Baltimore to temporarily open 4th shipping channel

  • : Agriculture, Coal, Coking coal, Freight, Metals
  • 24/04/24

The Port of Baltimore is preparing to open another, deeper temporary shipping channel this week so at least some of the vessels that have been stranded at the port can depart.

The new 35-ft deep Fort McHenry Limited Access Channel is scheduled to be open to commercially essential vessels from 25 April until 6am ET on 29 April or 30 April "if weather adversely impacts vessel transits," according to a US Coast Guard Marine Safety Information Bulletin. The channel will then be closed again until 10 May.

The channel also will have a 300-ft horizontal clearance and 214-ft vertical clearance.

This will be the fourth and largest channel opened since the 26 March collapse of the Francis Scott Key Bridge. The Unified Command has said that the new limited access channel should allow passage of about 75pc of the types of vessels that typically move through the waterway. Vessels that have greater than 60,000 long tons (60,963 metric tonnes) of displacement will likely not be able to move through the channel and those between 50,000-60,000 long tons of displacement "will be closely evaluated" for transit.

There were seven vessels blocked from exiting the port as of 27 March, including three dry bulk carriers, one vehicle carrier and one tanker, according to the US Department of Transportation. Two of the bulk carriers at berth in Baltimore are Kamsarmax-sized coal vessels, data from analytics firm Kpler show.

The US Army Corps of Engineers still expects to reopen the Port of Baltimore's permanent 700-foot wide, 50-foot deep channel by the end of May.

The Key Bridge collapsed into the water late last month when the 116,851dwt container ship Dali lost power and crashed into a bridge support column. Salvage teams have been working to remove debris from the water and containers from the ship in order to clear the main channel.


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24/05/17

India’s Gail signs 14-year time charter for LNG carrier

India’s Gail signs 14-year time charter for LNG carrier

Mumbai, 17 May (Argus) — India's state-controlled gas distributor Gail has signed a 14-year time charter agreement with US-based LNG shipping firm CoolCo for an LNG carrier, the former said on 16 May. The time charter for the LNG carrier will start operating from early 2025 as it is currently under construction. Gail is likely to receive the carrier during October-December in the Gulf of Mexico, CoolCo said. The charter will be the fifth LNG carrier in Gail's vessels that are intended to secure long-term supply of LNG in India. Gail will have an option to extend the charter by two additional years beyond its contracted 14-year period. The LNG carrier will likely be used to ship LNG volumes from the US, Russia, and from its recent contracts with Abu Dhabi's state-owned Adnoc and trading firm Vitol , a company official told Argus . (See table) "Long-term cargoes are there and there are a few lifts from the spot markets as well," the source added. "It is how the consumption pattern of the country is now shaping more towards LNG since domestic volumes are constrained." The firm also planned to add an LNG tanker to ship cargoes from the US, Argus exclusively reported in February. Gail expects India's gas demand to rise and has been looking to secure more term deals . Gail is seeking an additional 7mn-8mn t/yr of LNG for its portfolio with a further 1mn-2mn t/yr, the firm said in January. This reiterates targets set in August last year . Gail's portfolio growth aligns with the government's plan to increase the share of gas in its primary energy mix to 15pc by 2030 from around 6pc in 2022. By Rituparna Ghosh Gail contracts mn t/yr Supplier/terminal Volume Fob/des Dates Sabine Pass 3.5 fob 2018-38 Cove Point 2.3 fob 2018-38 SEFE 2.5 des 2018-41 Vitol 1.0 des 2026-36 Adnoc 0.5 des 2026-36 Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Trade curbs spur Chinese battery firms to look overseas


