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Ukraine's grain exports to Romania through Constanta in January-February drop by 226,000 tons
The port authority reported on Wednesday that Ukraine had shipped 226,000 tons of grain to the Romanian Black Sea Port of Constanta during the first two months this year. This is a sharp drop from the 1.33 million tons it shipped in the same time period last year. The decline reflects Kyiv’s reliance on own ports, despite Russian attacks against infrastructure and shipping. However, Constanta remains Ukraine’s main alternative route for grain exports since Russia launched their full-scale invasion on February 20, 2022. The total grain exports via Constanta for the period January-February amounted at 2.55 million tonnes. Constanta is also the main grain importer from neighbouring countries such as Serbia, Hungary, and Moldova. The port data, which excludes volumes handled by smaller Romanian ports, and direct exports via rail and road, revealed that Ukrainian grain shipments to Constanta totaled 6.23 millions metric tons in the year 2024. Since February 2022, Romania has assisted in the export of almost 29 millions tons of Ukrainian grain via Constanta. Reporting by Luiza Illie, Editing by David Goodman
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Concerns about China's hold on Hong Kong are heightened by doubts surrounding the CK Hutchison Port deal
Analysts say that the Chinese media's scathing criticism of CK Hutchison for its planned sale of Panama ports to a U.S.-based group highlights Beijing's growing grip on Hong Kong, and its vulnerability to global tensions. According to the announcement of the sale on March 4, the definitive documentation for port operations near Panama Canal should have been signed by April 2. However, sources claim that the signing will be delayed as it is not a strict deadline. CK Hutchison didn't immediately respond to a comment request. Wednesday was supposed to be the beginning of a larger deal in which a BlackRock led group would purchase 43 ports in 23 different countries. This week, pro-Beijing journalists continued to attack the CK Hutchison deal, which would have brought the company more than $19billion. They portrayed it as a possible violation of national safety and a betrayal China. Chinese authorities have also reviewed the deal for fair competition reasons. Steve Vickers, CEO of Steve Vickers and Associates Limited, a Hong Kong-based political and corporate risks consultancy, wrote: "This issue is a bad sign for Hong Kong no matter what happens next." If CK Hutchison caves in to Chinese demands, Hong Kong’s reputation as a place where Western investors feel safe to conduct business will be seriously damaged. Hong Kong's economy has been in turmoil since the COVID outbreak and China's national security law. Many people believe that Hong Kong is now becoming more authoritarian. In a report released earlier this week, the U.S. State Department stated that there is an "overall tendency... to centralize under Beijing." The report stated that Beijing allows Hong Kong to maintain some differences with mainland China in terms of commercial and trade policies, but only if these policies are unique to Beijing's interests. Christopher Beddor is the Deputy China Research director at Gavekal. He highlighted the wider implications of the Panama port deal. Beddor stated that it is difficult to avoid the conclusion Beijing views CK Hutchison now as a Chinese company with obligations towards the Chinese national interests, and will retaliate if the company does not meet these obligations. Markets will most likely do some reading-through to other Hong Kong conglomerates. Donald Trump, the U.S. president, had hailed BlackRock's transaction as an important step in "reclaiming" Panama Canal. Washington's reaction is still unclear if the deal falls through. However, sources have confirmed that the negotiations will continue with BlackRock. Telling a good HK story The controversy could cast a shadow on Hong Kong's massive events campaign, which is meant to put the city on a global map while telling "good Hong Kong Stories", as officials describe them. The Hong Kong Rugby Sevens was held last week in a 50,000-seat stadium on the harbour, as part of a "mega event" which also included Art Basel, Coldplay performances, and a soccer tournament that featured Liverpool, Arsenal Tottenham Hotspur, and AC Milan. Alicia Garcia Herrero is the chief Asia-Pacific Economist at Natixis. She said that there are two aspects to Hong Kong - social and business. She said that "Hong Kong (socially) is still safe, and is gaining momentum because of the direction in which the world is going." Herrero says that in business people are feeling "that Hong Kong is under a new regime." (Additional reporting from Hong Kong Newsroom, Scott Murdoch in Sydney and Tommasz Janowski; editing by Tommasz Janowski).
