Canadian Pacific rail workers may strike tonight
Canadian Pacific (CP) rail workers will begin a strike tonight if they cannot reach a new contract agreement with management, potentially stranding shipments of crude, coal, fertilizer and chemicals.
Members of the Teamsters Canada Rail Conference-Train & Engine and the International Brotherhood of Electrical Workers (IBEW) refected contract proposals offered by CP during an 18-25 May vote held by the Canada Industrial Relations Board.
The unions issued a three-day strike notice to CP on 26 May saying they planned to strike beginning at 10pm ET.
CP has initiated its strike contingency plan and has begun to "wind down" operations and will implement an embargo effective at 12:01am tomorrow if there is a work stoppage.
The strike only would involve freight movements originating on the railroad's Canadian lines and US-origin cargoes headed to Canada. US-only shipments would continue to operate because the unions threatening to strike only represent Canadian workers.
The railroad said it would continue to meet with the unions "in the hopes of reaching agreements that are in the best interests of the entire CP family, its customers, shareholders and the broader North American economy."
CP "is still refusing to negotiate seriously," the Teamsters and IBEW said in a joint statement on 26 May.
"CP is offering more of the same contract language that workers just voted to reject," Teamsters president Doug Finnson said.
"CP has continually changed directions during negotiations with little evidence that a settlement was ever possible," IBEW System Council No. 11 senior general chairman Steve Martin said. Martin argued the unions have given CP "every reasonable opportunity to negotiate" but, "sadly, that has led us nowhere."
The unions said they are willing to continue talks until the strike deadline and beyond.
A 21 April strike was cancelled after the unions agreed to a vote on the previously proposed contracts. But union officials urged members to vote against the agreements. Roughly 98pc of Teamsters and 97pc of IBEW members voted against the contracts.
The Teamsters represent approximately 3,000 conductors and engineers at CP, while IBEW represents about 360 signals and communications workers.
A strike would be another blow for a carrier that struggled with congestion woes earlier this year.
CP carload volume has increased by 1.9pc this year through 19 May to 630,971 carloads. Intermodal volume is up by 6.2pc to 391,567 units.
Growth has been particularly strong in the energy, chemicals and plastics sector, up by 13.6pc compared with last year. Potash shipments are up by a similar amount. That has helped offset a 5.8pc drop in grain shipments.
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US reimposes Venezuela oil sanctions
US reimposes Venezuela oil sanctions
Washington, 17 April (Argus) — The US administration today reimposed sanctions targeting Venezuela's oil exports and energy sector investments and set a deadline of 31 May for most foreign companies to wind down business with state-owned PdV. The US decision rescinds a sanctions waiver issued last October, which allowed Venezuela to sell oil freely to any buyer and to invite foreign investment in the country's energy sector. The waiver, which was due to expire on 18 April, was tied to Caracas' agreement to hold a competitive presidential election and to allow opposition politicians to contest it. Venezuelan president Nicolas Maduro's government reneged on that deal by refusing to register leading opposition candidate Maria Corina Machado or an alternative candidate designated by her, a senior US official said. The US considered the potential effects on global energy markets and other factors in its decision, but "fundamentally, the decision was based on the actions and non-actions of the Venezuelan authorities," the official said. The separate waivers granted to Chevron and to oil field service companies Halliburton, SLB, Baker Hughes and Weatherford will remain in place. Chevron will be allowed to continue lifting oil from its joint venture with PdV, solely for imports into the US. US-bound Venezuelan crude volumes averaged 133,000 b/d last year. Chevron said its Venezuela output was 150,000 b/d at the end of 2023. Argus estimated Venezuela's crude output at 850,000 b/d in March, up by 150,000 b/d on the year. PdV said it will seek to change terms of its nine active joint ventures , starting with Spain's Repsol, in an effort to boost production. The reimposition of sanctions will primarily affect Venezuelan exports to India and China. India has emerged as a major new destination for Venezuelan crude since the US lifted sanctions in October, importing 152,000 b/d in March. There are two more Venezuelan cargoes heading to India and are expected to arrive before the 31 May deadline. The VLCC Caspar left the Jose terminal on 14 March and was expected to arrive at a yet-unknown west coast Indian port on 26 April. The Suezmax Tinos left Venezuela on 18 March and was due at Sikka on 30 April. By contrast, Chinese imports of Venezuelan Merey, often labeled as Malaysian diluted bitumen, have been lower since October. Independent refiners in Shandong, which benefited from wide discounts on the sanctioned Venezuelan crude, cut back imports