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China warns that CK Hutchison ports deal should not be avoided by avoiding antitrust review
China's top regulator of the market said that it is closely monitoring CK Hutchison’s plans to sell most of its port operations to a BlackRock led consortium, and that parties should not attempt to avoid a review of antitrust. As trade tensions between the United States and China intensify, the sale of the Hong Kong conglomerate's two ports on the strategically significant Panama Canal has become a highly political issue. In a recent statement, the State Administration for Market Regulation stated that "no concentration of undertakings will be implemented without prior approval. Otherwise, legal liability may be incurred." The statement was made in response to an article published by the Wall Street Journal on April 16, 2008. MSC, which is a part of BlackRock, held discussions about moving forward with the bulk deal until the disputes over the Panama ports were resolved, according to the report, citing sources familiar with the issue. Reports added that the deal is divided into two parts, each with a different ownership structure - one component for the Panama ports, and another for everything else. Donald Trump, the U.S. president, has said repeatedly that he wants the canal to be returned. He has also hailed this deal as "reclaiming" the waterway. Chinese state media have, however, criticised the planned sales as a betrayal. Trump said that American military and commercial vessels should be allowed to travel freely through the Panama Canal as well as Suez Canal. CK Hutchison, owned by Li Ka-shing, announced last month that it would be selling its 80% stake in the port business. This includes 43 ports across 23 countries. Enterprise value of the business, including debt, is $22.8 billion. Sources have confirmed that PSA International in Singapore, which holds the remaining 20%, is looking to sell its stake. The Hong Kong conglomerate owns interests in 53 ports. The deal excluded ports in Hong Kong or mainland China. Reporting by Beijing Newsroom; Editing and proofreading by Edwina G Gibbs
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Trump: US ships should have free access to the Panama and Suez Canals
Donald Trump, the U.S. president, said that American commercial and military ships should be able to travel freely through the Suez Canal and Panama Canal. Trump wrote in a Truth Social post that he had asked Marco Rubio, the Secretary of State, to "immediately take care of this situation and memorialize it." The Panama Canal is the narrowest part between North America and South America. It allows ships to travel more quickly between the Atlantic Ocean and Pacific Ocean. The Panama Canal carries 40% of the U.S. container trade each year. Panama took control of this strategically important waterway in 1999 after the U.S. finished construction in the early 20th Century. Trump has repeatedly said that he wants "to take back" the canal. He told reporters before assuming office in January that he wouldn't rule out the use of economic or military force to gain control over canal. (Reporting and editing by Daniel Wallis, Matthew Lewis, and Jasper Ward from Washington)
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An explosion in Bandar Abbas, Iran, has injured at least 47 people
State media reported that a large explosion struck Shahid Rajaee Port in southern Iranian city Bandar Abbas, causing at least 47 injuries. The explosion occurred just as Iran was about to begin a third round nuclear talks with United States in Oman. However, the cause of this explosion wasn't immediately known. The explosion of containers in the Shahid Rajaee Port wharf caused this incident. "We are currently evacuating the injured and transferring them to medical centers," said a local crisis-management official on state television. Initial estimates by Fars News Agency indicate that 47 people have been injured. The semi-official Tasnim News Agency added that port activities were suspended in order to put out the fire. They also said that due to the large number port workers, "many people are probably injured or killed by the incident." Iranian media reported that the blast caused windows to shatter within a range of several kilometers. Footage shared online showed a mushroom cloud following the explosion. In 2020, the same port was hit by a massive cyberattack which caused massive backlogs in the waterways and on the roads leading up to the facility. The Washington Post reported that Iran's arch enemy Israel was behind the incident in retaliation to an earlier Iranian cyberattack.
