Transport Infrastructure

The U.S. Coast Guard announced on Wednesday that it was responding to a Tuesday oil spill near Galveston in Texas. The Coast Guard released a statement that said, "Coast Guard Houston-Galveston Watchstanders received an approximately 9:50 pm call reporting a discharge of oil by a ship near Pier 32 in the Port of Galveston after an collision with the pier." It added that the source of the spill had been identified and that the Galveston Ship Channel was closed from Gulf Copper Bridge to Pelican Islands Bridge in order to minimize the impact. The Coast Guard stated that the Texas...

Sean Duffy, the U.S. Transportation secretary, said on Friday that he expected more flights to get delayed. Air traffic controllers will miss their first pay as a government shutdown enters its second week. The government shutdown will force 13,000 air traffic control officers and 50,000 Transportation Security Administration agents to work without pay. The first full pay for controllers is not due until Tuesday. Duffy told Fox News' America Reports that "you'll see more disruption as we approach Tuesday" and "after." Duffy told a press conference in Philadelphia Airport that Federal Aviation Administration’s air traffic control academy would run out...

According to a document released by the government on Friday, the U.S. plans to expand its use of facial recognition to track noncitizens who enter and leave the country to combat visa fraud and overstaying. New regulations will expand on a pilot program that allowed border officials to take photos of non-citizens at airports or other points of departure. The regulation is set to come into effect on December 26 and could require that other biometrics such as DNA or fingerprints be submitted. The law also allows border officials to use facial recognition on children under 14 years of age...

Two industry sources said on Friday that the fourth largest oil refinery in Russia, located in Ryazan, south-east of Moscow, had halted its primary crude distillation unit following an attack by a Ukrainian drone on Wednesday. Ukraine has intensified its attacks on Russia’s energy infrastructure, as the peace talks that were mediated by U.S. president Donald Trump failed to progress. Local authorities in Russia have reported that such attacks are the cause of fuel shortages in several regions. The Ukrainian General Staff said that Kyiv forces struck the Ryazan Oil Refinery on Thursday. Industry sources in Russia said that the...

According to an Air Canada memo sent to pilots, a shortage of air traffic control officers in Canada can sometimes force airport towers to close at Kelowna airport and Winnipeg airport when the controller on duty is on a break. The memo dated October 14 stated that Air Canada had advised its pilots not to fly to the two airports located in British Columbia and Manitoba if staffing shortages were severe enough to force the closure of their air traffic towers. The number of times the airports were closed was not clear and their representatives didn't immediately respond to comments....

Sean Duffy, U.S. Transportation secretary, warned late Thursday that his department may soon order a Pennsylvania transit agency not to use a fleet railcars because of fire risks. He also raised a number of safety and financial concerns. On October 1, the Federal Railroad Administration issued an emergency order that required the Southeastern Pennsylvania Transportation Authority (SEPTA) to fix fire risks from its Silverliner IV Railcars within 30 days after a safety recommendation made by the National Transportation Safety Board in response to a series five fires. Duffy wrote to Pennsylvania Governor Josh Shapiro that "SEPTA does not have the...

The Federal Aviation Administration announced late Thursday that staffing problems at air traffic control are causing delays in airports such as New York, Washington DC, Newark, and Houston. This comes as the U.S. Government shutdown enters its 23rd consecutive day. The FAA reported staffing problems at 10 locations, and announced ground stops in Houston Bush and Newark Airports. The average delay for flights at Ronald Reagan Washington National Airport was 31 minutes, while delays at New York LaGuardia airport were 62 minutes. The government shutdown will require 13,000 air traffic control officers and 50,000 Transportation Security Administration agents to work...

In its first earnings report following the announcement of the merger between Union Pacific and Norfolk Southern, the U.S. railroad company beat Wall Street's expectations for the third quarter profit. Mark George, CEO of Osiris Group, said in an earnings call that while the impact was not significant in the third-quarter, the reaction from competitors to the merger announcement had begun to affect revenue. Surface Transportation Board approval is required for the deal that drew positive feedback from U.S. president Donald Trump. Norfolk reported lower quarterly volumes for its coal and intermodal segments. Trump's tariffs are causing a decline in...