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VNG will begin testing a 30-MW electrolyser by Q3, 2025
Eastern German gas company VNG is majority owned by utility EnBW. On Wednesday, it announced that in 2025, the company will begin testing operations at a 30-megawatt (MW) electrolysis facility as part of a green hydrogen value chain. VNG has intensified its green gas strategy and acquired alternative sources of gas to replace Russia, who in 2022 will stop exporting to the West. This will affect VNG as well as its competitors SEFE and Uniper. In a statement, Hans-Joachim Polk, technical director of the company said: "We plan to commission and test the 30 MW Electrolyser during the third quarter." The VNG plant in Bad Lauchstaedt, Saxony-Anhalt, will produce green hydrogen from wind power. TotalEnergies is the anchor customer. Hydrogen is greener when it's produced using renewable electricity by electrolysing water rather than by removing it from natural gases and releasing CO2. It leaves only oxygen and water as by-products after burning. Polk stated that "the plant will then feed 2,700 tonnes green hydrogen per year into the grid for commercial use at... TotalEnergies refinery." (Reporting and editing by Kirstiknolle, $1 = 0.9268 Euros)
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Heathrow boss criticized for his resilience after lawmakers investigate shutdown
Heathrow's boss was criticized for a 18-hour airport shutdown last month. An airline representative had said that he raised concerns days earlier about the hub’s resilience, and lawmakers were scrutinising the embarrassing incident. The closure of the airport on March 21 was caused by a fire at a nearby substation, raising concerns about the resilience and safety of the national infrastructure. About 300,000 passengers were left stranded by the incident and airlines lost millions of pounds. In an effort to learn from the past, members of Parliament quizzed Heathrow's chief executive, National Grid representatives, SSE, and airline representatives on Wednesday. Nigel Wicking said that he expressed his concern to the Heathrow Airline Operators' Committee, which represents 90 airlines at the Heathrow hub, on March 15, 2015. Wicking stated that he had warned Heathrow about his concerns regarding the substations. Wicking's concern was about resilience. Two days prior to the fire, he raised concerns after one of Heathrow’s runways was left without lights for a brief period of time due to theft of cable. Thomas Woldbye said that safety was Heathrow's main concern. Heathrow's CEO, Thomas Woldbye, said that safety was the main concern. Wicking stated that the airport should and could have begun flights earlier. He said: "I don't hear that there wasn't enough power to get into Heathrow." "I heard that it was taking time to get the power where it needed it to be at Heathrow." "10 hours was too long for me." Woldbye stated that the contracts between airports and power suppliers included resilience. He said that building full resilience would cost a lot of money, around 1 billion pounds.
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Maersk warns about growing uncertainty but expects US growth to continue
Maersk, one of the largest container shipping groups in the world, stated on Wednesday that it had seen a robust demand for its products from the United States this year. It continues to forecast U.S. expansion, although tariffs could cloud the outlook. Maersk published its regular global market forecast before U.S. president Donald Trump announced reciprocal tariffs against nations that have duties placed on U.S. products later on Wednesday. In its market outlook, the company stated that "U.S. economic growth is (the main) scenario but volatile geopolitics clouds economic visibility." Maersk warned that the U.S. Tariffs could affect global trade flows, despite a robust start in 2025. It said it was monitoring early indicators of a possible slowing momentum that could impact global supply chains. The company cited the declining U.S. Consumer Confidence over four consecutive month as a concern for future demand. It said that consumers' reactions to perceived risks or financial uncertainty could lead them to be cautious in their spending. This, in turn, can have further ripple effects. Maersk reported that companies have increased their inventory in preparation for tariffs. (Reporting and editing by Terje Solsvik, Stine Jacobsen)
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Kremlin restricts Caspian oil pipeline export infrastructure after Ukrainian drone attack
