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Israel strikes Yemen's Hodeidah following evacuation warnings from the Houthis
The Houthi interior ministry stated on Sunday that Israel had attacked Hodeidah after Israel's army claimed it had warned residents in three ports controlled by the Houthi to evacuate. Israel had warned residents in Ras Isa and Hodeidah to leave the area, claiming that the ports were being used for Iranian-backed Houthis. Israel has not yet commented on the attack. The Houthis had launched a missile towards Israel a few days earlier, which was intercepted. The attack occurred ahead of U.S. president Donald Trump's trip to the Middle East in this week. Trump, who launched a military campaign intensified against Houthi-held strongholds in Yemen, on March 15, agreed with a ceasefire agreement mediated by Oman, which was claimed to exclude Israel. In a campaign they claim is meant to show solidarity with Palestinians living in Gaza, the Houthis launched missiles and drones against Israel. They also attacked vessels on global shipping lanes. Israel has conducted numerous airstrikes in retaliation against Houthi targets.
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Container shipping companies cut Asia-US services as Trump tariffs disrupt trade
Maritime consultants say that major container shipping companies have suspended at least six weekly scheduled routes between China, the United States and Canada as a result of President Donald Trump's tariffs against the top exporting nation in the world. According to customer advisories, the ships along these routes can deliver 25,682 forty-foot containers per week, filled with toys, tennis shoe, car parts, and other items used by U.S. manufacturers to make goods. That's more than 1.3 millions 40-foot container a year. As hulking container ships move to minimize the fallout of Trump's unpredictable trade policies, they are cutting service and canceling individual voyages. Ocean trade is responsible for 80% percent of world commerce. It's a good indicator of the global economy. Simon Sundboell of Danish maritime data provider eeSea said, "This isn't a precursor; it's proof of a decline in economic activity." Sundboell stated that the route suspensions included scheduled weekly services operated MSC, Zim, and Ocean Alliance, which includes Cosco, Evergreen CMA-CGM, and Orient Overseas Container Line. He said that four of the cuts will affect ports on the West Coast, while one will impact the East Coast. The remaining one will hit the Gulf Coast. Container shipping companies that have ceased to provide these services either refused to comment, or didn't respond immediately. Maersk's Gemini Alliance and Hapag Lloyd's Gemini Alliance did not suspend services, even though both partners suffered significant booking reductions from China to the U.S. in April due to tariffs and swapped some ships with smaller vessels. After more than two months in a trade standoff, representatives from the U.S.A. and China will meet this weekend in Switzerland. BLANKETY BLANK Blank sailings are used by global shipping companies to protect their profits. They do this by cancelling or suspending individual voyages. This reduces overhead costs, keeps supply and demand balanced and supports competitive off-contract spot prices. Blank sailings grew significantly after the COVID outbreak disrupted global trade in 2020, and is part of the reason container ship operators are enjoying record profits. Amazon.com, Walmart, and other major U.S. retailers, who account for almost half of the global container trade, have responded to Trump's 145% tariffs against China by halting or canceling factory orders. These import duties doubled the price of goods manufactured in China. In a podcast released earlier this week, maritime consultancy Drewry reported that the number of individual voyages cancelled, or blanked out, on the Transpacific route, which connects Asia with North America, increased from 9% to 24% during the week ending May 4. Drewry's data indicates that blank sailings have reduced capacity by 20% on the Asia-West Coast North America routes in April, and by 12% in May. The consultancy reported that the cuts were slightly more severe on the North American East Coast. In April, they reduced by 22% and have been 18% so far in May. MSC, world's biggest container ship operator, cancelled 30% of its Transpacific scheduled voyages in April, more than any container carrier. Daniela Ghimp is project manager at Drewry for ocean freight rate benchmarking. Ghimp reported that the Premier Alliance consists of Ocean Network Express, Hyundai Merchant Marine, and Yang Ming Marine Transportation. The Premier Alliance has a 20 percent blank sailing rate so far this May. HMM and Yang Ming declined to comment. John McCown is a senior fellow at Center for Maritime Strategy. He said that the full impact of Trump's tariffs may not be felt until July when the overall U.S. import volume for containers could be 25% or higher than the previous year. Alan Murphy, CEO at supply chain advisor Sea-Intelligence, said: "Something has to give. I think either a lot more capacity will be cut, or spot rates are going to start to crash." (Reporting and editing by Marguerita Chôy in Los Angeles)
