Latest News
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Qatar Airways will operate flights to Europe from Doha as the air traffic remains shut
Qatar Airways will operate a few return flights from Doha, Qatar to Europe this Saturday. However, commercial flights are still suspended due to the U.S. and Israel war on Iran that has closed Qatari airspace. Since the conflict escalated last Thursday, these flights are the first state-owned airlines to leave Doha. They will fly to London, Paris?, Madrid?, Rome?, and Frankfurt. Commercial flights were suspended because of the closure of Qatari Airspace. There was also a lack of air traffic in much of the Gulf region. Dubai, which is the busiest international airport, has been largely closed for the seventh day running, the worst travel disruption since COVID-19. Air Canada announced that it has extended the cancellations of its Toronto-Tel Aviv flight until May 2, due to war. Qatar Civil Aviation Authority confirmed a safe operational corridor in a Saturday morning post on the social media platform X. The region's governments began?operating a repatriation flight on Wednesday in an effort to bring back tens and thousands of stranded citizens. Experts in the industry say that normal service will not be restored overnight, even if a ceasefire is declared immediately. Airlines still need to have time to reposition their aircraft, reassign the crew, rebuild schedules, and get clearance before they can resume safe flying. Airspace being severely restricted, airlines are forced to reroute their flights, carry more fuel or make extra refueling stops to protect against sudden diversions or long flight paths along safer corridors. COSTS SURGE FOR AIRLINES Airlines have begun to calculate the cost of the war as jet fuel prices are on the rise. The impact on bottom lines depends largely on how long the war continues. However, Delta Air CEO Scott Kirby stated that the "rising fuel price" will have a "meaningful effect" on its quarterly results. According to calculations, Delta and the three other major U.S. airlines could face an additional $5.8 billion in fuel costs if jet-fuel prices stay at this high level for the entire year. These carriers do not have insurance against fuel price spikes like their European counterparts. Donald Trump escalated the situation dramatically on Friday, demanding Iran's unconditional?surrender. These remarks could complicate a quick resolution to this conflict, which has disrupted global energy and commodities supplies and rattled the financial markets. Trump's remarks were made on social media only hours after Iran’s president announced unspecified countries began mediation efforts. (Reporting and editing by Parth Chandna)
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Panama Canal transit increased by 2.8% in January despite tensions
According to a report by the Panama Canal Authority, which was seen on Friday, there has been a 2.8% rise in vessel 'transits' in the first four months of the fiscal year. According to the report, most of the traffic increase was registered by tankers transporting energy products such as liquefied gas (LNG), dry bulk carriers and car carriers. This growth represents?114 more transits than the same period a previous year, to?a maximum of 4,156 vessels during the four-month span. The report states that the demand remained?solid?despite increased global trade volatility and new tariffs. The report said that "Tanker (transits)," a measure of the volume of goods transported, increased 11.2%. This was due to an increase in shipments from United States, due to a higher demand from South Korea, Mexico and Guatemala for fuels and Methanol, as a result from trade agreements and tariff reductions. Analysts predict that more vessels will be passing through Panama carrying U.S. LNG to reach?destinations? in Asia if the Strait of Hormuz?problems persist amid the U.S. - Iran conflict. This is already forcing vessel reroutes. The Panama Canal is "operating in a reliable and stable manner" despite geopolitical uncertainty, increasing steadily the number of transits daily and maintaining predictable service levels for our clients," it said. After the U.S. - Iran conflict, the authority didn't provide specific statistics but stated that it was monitoring maritime trade.
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Gol, a Brazilian airline, will launch new long-haul routes out of Rio using the A330.