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Sources: TikTok owner considers data center in Brazil
Three people with knowledge of the matter said that ByteDance is considering a large investment in a Brazilian data center to harness the abundant wind power on Brazil's northeast coast. Two sources, who requested anonymity in order to discuss confidential negotiations, said that the company was in discussions to partner with renewable power producer Casa dos Ventos in developing a facility at the Pecem Port Complex in the state Ceara. Discussions are taking place as Latin America’s largest economy tries to position itself as the global hub for a fast-growing industry of data centers, by leveraging its abundant renewable energy. According to one source, initial discussions are centered on a data center of 300 megawatts (MW), but the project may eventually be expanded to 900MW in a subsequent phase. According to a second source, the total demand could be as high as 1 gigawatt. Brazil would become a key part of the Chinese firm's Western Hemisphere operations. ByteDance, a Chinese company, announced in February that it would invest $8.8 Billion in Thailand data centers over a five-year period. TikTok has declined to comment on the plans for Brazil. Pecem has been considered as a potential location for Brazilian data centres due to the nearby landing stations of submarine cables and the concentration in renewable energy generation. Casa dos Ventos has requested grid connection in Pecem for a project to build a datacenter. TotalEnergies and Casa dos Ventos have partnered on wind power in 2022. The Brazilian national grid operator ONS initially refused it because of stability concerns due to the high demands placed on such facilities. Two sources claim that the Brazilian Mines and Energy Ministry has begun evaluating the possibility of increasing grid capacity to support data center projects at Pecem and in other areas. TikTok, as well as the Ministry of Culture and Tourism, did not respond immediately to a comment request. ByteDance was not reachable. Casa dos Ventos refused to comment on ByteDance's talks, but stated in a press release that it was "committed" to turning the Pecem Port into a hub of technological innovation and energy transformation. The company is building the largest data center in the country and a green hydrogen project that will be powered with renewable energy. The company stated that it was evaluating partnerships with companies who can help implement both projects. (Reporting from Leticia Fucuchima, Sao Paulo; Marcela Ayres, Bernardo Caram and Brenda Goh at Shanghai; Fabio Teixeira at Rio de Janeiro. Editing by Marguerita Chôy.
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Vehicle Carriers Seek Relief from Wide US Port Fees
Three sources said that operators of hulking cars carriers were seeking relief from U.S. trade representative's surprise plan that would levy port charges on all foreign-built vessels in this segment, including the 20 vessels that guarantee transportation for the U.S. Military during a national emergency or war. USTR announced these fees on April 17, as part of a continuing effort to charge certain China-linked vessels calling at U.S. port fees in order to fund domestic shipbuilding and counter China's dominant position on the high seas. The fees were a shock to the industry because they did not only target ships built in China or owned by Chinese companies. According to two lawyers who asked to remain anonymous for fear of reprisals, the fees on vehicle carriers would affect the 20 U.S. flagged and U.S. crewed vehicle carriers that are admitted to the U.S. Maritime Security Program, which supports Washington's readiness. These fees would also impose massive costs on customers of vehicle carriers, who are already suffering from the 25% auto tariffs that President Donald Trump imposed. As the levies weren't mentioned in the USTR port fees proposal of February, vessel carriers did not have an opportunity to provide feedback. One of the lawyers said, "The fee for the car carrier came out of nowhere." Both parties said that the USTR had overreached, because the fees were levied on ships that are made in countries not included in the Biden administration’s fast-tracked investigation which found that China unfairly dominates global maritime, logistic and shipbuilding sectors. The World Shipping Council warned that on April 18, the new fees would affect almost all car carriers and could have unintended effects. WSC has declined to provide any further comment. Attorneys and an industry group have asked to meet with USTR in order to express their concerns. USTR has not yet commented on whether it will meet with representatives of vessel carriers. USTR will begin charging foreign-built vehicles carriers $150 per car they can carry. This fee will be implemented on October 14, 2014. The USTR plans to charge foreign-built vehicle carriers $150 for every car the ship has capacity to carry, beginning on October 14. MILITARY RISK? Vehicle carriers are essential to the U.S. Military's readiness, as they can transport large items such as aircraft, tanks and helicopters. American Roll-On Roll-Off Carrier Group of Florida, an operator of vehicle carriers under the U.S. flag, is a part of Wallenius Wilhelmsen Group. Liberty Global Logistics is a New York-based provider. Wallenius Wilhelmsen and ARC did not respond immediately to Wallenius's request for comment. Maersk Line Ltd., the U.S. division of the Danish container shipping company, which is part of MSP, has said that it is reviewing USTR's most recent information and is preparing for various scenarios. Port fees are not charged to operators of container ships, tankers, and other vessels that fall within the MSP. Alphaliner data shows that there are currently 1,466 vehicle carriers in use. Alphaliner reported that only 39 of these ships were constructed in the United States. (Reporting and editing by Peter Graff, Mark Potter, and Lisa Baertlein)