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Divers die in the initial operations to recover Lynch’s yacht
Local police reported that a diver died Friday, during the preliminary operations to retrieve the superyacht of British tech tycoon Mike Lynch from the waters near the coasts of northern Sicily. The 56-metre (184-foot-long) Bayesian was docked near Palermo in the small Porticello port, when, in August of last year, it was hit by a strong downburst. This caused seven deaths, including Lynch's daughter Hannah. Police said that the accident occurred on Friday while the diver was under water in Porticello. They added that the exact cause of death is still unknown. It is expected that the attempt to lift the vessel off the seabed will take place later this month. This should shed some light on the mystery of how an allegedly unsinkable ship disappeared into the ocean. Italian news agencies reported the diver as a 39-year old Dutch national working for Dutch salvage specialist company Hebo Maritiemservice. Hebo did not respond to a request for comment. (Reporting and writing by Wladimir Pantaleone, edited by Gavin Jones, Keith Weir, and Claudia Cristoferi)
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Brazil and China discuss rail from Peruvian port into Brazil territory
Simone Tebet, Minister of Planning in Brazil, said that Brazil and China are in discussions to build a railroad connecting the Chinese-built Chancay mega port in Peru with Brazilian regions. Tebet, a local journalist for Carta Capital, said in an interview that "they are very interested in supporting Brazil and crisscrossing Brazil with railways". The Chinese President Xi Jinping was present at the inauguration of deepwater port, which took place in November. Beijing's $1.3 billion Chancay Project is its largest investment in South America, and part of a push to expand trade across the continent. Tebet's team said it met with a Chinese group, representing the state-owned railroad company of China, just over a week ago to discuss the possibility of a route connecting the port to Brazil. The discussion was based on the belief that Chancay is on the shortest way to China and would reduce the distance for maritime trade by at least 10,000 km (6,210 mi). Tebet stated that the Chinese initially considered a route via the Amazon region. However, the Brazilian government rejected this idea because of the presence and the indigenous peoples in the Amazon rainforest. After a thorough analysis, "they came to understand, and now the idea is to chart a Southern Route," she said. She noted that the railway will pass through the states Acre and Tocantins before reaching Bahia, where it will connect to the West-East Integration Railway. The FIOL rail, which is still under construction, will extend approximately 1,527 km from Figueiropolis, Tocantins, to the Atlantic Port of Ilheus, Bahia. Tebet said that while the project will take some time to come into fruition, it will be transformative in terms of economic development for Brazil's poorer regions. She added, "You might be looking at five to eight years for a project of this nature to be completed." (Reporting and Editing by Margueritachoy)
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Asian spot LNG prices are rising but Chinese demand is still muted
The price of Asian spot LNG rose this week in line with European gas prices, which rose after the EU announced its plan to phase out Russian natural gas. However, prices are expected lower as Chinese demand is muted. Average LNG price for delivery to North-east Asia in June Industry sources estimate that the price per million British Thermal Units (mmBtu) is now $11,50, up from $11,00/mmBtu a week ago. Next month, the European Commission will propose legal measures that would phase out all EU imports of Russian gas and LNG and ban EU spot purchases by 2025. Gas prices in Europe rose on 6 May following the EU announcement, but remained within a narrow range the rest of the day. Prices have risen over the past week due to the competition coming from other basins, as well as Europe's need for restocking during the summer injection cycle. The EU announcement only fueled this competition, said Aly Blakeway of S&P Global Commodity Insights, the manager of Atlantic LNG. Despite the increase in Asian demand, China's demand remained muted despite strong production of gas and healthy pipeline flow. He added that the lack of competition in Europe kept European LNG prices relatively high compared