The Kremlin announced on Wednesday that Russian restrictions have been imposed on Black Sea oil export infrastructure via the Caspian Pipeline (CPC) as a result of Ukrainian drone attacks against the pipeline's Infrastructure. After a quick inspection by Russia's Transport Watchdog, the Black Sea Terminal that handles Kazakhstan's oil exported by U.S. majors Chevron & Exxon Mobil was ordered to close two of its moorings this week. Moscow accuses Ukraine of attacking a CPC Kropotkinskaya oil depot and pumping station in southern Russia. Transneft, the Russian pipeline monopoly, said on Wednesday it had suspended a berth for oil at the Novorossiisk port in the Black Sea due to the inspections by the watchdog. Dmitry Peskov, Kremlin spokesperson on a daily call with reporters, said: "This is because of the damage caused to CPC infrastructure by the drone strikes from Ukraine." "We cannot forget the enormous, complex and technologically sophisticated damage that was caused there. This can't, of course, have no consequences on the overall system functionality, he said. The attacks took place amid efforts to end the conflict between Russia and Ukraine, which were mediated by President Donald Trump's Administration. Kazakhstan and Chevron both confirmed that the flow of oil through the pipeline was not interrupted. Trump said that he was unhappy The rate of progress made in peace negotiations with Russia Ukraine (Reporting by Gleb Stolyarov; writing by Vladimir Soldatkin; editing and re-editing by Guy Faulconbridge) (Reporting and writing by Gleb Stlyarov, editing by Guy Faulconbridge; written by Vladimir Soldatkin)
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Executives say that Trump's plan to impose reciprocal tariffs on ocean shipping increases the risk of chaos.
The ocean shipping industry is on edge after President Donald Trump announced his new tariff plan. He has stoked a trade conflict that will stifle transport demand and force companies to scramble to manage the fallout. On Wednesday, the Trump administration will announce "reciprocal duties" against nations that impose duties on U.S. products. The move comes after the Trump administration imposed new import duties on products from Mexico and Canada, as well as steel and automobiles. Hapag-Lloyd, CMA CGM, MSC and Maersk are among the major global container shipping companies that transport the towering piles filled with colorful boxes of goods to U.S. clients like Walmart, Target, and Home Depot. They are titans of the ocean shipping industry, which handles 80% or so of all global trade. The industry is worth about $14 trillion per year. Trump's on-and off tariffs are also whipsawing companies. Blake Harden is the vice president for international trade at Retail Industry Leaders Association. "The implementation has caused confusion," he said. The companies haven't had the time, certainty and guidance that they needed to comply with these changes. During his second term, Trump invoked emergency powers in order to quickly add tariffs, which he sometimes retracted and then reinstated. Kit Johnson, Director of Import Compliance at John S. James Co. - a U.S. Customs Broker and Freight Forwarder with customers such as automakers, producers of chemicals, machines, medical devices, and textiles - said that importers do not know their duty costs from week to week. Johnson has seen a rise in the number of customers who choose to ship their autos by air, rather than shipping them by sea. This is a way for customers to avoid new tariffs. Container imports to the U.S. have also risen to record levels over the past few months, as companies rush in toys, bedding, furniture, machinery, and parts from China. The U.S. imports of containers from China, the world's No. 1 exporter have also surged to record levels in recent months as companies rushed in toys, furniture and bedding from China. Other vessel types and planes were called in to assist U.S. companies stockpile cars and other goods from Europe, the Far East and Ireland. According to data provided by freight pricing platform Xeneta, the average spot rate for a 40-foot shipping container on the important Far East-U.S. West Coast was $2,844 Tuesday. This represents a gain of nearly 16% in just one day. This rate is lower than it was one year ago when Houthi attacks were a relatively new threat and traders did not try to avoid tariffs. TARIFFS TAKE BITE Front-loading is a quick fix, but it's only temporary. Tariffs in retaliation could spark trade wars and suffocate the demand. Tariff tiffs are occurring as ocean shipping is put at greater risk by a separate Trump proposal to impose large U.S. Port Call Fees on ships that have links to China. Those who oppose this proposal claim that it will decimate the domestic energy and agriculture exporters Trump promised to help. The critics also say that it could rekindle pandemic chaos in ports, as vessel operators would be tempted to avoid paying fees by flooding some ports while starving other ports. The addition of this tax to tariffs has paralyzed the