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Greek shipping magnate: The West needs to speed up the scrapping of its shadow fleet, as dangers grow.
Western governments should accelerate the scrapping of unregulated vessels that have been sanctioned and give their operators time to dispose of them, as environmental risks are increasing daily. In recent years, the?use of so-called'shadow?fleets?or dark fleets of tankers has increased. Hundreds of tankers are transporting Iranian and Russian oil without any safety or insurance checks. Evangelos Marinakis is the founder and chairman at Greece's Capital Maritime & Trading Corp., a major ship owner with more than 285 vessels on order. He has been pushing to remove unregulated tankers in global trading. Marinakis said during the Posidonia Shipping Week in Athens that "we face environmental risks every day from dark fleet ships". He said, "We should allow dark-fleet vessels to be scrapped both in the United States of America and the European Union." Marinakis addressed the concern that proceeds from the disposal of ships would go to 'potentially sanctioned parties.' He said:?these typically amount to less profit than a single trip and scrapping would reduce the massive profits made by the shadow fleet. GMS, a leading ship recycling company based in Dubai, announced last month that it had received approval from the U.S. Government to scrap four containers ships which were subject to Iran-related sanctions. However, their seller wasn't affected by the sanctions. Marinakis stated that his group has been in contact with Washington and sent "a great deal of useful material". Marinakis declined to comment further and the U.S. Treasury didn't respond to an?ask for comment. The shipowner - who also owns the Olympiacos soccer team and Nottingham Forest soccer team - said that shadow fleet operators must be allowed to dispose of their ships in a certain time frame. Marinakis stated that if we gave them four to five months for the scrapping schedule, we would see a reduction of at least 20%-25% in "the dark fleet". He said that ship recyclers should be allowed to pay?dollars or?euros to the owners of dark fleets they are scrapping. But only for scrapping. "This is the way forward." (Reporting and additional reporting by Timothy Gardner, Editing by Tomasz Janowowski)
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Maguire: Key reasons why Trump’s efforts to save the US coal industry may fail.
The U.S. president's efforts to revive coal in the United States tap into a powerful mix of energy security, industrial policy, and electoral politics. The data shows that structural factors are driving coal's decline. Even if the government directs tens or hundreds of millions to coal producers and utilities the result will be a misallocation, increased emissions, and higher electricity costs. There are four reasons that efforts to support coal could ultimately fail. 1. ECONOMICS ARE STUBBORNLY UNFAVORABLE This could be a bad idea: subsidizing coal runs counter to the fundamentals of the market, leaving taxpayers with an uncompetitive sector while driving up electricity costs. The share of coal in the U.S. electric generation fell from 60% in 2000 to 16% by 2025. Natural gas has become more popular, cheaper and easier to transport. The market tells a different story. Since the early 2000s, no U.S. utilities have attempted to build any new coal-fired plants. During the same time period, many gas-fired power plants were built, reflecting a much stronger economics as well as operational advantages. The difference is apparent in the levelized costs of energy. Lazard data shows that the cost of power from a coal plant is approximately $115 per megawatt-hour (MWh), while a gas plant costs about $64/MWh. When utilities are focused on minimizing customer costs, they have little incentive to select coal. The economics of existing coal plants are even worse due to their age, high maintenance costs and inefficiency. Government subsidies are able to prolong the operation of coal plants, but only by extending their life. 2. CONSTRUCTION COMPLEX AND RISKY This could be a bad idea: Because coal plants are slower and harder to build, they're more likely to experience delays and overruns in cost even with government support. Construction of modern combined-cycle gas turbines (CCGT) is relatively simple and quick. In contrast, coal plants require large boilers, fuel