In its first earnings report following the announcement of an $85 billion agreement to create the nation's only coast-to-coast rail freight operator, Norfolk Southern reported a higher third-quarter profit. Surface Transportation Board approval is required for the deal that drew positive feedback from U.S. president Donald Trump. Union Pacific's strong coal volume helped it to surpass Wall Street profit estimates earlier on Thursday. Last week, CSX, a peer company, beat Wall Street's quarterly estimates due to improved intermodal volumes, higher pricing and increased merchandise prices, which helped offset lower coking prices. Union Pacific has said that it will file its...

Mexico's president Claudia Sheinbaum stated on Thursday that U.S. citizens are involved in the smuggling of fuel into the country. This follows an investigation into the illegal trade which revealed how the narcos had penetrated the North American Energy Sector. Sheinbaum responded to a question regarding the report by saying, "Yes, U.S. businesses are involved in the cases being investigated." Sheinbaum's regular morning press conference was in response. "One cannot understand how fuel from the U.S. enters Mexico illegally," Sheinbaum said during her morning press conference. The investigation published on Wednesday revealed that a Houston-based company, Ikon Midstream delivered diesel...

Transportation Secretary Sean Duffy, along with Republican leaders in Congress, warned on Thursday that flight delays could increase as the government shutdown enters its third day and controllers are not paid for their first paycheck. The government shutdown will force 13,000 air traffic control officers and 50,000 Transportation Security Administration agents to work without pay. The first full pay for controllers is not due until Tuesday. I can't promise that your flight will arrive on time. I can't promise that your flight won't be cancelled. Duffy told a Capitol Hill Press Conference that it would depend on the air traffic...

Union Pacific beat Wall Street expectations for the third quarter profit on Thursday, thanks to strong volumes of food grains and coal as well as improved pricing. After U.S. president Donald Trump signed executive order aimed at boosting coal production, there is optimism about demand for coal transportation, which benefits railroad operators like Union Pacific. Union Pacific reported that the results included merger costs of 41 million dollars, or $0.07 per diluted share. The company's shares were marginally lower in premarket trading. Union Pacific announced in July that it would acquire Norfolk Southern, a rival freight railroad company. The $85...

Two sources familiar with this matter have confirmed that Vietjet, a Vietnamese low-cost airline, stopped operating its two COMAC C909 planes made in China on October 18, after the six-month contract to lease the planes had expired. The C909s arrived in Vietnam less that a week after Chinese president Xi Jinping's visit to Hanoi, in April. This launch was seen as a sign of the deepening of strategic and economic ties. The two sources confirmed that Vietjet had decided not to renew the lease, and did not have any immediate plans to buy aircraft from China’s state-owned planemaker COMAC. Vietjet...

According to Chinese consultants and ship tracking data, the latest U.S. sanction on a major Chinese crude terminal has forced Sinopec to divert one supertanker from its route and to ask certain plants to reduce crude processing rates. LSEG data revealed that a supertanker transporting oil to the Chinese Port of Rizhao, in Shandong Province, changed its destination at the weekend after U.S. sanctions were imposed on Friday on an import terminal located there. JLC Consultancy estimated that Sinopec’s October runs could drop by 3.36% compared to earlier plans, and may be around 5.16 million barrels a day. Sinopec has...

The supertanker rates have risen this week, and they are likely to remain high due to the U.S. and China titling-for-titling increases in port fees as well as concerns over the impact of U.S. sanction on a major Chinese crude terminal. According to traders, the Chinese port fees announced Friday would increase shipping costs by more than $7 per barrel for a Very Large Crude Carrier that is linked to the United States. This would amount to around $15 million, which would discourage anyone from chartering vessels linked to the United States. The VLCC spot rates for the Middle East-China...

United States Trade Representative said that it will modify maritime fees for foreign-built vehicles carriers and LNG vessels in advance of the port fees on China linked ships scheduled to take effect next week. USTR announced in a press release that the fees for operators of foreign-built vehicles carriers will be $46 per ton starting October 14. This is lower than the $150 per net tonne fee originally proposed by USTR in April. The industry considered this fee prohibitive. However, it is still higher than the $14 per net tonne fee proposed on June 12th. USTR will also eliminate, retroactively...