decision making process for how to sell, source and move goods. Peter Sand, Xeneta’s chief analyst, said: "You can't make important decisions about your supply chain if the rules keep changing." A Greek container shipping executive who asked to remain anonymous for fear of public comments negatively affecting business said that customers did not load cargo out of fear that they might be charged a high levy at the end a long ocean voyage. We are waiting and watching. Experts have started counting the damage caused by Trump's tariffs. According to the Institute for Supply Management's survey, the fear of levies has already slowed down the turnaround of the U.S. Manufacturing sector. This sector relies heavily on imports and exported goods and is a major driver for transportation. S&P Global Market Intelligence predicts that the volume of U.S. Ocean Container Freight Imports will drop by 0.7% in 2025. S&P stated that "While there was still strong growth in first quarter 2025, this is expected reverse in the second as tariffs bite." U.S. Customs and Border Protection, meanwhile, is scrambling around to reprogram and test the systems required to calculate and collect tariffs. In February, the Trump administration delayed its plan to collect duties from retailers such as Temu and Shein for direct sales of low value goods. This was after packages began piling up at New York’s John F. Kennedy International Airport. Johnson, a customs broker, said that the more tariffs there are, the harder it will be to keep up. Reporting by Lisa Baertlein, Victoria Waldersee, Rene Maltezou, and David Lawder, in Washington. Editing by Jamie Freed.
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Russia tightens restrictions on Black Sea oil export ports
Russia, the second largest oil exporter in the world, imposed new restrictions on a major oil export route on Wednesday. The suspension of a mooring from the Black Sea port Novorossiisk came only one day after the restriction on loadings through a Caspian pipeline. Russia produces around 9 million barrels per day or just over a tenth of the global oil production. The ports of Russia also receive oil from Kazakhstan. Transneft, the Russian oil pipeline monopoly, said that it had suspended an mooring in the Black Sea port of Novorossiisk after a quick inspection by a transportation watchdog. The Novorossiisk Commercial Sea Port is one of Russia’s biggest export outlets. Closing one mooring will not have a significant impact on its operations. "A temporary operation ban has been placed on the oil loading berth 8." Transneft reported that NCSP was ordered to eliminate any violations identified by June 30th 2025. According to industry sources, Berth 8 is the Sheskharis Terminal's low-sulphur fuel tanker terminal. These tanks have a deadweight around 7,000 tons and are primarily used for exports into Turkey and Georgia. LSEG data and other industry sources showed that this berth handled approximately 100,000 tons of diesel between January and March. On Monday, two of three moorings were closed at a terminal near the Caspian pipeline consortium, in which U.S. oil giants Chevron, Exxon Mobil, and others have stakes. Donald Trump, the U.S. president, has expressed his dissatisfaction with Russia over the pace of peace talks in Ukraine and threatened to impose secondary duties on Russian oil buyers. Mark Trevelyan (Reporting and Editing)
Ukraine increases grain exports regardless of intensified Russian attacks
Ukraine is rushing to ship as much grain as it can this summer season, making the most of military gains it has actually made in the Black Sea location to enhance exports even as Russia has assaulted its ports.
Ukraine is a significant international wheat and corn grower and in the past Russia's intrusion in 2022 the nation exported about 6 million lots of grain alone monthly through the Black Sea.
Grain sales are an essential earnings source and while global prices are weak, Ukraine's cash-strapped farmers have little option but to press ahead with exports since they require to money the next winter sowing season.
Ukraine doubled food exports in July to over 4.2 million metric loads from the very same month in 2015, according to information from Ukraine's UGA traders' union, regardless of intensified Russian attacks on Odesa, an essential Black Sea export center, and Izmail, a. major port along the Danube River taking grain into Europe.
Ukraine has actually not yet reported the destinations of its exports. in July, but last season it exported the majority of its wheat to Spain,. Egypt and Indonesia, with its corn primarily heading for Spain and. China.
The surge comes in spite of this season's drop in output triggered. by war-related disturbances, and there is no guarantee that Kyiv. can sustain the pattern into the complete 2024/25 season.
