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Owner of cargo vessel that hit US tanker creates UK fund for litigation
The owner of the cargo ship which struck a U.S.-contracted military tanker near England's northeastern coast last month has announced that it will set up a fund to cover potential lawsuits arising from the collision. MS Solong Schiffahrtsgesellschaft M & Co KG, a subsidiary of Ernst Russ which owns the Portuguese-flagged container ship Solong, was sued at London's High Court on Monday by the operators of the Stena Immaculate, which the Solong hit on March 10, according to court records. Last week, the Ernst Russ subsidiary filed a separate action at the Admiralty Court specialist court seeking "limitation in liability". The case was brought against Dutch logistics company Samskip. They had previously claimed that the Solong carried Samskip containers. Also, "all others claiming or entitled to claim damage or loss" in relation to the collision. In a press release, a spokesperson for Ernst Russ stated that the company was setting up a “limitation fund” which would be available to "parties with verified claims against Solong’s owner". The incident took place in UK territorial waters and there are many interested parties, including public authorities in the UK. Therefore, setting up a fund is the best way to proceed. Owners of the Solong want to ensure that a fund will be available for any claims. It is a standard procedure for large maritime accidents, and the fund offers security to potential claimants. The Solong crashed into the Stena Immaculate tanker, a Crowley-operated tanker that was transporting jet fuel. Crowley refused to comment. Unknown, but presumed dead, is a member of the crew of the Solong. Vladimir Motin has been charged with manslaughter through gross negligence. (Reporting and editing by Mark Porter, Jan Harvey and Sam Tobin)
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The UK has filed a lawsuit against the operator of a US jet fuel tanker for collision
The manager of an American military-contracted oil tanker, which was hit by a cargo vessel off England's Northeast coast last month, filed a suit at London's High Court over the collision on Monday. Stena Bulk Marine Services (USA) LLC and Crowley-Stena Marine Solutions LLC filed a lawsuit against MS Solong Schiffahrtsgesellschaft M & Co KG, a subsidiary of Portuguese-flagged container ship Solong owner Ernst Russ , according to court records. On March 10, the Solong crashed into Stena Immaculate. This tanker was anchored and operated by Crowley. It was carrying jet fuel. The collision was reported to the Admiralty Court, a specialist court. Crowley and Ernst Russ didn't immediately respond to our request for comment. MS Solong Schiffahrtsgesellschaft M & Co KG brought a separate case at the Admiralty Court last week, seeking a "limitation of liability," according to court records. The case was brought against Dutch logistics company Samskip which, according to reports, owned the cargo aboard the Solong and "all others claiming or having the right to claim loss or damages" due the collision. Unknown, but presumed dead, is a member of the crew of the Solong. Vladimir Motin has been charged for manslaughter through gross negligence.
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Brookfield nears $9 billion-plus deal for Colonial Pipeline, sources say
People familiar with the situation said that Brookfield Asset Management was putting the finishing touches on the deal to purchase Colonial Pipeline, which is the largest fuel transport system in the United States, for over $9 billion, including debt. Sources, who requested anonymity because the process was confidential, said that the New York-based asset management firm emerged as the winning bidder in the auction, which five owners of pipelines had been running for several months. Sources said that a deal between Brookfield, and the owners, could be announced in the next few weeks, if there are no last-minute problems. In June, was the first to report that owners including Canadian pension fund Caisse de depot et placement du Quebec(CDPQ), Shell and investment firm KKR had begun exploring a possible sale of Colonial Pipeline. Brookfield, CDPQ KKR IFM Shell and Shell all declined to comment. Colonial Pipeline's spokesperson directed all questions to the company's owners. Koch Industries didn't immediately respond to our request for comment. Colonial's pipeline system extends over 5,500 miles, from Houston in Texas up to New York Harbor. According to its website, it moves over 100 million gallons per day, including gasoline and jet fuel. CDPQ purchased its Colonial stake for $850 millions in 2012 from ConocoPhillips. IFM Investors acquired its respective 15.8% and 23,4% stakes in Colonial in 2007. Shell consolidated its 16.13% holding into a single position in 2019. A Koch Industries subsidiary has held the current 28.1% since 2003. Bloomberg reported in March that Brookfield is leading the race for Colonial Pipeline to be acquired at a price of more than $10 billion. (Reporting and editing by David French, New York)
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Sources say that Gunvor and Vitol, two commodity traders, queue up to buy Russian aluminum from the LME storage.
