Canadian rail labor talks continue as deadline nears

Spanish Market: Agriculture, Biofuels, Biomass, Chemicals, Coal, Coking coal, Crude oil, Fertilizers, Metals, Oil products, Petrochemicals, Petroleum coke
21/08/24

Canadian railroads and a major labor union are still in discussions in the final hours before workers could go on strike.

Contract negotiations between Canadian Pacific Kansas City (CPKC), Canadian National (CN) and Teamsters Canada Rail Conference (TCRC) continued today, CPKC said. If there is no agreement tonight, the union at 12:01am ET Thursday could begin a strike against CPKC and each railroad could begin a lockout of workers. The Teamsters did not issue a required strike notice to CN, but a lockout would still shut its network down.

Railroad customers and Canadian authorities are increasingly frustrated by the lack of agreement on new labor contracts. Teamsters members have been working under the terms of contracts that expired in December 2023.

Canadian prime minister Justin Trudeau today urged the railroads and union to resolve the situation and avert a strike.

"It is in the best interest of both sides to continue doing the hard work at the table to find a negotiated resolution," Trudeau said. "Millions of Canadians, of workers, of farmers, of businesses, right across the country are counting on both sides to do the work and get to a resolution."

Canadian minister of labour Steven MacKinnon yesterday said he met with Ontario's labour minister and would be meeting with each railroad and Teamsters officials in Montreal and Calgary "to deliver our shared message: Get a deal at the table. Workers, farmers, businesses and all Canadians are counting on it."

Union members have voted twice to authorize a strike, and each railroad has indicated it will lock out union members at the same time. The latest indication is the strike could happen as early as Thursday 22 August.

"CPKC remains focused on and committed to arriving at a negotiated outcome that is in the best interests of all our railroaders and their families," CPKC said today. "We are firmly committed to staying at the bargaining table to reach renewed agreements."

The Teamsters and CN did not respond to requests for comment.

Last week, the railroads initiated embargoes on shipments of toxic inhalation hazards (TIH) and poisonous inhalation hazards (PIH) materials. Those products include chlorine, ammonia, ethylene and phosgene, as well as rail security-sensitive materials such as explosives. Each carrier has now stopped loading trains in Canada and are focused on delivering existing shipments.

Railroads also have stopped shipping trains across the US and Canada border, suspending the movement of multiple products.

US rail regulators are actively monitoring the situation, concerned about how a rail labor strike in Canada would affect the US rail network and supply chain. The US Surface Transportation Board said Wednesday it is monitoring the implementation and effects of those embargoes on the network.

A number of US railroads last week either implemented their own embargoes or said they will comply with the Canadian embargoes.

Western US coal exports are not expected to have much of a disruption if there is a strike since US carrier BNSF has rail lines going directly to Westshore Terminals near Vancouver. But BNSF will not be able to interchange railcars with CN and CPKC in Canada.

Crude markets are also not expected to see significant disruption from a strike in the short term because of pending maintenance at upstream oil sands facilities and spare pipeline capacity.

Prices for Canadian propane and butane — which rely heavily on rail to move product from an oversupplied market to the US — fell Wednesday ahead of the strike.

