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Sources say that China has been in contact with the Houthis of Yemen to allow ships to pass through the Red Sea.
Six sources familiar with the situation have confirmed that China held direct discussions with Yemen's Houthi Movement to allow its?tankers the freedom to navigate through the southern Red Sea, without fear of being attacked by the Iran-aligned militia. The 'Houthis' declared their blockade of the U.S. on July 20. This opened a new front in the Iran War against the U.S. According to sources, including a senior Iranian official, Beijing asked the Houthis to guarantee safe passage for their tankers. Sources who refused to be named due to the sensitive nature of the issue said that China was one of the first countries to directly contact the Houthis about transits across Bab el-Mandeb. Bab el-Mandeb is the strait between the Red Sea and Yemen at its southern end. Sources say that China cleans vessels individually with Houthis. Beijing wants to keep oil flowing out of Saudi Arabia via Yanbu terminals at the Red Sea, in order to plug the supply gap caused by Iran's closure of the Strait of Hormuz. Requests for comments from the Houthis media office, China's Transport Ministry and Iran's Foreign Ministry were not immediately responded to. According to Kpler 'analysis, LSEG and MarineTraffic data on ship tracking and Kpler 'analysis, at least four tankers have travelled through Bab el-Mandeb and?loaded crude oil from Saudi ports bound for China since the Houthis announced restrictions. Two officials briefed on the situation by Tehran said that Chinese?officials had cleared each vessel with the Houthis individually. Both sides informed Iran about their actions. In an email, the Houthis warned international shipping companies that they could be attacked by Saudi Arabian authorities if their vessels load or discharge cargo in Saudi Arabian ports. Two separate Chinese sources confirmed that some tankers attempting to enter the Red Sea via the Bab el-Mandeb changed their course due to safety concerns. TWO TANKERS - CHANGE COURSE IN ORDER TO AVOID STRAIT According to an analysis of data from MarineTraffic and Lloyd's List Intelligence, both the New Champion and New Prime supertankers sailed out of Gulf of Aden and into open water. According to Kpler, other industry data, and ship tracking, the New Prime had already been loaded with oil when it was due to arrive at Yanbu. Associated Maritime of Hong Kong did not respond immediately to a comment request. Last week, the Houthis claimed to have carried out missile and drone attacks on two Saudi oil tanksers: the Encelia & the Layla. The Encelia attack was confirmed by maritime security sources, but the Layla attack could not be immediately confirmed. It takes 16 days to travel southwards from Yanbu, through Bab el-Mandeb, towards Asia. It takes 50 days to sail around Africa and then turn north for the Suez Canal. Two sources close to Houthis said that the Houthis had good relations with China, and they have worked closely together in the past, particularly on oil shipments from Saudi Arabia to China. (Reporting and editing by Kevin Liffey, Jonathan Saul, Parisa Haifezi, Mohammed Ghobari Timour Azhari Florence Tan Aizhu, Siyi Liu, Sam Li, and Florence Tan)
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The largest US power grid has plans to address the growing electricity shortages due to data center demand.
PJM Interconnection - the largest U.S. grid operator - which serves a fifth (or?americans) - announced this week it would 'file plans with federal regulatory authorities?to reduce a growing gap between a?electricity _supply on its system and a demand primarily brought by data centres. PJM, the grid operator for 13 U.S. States in the Mid-Atlantic region and Midwest, plans to submit two proposals to the Federal Energy Regulatory Commission to manage the surge in demand and secure more electricity on the grid. One of these plans establishes a "reliability-backstop procurement" that is designed to match supplies with the data center power requirements that cannot be met by long-term contracts. The backstop procurement will begin on September 30, and run until October 21, with the results being released in December. PJM is looking for ways to increase generation to meet the rapidly increasing electricity demand - largely due to the expansion of the data centers in this region. It anticipates that demand from new large energy consumers will increase by 70 gigawatts in 2038. A gigawatt can power approximately 750,000 homes. The backstop procurement process will cover any supply shortages that may have occurred in PJM’s recent power auctions. In its annual capacity auction, held this month in New York City, the power price was capped at $325 per Megawatt-day. Despite high prices meant to 'incentivize construction of new power stations, PJM failed to meet its reliability requirements by 6.8 gigawatts despite the high prices. This is a greater shortfall than the one that resulted from the previous auction. The'second proposal' that the PJM Board of Directors directed staff to submit with FERC, would create a database for data centers and other large energy 'users. This registry would track their location and electricity usage. PJM suggests that, for 'data centers that don't supply their own electricity, it could temporarily cut off the power to these sites if there is a high demand on a grid. This would help to prevent rolling blackouts. PJM stated that it 'doesn't have the capability to curtail this electricity, and would need the cooperation of each state government. Reporting by Laila K. Kearney, New York; Kavya B. Balaraman, Noel John and Mark Potter in Bengaluru. Editing by Mark Potter and Aurora Ellis.