Three sources with knowledge of the situation said that major commodity traders Gunvor, Vitol and London Metal Exchange approved warehouses at the South Korean port Gwangyang are awaiting the withdrawal of large quantities of Russian produced aluminium. Gunvor and Vitol focus primarily on energy. However, oil and gas trading companies have also made significant moves in metals markets as they explore the opportunities presented by the global transition to clean energy. Gunvor and Vitol are not sure why they want to store the aluminum in Gwangyang LME warehouses, as the majority of the metal in the LME is Russian. This was deposited in 2022 after Russia invaded Ukraine. Vitol Gunvor has declined to comment. LME data show that metals destined to leave ISTIM's Gwangyang warehouses, a major operator in the port of LME depositories, weighed 97.750 metric tonnes at the end of February, valued at more than $250,000,000. The data revealed that the average waiting time for delivery was more than 11 months, or 81 calendars days. Queues form only when large numbers of metal warrants (title documents conferring ownership) are cancelled within a short time. Sources claim that Vitol has already received some aluminum from the LME warehouses at Gwangyang. Gunvor hasn't yet taken any according to other sources. LME data shows that in late December, 84,000 tonnes of aluminum stored in LME Gwangyang warehouses was cancelled. In January, only a small amount of aluminum was removed, but in February, 33.200 tons were removed, and 26,800 tonnes have been removed from LME's warehouses in Gwangyang So far, March has been a great month. The LME's cancelled warrants for Gwangyang, which totalled 123,325 tonnes, on 28 March suggest that another 37,125 metric tons of aluminum is expected to leave its system. In February, Russian President Vladimir Putin offered to supply aluminium for the U.S. market as part of a future deal. Putin stated that Russian companies can supply up to 2 million metric tonnes of metal annually for the construction, transport and packaging industries. According to industry sources, the two main destinations of Russian-origin aluminum are China and Turkey. Both countries accept metal produced in Russia. In April of last year, the U.S. Treasury Department (Treasury Department) and the British Government banned the 148 year old LME and Chicago Mercantile Exchanges (CME) to hold Russian aluminium and copper produced after April 13. Rusal is the only company that produces aluminium in Russia. Last year, it supplied more than four million tonnes of aluminum or about 5% of global total. The LME aluminium prices held steady for a couple of weeks after Donald Trump was elected U.S. President, but they have fallen 7% to $2,540 per metric ton since March 12, on concerns about U.S. Tariffs and a trade war. (Reporting and editing by Veronica Brown, Jan Harvey, and Pratima Dasai)
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Uganda pays $118 million to Umeme for investments not recovered
Ugandan private electricity utility Umeme Limited announced on Monday that it received $118,000,000 in compensation for unrecovered investment from the government, following the expiration its monopoly distribution rights in the country. Umeme signed an agreement for a concession of 20 years in 2005. Umeme requested a renewal of the concession agreement in 2005, but the government refused. According to the agreement with Umeme, the government must compensate the company for capital investments made in the network of power distribution that it has not recovered within the concession period. Umeme stated in a press release that the payment made on Monday was what auditors from the government determined to be owed by Umeme. Umeme claims that it has invested $234 million total in unrecovered investments. It stated that its board was "optimistic" about the dispute being resolved in the 30-day period of good faith negotiations or, in any case, by an arbitral court in London. Unable to reach a spokesperson from the Ugandan energy ministry for a comment, The concession granted by Umeme ended on Monday. The state-owned Uganda Electricity Distribution Company Limited will be given the monopoly.
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Data shows that Russian gas exports to Europe fell 19% month-over-month in March.
Calculations showed that the average daily supply of natural gas to Europe through the TurkStream pipeline, owned by Russian energy giant Gazprom, fell 19.4% from a year earlier in March. The only remaining transit route for Russian gas into Europe is through Turkey after Ukraine decided not to renew a transit agreement with Moscow that expired in January. Based on data provided by the European Gas Transmission Group Entsog, calculations showed that Russian gas exported via the TurkStream pipe fell to 45 million cubic meters (mcms) per day from 55.8 millions cubic metres per days in February. This was also lower than the 46.4 mcm of March 2024. Calculations show that the total Russian gas supplied to Europe through TurkStream was around 4.5 billion cubic meters (bcm) during the first three month of this year. This compares to 7.7bcm in the same period last year. The company did not reply to a comment request. It hasn't published its monthly statistics since 2023. Gazprom's data and calculations indicate that Russia shipped 63.8 billion cubic meters of gas by different routes to Europe in 2022. This fell by 55.6% in 2024 to 28,3 bcm, but increased in 2024 to about 32 bcm. Gas flows into Europe peaked between 2018 and 2019. The annual flow was around 175 to 180 bcm. (Reporting and editing by Andrew Osborn.)