24/05/17
24/05/17

Trade curbs spur Chinese battery firms to look overseas

Beijing, 17 May (Argus) — An increasing number of Chinese battery firms have accelerated their expansions outside China, to meet buoyant overseas demand and to tackle escalating geopolitical curbs. These curbs include the US' newly announced tariff hikes on China's electric vehicles (EVs) and batteries from 2024 or 2026, and the EU's potential punitive duties on battery EVs originating from China. The US' Inflation Reduction Act (IRA) and the EU's Critical Raw Material Act have also prompted many Chinese battery material producers to step up their overseas expansions. China's battery material manufacturer Hunan Zhongke Electric has unveiled a plan to invest no more than 5bn yuan ($692mn) to build a production plant for battery anode material in Morocco, in which some other Chinese firms have also invested in similar projects. The plant has a designed capacity of 100,000 t/yr and will be developed in two phases with 50,000 t/yr each. The firm aims to complete plant construction for each phase in 24 months. Zhongke is a major battery anode material producer in China with 210,000 t/yr of capacity as of the end of 2023. Its output of anode materials rose to 143,513t in 2023, up by 14pc from 125,460t a year earlier, driven by the country's rising EV sales. It aims to expand overseas sales in the coming years. Major Chinese copper producer Zhejiang Hailiang also outlined a plan to build a 25,000 t/yr production plant for copper foil used in lithium-ion batteries in Morocco. Construction will take 36 months. "The layout of the Morocco project can help us penetrate into the European and US markets as soon as possible as exports from Morocco are duty free to these markets," Hailiang said. "This will help us avoid any international trade barrier." Morocco is one of the main destinations for Chinese companies to invest in and build overseas battery component plants given its abundant resources for phosphate, a main chemical compound in a lithium iron phosphate battery, and its free trade agreement (FTA) with the US. It is also a major cobalt metal producing country outside China, with cobalt being a critical mineral used in the manufacturing of lithium-ion batteries. Major Chinese battery material producer EVE Energy is on track to develop a production project for energy storage batteries in Malaysia. It will establish a subsidiary EVE Energy Malaysia Energy Storage to develop this project to meet Malaysia's energy storage battery demand, although it has not disclosed the capacity, construction schedules and launch dates. The plant is the second phase of EVE's new energy products development in Malaysia. It in August 2023 started building a plant for cylindrical batteries mainly used in electric two-wheelers and electric tools in the southeast Asian country. The firm said the US' new tariff hikes will not affect its business because it had planned the Malaysia projects for consumer batteries and energy storage in advance, and these projects will support shipments to US consumers by 2026. New US tariff hikes US president Joe Biden's administration announced on 14 May that the tariff on lithium-ion EV batteries will immediately increase to 25pc, while the tariff on all other lithium-ion batteries is set to increase to 25pc in 2026, both from the current rate of 7.5pc. This is likely to trigger more Chinese battery companies to increase their overseas investments to avoid the tax, according to industry participants. The US' tariff hikes have drawn strong criticism from China. "Politicising and instrumenting economic and trade issues is typical political manipulation," said the country's ministry of commerce. "The Section 301 tariff hikes goes against President Biden's promise of 'not seeking to contain China's development' or 'not seeking to break the chain of decoupling from China'. The US should immediately correct its wrongful actions and cancel the tariffs. China will take 'resolute" measures to safeguard its own rights and interests'." Chinese battery firms' investments in Morocco Company Products Capacity Launch dates CNGR CAM precursors, LFP, black mass 120,000 t/yr, 60,000 t/yr, 30,000 t/yr 4Q, 2024 BTR CAM 50,000 t/yr N/A Hunan Zhongke Anode material 100,000 t/yr in 24 months Huayou Cobalt/LG LFP 50,000 t/yr in 2026 Huayou Cobalt/LG Lithium salts 52,000 t/yr N/A Sichuan Yahua/LG Lithium hydroxide N/A N/A Hailiang Li-ion battery copper foil 25,000 t/yr in 36 months Source: Company releases Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Texas barge collision shuts GIWW section: Correction


24/05/16
24/05/16

Texas barge collision shuts GIWW section: Correction

Corrects volume of oil carried by barge in fourth paragraph. Houston, 16 May (Argus) — Authorities closed a six-mile section of the Gulf Intracoastal Waterway (GIWW) near Galveston, Texas, because of an oil spill caused by a barge collision with the Pelican Island causeway bridge. The section between mile markers 351.5 and 357.5 along the waterway closed, according to the US Coast Guard. A barge broke away from the Philip George tugboat and hit the bridge between Pelican Island and Galveston around 11am ET today. Concrete from the bridge fell onto the barge and triggered an oil leak. The barge can hold up to 30,000 bl oil, but it was unknown how full the barge was before the crash, Galveston County county judge Mark Henry said. It was unclear when the waterway would reopen. An environmental cleanup crew was on the scene along with the US Coast Guard and Texas Department of Transportation to assess the damage. Multiple state agencies have debated the replacement of the 64-year-old bridge for several years, Henry said. The rail line alongside the bridge collapsed. Marine traffic does not pass under the bridge. By Meghan Yoyotte Intracoastal Waterway at Galveston Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Sinking crop values weigh on US farmer profits in 2024