handling systems and specialized infrastructure. Gas plants can burn fuel without any preprocessing. Coal plants must handle large volumes of solid fuels, which require transport, crushing and storage yards. They also need elaborate combustion systems. These systems also require expensive emissions-control technology and ash disposal system, which adds to capital costs and regulatory complexity. The land requirements are also typically larger. The industry has lost a lot of knowledge. Few utilities or contractors are familiar with building coal-fired plants after decades of focusing on gas. The resulting?execution risk increases the possibility of unexpected costs and delays. These factors together make coal projects more costly, slower and less predictable. This is true even when the environment is favorable. 3. LOGISTICAL BURDENS The heavy transport and handling of coal can cause local opposition and increase costs. Gas is much easier to transport than coal. Gas can be transported continuously and cheaply via pipelines, while coal is hauled either by rail, truck or barge. According to the U.S. Energy Information Administration (EIA), approximately 1.14 pounds coal is needed to produce one kilowatt hour of electricity. One gigawatt of coal can be used to generate around 9,000 metric tonnes of coal each day. This is the equivalent of 90 freight cars in a freight train. A gas plant of the same size, on the other hand, would consume approximately 170 million cubic foot of natural gas per day, a volume which can be easily pumped through existing infrastructure. In order to expand coal power, it would be necessary not only to build new plants, but also make significant investments in storage, handling, and rail systems. These extra requirements increase costs and can create bottlenecks. Local challenges are also posed by these projects. The increased rail traffic, noise and dust can cause opposition in communities. This makes it harder for projects to be approved and sustained. The coal industry's competitiveness is further undermined by these logistical and social constraints. 4. Limited Export Upside This could be a disaster: Key overseas markets may not export coal because they produce it themselves or are moving away from it. The coal revival strategy includes a boost in export capacity. This could include proposals for a "gateway" linking Wyoming production with ports on the U.S. West Coast that are aimed at supplying Asia. Asia dominates the global coal industry. China, India and Indonesia account for collectively more than 80% global coal supply. This region is also the leader in coal exports, which indicates a structural preference for supplying coal rather than importing it. ?U.S. While?U.S. India is heavily dependent on coal and investing in alternative sources of energy. If demand does not materialize, then large-scale infrastructure for export could be underutilized or stranded. Projects backed by the public could generate limited returns and lock in significant upfront costs. COAL CRUX These factors, when taken together, point out a fundamental mismatch in policy ambition and economic reality. Government intervention can slow down coal's decline on the margins but it cannot change the structural forces which have made it less attractive than alternatives. Subsidies instead risk prolonging the life of an aging infrastructure and encouraging expensive new projects that have uncertain returns. They also support export strategies which are unlikely to be sustained over time. What appears politically appealing in the short-term could prove to be economically counterproductive. These are the opinions of the columnist, an author for. You like this column? Check out Open Interest, your new essential source for global financial commentary. 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WFP: Middle East conflict is causing millions to go hungry