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Exports are at risk, grain traders say. They ask Ukraine to stop changing the price mechanism.
The Ukrainian grain traders' union UGA and the UAC agrarian producer union demanded on Monday that the government suspend the additions to the method for determining the minimum export price, warning that these changes could stop exports. In December, Ukraine implemented a new system of exporting key agricultural goods, including grain, which means that consignments cannot be shipped at prices lower than those set by Ukraine's agriculture ministry. In March, the government changed the rules to say that the export price of a certain good could not be lower than the price minimum for the same type of product under the exact same delivery conditions the month before. UGA stated in a press release that "Export Prices naturally fluctuate based on global trends and seasonality. Demand, Logistics, and Competition." The report noted that "An artificial prohibition on price reductions ignores the market reality and threatens Ukraine’s ability to enter into export contracts." The union asked that the government suspend the amendments, and openly consult with the business community. The UGA also added that they had stressed the importance of unifying and clarifying terminology. This included the definitions of "minimum prices", "reference prices" and "supply base". Ukraine is one of the largest grain and oilseed exporters and growers. The ministry of agriculture reported that the country has exported 32,4 million metric tonnes of grain in the July-June 2024/25 season. (Reporting and editing by Andrew Heavens; Andrew Polityuk)
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Sonatrach reduces prices by 2-7%, Saudi Aramco maintains April LPG OSPs
Saudi Aramco's official selling prices for LPG (liquefied petroleum gases) in April are unchanged from those of March. Sonatrach, however, has cut its OSPs between 2-7% because of a weaker Mediterranean demand, according to traders on Monday. Aramco’s April OSP was $615 per metric tonne. Butane costs $605 per ton , traders said. LPG comes in two types: propane and butane. They have different boiling points. LPG is primarily used as a fuel for heating and cars, as well as as a feedstock to make other petrochemicals. Sonatrach has cut its April OSP (Off-Season Price) for propane from $550 to $10 per ton Butane is $40-$545 per ton , traders said. Aramco’s OSPs serve as a guide for contracts to provide LPG from the Middle East into the Asia-Pacific Region. Sonatrach OSPs serve as benchmarks in the Mediterranean and Black Sea regions, including Turkey. (Reporting and Editing by Louise Heavens).
Shipping firm executive says port strike on US East Coast will cause supply chain problems from the start.
The French container carrier CMA CGM's North America CEO warned on Wednesday that a strike by dockworkers on Oct. 1, at ports along the U.S. East Coast, Gulf of Mexico and the Caribbean Sea would disrupt the flow of cargo into the country. The International Longshoremen's Association represents 45,000 dockworkers at 36 ports, including New York/New Jersey and Savannah, Georgia. The union has promised to stop working if a new contract is not in place by the expiration of its current six-year labor agreement on September 30th at midnight.
George Goldman said, "The moment you shut the door, everything starts to back up," on a webcast by the Port of Los Angeles.
He said that "one day is not enough" to close a port.
CMA CGM belongs to the United States Maritime Alliance, an employer group that negotiates with the ILA. Ports that could be affected are responsible for about half of U.S. imported goods. Retailers, manufacturers, and other ocean carriers are worried about cargo being stuck in idled facilities. They have moved some cargo to West Coast ports to avoid this. Sea-Intelligence analysts, a Copenhagen-based firm that provides shipping advice, estimate that it will take between four and six days to clear a strike-related backlog.
Sea-Intelligence stated that a two-week strike may mean ports will not be able to return to normal operation until 2025.
Experts in transportation said that goods from Europe, India, and other countries that depend on direct routes over the Atlantic Ocean will be affected most.
Imports into the busiest U.S. West Coast port are also surging. This is because CMA CGM and Maersk, as well as other large container carriers have also been stocking up on Halloween costumes and holiday apparel in anticipation of any possible labor action. Manufacturers have also been stocking up on solar panel and other goods that could be subject to tariff increases.
In August, the Port of Long Beach recorded its busiest month for 113 years, with a volume jump of nearly 34% compared to the previous year, and boosted by a 40% increase in imports.
Los Angeles, the neighboring port, reported a volume increase of 16% in August. This was largely due to an 18% rise in imports.
Gene Seroka is the executive director of the Port of Los Angeles. He said that it was difficult to quantify the increase in cargo from other ports. Los Angeles, however, can still handle around 1.2 million 20 foot equivalent units per monthly, as opposed to the 960 597 TEUs processed in August.
Seroka replied, "We can handle the cargo."
(source: Reuters)