Matt Chamberlain, Chief Executive of the London Metal Exchange (LME), said that the LME is looking at a market consultation for amendments to the rules of the 450 warehouses it has around the globe. The LME has been introducing queue-based rent caps (QBRC), which limit rental income for registered warehouses at 80 days following the notice given by the owner of the metal to take delivery. The rule has unintended effects. The rule has unintended consequences. Traders who have contracts to deliver metal beyond 80 days can cancel warrants and get free storage. Meanwhile, consumers cannot access metal stored in...

China's Transport Ministry announced that vessels owned or operated or built in the United States, or those flying the U.S. Flag will be charged an additional port fee per voyage as of October 14. The ministry stated on Friday that the fees were a countermeasure to upcoming U.S. Port fees. Starting on October 14, all ships that are built in China, or that are operated or owned in China will be required to pay a fee when they arrive at their first US port. Analyst estimates suggest that fees could reach $1 million for ships carrying more than 10,000 containers....

Transnet's CEO announced on Thursday that a South African court had ordered China's CRRC E-Loco, which has been in a long-running dispute with Transnet, to release locomotive parts it had refused to provide. This decision is a boost to the plans of Transnet to improve its performance. Both parties are involved in a legal battle after Transnet halted 1,064 locomotives supplied by four original equipment manufacturers, including CRRC E-Loco. Transnet claimed that contracts for 2014 worth $54.4 billion rand (3.18 billion dollars) were illegally awarded by previous company leadership. Transnet reported that in 2023 161 locomotives provided by CRRC E-Loco...

China's National Railway recorded 23,13 million trips during the first day the eight-day National Day Holiday on Wednesday. This is up almost 8% over a year ago and a record for a single day, according to state media CCTV. CCTV reported that more than 19 million trips would be made Thursday on the rail network. According to CCTV, the Yangtze River Delta Railway was expected to handle 4 million passengers. This is a 10% increase over last year. After the official end of the holiday on October 8, the Ministry of Culture and Tourism will release total travel data. On...

Three traders said that the premiums for Russia's ESPO blend crude oil loaded from Kozmino have fallen for November-loadings because independent Chinese refiners - key buyers of this grade - are facing dwindling import quotas. Traders said that cargoes due to be loaded from the Far Eastern Port of Kozmino, in November, were sold for a premium of about $1.70 per barrelle to ICE Brent, on a delivery-basis to Chinese ports. This is down from around $2 per barrelle at October levels. Independent refiners in China are subject to a strict quota-based system. State-run refiners like Sinopec PetroChina and CNOOC,...

The state-run Korea Airports Corporation announced that South Korean airport employees will begin a strike on Wednesday. In a press release, the 2,300 workers unionised at 15 of the country's airports want better pay, more rest days and safer working conditions, according to a representative from the Korean Public Service and Transport Workers' Union. The representative said that the workers would continue to strike until a deal was reached with management. This strike coincides with the Chuseok holiday, which is celebrated in South Korea at the beginning of October. According to the union, and Korea Airports Corporation which oversees operations...

South Korea started offering visa-free entrance to Chinese tourist groups Monday. It hopes that this measure will help boost its economy and improve relations with its Asian neighbor. In the pilot program, which will run until June next year, groups of at least three tourists from mainland China can stay for 15 days without a visa. This action is in anticipation of China's National Day holiday from October 1-8 as well as South Korean holidays at the same time. South Korean businesses are looking to take advantage of the increase in demand. Shilla Duty Free organised a Chinese Cruise Tour...

According to an official notice, terminal operators at a major oil-port in the east China province of Shandong are planning to implement measures to prohibit shadow fleet vessels as well as to limit visits from other old tankers. The measures will take effect on November 1. They would prohibit vessels with fake International Maritime Organization (IMO) numbers, and older ships. Traders said that the measure would be aimed at what they called the "shadow fleet" which transports oil in violation of Western sanctions. The notice was issued by four terminal operators in Huangdao Port, last week, after the United States...