U.N. World Food Programme stated on Friday that the Middle East conflict has pushed?millions? of people towards hunger as rising fuel and transportation costs have pushed up food prices, while funding shortages force aid agencies cut back their assistance. The joint U.S. and Israeli strikes on Iran last February triggered a conflict that spread across the Gulf to Lebanon and disrupted key shipping routes including the Strait of Hormuz. This forced vessels to reroute, and severely constrained global energy and supply chains. WFP predicted in March that if oil prices remain around $100 per barrel until June, up to?45 millions people may face acute food security. The WFP said that this scenario is unfolding now, as benchmark crude prices have been above this level since early march. The households in Afghanistan, Somalia, and Sri Lanka have been the most severely affected. They are under increasing pressure because of higher fuel prices, food price spikes and income losses. WFP says that in Somalia, roughly a third (6.5 million) of the population will be facing severe hunger by 2026. In Afghanistan, 17.4 millions people could also be affected. The WFP said that the situation will worsen as an additional 2,5 million Somalis and 2,3 million Afghans could face food insecurity, if disruptions continue. Both countries are dependent on imported food and energy. FOOD SHORTAGES HIT VULNERABLE CHILDREN Aid agencies are facing a severe funding shortage as a result of the Middle East crisis. WFP expects to serve 1,5 million fewer people in 2026 and 9 million less if the situation continues for six months. The WFP is facing a funding gap of 89% in Somalia. This will lead to a shortage of food for Somalian children aged under five who suffer from moderate malnutrition. We are running out of food. "We are running out of food." Jean-Martin Bauer is the director of WFP’s Food Security and Nutrition Analysis Service. Supply chain problems are causing the situation to worsen, as fewer ships stop in Somalia due to disruptions in shipping in Indian Ocean. Some WFP stocks are also being held in the Salalah Port, Oman. This has caused critical delays. The WFP said that the rising jet fuel costs are also causing higher operating costs for the United Nations Humanitarian Air Service, which is the only way to reach hard-to-reach places. The WFP reported that in Afghanistan, rising fuel costs have increased aid transport costs by up to five times, while delivery times have risen from 10 to 75 days because trucks have to use alternate corridors. (Reporting and editing by Kate Mayberry, Sharon Singleton, and Olivia Le Poidevin)
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Azerbaijan confirms five of its citizens were killed in attacks against vessels in the Sea of Azov
Azerbaijan’s Foreign Ministry announced on Friday that five Azerbaijani citizens were killed, and three others injured in an attack?on two cargo vessels?in the Sea of Azov. In response to a question regarding the vessels that were hit in Taganrog Bay, it was revealed that the crews included 25 Azerbaijani nationals in total but the ships did not belong to Azerbaijan. On?Friday?, Ukraine announced that its drones?had?hit five ships at the ports of Mariupol, Berdyansk and in the coastal waters in Russian-controlled territory. Robert 'Brovdi is the commander of Ukrainian drone force. He said that in a statement that his drones had?hit a tanker and two dry cargo ships that were "stealing" Ukrainian grain and transferring fuel and military cargo. The naming of the vessels was painted over, and their radars were turned off.
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Defence ministry reports that a drone self-detonates at a port on the Black Sea in Romania.
The defence ministry reported that a marine drone of the type used during the war in Ukraine, a neighbouring country, self-detonated in Romania's Black Sea port of Constanta, near an oil terminal. No casualties were caused, according to the ministry. Raed Arafat, the deputy interior minister, said that two helicopters were scouring the area to look for drones. "We now know that there is a risk of self-detonation. We have... evacuated in case there are other drones," said Arafat. "We're not panicking, these measures are only preventative." Two people were injured by the explosion, which occurred a week after the Russian drone that crashed into the apartment building near the border with Ukraine in Galati in Romania's southeast. This was the first drone strike in the Russia-Ukraine conflict to hit a densely-populated area in a NATO country. The?defence minister has reported that Romania, which is a NATO member and European Union member and shares a border of 650 km (400 miles) with Ukraine, has experienced 28 drone incursions in its airspace since Moscow began attacking Ukrainian ports on the Danube. Also, fragments of Ukrainian drones have landed on Romanian soil. Reporting by Luiza Ili. Mark Potter (Editing by Mark Potter).
