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Union plans new rail strike despite order: Update

  • Spanish Market: Agriculture, Biofuels, Chemicals, Coal, Coking coal, Crude oil, Fertilizers, Freight, LPG, Metals, Oil products, Petrochemicals, Petroleum coke
  • 23/08/24

Adds additional comment from Teamsters Canada Rail Conference

The status of rail freight in Canada remains uncertain after a Canadian labor union today issued a new strike notice to Canadian National (CN), less than a day after the federal government ordered all parties to participate in binding arbitration.

The Teamsters Canada Rail Conference (TCRC) today issued notice to CN that members will go on strike at 10am ET on 26 August. The union had not issued a strike notice to CN earlier this week, but employees could not work yesterday after the CN and Canadian Pacific Kansas City (CPKC) locked them out.

The union said it moved to strike to "frustrate CN's attempt to force arbitration", and protect workers' rights to collectively bargain. CN had previously sought a federal order for binding arbitration.

The government's back-to-work order yesterday sidestepped the collective bargaining process, and "undermined the foundation on which labour unions work to improve wages and working conditions for all Canadians", union president Paul Boucher said today.

"Bargaining is also the primary way our union fights for rail safety — all considerations that outweigh short-term economic concerns," Boucher said.

The union was more optimistic in its strike notice to CN this morning. "We do not believe that any of the matters we have been discussing over the last several days are insurmountable." It said it would be available to discuss issues to avoid another work stoppage.

CN indicated it was frustrated with the union's action.

"While CN is focused on its recovery plan to get back to powering the economy, the Teamsters are focused on returning to the picket line and holding the country hostage to their demands," the railroad said.

CN last night had begun implementing a recovery plan to restore service.

The union has not yet responded to inquiries about its action today. The office of labour minister Steven MacKinnon declined to comment.

Rail operations at CN and CP stopped at 12:01am ET on Thursday after the union launched a strike at CPKC and both railroads locked out employees. That action ended late Thursday afternoon with the federal government directing the Canada Industrial Relations Board (CIRB) to manage binding arbitration on the railroads. CIRB, an independent agency, has not yet said if it will accept the government's order.

CN began moving some freight early on 23 August, but the new strike order issued soon by the union today could disrupt those plans. The union has also challenged the constitutionality of MacKinnon's order regarding CPKC operations pending the outcome of a new ruling by the CIRB.

CPKC's rail fleet remains parked in the meantime. CPKC said late Thursday it was disappointed in the minister's decision and sought to meet with CIRB to discuss resumption of service.

CPKC said the union "refused to discuss any resumption of service, and instead indicated that they wish to make submissions to challenge the constitutionality of the Minister's direction."

A case management meeting with CIRB occurred last night and another was scheduled for early today.

Hearings are also underway to address preliminary issues, the union said.

But the Teamsters said it was prepared to appeal the case to federal court if necessary.


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18/06/25

Israel-Iran conflict raises European middle distillates

Israel-Iran conflict raises European middle distillates

London, 18 June (Argus) — The continuing and escalating conflict between Israel and Iran is rallying European jet fuel and diesel values, due to fears of supply tightness. The rise in middle distillate values has outstripped those in crude in the past week, suggesting European jet fuel and diesel markets are pricing in the risk of substantial supply constraint arising from Israeli-Iranian tensions. This has not happened yet, with the conflict in a sixth day. Front-month Ice gasoil futures — the underlying value in Argus' European jet fuel and diesel assessments — settled at $731/t on Tuesday, 17 June, up by $45.75/t on the day. This was the highest settlement since 20 February, and the largest daily increase since the start of the Russia-Ukraine war in 2022. Argus priced cif northwest European jet fuel and fob ARA diesel at $789.75/t and $744.50/t on Tuesday, the highest assessments since January. Refining margins for cif northwest European jet fuel and diesel to North Sea Dated crude were $5.17/bl and $4.07/bl higher on the week, at $22.46/bl and $22.45/bl respectively, at Tuesday's close. This is the widest jet fuel crack in a year and the widest diesel crack since February. Although supply has not yet been affected, freight sources told Argus they expect Additional War Risk Premiums (AWRPs) in the Mideast Gulf to rise sharply in the coming days, which could weigh heavily on arbitrage economics to Europe and dissuade shippers from sending product to the region. Loadings of 10ppm diesel and jet totaled 430,000 b/d and 460,000 b/d respectively from ports in the Mideast Gulf in May, according to Kpler, or 11pc and 28pc of global daily loadings. With much of this heading to European destinations, the prospect for disruption is clear. Prompt supply concerns are also reflected through the difference between front- and second-month Ice gasoil futures contracts. The backwardation structure steepened from $9.75/t on Monday to $15/t at Tuesday close. Backwardation between the second- and third-month contracts stretched to $10/t on Tuesday, the widest since February. This suggests concern that supply issues could persist for several months. Europe was already facing unworkable diesel arbitrages for cargoes loading from east of Suez ports for northwest European destinations. Seasonal European jet fuel demand usually relies on supply from the Middle East, the largest jet fuel exporting region to Europe. By Amaar Khan and George Maher-Bonnett Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Контейнерные перевозки через Каспий дешевеют