Gol's Chief executive announced that the Brazilian airline will be using Rio de Janeiro's Galeao International Airport as its hub to receive the new Airbus A330 900 aircraft joining the fleet. Gol operated Boeing 737s exclusively until now. Celso Ferer, Gol's CEO, said that the new aircraft will be followed by a new route direct between Rio and New York beginning in July. He made this statement at an event in Galeao with Brazil's president Luiz inacio Lula. The firm released a statement later that said, "The merger between two 'key tourism and business centers in South and North America opens up a range of options and possibilities for customers throughout the continent." The airline will initially receive five A330-900s. These are wide-body aircraft that can fly routes up to 15 hours long. The company will gradually integrate the planes into its fleet between 2026-2027. Sources had told us earlier that Gol was going to announce 'Galeao Airport' as the hub of its new Airbus A330900. Ferrer stated that Gol will also offer direct flights from Rio to Paris, Lisbon and other European cities starting late this year. Sources said that Gol had sought slots in major European cities, such as Porto and London. However, not all of these will be destinations. (Reporting by Gabriel Araujo and Luciana Magalhaes in Sao Paulo, Rodrigo Viga Gaier in Rio de Janeiro; Editing by Deepa Babington)
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Pentagon and FAA will conduct tests on high-energy laser anti-drone system in New Mexico
The Pentagon announced on Friday that it would 'conduct tests with the Federal Aviation Administration in New Mexico this weekend of high-energy lasers used to combat threatening drones. The Pentagon stated that "this upcoming event will address FAA safety concerns, while gathering data on the material effects of lasers on aircraft surrogates. It will also validate the functionality and safety shutoff systems for automated safety, as well as inform analyses to ensure the safety of aircrews' eyes." On February 25, the U.S. Military erroneously shot down a government-owned drone using a laser-based system. The 'FAA expanded the area around Fort Hancock in Texas where flights were banned after the 'FAA announced on February 18 that it would halt all flights at the airport near El Paso for 10 days, only to reverse its decision and lift the order after eight hours. Bradbury, the U.S. deputy transportation secretary, said in an interview on Friday that the FAA must test the system to "get comfortable" with its limitations, and how it could be adjusted or controlled. Bradbury stated that the FAA was determined to create a framework so they are confident in the safety of the airspace with the system being used and won't need to sign-off on individual uses. Bradbury stated that they were working fast to complete the safety assessment. Bradbury said that both parties had a critical job to complete. After a classified briefing, lawmakers said that the incidents demonstrated a need for'significantly improved coordination. Ted Cruz, Chair of the Senate Commerce Committee, said: "It was clear that there were challenges when it came to operationalizing counter-drone technologies." (Reporting and editing by David Shepardson)
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US agency to insure maritime losses up to $20 billion in Gulf
U.S. International Development Finance Corporation announced on Friday that the U.S. would provide reinsurance for losses of up to $20 billion in the Gulf region. This will help oil and gas shipping companies maintain confidence during the war against Iran. The President Donald Trump ordered on Tuesday the DFC to provide financial guarantees and political risk insurance for maritime trade within the Gulf. This was after the transit of?oil tankers and liquefied gas tanks had come to a standstill in the Strait of Hormuz, which is located off Iran. DFC stated that the coverage would be rolled out and initially focused on cargo, hull and machinery insurance. DFC did not provide any details, but said that it would work with preferred American insurance companies. The U.S. Treasury Department, DFC and U.S. Central Command are working together to determine the next steps in the plan. The Strait has been largely blocked by oil shipments. Some tankers have been damaged?by strikes, while others are stranded. War-risk insurance premiums have increased and some providers have reduced or removed coverage. (Reporting and editing by Louise Heavens, Chizu Nomiyama and Chizu Nomiyama.
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Bloomberg News reports that Boeing is close to a 500-jet order with the Trump-Xi Summit.
Bloomberg 'News, citing sources familiar with the situation, reported that Boeing is close to announcing a 500 aircraft order for 737 Max Jets. This will be announced when U.S. president Donald Trump makes his first state visit to China in 2017. According to the report, both sides are in negotiations for a widebody deal that would include 'about 100 Boeing 787 Dreamliner and 777X jets. Boeing did not respond immediately to a comment request. In afternoon trading, shares of the company rose 3.7%. Trump will visit China between March 31 and April 2. Xi is expected to visit Washington in later this year. The move comes after Trump threatened to restrict the export of Boeing parts to China in response to Chinese restrictions on rare earth minerals. Beijing ordered Chinese airlines in April to stop temporarily?taking delivery of new Boeing 'jets during their clashes over trade with Trump. Following Trump's visits, the planemaker has also landed several major sales from foreign airlines.