24/05/16
24/05/16

Sinking crop values weigh on US farmer profits in 2024

Houston, 16 May (Argus) — The cycle of above-average profits that has defined the US agricultural economy in recent seasons is fraying this year as crop prices slacken against elevated expenses. The domestic agricultural sector is forecast to endure a 24pc drop in net cash income this season — the sharpest year-over-year decline in the last decade — underpinned by a 6pc slump in crop sales revenue and modest growth in projected expenses, according to the US Department of Agriculture's (USDA) latest industry income statement. This retraction, which kicked off in 2023, forced many growers in key agricultural districts this season to augment non-real estate loans, slow debt repayment and restructure existing loans to meet liquidity requirements thanks in part to sliding global grain and oilseed prices. Lenders within the seventh and 10th Federal Reserve districts, which represent farmers across major growing regions, reported stronger loan demand and tightened working capital during the first quarter — signaling deteriorating farm finances. Working capital is measured as the difference between the value of assets that can be easily converted to cash and debt due within the next 12 months. Lower working capital valuation signals the ability to pay down debt could be challenged. Domestic agricultural working capital this year is estimated 17pc lower from 2023 and 6pc lower than the five-year average, according to USDA data. "Conditions in the US farm economy have tightened alongside lower prices for many key products and higher financing costs," the Federal Reserve Bank of Kansas City reported in its quarterly Ag Credit Survey . "Many lenders highlighted growing concerns about deterioration in working capital as a result of low prices, particularly for crop producers." US row-crop growers are expected to endure another season of price deterioration as global markets adjust to supply shocks stemming from the ongoing war in Ukraine that rattled wheat values and key input prices for corn and soybeans. Domestic corn, soybean and wheat farm cash prices are projected to slump for a second consecutive season by 5pc, 11pc and 15pc, respectively, according to the latest projections from the USDA's World Agricultural Supply and Demand (WASDE) report. Corn growers, specifically, face losses this season amid a 4.6mn-acre cut in planted area from last season in tandem with sinking crop values. Margins are estimated -$65.75/acre, based on the latest new-crop contract close and early-season production volume estimates, after benefiting from peak earnings at $242.33/acre in 2022. Corn is a fertilizer-intensive crop, and changes in farmer profitability can erode input prices. Urea, the most widely traded fertilizer globally, is strongly tied to front-month corn futures and domestic barge prices have sunk to levels last seen in January 2021, tracking lower front-month corn futures since the start of the 2023-24 fertilizer season. Fertilizer expenses account for nearly 40pc of annual operating costs for domestic corn growers on a per-acre basis, with seed costs comprising an average 25pc, according to Argus analysis of USDA data. Plant nutrition expenses, though, surged in 2022 and remained above average in 2023 — reflecting historically elevated fertilizer prices during the same period. The USDA forecasts a 15pc dip in fertilizer costs in 2024 for corn growers, providing some reprieve compared with the last two years despite higher seed and various overhead expenses. "Factors like the rising costs of seeds, fertilizers and other inputs as well as more strict environmental regulations, specifically on water usage, have added to the financial and administrative burden for farmers," said Donnie Taylor, Agricultural Retailers Association senior vice-president of membership and corporate relations. By Connor Hyde Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

La Nina outlook offers boost to Australian agriculture


24/05/16
24/05/16

La Nina outlook offers boost to Australian agriculture

Sydney, 16 May (Argus) — The outlook for Australia's crop and beef production is turning more positive in 2024-25, with the country's Bureau of Meteorology (BoM) updating its climate forecast towards a La Nina weather trend forming at the end of this year. BoM updated its El Nino-Southern Oscillation (Enso) outlook to a La Nina Watch alert on 14 May, with indicators suggesting this phase developing in late 2024. Approximately half of all watch alerts have followed with the projected Enso event occurring. Crop production and grazing conditions will likely benefit from increased rainfall should the weather trend eventuate. La Nina is associated with higher than average winter-spring rainfall from the northwest to southeast of Australia. Grain yields and production in Australia's eastern cropping regions typically increase with a La Nina. Australia experienced record production during La Nina events that occurred during 2020-23. Winter crop production peaked at 69mn t and 63mn t in the 2022-23 and 2021-22 fiscal year respectively, according to Australian Bureau of Agricultural and Resource Economics (Abares) data. The La Nina Watch alert comes as the US Department of Agriculture projected Australia's wheat production to increase by 3mn t from a year earlier to 29mn t in the 2024-25 marketing year, according to data released in its World Agricultural Supply and Demand Estimates on 10 May. Coarse grain production is also projected to rise by 4pc to 14.87mn t. But Enso weather events have limited impact on southwest Western Australia (WA). A potential La Nina is unlikely to aid WA cropping zones currently experiencing very low soil moisture levels . Increased rainfall from a La Nina developing in late 2024 may not coincide with the growing season of east Australia's wheat crops, which are typically sown during April-June and harvested in November–January. Too much rain around the harvest can damage crops and degrade quality. Floods in late 2022 damaged harvests in New South Wales, resulting in Abares at the time downgrading the state's production projections by 2mn t. Increased rainfall in east Australia will boost pasture availability for cattle producers. Increased capacity of feed may encourage producers to increase herd sizes, potentially supporting future slaughter and beef production. But the agriculture industry may be wary of the BoM's latest outlook. BoM was widely criticised after last year's El Nino declaration in September, which promoted some producers to pre-emptively destock at low prices in fear of dry conditions that did not occur. By Edward Dunlop Australia winter-spring rainfall during La Nina years (deciles) Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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