By Courtney Schlisserman and Abby Caplan

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13/06/25

EPA proposes record US biofuel mandates, foreign limits

New York, 13 June (Argus) — President Donald Trump's administration today proposed requiring record biofuel blending into the US fuel supply over the next two years, including unexpectedly strong quotas for biomass-based diesel. The US Environmental Protection Agency (EPA) proposal, which still must be finalized, projects that oil refiners will need to blend 5.61bn USG of biomass-based diesel to comply with requirements in 2026 and 5.86bn USG in 2027. That's a 67pc increase in 2026 and a 75pc increase in 2027 from this year's 3.35bn USG requirement, above what most industry groups had sought. The proposal alone is likely to boost biofuel production, which has been down to start the year as biorefineries have struggled to grapple with uncertainty about future blend mandates, the halting rollout of a new clean fuel tax credit, and higher import tariffs. The EPA proposal also would halve Renewable Identification Number (RIN) credits generated for foreign biofuels and biofuels produced from foreign feedstocks, a major change that could increase US crop demand and hurt renewable diesel plants that source many of their inputs from abroad. US farm groups have lamented refiners' rising use of Chinese used cooking oil and Brazilian tallow to make renewable diesel, and EPA's proposal if finalized would sharply reduce the incentive to do so. The Renewable Fuel Standard program requires US oil refiners and importers to blend biofuels into the conventional fuel supply or buy credits from those who do. One USG of corn ethanol generates one RIN, but more energy-dense fuels like renewable diesel can earn more. In total, the rule would require 24.02bn RINs to be retired next year and 24.46bn RINs in 2027. That includes a specific 7.12bn RIN mandate for biomass-based diesel in 2026 and 7.5bn in 2027, and an implied mandate for corn ethanol of 15bn RINs, similar to prior years. EPA currently sets biomass-based diesel mandates in physical gallons but is proposing a change to align with how targets for other program categories work. US soybean oil futures surged following the release of the EPA proposal, and RIN credits rallied similarly. Current year D6 credits, typically generated from conventional ethanol production, traded at 92¢/RIN near the opening of the session before peaking at 110¢/RIN and then retreating slightly. Current year biomass-based diesel D4 RINs followed a similar trajectory, trading up to 116¢/RIN and widening the gap with conventional D6 RINs. Proposed targets are less aspirational for the cellulosic biofuel category, where biogas generates most credits. EPA proposes lowering the 2025 mandate to 1.19bn RINs, down from from 1.38bn RINs previously required, with 2026 and 2027 targets proposed at 1.30bn RINs and 1.36bn RINs, respectively. In a separate final rule today, EPA cut the 2024 cellulosic mandate to 1.01bn RINs from 1.09bn previously required, a smaller cut than initially proposed, and made available special "waiver" credits refiners can purchase at a fixed price to comply. Small refinery exemptions The proposal includes little clarity on EPA's future policy around program exemptions, which small refiners can request if they claim blend mandates will cause them disproportionate economic hardship. EPA predicted Friday that exemptions for the 2026 and 2027 compliance years could total anywhere from zero to 18bn USG of gasoline and diesel. EPA plans to continue a policy from past administrations of estimating future exempted volumes when calculating the percentage of biofuels individual refiners must blend, effectively requiring those with obligations to shoulder more of the burden to meet high-level volume targets. EPA in the proposal said it plans to "communicate our policy regarding [exemption] petitions going forward before finalization of this rule". Industry groups expect the agency will try to conclude the rule-making by November. Notably though, the proposal says little about how EPA is weighing a backlog of more than a hundred requests for exemptions stretching back to 2016. Many of these refiners had already submitted RINs to comply and could push for some type of compensation if granted retroactive waivers, making this part of the program especially hard to implement. An industry official briefed on Thursday ahead of the rule's release said Trump administration officials were "coy" about their plans for the backlog. The proposed mandates for 2026-2027 will have to go through the typical public comment process and could be changed as regulators weigh new data on biofuel production and food and fuel prices. Once the program updates are finalized, lawsuits are inevitable. A federal court is still weighing the legality of past mandates, and the Supreme Court is set to rule this month on the proper court venue for litigating small refinery exemption disputes. By Cole Martin and Matthew Cope Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Northern Nutrients, Shell partner on ferts plant

13/06/25

Northern Nutrients, Shell partner on ferts plant

Houston, 13 June (Argus) — Canadian fertilizer producer Northern Nutrients will partner with Shell Trading Canada to increase fertilizer output at Northern Nutrients' facility in Saskatoon, Saskatchewan. Northern Nutrients produces enhanced nitrogen sulfur fertilizers using Shell's Thiogro technology. The company's flagship product, Arctic S, consists of 75pc micronized elemental sulfur and 11pc nitrogen. The joint venture will result in an expansion of the Saskatoon-based facility, tripling its total fertilizer output from 50,000 metric tonnes (t) to 150,000 t/yr. The expansion will also increase sulfur consumption at the facility to approximately 112,500 t/yr, according to Northern Nutrients. Northern Nutrients said that groundbreaking is underway and the expansion should commence operations in the second half of 2026. The addition of new equipment, infrastructure and construction activity is not expected to impact operations or capacity of the current facility until the project nears completion during the third quarter of 2026, the company told Argus . By Chris Mullins Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

VLCC rates exposed to disruption after Israeli strike

13/06/25

VLCC rates exposed to disruption after Israeli strike

London, 13 June (Argus) — The cost of freight for Mideast Gulf-origin very large crude carrier (VLCC) voyages could increase after Israeli air and missile strikes hit Iran in the early hours of today, 13 June. The VLCC market is exposed to volatility as around 65pc of all shipments in that class are from the Mideast Gulf. In October 2024, when Iran launched more than 200 missiles against Israel, the Argus- assessed rate for the Mideast Gulf to China route increased by more than 13pc, to $14.10/t, in three days. So far is appears there is no disruption to oil flows through the Mideast Gulf and the strait of Hormuz, and remains unclear as Iran's oil infrastructure was unscathed by the Israeli air and missile strikes according to Iran's state news agency Irna and Argus sources. But some shipowners have become increasingly cautious of the region, with some market participants suggesting more risk-averse owners might avoid the area until the conflict de-escalates. This could encourage some owners to increase their offers as the risk of transiting the area mounts, and discourage some from visiting the region at all. Charterers made multiple cargoes available to the Mideast Gulf market today, but most remained unfixed. But the rise in crude prices today — front month Ice Brent is trading around 5.5pc higher having rise as much as 13pc earlier — could discourage China, the largest importer of Mideast Gulf grades, from purchasing more crude. This could curtail any jump in freight rates and perhaps create a ceiling to cap the increase. By Rhys van Dinther Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