We are doing everything to make business feel comfy. even in wartime conditions, Dmytro Barinov, deputy head of. Ukraine's Seaport Authority, informed Reuters.
The exports are a mix of new season wheat plus corn. from stocks following in 2015's bumper harvest.
So far, Ukraine has exported 3.7 million tons of. farming products in July through Odesa and 569,000 heaps via. the Danube, export information showed. That compared with 291,000 lots. by means of Odesa and 2.07 million heaps through the Danube in July 2023.
There were 6 deliveries of corn from Ukraine's other 2. operational Black Sea ports of Chornomorsk and Pivdennyi in June. and July to Rotterdam, Europe's busiest port, and Spain's. Cartegna, separate LSEG shipping data revealed.
Given That July, Ukraine has also shipped cargoes to China, Egypt. and Turkey, separate information from Kpler showed.
In spite of last month's stronger sales, overall exports for the. 2024/25 season are anticipated to fall since of damaging. weather and the war's impact, the ASAP agricultural consultancy. stated.
We anticipate that grain exports from Ukraine might plunge by. 14.5 million heaps annually and touch nearly a decade low of 35. million heaps, ASAP stated.
PORTS TARGETED
Ukraine has actually managed to create a shipping passage after a. U.N.-backed Black Sea grain export initiative collapsed last. year. Russia's Black Sea Fleet has been required to move nearly. all its combat-ready warships from occupied Crimea to other. locations.
While the improved security circumstance has reduced insurance. and freight rates, making exports more competitive, Kyiv's. challenge is to guarantee its ports that are available can ship. out freights.
Ukraine has actually sustained several rocket and drone attacks in. recent weeks, some of which have actually targeted Odesa and Izmail.
Even as ships have actually so far avoided any major damage,. Ukrainian authorities state port infrastructure is being targeted.
The Russians are well aware of that and they're striking the. vulnerable points, stated Barinov with Ukraine's Seaport Authority.
They're striking with accuracy missiles, they're. deliberately ruining our ability to export, to process.
Barinov and other shipping officials stated Russia was. avoiding strikes at the global sea lanes outside of. Ukrainian port limits, keeping escalation consisted of.
Ukraine's military helps ships getting in and exiting ports,. with captains running under specific safety guidelines, the. nation's navy chief Vice-Admiral Oleksiy Neizhpapa informed. Reuters.
Ukrainian air defense forces cover these passages and. ports. All assets, from air defense groups to rocket systems. along the coast, add to this effort, Neizhpapa stated.
Nevertheless, Ukraine needs to manage a plethora of other. difficulties, consisting of energy blackouts that disrupt port. operations and exports.
Munro Anderson, head of operations at marine war threat and. insurance coverage professional Vessel Protect, part of Pen Underwriting,. said Russian strikes at targets inside Ukraine while less. frequent than earlier in the war, continued to push Kyiv.
Such attacks persist in applying pressure on the commercial. maritime environment in Ukraine and hence achieve the Russian. intent of deteriorating Ukrainian ability to completely take advantage of the. prospective output from these ports.
Additional war risk premiums for ships entering Ukrainian. ports have been quoted in current months at up to 1.2% of the. value of the ship with discount rates that could suggest a lower rate,. insurance coverage sources said. Those premiums surged to as much as 3%. in November after a missile strike damaged a ship in Pivdennyi.
This still exercises at hundreds of thousands of dollars in. extra approximated costs for a seven-day voyage and those. expenses might increase if security conditions degraded.
Market sources stated war underwriters were keeping the. situation under evaluation in the light of the current attacks.
Increased shelling of ships in passage ports might trigger. reinsurers to modify their war dangers insurance rates, stated. Maksym Dubovyi, handling partner with insurance broker Atria.
Throughout its year of operation, Ukraine's sea corridor has. enabled 2,059 ships to provide 57.7 million lots of cargoes to. 46 countries, including 39 million lots of farming. products, said Neil Roberts, head of marine and air travel at the. Lloyd's Market Association, which represents the interests of. all underwriting services in the Lloyd's of London insurance. market.
Private underwriters will decide the rate as appropriate. in the light of occasions and take their own view on the risk..
(source: Reuters)