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Russia claims to have hit at least two Ukrainian vessels in the Black Sea, and also the port of Mykolaiv
The Russian Defence Ministry reported that Russian forces struck at least two Ukrainian vessels on Tuesday, including a bulk carrier transporting military cargo to the Black Sea, and another vessel in the port Mykolaiv. The statement said that it had also targeted the port itself. The Defence Ministry released a statement that said: "As a result of strikes using hovering munitions or attack drones, infrastructure facilities at the Mykolaiv port transhipment complex?used for delivery and storage of military cargo as well as fuel and oil tanks intended to provide the Ukrainian Armed Forces were damaged." It said that "in addition, in a strait (11km?east of Odesa), an unmanned aerial vehicle struck a dry-cargo vessel which was delivering military cargo to?Odesa's and?Chornomorsk's ports." In recent weeks, Russia and Ukraine have increased their military activity in and around the Black Sea and the Sea of Azov. Each?side has attacked dozens of ships, including cargo and oil tankers. Could not independently verify battlefield report. Reporting by Gleb Stlyarov, Writing by Andrew Osborn; Editing by Andrew Osborn
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Japan's major earthquakes over the last 15 years
On Tuesday, a powerful earthquake hit southern Japan, causing thousands of houses to lose power, and many factories to be suspended. Many people are presumed dead inside a partially-collapsed shopping center. Japan is located on the "Ring of Fire", an arc of volcanoes, oceanic trenches, and other geological features that partially surrounds the Pacific Basin. It accounts for 20% of all earthquakes of 6 or higher magnitude in the world. Each year, up to 2,000 quakes can be felt. Here are a few of the most significant quakes to have struck Japan over the past 15 years. On March 11, 2011, a 9.0-magnitude quake and tsunami struck northeast Japan. The earthquake killed nearly 20,000 people, and the Fukushima Nuclear Power Plant melted down, causing the worst nuclear disaster in the world since Chernobyl. On April 16, 2016, an earthquake of 7.3 magnitude struck Kumamoto. This is the same place where the temblor occurred on Tuesday. More than 270 people were killed, including some who were caught in landslides or heavy rains in the aftermath. On June 18, 2018, an earthquake measuring?magnitude 6.1 in Osaka (Japan's second largest metropolis) killed four people and injured hundreds. It also halted the production lines of factories in a nearby industrial area. On September 6, 2018, an earthquake measuring 6.7 magnitude paralyzed Japan's northern Island of Hokkaido. The quake killed more than 40 people and triggered landslides, knocking out electricity to 5.3 million residents. On?February 13th, 2021, an earthquake measuring 7.3 magnitude struck off the coasts of Fukushima and eastern Japan. Dozens of people were injured, and there was widespread power outage in Greater Tokyo. On March 16, 2022 a magnitude-7.4?earthquake again jolted?off Fukushima, leaving behind three dead and more than 200 injured, and reviving the memories of the quake that devastated?the Pacific Coast region just over 10 years earlier. On January 1, 2024 a 7.6 magnitude earthquake rocked central Japan's west coast on New Year's Day. More than 300 people died. On August 8, 2024, an earthquake measuring 7.1 on the southern coast of Miyazaki triggered Japan’s first ever advisory about higher-than-usual megaquake risks. The advisory was lifted one week later. (Reporting and editing by Alex Richardson; Kantaro Kommiya)
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Boeing's Q2 losses are higher than expected as Air Force One costs increase
Boeing reported on Tuesday a higher-than-expected quarter loss, after taking a charge of $280 million on its troubled Air Force One Replacement Program. However, the company's turnaround plans have gained momentum. It took on the cost to deliver the two U.S. Presidential planes that were delayed in 2028. This contributed to a net loss of $428 million for the second quarter. According to LSEG, the core loss per share was 76 cents. This is a lower figure than the 30 cents analysts expected, but still higher than the $1.24 core loss per shares in the same time period last year. Boeing's free cash flow was $631 million, as opposed to $200 million in the second quarter 2025. According to Boeing, the cash flow boost was partly due to "higher than expected