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China's Xi will visit North Korea to push for deeper ties
China announced on Friday that President Xi Jinping will visit North 'Korea for a two-day tour starting June '8. This is his first trip in almost seven years. Beijing wants to reassert ties Pyongyang as its only formal treaty ally. Beijing is trying to bring Pyongyang into its fold again after the COVID-19 virus pandemic frozen exchanges. Kim Jong Un has also deepened relations with Moscow, sending troops and arms to support Russia's invasion in Ukraine. John Delury is a senior fellow at the Asia Society. He said, "The implicit message from the Chinese side... is that we are still the main actor when it comes North Korea." "Russia is one of the audiences." The announcement made by the Chinese Communist Party's international department on Friday follows Xi’s summits with Donald Trump, the U.S. president and Vladimir Putin, the Russian president in Beijing last'month. KCNA, the state news agency, reported that Xi was visiting North Korea on Kim's invitation. An official of the Blue House, the president's presidential office, said that South Korea views the trip as a high-level bilateral meeting unaligned with Moscow. The official stated that "we do not see this as a coordinated action by the three countries. Neither are we certain how it could be related to the U.S. China summit." Seoul expects Beijing will continue to play a 'constructive role in peninsula issues', the Blue House said separately. Kim was invited to a large military parade held in Beijing, China last September. He arrived on his green armored train. After a six-year hiatus caused by the pandemic in 2009, passenger train services resumed between the two capitals in March. Air China then restarted flights. Chinese tourists are still not allowed to book, but some business travellers and students on exchange have. First Overseas Trip This Year Xi will make his first overseas trip this year when he visits Pyongyang. The 72-year old, who travels abroad less often, was last seen in South Korea at the end of October, where he met Trump. Delury said that Xi should keep a close eye on the situation in Pyongyang. He said Xi's visit to both Koreas would be a 'big?win' for the peninsula. He added that "the Chinese are fond of maintaining a certain symmetry" between the two Koreas. Trump has said that he is open to another meeting with Kim, the North Korean leader, after having met him three times during his first term. Since Xi was appointed China's leader in 2012 he has visited North Korea twice and its southern neighbor once. In 2008, he visited Pyongyang as vice president and met the then-leader Kim Jong Il. He is the father of?the current leader. Kim, who visited a factory to make nuclear material this week, called for a "significant" expansion of Pyongyang’s atomic arsenal. Experts believe that Kim's visit to the site is linked to his upcoming meeting with Xi. Kim had inspected the plans of a new intercontinental missile called "Hwasong-20" before his visit to Beijing in September. Reporting by Xiuhao chen and Liz Lee, in Beijing; Jack Kim, Kyu -seok Shim, and Brenda Goh, in Seoul. Editing by Himani sarkar, Kate Mayberry, and Clarence Fernandez.
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Take Five: Houston we have an IPO
SpaceX's public listing will be the main event, as it is likely to become among the 10 most valuable U.S.-listed companies after it goes public. Meanwhile, a rate increase from the European Central Bank seems inevitable on Thursday. OPEC+ meets in the background of the Iran War to decide on its oil production quotas. On Thursday, the World Cup begins in Mexico. Lewis Krauskopf, Gregor Stuart Hunter, Karin Strohecker, Yoruk Bahceli and Ahmad Ghaddar, all from New York, and?Yoruk?Bahceli in London, will provide you with the information that you need about this week's financial markets. IP-OH! Wall Street braces for Elon Musk's rocket-and-satellite company SpaceX to make its initial public offering -- an event that is likely to be the first in a series of mega IPOs over the next few months. SpaceX's Nasdaq launch -- which is expected to take place on June 12 -- is fast approaching, as the high-flying technology stocks have been leading a spectacular rally for major U.S. stock indexes. The company plans to raise $75 billion, a record amount. It aims for a $1.75 trillion valuation. OpenAI, a giant in the AI field, is also expected to make its debut soon after. Anthropic announced on June 1 that it had filed a confidential U.S. IPO. Investors will be focusing on the monthly U.S. Consumer Price Index as they grapple with inflation concerns triggered by higher energy costs. Oracle's quarterly earnings report will continue to keep the tech stocks and AI hot trade in the spotlight. NIP IT IN BUD The ECB will be the first of the world's largest central banks to raise rates