18/06/25
18/06/25

Контейнерные перевозки через Каспий дешевеют

Riga, 18 June (Argus) — Стоимость транспортировки контейнеров по Транскаспийскому международному транспортному маршруту (ТМТМ) в мае снизилась относительно апреля. В июне цены на транспортировку снизятся в среднем еще на 6%, полагают перевозчики. Перевозки дешевеют третий месяц подряд на фоне возобновления и стабилизации транспортировки контейнеров из Китая по альтернативному маршруту через Красное море. В условиях растущей конкуренции перевозчики вынуждены предлагать более низкие цены на контейнерные поставки по комбинированному маршруту из Китая в Европу через Каспий, — полагают участники рынка. Скорость движения поездов несколько повышается в условиях снижения интенсивности контейнерных поставок, сообщили отраслевые источники. ________________ Больше ценовой информации и аналитических обзоров рынка транспортировки грузов в странах Каспийского региона и Центральной Азии — в отчете Argus Транспорт Каспия . Вы можете присылать комментарии по адресу или запросить дополнительную информацию feedback@argusmedia.com Copyright © 2025. Группа Argus Media . Все права защищены.

Banks increased fossil fuel financing in 2024: Report


18/06/25
18/06/25

Banks increased fossil fuel financing in 2024: Report

London, 18 June (Argus) — Banks "significantly increased" their fossil fuel financing in 2024, reversing a trend of steadily declining fossil fuel financing since 2021, a report from a group of non-profit organisations found this week. The 65 biggest banks globally committed $869bn in 2024 to "companies conducting business in fossil fuels", the report — Banking on Climate Chaos — found. Those banks committed $429bn last year to companies expanding fossil fuel production and infrastructure. The report assesses lending and underwriting in 2024 from the world's top 65 banks to more than 2,700 fossil fuel companies. Figures are not directly comparable year-on-year, as the previous report, which assessed 2023, covered financing from 60 banks. The 60 biggest banks globally committed $705bn in 2023 to companies with fossil fuel business, last year's report found. Those banks committed $347bn in 2023 to companies with fossil fuel expansion plans. Of the five banks providing the most fossil fuel finance in 2024, four were US banks — JP Morgan Chase, Bank of America, Citigroup and Wells Fargo. The 65 banks assessed in this year's report have committed $7.9 trillion in fossil fuel financing since 2016, when the Paris climate agreement took effect, the report found. Finance is at the core of climate negotiations like UN Cop summits. Developed countries are typically called upon at such events to provide more public climate finance to developing nations, but the focus is also shifting to private finance, as overseas development finance looks set to drop . But fossil fuel financing banks are increasingly facing the risk of targeted and more complex climate-related litigation, according to a recent report by the London School of Economics' centre for economic transition expertise (Cetex). Climate litigation is not currently adequately accounted for in financial risk assessment, with case filing and decisions negatively impacting carbon financiers, it said. "While early climate cases primarily targeted governments and big-emitting ‘carbon majors', cases against other firms have proliferated quickly," Cetex said. The report also showed that, based on a review of disclosures from 20 banks supervised by the European Central Bank, many banks across Europe recognise litigation risks as material in the context of climate and environmental factors but tend to not be specific about the risks incurred. By Georgia Gratton and Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Eurofer calls for 50pc quota tariff post safeguard