customer payments." Boeing shares gained a little more than 1.5% during premarket trading. Boeing's shares rose a little over 1.5% in premarket trading. This would be the first positive result for 2023 as it maintains its guidance of $1 to $3 billion of free cash flow. Boeing increased its capital investment in the third quarter of this year compared to the same period last year. This was due to the expansion of?capabilities in South Carolina for the production 787 and the military jet production in the St. Louis area, Missouri. The planemaker also works to deliver two 747-8 jets that will serve as Air Force One under a $3.9 Billion fixed-price agreement signed in 2018. This contract is now four years behind schedule, and is more than $1 Billion over budget. Donald Trump, the U.S. president, accepted a 747-8 jet donated by Qatar that serves as an Air Force One plane in the interim. He said this month that it would be sent to be upgraded after questions were raised about its security features.
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Airbus A350 jets fly non-stop for 24 hours from Australia to France
Airbus has completed a marathon flight lasting more than 24 hours. The A350 jet, which is being 'developed for record-beating commercial flights' touched down in France on Tuesday. The test is a crucial step in Qantas Project Sunrise. It aims to launch one of the longest commercial passenger flights and revolutionize long-haul travel, by eliminating stopovers from Australia to Europe. The A350-1000ULR, specially adapted for the Australian airline's Sydney-London nonstop route is due to debut in 2027. Airbus has been testing the aircraft for two months since June. Airbus said the aircraft, which has a specially-designed extra fuel tank, was in the air for 24 hours and 24 mins, traveling 23,075 km (14 338 miles) before landing in Toulouse, France. Flightradar24, a flight-tracking service provider, said that the flight was the second most-tracked on their channels - behind a flight in 2024 carrying Queen Elizabeth II’s coffin - with more than 3.6 millions people following its northward progress via Canada. In 2005, a Boeing 777 200LR?Worldliner flew 13,422 km (21,601.7 km) from Hong Kong, to London, in just 22 hours and 42 min. Qantas ordered '12 modified A350 1000ULR aircraft to connect Australia’s east coast with London and New York within 20 hours. The service aims to reduce the five-day journey on the "Kangaroo Route", from Australia to London, to a single flight lasting between 19 and 21 hours depending on wind direction and routing. The first aircraft, which can carry 20,000 litres?of?fuel, and seat 238 people, is due to be delivered in April 2027. Qantas plans to offer daily nonstop flights from Sydney to London starting in October 2027. (Reporting and editing by Milli Nissi Prussak; Gianluca Nostro)
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Boeing's Q2 losses are higher than expected as Air Force One costs increase
Boeing reported on Tuesday a larger than expected quarterly loss after taking a $280-million charge on its troubled Air Force One Replacement Program, but it generated positive free cash flow due to the progress of its turnaround plans. It took a 'charge' due to higher engineering cost to ensure that it delivered the two delayed U.S. Presidential plane replacements by 2028. This contributed to a net loss of $428 million for the second quarter. According to LSEG, the core loss per shares of 76 cents is worse than analysts' average expected loss of 30 cents per share, but narrower than $1.24 core loss per share in the same period of last year. Boeing reported $631 million in free cash flow despite?the losses. This compares to a negative 200 million dollars during the second quarter of 2025. According to Boeing, the cash flow boost was partly due to higher than expected customer payments. The U.S. aircraft manufacturer is keeping its guidance for free cash flow of $1 billion to 3 billion dollars in the coming year. This would be their first positive result since mid-2013, and they are increasing production of their best-selling 737 MAX jets. Boeing also increased its capital investment in the third quarter of this year compared to the same period last year. This was due to the expansion of 787 production capabilities in South Carolina, and the military jet production area in St. Louis, Missouri. The planemaker is also delivering two 747-8 aircraft to serve as Air Force One, under a $3.9 Billion?fixed-price agreement signed in 2018. This contract has now been four years behind schedule and over $1 Billion over budget. Donald Trump, the U.S. president, accepted a Qatari-donated 747-8 jet that is currently serving as Air Force One. He said in this month that it would be sent for upgrades after questions were raised about its security features. (Reporting and editing by Jamie Freed in Seattle)
