Latest News
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FAA delays flights at Dallas, DC Airports due to air traffic staffing
As the government shutdown enters its 30th day, the U.S. Federal Aviation Administration has been delaying flights in Ronald Reagan Washington National Airport as well as Dallas Fort Worth International Airport because of staffing problems. Staffing problems are expected to cause delays in Orlando. The FAA reported that flight delays at Reagan were on average 91 minutes and at Dallas 21 minutes. The government shutdown has resulted in tens of thousands flights being delayed or cancelled. The FAA issued a groundstop for Reagan Airport earlier on Thursday due to staffing issues. In the northeast of the United States, bad weather also delays flights. Over 13,000 air traffic control officers and 50,000 Transportation Security Administration agents are working without pay. Sean Duffy, Transportation Secretary, said that air traffic controllers' absences were responsible for 44% of Sunday delays and 24% of Monday delays. This is compared to an average of 5% before the shutdown. Even before the shutdown, many air traffic controllers were working six-day weekends and mandatory overtime. Reporting by David Shepardson, Doina chiacu and Andrea Ricci; editing by Katharine Ricci and Andrea Jackson
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The demand for sanctions is greater than the supply of uranium
The differentials between Brent and Urals crude were unchanged on Thursday, despite a relatively quiet trading session. Western sanctions also weighed heavily on the demand for Russian grades of crude oil. Traders said that buyers of Russian oil from China, India, and Turkey had studied the new restrictions imposed by US, EU, and UK. Traders said that some of them had already looked for alternatives to oil grades on the market. According to traders and a report reviewed on Thursday, Indian Oil, the state-run refiner, is looking to buy more crude oil from Americas. Mangalore Refinery and Petrochemicals has purchased Abu Dhabi crude oil to replace Russian oil. PLATTS WINDOW On Thursday, there were no bids or offers reported for Urals BTC, CPC Blend or Azeri BTC crudes in the Platts window. * Lukoil announced on Thursday that it accepted an offer by global commodity trader Gunvor for its foreign assets. Russia's second largest oil company wants to sell these assets after Washington imposed sanctions against it last week. Reporting by
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Globe and Mail reports that Canadian National Railroad has laid off 400 managers.
The Globe and Mail reported that Canadian National Railway laid off 400 managers from its rail offices in Canada and the United States due to a drop in freight caused by the trade war. In August, Donald Trump announced that he would increase tariffs against Canada by an additional 10%. Sector tariffs of 50 percent on all steel and aluminum imports have hurt the economy in the region. The company did not disclose the number of affected employees. Could not verify immediately the number of affected people. On October 31, the railroad company that connects Canada's Eastern, Western and Gulf coasts to the U.S. Midwest, will report its third-quarter earnings. In its second-quarter forecast, CN retracted its 2024-2026 projection, citing a high level of macroeconomic volatility and uncertainty related to changing trade and tariff policies.
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Lithuania closes Vilnius Airport again due to weather balloons
The airport in Vilnius, Lithuania, temporarily closed its doors on Thursday because weather balloons were flying near it. This was the sixth incident of this kind in the month. Lithuania said that the balloons were sent by smugglers who are transporting contraband cigarettes. But it also blamed Belarus President Alexander Lukashenko for not stopping this practice. Lukashenko is a close friend of Russian President Vladimir Putin. The airport reported on Thursday that "according to preliminary information a balloon or balloons were flying in the direction (of Vilnius Airport)" when the decision was taken to restrict airspace. The airport's traffic was suspended until 2100 GMT, the statement added. Baltic Nation has already Close In response to airspace disruptions and balloons, it has announced that it will shoot down balloons. Lukashenko Tuesday The word "that" is a phrase that means, "that which". Lithuania He called a border closure a "crazy sham" and accused the West for waging a hybrid conflict against Belarus and Russia, which was ushering a new age of barbed wire division. (Reporting and writing by Andrius Sytas; editing by Terje Solsvik).