to just a fraction of pre-relief levels. By contrast, state-controlled PetroChina was able to resume imports. The Merey discount to Brent already widened in anticipation of a possible reimposition of US sanctions. Reprieve expected for European companies Separate US authorizations previously issued to Repsol and to Italy's Eni to allow oil-for-debt deals with PdV and to enable a Shell project to import natural gas from Venezuela's Dragon field to Trinidad and Tobago are expected to remain in place. The US sanctions enforcers as a rule do not disclose the terms of private sanctions licenses, and the European companies were not immediately available to comment. The US would still consider future requests for sanctions waivers for specific energy projects, another senior official said. Repsol imported 23,000 b/d of Venezuelan crude into Spain last year and 29,000 b/d so far this year, according to Vortexa data. The last cargo to arrive was on 15 April. Hope springs eternal The US administration says it will consider lifting the sanctions again if Maduro's government allows opposition candidates to participate in the July presidential election. The US action today "should not be viewed as a final decision that we no longer believe Venezuela can hold competitive and inclusive elections," a third senior official said. "We will continue to engage with all stakeholders, including Maduro representatives, the democratic opposition, civil society and the international community to support the Venezuelan people's efforts to ensure a better future for Venezuela." By Haik Gugarats and Kuganiga Kuganeswaran Chinese imports of Venezuelan crude Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US House advances Ukraine, Israel aid bills
US House advances Ukraine, Israel aid bills
Washington, 17 April (Argus) — The Republican-controlled US House of Representatives is preparing to advance a bill to extend military and economic aid to Ukraine, as Kyiv has complained about critical shortages of ammunition on the battlefield and has resorted to aerial attacks against refineries in Russia. The House is also advancing a separate bill to extend military aid to Israel and to pay for the rising cost of US operations in the Middle East, including the cost of providing maritime protection from the Houthi attacks on commercial shipping in the Red Sea. Yet another bill would extend military aid to Taiwan and other US partners and allies in the Indo-Pacific region. The US Senate in February approved a bill providing around $60bn in military aid for Ukraine, $14bn for Israel, and $9bn in humanitarian aid to Gaza and other global crisis spots. House speaker Mike Johnson (R-Louisiana) has, in effect, deconstructed the Senate bill into individual components in an effort to facilitate their passage in a chamber where his party has a two seat majority and the Republican lawmakers allied with former president Donald Trump oppose aid to Ukraine. In an effort to secure the Republican caucus' assent to the three foreign aid bills, Johnson is also planning to advance a separate bill including a hodgepodge of his party's policy priorities, such as a ban on social media network TikTok and sanctions against Iran. Yet another bill would advance draconian restrictions on immigration and strengthen the security of the US-Mexico border. None of the bills released today would require President Joe Biden to reconsider his pause on the issuance of new LNG export licenses. Johnson's legislative proposal has immediately drawn opposition from some members of his party, two of which said they would move to oust him as speaker. Johnson assumed his position after his predecessor Kevin McCarthy was ousted in October following a compromise government funding deal with House Democrats. "Every true conservative America First patriot in the House should vote against the rule for this borrowed foreign aid bill with no border security!" congressman Bob Good (R-Virginia) said via X social network. The foreign aid bills will have to have the backing of the Democratic caucus and a sufficient number of Republicans in order to pass. Biden said he supports the three foreign aid bills proposed by Johnson. "The House must pass the package this week and the Senate should quickly follow," Biden said. The majority-Democratic Senate leaders likewise have signaled willingness to consider separate aid bills so long as those do not significantly differ from the version passed by the Senate. The only major differences in the House version of the Ukraine aid bill is a requirement that the US provide no more than 50pc of the total economic assistance extended to Ukraine by western countries, as well as a requirement for Ukraine to repay the $9.5bn in direct economic support under the bill. Congress since February 2022 has allocated $114bn in aid to Ukraine, including $66bn for military supplies. The EU in the same period has allocated $150bn to Ukraine, mostly in economic support. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
June deadline set for Citgo auction bids
June deadline set for Citgo auction bids
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Idemitsu books rare US Gulf-Vancouver HVO cargo
Idemitsu books rare US Gulf-Vancouver HVO cargo
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