WTI crude surges after Israel attack on Iran

13/06/25

WTI crude surges after Israel attack on Iran

Houston, 13 June (Argus) — WTI crude futures jumped by as much as 14pc today after Israel carried out strikes against Iran, sparking concerns over possible disruptions to Middle East oil supplies. WTI prices rose as high as $77.62/bl early, a nearly five-month high, but gave up some of the gains later in the morning. The July Nymex WTI contract was trading near $73/bl at 10:30am ET, about 7pc above yesterday's settlement price. In equity markets, the Nasdaq was down by 1.44pc and the S&P 500 fell by 0.97pc as of 10:30am ET. Iranian state media reported a first wave of strikes over the capital city, Tehran, at around 03:20 local time (23:50 GMT). Images and videos published by the state broadcaster showed residential towers that had been struck in the attack, causing numerous casualties. The US said it was not involved in the Israeli strikes and advised Tehran not to retaliate against US personnel in the Middle East. Iran's [oil infrastructure appeared to be unscathed from the strikes}(https://direct.argusmedia.com/article/2698642), according to Iran's state news agency Irna and Argus sources. But the attacks have raised the prospect of a broader escalation in the world's largest oil-producing region. Israel said the strikes targeted military facilities and infrastructure linked to Iran's nuclear program. It described the operation as an act of self-defense, claiming Iran is "closer than ever" to acquiring a nuclear weapon. Iranian officials said talks with US officials over its nuclear program scheduled for this weekend can no longer take place . Iran informed the International Atomic Energy Agency (IAEA) that its Bushehr nuclear power plant was not targeted and that no increase in radiation levels had been observed at its Natanz site, IAEA director general Rafael Grossi said today. The attacks have raised the risk of disruption to shipping in the region, prompting concerns over rising freight rates, insurance costs and vessel safety. Market participants warn that freight rates could surge if the conflict drags on or if Iran launches a retaliatory strike. The region includes one of the world's most critical oil and shipping corridors, centered on the Strait of Hormuz — a chokepoint for about a fifth of global oil supply. Ships operating in or transiting the Mideast Gulf and the Strait of Hormuz could face higher costs and delays. "Insurance companies could raise the cost of additional war risk premiums (AWRP) if the conflict continues for a long time," a shipbroker said. Other freight market participants echoed this view. "Mideast Gulf freight rates could spike because owners will avoid going there," another source said, adding that shipowners are likely to err on the side of caution. All Egyptian urea plants have stopped production because of a drop in natural gas flows from Israel, with suppliers withdrawing urea offers. Greek independent oil and gas producer Energean has suspended production from its Karish gas field offshore Israel in line with an Israeli government order after the strikes. Several international airlines have diverted or cancelled flights. Iran's civil aviation authority announced that the airspace over Tehran will be closed "until further notice" following the initial strikes, and all flights have been grounded across the country's airports. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Iran suggests upcoming nuclear talks with US are off

13/06/25

Iran suggests upcoming nuclear talks with US are off

Dubai, 13 June (Argus) — Nuclear negotiations between Iran and the US scheduled for Sunday, 15 June, appear to be off following the Israeli air and missile strikes on Iran in the early hours of today. The talks were formally confirmed by mediators Oman on 12 June as taking place in the Omani capital, Muscat. With the mood around the negotiations having taken a turn for the worse this past week, the new round would provide an opportunity for the sides to re-establish their demands, and re-evaluate progress. The key outstanding issue is Iran's ability to enrich uranium, and thus, retain a theoretical path to nuclear weapons. Tehran insists it should be allowed to retain its civilian nuclear enrichment program to supply fuel to nuclear power plants, while US administration officials now appear bent on allowing zero enrichment. The Israeli attacks , which came against US President Donald Trump's advice, appear to have thrown a wrench into the US' efforts to engage Iran diplomatically. Speaking on state television today, Iranian parliament's national security and foreign policy committee member Alaeddin Boroujerdi said the attacks on Iran meant the talks with the US now cannot take place. "With respect to the talks, which we entered at America's request… we were on the verge of a sixth round," he said. "But with these latest developments, I can't see a sixth round taking place." Iran's foreign ministry, which has been leading the discussions for the Iranian side, has yet to explicitly comment on the status of the talks. Neither has Oman. On the attacks, Tehran's Guardian Council, a powerful supervisory body tasked with overseeing legislation, vowed to "give a crushing and tooth-breaking response to these criminals of history in such a way that it will serve as a less on to the enemies of Islam, and the arrogant powers of the world." Iran sent a barrage of drones towards Israel, which appeared to trigger a second round of Israeli strikes on several cities, including Shiraz in the south, Tabriz in the northwest, and Kermanshah in the west. Trump calls for deal The Trump administration has said it was not involved in the Israeli strikes, and warned Iran not to retaliate against its personnel in the Middle East. But it did appear to have at least advance warning of the imminent attack, after ordering non-essential US personnel in Iraq and Israel to evacuate. Trump today again called on Iranian leaders to "make a deal" or face even more "death and destruction" from the next waves of Israeli attacks. "I gave Iran chance after chance to make a deal… but no matter how hard they tried, no matter how close they got, they just couldn't get it done," Trump said on his Truth Social media platform. "There has already been great death and destruction, but there is still time to make this slaughter, with the next already planned attacked being even more brutal, come to an end. Iran must make a deal before there is nothing left." By Nader Itayim and Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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