since the Iran war. Frankfurt wants to avoid the same mistake as 2022. The 25-basis point rate increase expected on Thursday is seen as an "insurance", signaling that the ECB will not allow inflation to become entrenched, rather than the beginning of a large-scale hike cycle. The current crisis has already impacted the economy, and policymakers must tread a fine line to avoid accelerating the decline. The markets believe that the ECB will only raise rates twice or three times in this year. The 2026 FIFA World Cup begins on Thursday. Mexico, Canada and United States will co-host the world's largest sporting event. Last time, approximately 5 billion people watched the event. With more teams and venues to choose from, we can expect an even larger global binge. As fans flock to the United States, they buy beer, and purchase merchandise. The macro boost The macro boost is less spectacular. Growth tends to be short lived and spending often gets reshuffled. For the office sweepstake, Goldman Sachs' model, based on Elo scores for chessplayers, gives Spain a 26% edge, followed by France. Argentina, and Brazil. Business as usual Sources say that OPEC+ Ministers will agree on a target increase for July production this Sunday as they signal business as usual despite Iran's war. Investors are waiting for progress in the peace talks that could open up the Strait of Hormuz. Prices fell by more than 19% in May, mostly on the hope of a deal. From April to June, seven core OPEC+ member countries have increased their quotas nearly 600 000 barrels per day. Yet, actual production has fallen to 33.19 millions bpd from 42.77 in February. The July quota will be up by 188,000 bpd in line with the June quota. The International Energy Agency warned that global inventories may reach critical levels before summer peak demand. CHINA HEALTH CHECK China will have its monthly health test in the next week. Trade data for May is due to be released on Tuesday and should provide the latest update as to how Asia's largest economy coped with the Iran War's third month. Investors will be able to get a second read on Wednesday, including whether the consumer price inflation will continue on its upward trajectory that it has been on since October. The gauge for producer prices, which turned positive in March after almost four years of negative readings, will also be a focus. The data on lending for May will also be released this week. The total social financing, which is the broadest measure of credit to China's economy, showed the lowest growth in two years for April.
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New York Times Business News - June 5,
These are the top stories from the New York Times' business pages. ? These stories have not been?verified? and we cannot vouch for the accuracy of these reports. Nick Bilton stated that he had spoken to the remaining correspondents of the show, Lesley?Stahl Jon Wertheim Bill Whitaker. They were all considering whether or not they wanted to continue with the show. The nose gear of a Lufthansa operated Boeing 787-9 Dreamliner?collapsed? while the plane was parked in Frankfurt Airport, Germany. Jamie Dimon is the CEO of JPMorgan and he plans to make a pitch to investors about 'Elon Musk rocket company', while banks prepare to make hefty IPO fees. The Supreme Court has ruled that the federal Securities and Exchange Commission (SEC) can recover money from companies or individuals who gained it illegally even if they are unable to prove a loss for investors. (Compiled from Bengaluru Newsroom)
Azerbaijan confirms five of its citizens were killed in attacks against vessels in the Sea of Azov
Azerbaijan Foreign Ministry announced on Friday that five Azerbaijani citizens died and three were injured in an attack?on two cargo ships?in the Sea of?Azov.
In response to a question regarding the vessels that were hit in Taganrog Bay the ministry stated that the ships didn't belong to Azerbaijan, but the crews consisted of 25 Azerbaijani nationals.
On Friday, Ukraine said that drones had hit five ships at the ports of Mariupol, Berdyansk, and the Sea of Azov as well as in the coastal waters of Russian controlled territories.
Robert Brovdi said that the commander of the Ukrainian drone forces had painted over the names and turned off the radars on dry cargo ships, as well as a tanker, that were "stealing" Ukrainian grain, and transferring fuel and military cargo.
Russian Deputy Minister of Foreign Affairs Mikhail Galuzin has blamed Ukraine for the attacks against cargo vessels and expressed his condolences with the families of Azerbaijani crew members.
"We are fully aware of the country that uses drones, both aerial and maritime, to attack civilian vessels on the Black Sea or in the Mediterranean. Galuzin, quoted by TASS, said that it is a 'well-known' country. (Reporting and Writing by Maxim Rodionov, Editing by Andrew Osborn & Toby Chopra).
(source: Reuters)