to their natural gas counterparts. Martin Senior, head LNG pricing at Argus, stated that the price increase in Europe has priced some Asian buyers out. Chinese buyers have withdrawn their offers after at least two spot sales by second-tier purchasers last week. Senior also added that prices are too high for significant spot demand to come from India. Arturo Regalado is a senior LNG and Gas Market Analyst at Kpler. He said that Asian LNG prices will be lower next week because of mild weather, large inventories and seasonal soft demand. The recent TTF rally wasn't driven by demand. The policy and supply risks are driving the market right now, said Regalado. He added that gas-fired generation is not likely to grow much in the future as temperatures rise and wind output improves. S&P Global Commodity Insights estimated its daily North West Europe Gas Marker (NWM), a price benchmark, for cargoes to be delivered in June ex-ship on May 8. This represents a $0.70/mmBtu reduction from the gas price at Dutch TTF hub. Spark Commodities set the price at $11.041/mmBtu for June, while Argus put it at $11.04/mmBtu. Spark Commodities analyst Max Glen Doepel said that the U.S. Arbitrage via Panama to North-East Asia remains closed, while the arbitrage via Cape of Good Hope continues to point marginally to Asia. He added that on Friday the LNG market saw a drop in rates to $39,000/day for Atlantic, but rates for Pacific remained unchanged at $22,500/day. (Reporting and editing by Nina Chestney; Marwa Rashad)
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Finland Police continue their gas pipeline rupture investigation
The Finnish police confirmed on Friday that an investigation into the rupture of a Baltic Sea gas pipeline in 2023 is still underway and that China continues to cooperate with Finland over the suspected damage caused by a Hong Kong flagged vessel. South China Morning Post reported Thursday that the captain NewNew Polar Bear, a container ship, had been remanded to custody in Hong Kong under suspicion of the vessel severing a pipeline. The Chinese Foreign Ministry did not respond immediately to a comment request. In a press release, the National Bureau of Investigation of Finland said that "any measures taken by Chinese or Hong Kong authorities as part of the investigation will be communicated directly by the competent authorities." Baltic Sea Region is On high alert After a series of power cables, telecom links and gas pipelines outages, the NATO military alliance increased its presence by adding aircraft, frigates and naval drones. (Reporting and editing by Terje Solsvik, Anna Ringstrom and Anne Kauranen)
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Indonesia coal exports post rare decline so far in 2025: Maguire
In 2025, Indonesian exports of thermal coke have fallen to their lowest level in three years due to weak demand from China and India, the two world's largest coal consumers. According to Kpler, the commodities intelligence firm, the world's biggest exporter of thermal coal for power production shipped out 150 millions tons of thermal coal in the first four month of 2025. This was 12% or almost 20 million tons less than the amount shipped in the same months of 2024. It was the largest year-on-year drop in data since the beginning of 2017. The lower Indonesian shipments, which account for about half of all thermal coke exports, have also lowered global thermal coal shipments by 7% or 23 million tonnes from January to April, compared with the same period a year earlier. If coal exports continue to be relatively slow over the remainder of the year, Indonesian coal exports could decline for the first time since 2020 when COVID-19 slowed down the country's coal production and shipments. KEY MARKET CUTS Indonesia's coal trade was hampered by a weaker demand for coal from China and India. China, the world's biggest coal consumer, producer and importer, reduced its Indonesian purchases by 14 million tonnes, or 20 percent, from January to April compared with the same period in the previous year. Beijing's increased emphasis on increasing local coal mine production, along with ongoing efforts to reduce pollution, has been the main driver behind China's decreased appetite for imports. India, the world's second largest coal consumer, is also focusing on increasing domestic coal production. It has reduced its imports of Indonesian coking coal by 15 percent, or 6 million tons from January to April 2024. BROADER COAL USE SLIPS? Indonesian coal imports have decreased this year, not only from China and India but also from other historically large coal-importing countries. Japan and South Korea have imported 13 million tons from Indonesia between January and April. This compares to 17 millions tons in the same period of 2024. Taiwan, Thailand and Malaysia, as well as the Philippines, have also seen a decline in coal imports