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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 some 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 the industry is still far from returning to normal despite some tentative signs of improvement. 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 12% of all global trade. It's a vital route for container ships, energy supplies, 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 clouded the prospects of a return to flows prior to war. 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?as these vessels are being 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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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.
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Channel Tunnel operator: EU software problems could delay biometric checks
Getlink, the operator of the Channel Tunnel, warned on Thursday that software problems could cause the biometric phase to be delayed past the original deadline of September 6, affecting car passengers who use the tunnel. The Chief Executive Yann Leriche stated that the biometric component for the new Entry/Exit System has yet to be implemented in passenger vehicles. He also warned that the software at the European level is not fully stable. Travel disruptions during holiday seasons are a concern for airline groups as well as British authorities. Leriche said to reporters: "I won't tell you that we're not experiencing any problems, but there is one problem?that impacts us all and?for which there is no immediate solution. The software provided by the European Union." Getlink, the company that operates the Channel Tunnel on a concession lasting until 2086 has invested EUR80,000,000 ($91,000,000) in preparing its terminals for EES. Leriche reports that the queues in the tunnel are generally only one or two hour long, as opposed to?significantly more delays' reported at certain airports. All this bad press, especially coming from the British, because 80% of tourists are British, creates an impression that the problems can't be solved. But, if we do our jobs, they're largely manageable. The Paris-based firm also announced that it had filed a lawsuit against the British government for revaluing business rates, which tripled their annual tax bill. Leriche stated that the company would give the UK government until the end the summer to reconsider their position before launching a formal legal challenge. Eurotunnel's owner has raised its guidance for full-year earnings to EUR835 to EUR870 millions, up from EUR820 to EUR860 in the past, and assumed only limited disruptions due to the rollout of the new entry system. $1 = 0.8763 Euros (Reporting and Editing by Edmund Klamann; Gianluca Nostro, Zakarya Melani)
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".
(source: Reuters)