450 Million were prevented. Kristansen stated that "in the coming days there will be another call for a table of negotiation to listen to all parties and to try to achieve a consensus." Necochea, in southern Buenos Aires, is home to the port city of Quequen. Kristansen claims that truckers in the rural areas are accepting a 14% rate increase due to a global increase in fuel prices since the start of the Iran war. The Buenos 'Aires transport ministry and the truckers' unions ATCADE & FATRAC did not respond to our inquiries. The dispute did not affect ports in the Rosario region, which ship nearly all of Argentina's soymeal and oil exports as well as more than 85% of Argentina's grain. (Reporting and editing by Brendan O'Boyle, Maximilian Heath)
Sources say that American Airlines and Alaska Air are exploring a deeper international partnership.
American Airlines and Alaska Air Group are in initial discussions to expand their partnership. This could include bringing Alaska into American's transatlantic or transpacific joint business agreements.
Sources said that the talks are still in the early stages and may change. They center around allowing Alaska Airlines to join American's global joint ventures, such as those with British Airways, Iberia, Finnair, and Finnair, a Finnish airline, across the Atlantic and Japan Airlines, across the Pacific.
These joint ventures are popular with airlines because they enable partners to coordinate schedules, fares and share revenue for international routes. This so-called "metal neutral" arrangement means that it doesn't matter which airline operates the flight. It allows carriers to expand networks, improve connectivity, and better compete on longer-haul routes, without adding aircraft.
Sources said that there are no talks about a merger of the two airlines.
American and Alaska declined comment.
EXPANDING A TIE-UP
American and Alaska have a partnership based on codesharing, loyalty rewards and West Coast connectivity to international routes. They have called it a "West Coast International Alliance."
Alaska, the company that recently acquired Hawaiian Airlines, has been focusing on integrating this deal. Chief Executive Ben Minicucci said on Tuesday that he was "super excited" about their organic growth plan.
Sources said that the current discussions would strengthen this relationship by going beyond codesharing and into closer coordination of long-haul markets internationally.
The sources noted that there is no timeline as to when the discussions could lead to a formal proposal. They also pointed out that such arrangements can be complex and require coordination between airline partners and regulators.
Alaska is part of the Oneworld Alliance, a global alliance of major airlines that already connects it to American and many of its international partners.
REGULATORY HUNDLES AHEAD
Sources said that any such expansion would need the?approval of the U.S. Department of Transportation. This department grants antitrust immunity to international joint ventures and allows airlines to coordinate pricing and capacity.
The plan may still be scrutinized, given the recent pushback from regulators against airline partnerships. This is especially true when two U.S. carriers are involved. The now-defunct Northeast Alliance?between JetBlue Airways and American Airlines is a recent example.
This partnership, which was centered on New York City and Boston, would have allowed the airlines share revenue and coordinate flights, but it was struck down in 2023 by a federal court after a challenge from the U.S. Department of Justice.
This case shows that the DOT's approval may not be enough if the Justice Department decides it wants to challenge a deal. The Alaska structure would be different in important ways.
Joint ventures between international companies have been in use for many years. They usually involve deeper coordination including pricing and revenue sharing across all routes. (Reporting and editing by Joe Brock, Kim Coghill, and Rajesh Kumar Singh)
(source: Reuters)