to Indonesia. The continued efforts to reduce coal consumption in power generation and the increase in clean energy production instead has likely helped reduce coal demand in Asia this year. Further declines in coal purchase could occur in the future. Data from Ember think tank shows that coal-fired power production in Asia fell by 3% over the first quarter 2025 compared to the same period in 2024. The weak state of China’s industrial economy, which has direct trade links with partners in the region, has likely also played a part in reducing Asia’s coal consumption. The weakening of Chinese construction and heavy industry will have knock-on effects on its supply chains that span across borders, and have also chilled energy-intensive activities in neighbouring countries. The new tariffs imposed by U.S. president Donald Trump could further reduce the demand for coal in the coming months. If Asian economies choose to implement stimulus measures to counteract the impact of U.S. tariffs, this could lead to a greater industrial energy consumption, and subsequently a rise in coal imports. OUTLIERS Some major coal consumers have not yet reduced their coal imports and consumption. Vietnam and Bangladesh have both increased their Indonesian coal imports from January to April to record levels. They are also likely to increase coal consumption and imports in the future to feed their rapidly growing energy systems. The price of natural gases, another important source of energy in many places, has also increased sharply this year. Spain, Italy and New Zealand have all seen increases in their coal imports from Indonesia, as well as a higher output of coal-fired electricity. Ember data show that even the United States increased coal-fired electric production this year by more than 20% compared to last year's levels. This is not much help for Indonesian coal exporters as the U.S. also exports coal. The recent slowdown in Indonesia's coal exports is likely to continue for at least the short term, as China and India are both expected to remain modest coal importers. This in turn could lead to a rare year-long contraction in Indonesian coal shipments and a possible peak of global coal exports. The author is a columnist at
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Enbridge exceeds Q1 profit expectations on Mainline and Gas Distribution Growth
Enbridge exceeded market expectations for its first-quarter profits on Friday. This was due to higher earnings in its Mainline system, which includes its gas distribution unit. It also said that U.S. Tariffs are not expected have a material impact on its current operations. Canada is the largest supplier of oil imported to the United States. It delivers about 4 million barrels a day, mostly to Midwest refineries that are designed to process the specific grades. Enbridge expanded its gas distribution business by acquiring three utilities, including liquid pipelines, from Dominion Energy, a U.S. company, last year. Enbridge's gas distribution unit saw its earnings increase to C$1.60billion ($1.15billion) from C$765mil last year. The company's Mainline System, which transports nearly half the crude oil in the U.S.A, also saw an increase in its first-quarter core profit adjusted to C$1,45 billion from C$1.34billion last year. Enbridge CEO Greg Ebel stated in a press release that "The Mainline" was allocated the entire quarter and delivered a record-breaking 3.2 million barrels of oil per day. This shows its crucial role in transporting oil to major demand centers. Ebel stated that the investment of up to C$2 Billion in Mainline Capital Investment was based on the need for reliable and efficient service. In April, the U.S. Army Corps of Engineers awarded National energy emergency status Enbridge's Line 5 oil pipeline tunnel proposal has been approved, allowing the federal government to expedite a critical permitting process. After President Donald Trump declared an energy crisis in the United States, he issued an executive order declaring a national emergency. According to data compiled and analyzed by LSEG, the company reported an adjusted profit of C$1.03 for the quarter ending March 31. This was higher than analysts' expectations of 96 Canadian dollars per share. ($1 = 1.3917 Canadian dollars) (Reporting by Arunima Kumar in Bengaluru; Editing by Pooja Desai)
Sources and tanker tracking say that traders rebrand Venezuelan crude oil as Brazilian for China.
According to documents, two tanker tracking companies, and four traders, traders have rebranded over $1 billion in Venezuelan crude oil shipments into China as Brazilian crude during the last year. This has helped buyers cut costs on logistics and avoid U.S. sanctions.
Independent refiners are the biggest buyers of oil from sanctioned countries in China. Malaysia offshore is a major transshipment hub, especially for Venezuelan crude and Iranian crude.