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JetBlue Airways reports bigger loss in second quarter as fuel prices surge
JetBlue, the U.S. airline, reported an even bigger?loss in its second quarter on Tuesday. This was due to a'surge' in fuel prices after the war in Iran curbed oil supplies. The airline also announced a?long-term profit target of $1.00 per share by 2028. It cited benefits from its recent strategic overhaul. After the announcement of results, shares were up by about 1%. The Middle East conflict between the U.S. and Israel, as well as?Iran, has caused airlines to have difficulty in accurately forecasting earnings and jet fuel costs which make up roughly one-fourth of their operating expenses. After a June peace agreement between Washington and Tehran, jet?fuel prices fell from their spring highs. In July, the fighting between the two countries resumed. This pushed fuel prices up. As they stopped fighting at the weekend, however, oil prices fell to a new low. Energy market volatility has increased the quarterly bills of U.S. Airlines by billions, and has thrown off margin recovery plans for smaller airlines like JetBlue who have limited financial flexibility. JetBlue's adjusted loss per share was 66 cents, a larger figure than the 21 cents reported in the previous year. Fuel costs for the airline increased by nearly 81% in just three quarters, adding an additional $407 million to its total expenses. The airline paid $4.23 on average per gallon for fuel during that time period. JetBlue has said that it expects to spend $3.49 per gallon on jet fuel in the third quarter. JetBlue has also re-established its annual fuel forecast, and expects to spend $3.49 a gallon in fuel by 2026. Nandan Mandayam, Bengaluru. Devika Syamnath, editing.
Sources say that three Russian Black Sea terminals have restricted grain shipments by truck due to shipping risks.
Five industry sources have confirmed that three major Russian Black Sea grain terminals have limited grain deliveries via?truck due to increased shipping risks and the increased flow of grain following restrictions on the Sea of Azov.
This month, Russia, the largest exporter of wheat in the world, has restricted shipping on the Sea of Azov after Ukrainian drones targeted several Russian grain ships along the route. The route accounts for about a quarter of Russia's grain exports.
The authorities redirected grain that was previously shipped by rail and truck through the Sea of Azov from the fertile south to terminals at the Black Sea. Attacks on ports in the Black Sea have also increased.
One source said, "Risks have increased and people are less willing to take reckless, bold risks."
TERMINALS SHIP MORE THEN 20 MILLION TONES OF GRAIN
Sources said that the three terminals in Novorossiysk -- NZT, KSK and ZTKT -- had limited deliveries by road. They can ship a total of more than 20 million tons of grains annually. The total annual Russian seaborne grains exports is around 50 million tonnes.
One source said that the two terminals at Novorossiysk are able to accept grain by rail. However, these deliveries can only come from the southern Russian regions.
ZTKT only accepts grain by truck. About a third is transported by truck. The terminals are a major supplier of grain to Russia, including Egypt and Turkey.
The terminal owners, Delo Group and Demetra, have not responded to requests for comment.
Sources said that the port of Kavkaz was shut almost immediately following restrictions imposed by the?Sea of Azov?on 10 July.
A week ago, Russia banned vessel movements into and out of Novorossiysk port at night due to drone attacks. Another source confirmed that the ban is still in place.
BALTIC PORTS ARE SEEN AS SAFEST ALTERNATIVE?
Sources say that Russia is looking to diversify its exports. The Baltic region will be the priority in the future, as it's the most safe alternative route.
Sources said that the Caspian Sea route was also an option. However, it's mainly used to ship goods to Iran. The risks are increasing due the the Middle East war and the recent attack by the Ukrainians on an Iranian vessel.
Sources claim that shipments via the Caspian haven't increased since mid-July. (Reporting and Editing by Jan Harvey).
(source: Reuters)