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The Swedish Coast Guard boards a suspected stateless vessel in the Baltic Sea
The Swedish Coast Guard said that it had boarded a vessel suspected of being stateless in Swedish waters on Friday and was conducting 'investigations'. The Coast Guard said that it had boarded a vessel at 3:50 pm today with an unclear flag, and was therefore suspected to be a stateless boat. The Caffa ship was flying a Guinean flag but, based on international and national legislation, the coast guard deemed the vessel a stateless vessel. The Swedish police said the ship had been suspected of sailing under a false banner. Caffa, a general cargo vessel measuring 96 meters long, is tracked by the ship tracking service Marine Traffic. Carl-Oskar BOHLIN, Sweden's civil defence minister, stated in a blog post on X, that the ship 'was a cargo on Ukraine's sanction list' "The ownership structure of the vessel is unclear, and there is suspicion that it is not insured." Bohlin wrote that the ship was reported to have switched from a Russian flag to a Guinean one as recently as this summer. The Coast Guard said that it had launched a preliminary investigation regarding alleged violations of maritime law in relation to lack of seaworthiness. The Coast Guard will have personnel on board to collect information about the vessel's condition and the crew, conduct searches and interviews, it said. (Reporting and editing by Cynthia Osterman; Greta Rose Fondahn)
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US Customs Agency says system for refunding tariffs will be available in 45 days
A customs official stated in a Friday court filing that the U.S. Customs Agency is preparing a system to refund tariffs imposed by President Donald Trump, which were ruled illegal. Brandon Lord, a Customs and Border Protection officer, made the declaration as government lawyers and a federal trade court met to try and hammer out an agreement for the return of $166 billion worth of tariff payments to 330,000 importers. Last month, the Supreme Court ruled that President Donald Trump's tariffs were unconstitutional. The Supreme Court, however, did not specify how tariffs collected should be refunded. This left'small importers' worried that the process would be costly and time-consuming. Lord stated in his declaration that the new process would require importers to submit minimal information. This was just as the government lawyers were meeting with Judge Richard Eaton of the court. Eaton convened the meeting to discuss the process by which the government would implement its sweeping order, issued on Wednesday. The order directed the CBP that it refund tariffs to hundreds of thousands of potential importers through the existing internal CBP processes. Eaton stated in his order on Wednesday that he was?appointed by a trade court to hear approximately 2,000 lawsuits brought by importers, including FedEx and L'Oreal, seeking refunds. Trade lawyers claimed that these lawsuits were only the tip of a very large iceberg. They said thousands more would be prepared to sue in the future if the government did not develop an automatic refund system. On Friday, affiliates of Nintendo and CVS were the latest big companies to file for refunds. IMPORTERS GET A SINGLE PAYMENT Lord stated in a court filing that CBP expected importers file a declaration on the computer system ACE of the CBP detailing tariff payments. This declaration would be validated and then refunds with interest processed. Importers wouldn't have to sue. The Treasury Department would pay each importer a single amount, no matter how many separate entries they had made. Lord didn't estimate the time it would take for the refunds to be processed, but he said that the CBP wouldn't be able comply with Eaton’s order as of Wednesday. Eaton envisioned refunds being 'automatically returned to the importers using the existing system, without documentation or input by the importer. Lord explained that the existing system was not suitable for the task. It would require too much manual work, which would prevent the personnel from completing the mission of the agency. He said importers paid an estimated $166 Billion in tariffs for more than 53 Million shipments. Eaton's orders would have forced?the agency manually to review all paperwork for every shipment. Lord estimated that this would take more than 4,000,000 hours of labor. Lord's declaration indicated, however, that only a few importers were signed up to the CBP's electronic refund system. Lord said that out of the more than 330,000 importers, who paid illegal duties, only 21423, signed up for the electronic refunds system which was implemented on February 6. Eaton oversees a lawsuit filed by Atmus Filtration Inc., which is being used as a tool by the judge to order CBP refunds to all importers. (Reporting from Tom Hals, Wilmington, Delaware. Additional reporting by Luc Cohen and David Lawder in Washington. Editing by Deepa Babyington.)
Azeri BTC exports to increase in April
The schedule showed that the differentials between dated Brent and Urals crude jumped in 'the Indian market due to supply shortages brought on by 'the conflict in Iran. Meanwhile, exports of Azeri BTC from Ceyhan were expected to increase next month. Reports on Thursday indicated that traders are selling Russian Urals at a premium to Brent of $4-5 per barrel upon arrival in Indian ports between March and April. This is after the United States granted Indian refiners an 'waiver' to resume purchasing Russian oil. Calculations on Friday showed that the grade's discount on Brent at the Russian Baltic Sea port of Primorsk has narrowed from $5 to $20 per barrel.
Two traders claim that the rising costs of freight will reduce profits for Russian oil sellers. It would cost $15 million to charter a vessel with a deadweight of?100,000.0 metric tons to transport oil from Russian Baltic port to India.
Traders claim that freight rates have already risen above this figure and could rise even higher next week. The schedule for Azeri BTC crude exports to Turkey's Ceyhan Port has been increased from 14.95 million barrels exported in March, to 16.38 million barrels in April.
PLATTS WINDOW
* Traders reported that no bids or offers for Urals, Azeri BTC, and CPC Blend were made Friday.
Shipping data revealed that Saudi Arabia, the world's largest oil exporter, is increasing its shipments through the Red Sea. However, the increased volumes are not enough to compensate for the decline in shipments through the Strait of Hormuz.
MOL, the oil and gas company of Hungary, announced on Friday that it will begin capacity testing on the Adria oil pipeline in Croatia on March 11, and continue for 10 months. The company is looking for alternative routes as Russian crude oil supplies are set to cease at 2027. Reporting by Kirsten Doovan; Editing by Kirsten D.
(source: Reuters)