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Vehicle Carriers Seek Relief from Wide US Port Fees
Three sources said that operators of hulking cars carriers were seeking relief from U.S. trade representative's surprise plan that would levy port charges on all foreign-built vessels in this segment, including the 20 vessels that guarantee transportation for the U.S. Military during a national emergency or war. USTR announced these fees on April 17, as part of a continuing effort to charge certain China-linked vessels calling at U.S. port fees in order to fund domestic shipbuilding and counter China's dominant position on the high seas. The fees were a shock to the industry because they did not only target ships built in China or owned by Chinese companies. According to two lawyers who asked to remain anonymous for fear of reprisals, the fees on vehicle carriers would affect the 20 U.S. flagged and U.S. crewed vehicle carriers that are admitted to the U.S. Maritime Security Program that supports Washington's readiness. These fees would also impose massive costs on U.S. automobile manufacturers, already suffering from President Donald Trump's tariff policy. As the levies weren't mentioned in the USTR's original port fee proposal of February, vessel carriers did not have an opportunity to provide feedback. One of the lawyers said, "The fee for the car carrier came out of nowhere." Both parties said that the USTR had overreached, because the fees were levied on ships that are made in countries not included in the Biden administration’s fast-tracked investigation which found that China unfairly dominates global maritime, logistic and shipbuilding sectors. The World Shipping Council, whose members include Swedish car transporter Wallenius Wilhemsen on April 18, warned that the new fees would affect almost all car carriers and could have unintended effects. WSC has declined to provide any further comment. Attorneys and a group of industry representatives have asked to meet with USTR in order to express their concerns. USTR has not yet commented on whether it will meet with representatives of vessel carriers. USTR will begin charging foreign-built vehicles carriers $150 per car they can carry. This fee will be implemented on October 14th. The USTR plans to charge foreign-built vehicle carriers $150 for every car the ship has capacity to carry, beginning on October 14. MILITARY RISK? Vehicle carriers are essential to the U.S. Military's readiness, as they can transport large items such as aircraft, tanks and helicopters. American Roll-On Roll-Off Carrier Group of Florida, an operator of vehicle carriers under the U.S. flag, is a part of Wallenius Wilhelmsen Group. Liberty Global Logistics is a New York-based provider. Wallenius Wilhelmsen and ARC did not respond immediately to Wallenius's request for comment. Maersk Line Ltd., the U.S. division of the Danish container shipping company, which is part of MSP, has said that it is reviewing USTR's most recent information and is preparing for various scenarios. Alphaliner data shows that there are currently 1,466 vehicle carriers in use. Alphaliner reported that only 39 of these ships were constructed in the United States. (Reporting and editing by Peter Graff.)
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Asian spot prices remain at a 1-year low due to a tepid demand
The price of Asian spot LNG (liquefied natural gases) increased this week despite production problems in Asia and Europe. However, it was still at a near-year-low due to tepid overall demand. Average LNG price for delivery to North-east Asia in June Industry sources estimate that the price of a million British thermal unit (mmBtu) is now $11.80, up from last week's $11.50/mmBtu which was its lowest level since mid-May. Martin Senior, Argus' head of LNG pricing, stated that there are only a few buyers for immediate cargoes. Chinese and Indian importers are largely ignoring the market because prices are over $11.00/mmBtu. South Korea, however, is currently Asia's main spot buyer. He said that the South Korean demand was strong. Stocks held by Kogas (the country's state-owned company) were last heard of as being around 20 percent filled. This has led to interest from not only Kogas but also Komipo and Kospo, as well Prism. Private importers can benefit from buying cargoes at a lower price than Kogas' tariff. Siamak Adibi said that despite a recent outage of the Bintulu LNG Complex owned by Petronas, the supply situation is still good. Equinor's Hammerfest Terminal, Europe's biggest