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The US Army Corps has approved Enbridge's Line 5 Reroute in Wisconsin
The U.S. Army Corps of Engineers approved the plan of Canadian company Enbridge to reroute an oil pipeline section around a Wisconsin tribe reservation. The Army Corps (a federal engineering service) issued a permit to Enbridge on Wednesday to build a 41-mile section of pipeline around Bad River Reservation to replace an existing segment that crosses tribal land. In 2019, the Bad River Band filed suit to remove the pipeline from its land. They cited concerns over treaty rights, and the potential risk of an oil spill on Indigenous people and their environment. Enbridge submitted permits to state and federal regulatory agencies in 2020 for the Wisconsin Relocation Project. Enbridge's spokeswoman described the permit as a significant project milestone. However, construction cannot start until all state permits from last year have been confirmed. Environmental groups and opponents of Line 5 have challenged these permits. They claim that Enbridge's plans don't adequately protect Wisconsin's waters. Enbridge, which said it was confident that state permits would be soon confirmed, stated on Thursday. Enbridge Line 5 is 645 miles of oil pipeline built in 1953. It carries oil through Michigan, Ontario and Wisconsin. The company plans to build a 4-mile-long tunnel in Wisconsin to house an aging section of pipeline which crosses the Straits of Mackinac on the Great Lakes. The Army Corps has yet to approve Enbridge's project, which involves the construction of a $750-million tunnel to house the Line 5 oil pipeline. The Army Corps announced earlier this year that it would make a decision on the project this fall. Reporting by Amanda Stephenson, Calgary; editing by Chizu Nomiyama
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What did Trump and Xi agree on regarding tariffs, export control, and fentanyl
U.S. president Donald Trump and Chinese president Xi Jinping took steps on Thursday to de-escalate the trade war. They swapped some U.S. duties and tighter export controls in exchange for a pause on Beijing's new restrictions regarding rare earth minerals and magnetic materials and a resumption on its purchases of American soya beans. The agreement extends the delicate trade truce for around a year between China and the United States. Here are the main elements of the Trump-Xi Agreement that was reached at Busan, South Korea. TARIFF REDUCTION ON FENTANYL-RELATED CHINESE GOODS The U.S. is reducing by half the current tariff of 20% on Chinese goods relating to supplies from China of fentanyl precursor chemicals. According to Trump administration officials, the reduction in duties to 10% from the initial duties imposed in Febrary will reduce the U.S. overall tariff rate for Chinese imports by about 57% to 47%. This total includes tariffs of approximately 25% on Chinese imports imposed during Trump's initial term as President, a 10% "reciprocal tariff" imposed in April along with previous "Most Favoured Nation" rates. The 47% tariff is less than the 50% tariffs Trump has imposed on goods from India and Brazil, after adding extra punitive tariffs for political reasons. Canada, which is the biggest buyer of U.S. goods, could face 35% tariffs if Trump follows up on his threat to levy an additional 10% on imports from Canada in response to an Ontario government advertisement that angered him. CHINA'S RARE EARTH EXPORT CONTROLS ARE NOW SUSPENDED FOR ONE YEAR China has agreed to suspend for one year its export controls on rare earth minerals, magnets and other materials that are vital in the manufacture of cars, planes, and weapons. These materials have been Beijing's greatest source of leverage during their trade war with Washington. Export licenses would have been required for products that contained even trace amounts from an expanded list and were intended to prevent their use in weapons. The Chinese move will not affect the controls put in place by the United States in April to counter Trump's "Liberation Day tariffs". This allows Beijing to continue to monitor the sector and maintain some leverage. The U.S. and China held lengthy negotiations during the summer to determine rare-earth screening and shipment procedures that would keep the Chinese metals flowing. These procedures have now been extended. TRUMP ADMINISTRATION EXPORT CONTROLS PUSED The U.S. agreed that for one year, the Commerce Department would pause a massively expanded blacklist of companies who are banned from purchasing U.S. High Technology Goods, including semiconductor manufacturing exports. This global shift is largely intended to prohibit the use of subsidiaries or other linked firms in order to circumvent the controls. The most significant impact would have been on Chinese companies as the new rules would have included companies that were more than half owned by those already listed. This would have led to the ban of U.S. imports for thousands more Chinese companies. CHINA COMMITS PURCHASES OF SOYBEAN Scott Bessent, U.S. Treasury secretary, said China had agreed to buy 12 million metric tonnes of U.S. soya beans in the current marketing season through January and to commit to buying 25 million metric ton in each of the three following years. China stopped purchasing U.S. beans in the fall, and bought none in September. It now sources all its beans from Brazil or Argentina. Beijing gained leverage in negotiations when it added economic pain for U.S. Farmers, an important constituency of Trump. Analysts said that the soybean commitments would only return China to its previous levels of U.S. purchase. The U.S. exported almost 27 million tons soybeans to China in 2024. China had promised to increase soybean purchases as part of the "Phase One", a Trump-negotiated trade agreement that stopped a trade conflict in 2020. However, the COVID-19 pandemic prevented them from meeting their targets. TRUMP ADMINISTRATION PAUSES PORT FEES. The Trump Administration agreed to pause its new port charges for Chinese-built ships. These fees can add thousands of dollars to the cost of each trip to U.S. Ports. The fees were implemented on October 14 to combat China's global leadership in shipbuilding and ocean freight, and to revive U.S. commercial shipping. They also included 100% tariffs on Chinese ship-to shore cranes. These port fees have disrupted cargo flow, causing container prices