18/06/25
18/06/25

Eurofer calls for 50pc quota tariff post safeguard

New York, 18 June (Argus) — European steel association Eurofer has asked the European Commission to implement an out-of-quota tariff of 50pc in its post safeguard measure, while reducing duty-free volumes by 50pc, Italian steelmaker Arvedi chief executive Mario Arvedi Caldonazzo told the Global Steel Dynamics Forum in New York late yesterday. "We need to adopt a strict and severe trade defence measure," Caldonazzo said, adding that discussions with the commission were ongoing, and that it would publish a proposal on the measures that would replace the safeguard in mid-July. Eurofer, of which Caldonazzo is vice-president, wants these measures to come into play in January 2026, earlier than the planned lapse of the current safeguard mechanism in June 2026. Imports have reached as much as 30pc of total supply on some products, at much lower prices than domestic production. "The commission is aware this is the move that will determine the future of the European industry," he said. Eurofer hopes the commission will make its proposal regarding a melt-and-pour clause in September-October, and that scrap will be recognised as a critical raw material. Caldonazzo said the EU exports 20mn t of scrap that is transformed into steel products then sold back to Europe, and that more material being retained could help mills increase scrap usage and reduce their carbon footprint. The EU's carbon border adjustment mechanism (CBAM) also needs to be extended downstream to address the risk of circumvention, and also that "resource shuffling" is addressed. This is where mills use a portion of greener production to sell into the EU at a lower payable tax, while retaining more carbon intensive sales into other markets. "Without these measures the future will be very sad," Caldonazzo said, adding that the EU could just end up importing and re-rolling semi-finished steel. Lourenco Goncalves, the outspoken head of Cleveland-Cliffs, said in another presentation that the EU would eliminate its carbon emissions by ceasing to produce steel. Talks over the Global Arrangement on Sustainable Steel and Aluminum (GASA) should be restarted, building a free trade agreement between the US and EU, allowing both to expand trade on a duty and quota free basis, Caldonazzo said. This would be possible should the EU have similar trade defence measures to the US, such as a melt and pour. On the sidelines of the conference he told Argus there will be no recovery in the EU market this year, given the disparity between imports and domestic prices, and the very low level of demand. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

AWRP tanker insurance to jump in Mideast Gulf


18/06/25
18/06/25

AWRP tanker insurance to jump in Mideast Gulf

London, 18 June (Argus) — Additional War Risk Premiums (AWRP) in the Mideast Gulf could be set to rise sharply in the coming days in the wake of the Iran-Israel conflict, potentially pushing up freight rates, sources indicated to Argus , as the number of underwriters willing to commit at current levels appears to be shrinking. Offers from underwriters in line with last-done levels are becoming increasingly scarce, sources told Argus , with a number of underwriters now offering at significantly higher premiums. The situation is extremely fluid and even the higher offer levels are expected to climb in the coming days, sources said. One source suggested that tomorrow would be a trigger point to revise AWRP rates upwards for all oil and gas cargoes seeking Mideast Gulf cover and the new level would require "a massive uplift". AWRP cover protects a vessel against any physical loss or damage incurred from war related activities such as missile, drone or mine attacks, as well as capture, seizure or detainment. Although vessels are still able to secure AWRP in line with the standard 0.125pc for the Mideast Gulf before the conflict, participants have indicated that some offers are now at or above 0.2-0.4pc of the insured value of the vessel — hull and machinery value. Offers vary widely depending on the specifics of the vessel or providing insurer but several sources have indicated that some offers are at least 50pc higher than early last week. One source stressed that protection and indemnity (P&I) clubs have not yet made a definitive statement on insurance but there is increased alertness. P&I clubs provide marine protection and indemnity insurance for about 90pc of the world's oceangoing tonnage and are key determiners of the overall policies around marine insurance. AWRP in the Black Sea for a Russian crude cargo on a Suezmax tanker peaked at 1.5pc of the insured value of the ship according to Argus assessments, (around $800,000) in 2022 and 2023 as a result of the Russia-Ukraine conflict. Argus estimated that the insured value of a very large crude carrier (VLCC) at around $90mn, and a 0.4pc AWRP would equate to around $360,000. A shipowner could receive up to 50pc of this back as part of a no claims bonus but it remains a substantial extra cost faced by crude exporters from the Mideast Gulf. The Mideast Gulf to Asia-Pacific VLCC rate already jumped to the equivalent of $2.14/bl for Murban crude ($16.35/t or WS70) on 17 June from $1.34/bl ($10.28/t or WS44) on 12 June before the first missile strike on Iran. VLCC tankers carrying crude from the Mideast Gulf is the single largest crude trade in the world and since the start of the current conflict between Israel and Iran the cost of freight has bounced almost to a 2025-high from close to a 2025-low. A higher AWRP would most likely be passed on to charterers, leading to further gains in the spot freight market. There is also the likelihood that some insurers could cease offering cover citing inherent risks. But, higher AWRPs are also an opportunity for insurers to generate higher revenues, albeit with significant risks. By John Ollett, George-Maher Bonnett, and Rithika Krishna Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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