LNG export facility, was also offline for scheduled annual maintenance on Tuesday until July 19. Adibi said that the exports from Venture Global’s Plaquemines facility in the U.S. reached 1 million tonnes per month. BP also loaded the first cargo from its Greater Tortue Ahmeyim offshore Mauritania, and Senegal. He added that "we also expect the start-up of LNG Canada by mid-year, and a ramp up in supply from Corpus Christi" - referring to Cheniere Energy’s plant in the U.S. S&P Global Commodity Insights' daily North West Europe Gas Marker benchmark price for cargoes to be delivered in June was $10.49/mmBtu ex-ship on April 24. This represents a $0.70/mmBtu reduction from the gas price in June at the Dutch TTF Hub. Argus estimated the price for delivery in June at $10.58/mmBtu. Spark Commodities estimated the price for May at $10.376/mmBtu. Florence Schmit is an energy strategist with Rabobank London. She said that while Europe's demand for gas has begun to decline due to seasonal trends, there are still concerns about storage injections in the summer. She said that the winter premium on summer contracts was still trading at only 0.50 euros per Megawatt Hour, which is not enough incentive to encourage full injections. The EU's roadmap for the phase-out of Russian fuel supplies will also scupper any expectations that Russian pipeline supplies would return, and push European buyers even further to seaborne imports. According to Spark Commodities analyst Qasim Afghan, the Atlantic LNG freight rates increased to $35,750/day last Friday while Pacific LNG rates dropped to $22,250/day. He added that despite pointing towards Asia earlier in the week, the U.S. arbitrage for the front month to North-East Asia via Cape of Good Hope is now closed, and it's marginally pointing toward Europe.
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Mexico's largest port expands as it bets global trade despite Trump’s tariffs
Mexico is expanding its largest seaport as it bets on global trade and positive economic growth despite the grim outlook caused by U.S. president Donald Trump's tariff wars. According to the Mexican Navy which operates the facility, the Mexican Government aims to turn the Port of Manzanillo, on Mexico's Pacific Coast, into the busiest port in Latin America. It will be able to process 10 million 20-foot containers (6.1-meter-long) and can handle up to 10,000,000 cargoes. In 2024, it will be the largest port in Mexico and the third-largest in Latin America. It will handle nearly 4 million 20 foot containers. Claudia Sheinbaum, the Mexican president, has a major infrastructure project in mind. It is a multi-billion dollar port extension. Mexico is investing in order to combat an economic slump caused by Trump's trade conflicts. The International Monetary Fund cut its growth predictions for the majority of countries earlier this week. Mexico was one of the countries that saw their growth forecasts slashed by 0.3%. This is due to U.S. Tariffs affecting exports. Sheinbaum disagreed with the IMF's forecast and said that public investments would stop the economy from contracting. She also praised her government's Plan Mexico, an initiative to boost the domestic industry. According to a document released by the government earlier this month, the success of the plan depends in part on modernizing the country's port facilities, including Manzanillo. Julieta Juarez Ochoa is the commercialization manager at Manzanillo. She says that the U.S. Tariffs haven't slowed down trade in the port. She stated that the majority of imports to Manzanillo are from Asia, and they are used primarily in manufacturing at home. She said, "We don’t see any impact (of U.S. Tariffs) and we don’t anticipate a significant one." She said that the expansion would increase Manzanillo’s ability to handle containerized goods and hydrocarbon products. Sheinbaum said that the project is expected to be completed by 2030. Reporting by Diego Delgado in Manzanillo Mexico; Writing and Editing by Laura Gottesdiener
Slow wind power growth in H1 sets Germany as much as miss target
Germany will fall short of its annual target for onshore wind power expansion after adding net brand-new capacity of 929 megawatts (MW) in the very first half, the BWE industry association said on Thursday, though a boost in licenses was a bright spot.
In the first six months of 2024, 250 brand-new wind turbines were constructed, and net output totalled 929 MW, for an overall set up capability of 61.9 gigawatts (GW) at the end of June, said BWE.
The market wishes to reach 4 GW this year, more than in 2023, though the 8 GW target is no longer possible, it stated.
Wind power is central to Germany's renewable energy shift as Berlin intends to generate at least 80% of electrical energy output by 2030 from green sources such as solar and wind, compared to around 50% now.
The number of authorizations for wind farms is offering the market hope, however, following legal modifications to the approval procedure: It rose by around a third compared with the exact same period last year and is for that reason higher than in 2021 and 2022 together.
The positive trend must now be dynamized and sustained beyond the election period next year, said BWE president Baerbel Heidebroek.
(source: Reuters)