to rise as shippers try to avoid vessels with a China connection. China has set its own fees for U.S. linked ships, which includes those owned by global shippers that have 25% U.S. equity. COOPERATION AGAINST FENTANYL TRACKERS Bessent reported that China had agreed to provide the U.S. with "substantial" cooperation in order to reduce the flow of fentanyl-precursor chemicals into the U.S. Bessent said on Fox Business Network in the coming week, two working groups will "set objective measures" to reduce flows in order to measure the success of the effort in curbing deadly opioids responsible for the tens thousands of U.S. deaths from overdoses every year. The tariffs were imposed by Trump after he had questioned the Chinese government's promises to assist. They said that they would not lift them until Beijing took concrete steps. China, in a statement released by its Ministry of Commerce only said that both sides had "reached a consensus" regarding the cooperation on counter-narcotics. (Reporting and editing by Paul Simao, Andrea Shalal Doina Chiacu, David Lawder)
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United CEOs will attend White House event to push for an end to the shutdown
Sources say that the CEOs of American Airlines, United Airlines and Continental Airlines will be attending a White House roundtable this Thursday to push for an end to a 30-day government shut down after a spike in flight delays attributed to air traffic controllers' absences. United CEO Scott Kirby, American CEO Robert Isom, Vice President JDVance, Transportation Secretary Sean Duffy and Airlines for America CEO Chris Sununu will be joined by Air Line Pilots Association president Jason Ambrosi, and other participants at a roundtable to discuss the impact of the government shutdown, which has forced 13,000 controllers in the air traffic control system and 50,000 Transportation Security Administration agents to work without being paid, according the sources. United confirmed Kirby's attendance. American, Delta and Southwest declined to comment immediately. Airlines have repeatedly called for an end to this shutdown, citing safety concerns. The meeting takes place as the government shutdown worsens existing staffing shortages. More than 63,000 Air Traffic Controllers and Transportation Security Administration Officers are forced to work without pay. The shutdown has caused a surge in unscheduled absenteeism, which threatens to cause disruptions that are similar to the ones that ended a government shutdown in 2019. Duffy reported that 44% of Sunday's delays and 24% of Monday's delays were due to air traffic controller absences. This compares to an average 5% before the shutdown. After missing their first paycheck, hundreds of air traffic controllers took second jobs in order to pay bills. Airlines and other companies are also donating food at airports to TSA agents and federal workers. Even before the shutdown, many air traffic controllers were working six-day weekends and mandatory overtime to meet their staffing targets. The 2019 35-day government shutdown ended when a surge in absences from controllers and TSA agents successfully pushed Washington to reopen. (Reporting and editing by Lisa Shumaker; Reporting by David Shepardson)
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Gulf South Pipeline Co. invites commitments to Texas Gateway Project
Gulf South Pipeline Company LLC (a subsidiary of Boardwalk Pipelines LP) announced Thursday a binding season for the Texas Gateway Project. It invited firm commitments from its customers to reserve capacity on its planned new network. Boardwalk announced in a recent press release that the Texas Gateway Project will connect Gulf South's current network with new pipelines and gather natural gas at the Texas hubs of Katy and Carthage. According to the press release, gas will be delivered in Southwest Louisiana, near Gillis, to meet a growing demand. The project, it said, will provide increased liquidity, security of supply and flow assurance to LNG exporters, electricity utilities, industrials, and natural gas producers. Boardwalk Pipelines' president and CEO, Scott Hallam said that the project would provide low-cost access to LNG markets around the world while also supplying industrial and power needs in Gulf Coast Region. Gulf South secured a contract with a long term user at terms that would allow it to progress the project. It will also use the open season to gauge additional interest. It added that the project would add at least 1,450 million Dth/day (1,45 billion Cf/d) to Southwest Louisiana. The project includes a new 155 mile pipeline as well as upgrades to the existing Index 129 pipe in southeast Texas. The new line will begin at the Carthage Header, and extend all the way to Beauregard Parish in Louisiana. The release stated that it will include new compression facilities and metering equipment, adding the November 1, 2029 target date. (Reporting by Anjana Anil in Bengaluru; Editing by Jan Harvey)
Clear payment for wheat delayed at Egyptian ports
Mostakbal Misr, Egypt's grain buyer of state, said on Thursday that several shipments of wheat which had been held up for weeks in Egyptian ports because payment problems were now cleared to be unloaded after the issues were resolved.
Since early October, eight vessels carrying approximately 200,000 metric tonnes of wheat were stranded due to delays with the clearing of letters of credit.
The delay caused delays in unloading and increased costs for shipowners.
Mostakbal Misr stated that the payment issues for wheat cargoes which were delayed in Egyptian port had been quickly resolved. As of Wednesday night, the issue has been resolved. Ships are now slowly unloading.
The agency stated that the issue with payment was due to new regulations implemented by Egypt's Central Bank, which tightened the verification procedures for letters-of-credit and checked the origin of imported products.
It said that, "While Mostakbal Misr wasn't involved in the delays, we worked quickly with the central banks and suppliers to resolve the issue as soon as possible."
Egypt is one of the largest wheat importers in the world. It relies heavily upon wheat imports to complement its domestic harvest. The grain is then used to make subsidised bread that is consumed by tens and millions of Egyptians each day. (Reporting and editing by Mohamed Ezz; Sarah El Safty, Michael Hogan)
(source: Reuters)