Since July 2024 however, traders also rebranded Venezuelan crude oil as coming from Brazil. Tankers can now sail directly from Venezuela into China without stopping in the waters near Malaysia, thereby reducing the journey by four days.
Washington has been imposing sanctions on Venezuelan oil exports since 2019. The goal is to reduce the revenue from oil exports that finances the government of Nicolas Maduro. He has been in power for over a decade, and has won elections that many observers claim were fraudulent.
Maduro, along with his government, has rejected the sanctions imposed by the United States as illegitimate and akin to an "economic war". They claim that they are intended to cripple Venezuela.
Oil traders are moving oil between ships at sea in order to hide the origin of Venezuelan oil before it is sent to China, the world's largest crude importer.
TankerTrackers.com, a monitoring service, has compiled and analysed maritime data, satellite images and shoreside photographs to show that shippers are altering the location signals of tankers to make them appear to be sailing from Brazilian ports, when in fact they are sailing from Venezuela. This is called spoofing.
China's customs data shows that between July 2024 to March 2025 it imported mixed bitumen worth $1.2 billion, which is about 2.7 metric tons or 67,000 barrels a day (bpd).
According to Petrobras, the state oil company, China buys Brazilian crude regularly but Brazil exports bitumen blends very rarely. Brazilian customs data shows that no bitumen blend has been exported to China since 2023.
A mixed bitumen or bitumen mixture is a residue similar to tar that can be processed into asphalt. Brazil's crude oil exports are typically classified as a medium-sweet oil, which is derived from the prolific offshore fields called pre-salt.
Magda Chambriard, CEO of Petrobras, told reporters at a Houston conference last week that the crude oil we export to China comes primarily from pre-salt and is not bitumen.
According to trading sources, Vortexa Analytics, and documents from the Venezuelan state-run PDVSA, many crude cargoes labelled as Brazilian bitumen are actually Venezuela's Merey. This flagship heavy crude is typically purchased by China's independent refining companies through Venezuela's PDVSA.
Chinese traders claim that Merey has been branded as a bitumen mix for years, since refiners don't need to meet government import quotas in order to import the tar like oil.
Three traders claimed that to make the switch, the dealers simply change the documents of the shipments from Brazilian origin to a new certificate for the oil without having the vessels go near Brazil or undergoing any ship-to vessel operations.
According to documents from PDVSA and data collected by TankerTrackers.com, this year several vessels chartered as intermediaries of Venezuelan crude by Hangzhou Energy "spoofed" the signals, placing them artificially in Brazil, while loading in Venezuela.
I was unable find a contact at Hangzhou Energy which, according to PDVSA documents, has been loading crude oil from Venezuela since 2021 as an intermediary.
According to documents and TankerTrackers.com, the Liberia flagged tanker Karina filled 1.8 million barrels Venezuelan Merey-16 crude for Hangzhou Energy under the name Katelyn in February. The tanker spoofed the signal to make it look like it was leaving Brazil while it was in Venezuela. According to TankerTrackers.com, it discharged in China's Yangpu Port early April.
China's Customs Agency did not respond immediately to a comment request. PDVSA and the Venezuelan oil ministry, as well as the Brazilian government, did not respond to requests for comments.
COST SAVING
One of the traders who is a regular seller of Venezuelan oil said that, in addition to reducing the journey and lowering the costs of ship-to-ship, presenting cargoes as Brazilian helps secure bank financing.
The person stated that "the savings on the freight side are not very large, but they help secure financing and relieve traders' financial pressure during the two-month long voyages."
Due to the sensitive nature of the topic, the traders refused to be identified.
China, as Venezuela, has said repeatedly that it is opposed to unilateral sanctions.
Venezuela's crude oil exports mainly go to China.
Venezuela exported 351,000 bpd last year of heavy fuel and oil to China. According to PDVSA documents, and data collected by shipping companies, volumes increased to 463,000 barrels per day in the first four month of 2025.
Traders have reported that the majority of China's Venezuelan oil imports are still being declared as Malaysian crude, mixed bitumen or Malaysian crude, and less than 10% is officially reported as Venezuelan.
(source: Reuters)