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Draught limits tighten on lower Mississippi River

  • : Coal, Fertilizers, Freight, Oil products, Petroleum coke
  • 24/09/23

The US Coast Guard (USGC) placed further restrictions on traffic on the lower Mississippi River as water levels continue to deteriorate.

The USCG on 22 September announced that all northbound traffic cannot have draught deeper than 9.5ft from Tunica, Louisiana, to Greenville, Mississippi. For Greenville to Tiptonville, Mississippi, barges must remain above a 9ft draught, the shallowest draught channel allowed for the lower Mississippi River by the US Army Corps of Engineers.

All northbound transit also cannot load more than four barges wide or configure more than five barges wide.

Southbound traffic from Tiptonville to Greenville cannot be more than six barges wide or deeper than 9.5ft. Greenville to Tunica southbound barges can load as deep as 10ft but cannot be more than seven barges wide.

All locations between Cairo, Illinois, and Greenville fell back to their low water threshold over the weekend as rainfall from Hurricane Francine flowed down the river.

More grain has moved downriver this year compared with last year as the US Department of Agriculture (USDA) expects higher US grain exports in the 2024-25 marketing year. Around 367,000 short tons of grain moved for the week ended 14 September, which is about double the same period a year earlier, the USDA said. Both south and northbound movement is expected to see a heavier pace in October.


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VLCC rates exposed to disruption after Israeli strike


25/06/13
25/06/13

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


25/06/13
25/06/13

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.

Strikes raise risk to Mideast diesel, naphtha flows


25/06/13
25/06/13

Strikes raise risk to Mideast diesel, naphtha flows

London, 13 June (Argus) — Israeli missile strikes on Iran in the early hours of Friday have heightened the risk of disruption to clean tanker shipping from the Mideast Gulf, particularly for diesel heading to Europe and naphtha bound for east Asia. Around a fifth of Long Range (LR) vessels and 7pc of the Medium Range and Handysize trading fleet are located in the Mideast Gulf at any given time. The region is the main supplier of diesel to Europe and a key source of naphtha for east Asia. Several shipowners said they will be more cautious about booking cargoes from the region, especially if the conflict deepens. Some market participants suggested regional freight rates could spike to levels seen after the start of the war in Ukraine in 2022 or the first Houthi attacks in the Red Sea in 2023. During a similar flare-up between Iran and Israel in April last year, freight rates rose as fewer shipowners were willing to transit the strait of Hormuz. Long Range 2 (LR2) rates from the Mideast Gulf to the UK Continent peaked at a lump sum of $6.4mn on 18 April, up from $4.8mn a week earlier. Long Range 1 (LR1) rates also climbed, reaching $4.9mn by 26 April from $4.2mn on 12 April. Medium Range rates surged to $3.75mn on 26 April, up from $3.1mn on 5 April The usual summer slowdown in freight rates may temper a similar spike this time. But if hostilities intensify, more shipowners are likely to avoid loading in the Mideast Gulf. The region is one of the world's largest exporters of refined products, with around 3mn b/d of the global 25mn b/d of seaborne oil product exports passing through the strait of Hormuz. A loss of oil product supply from the Mideast Gulf would push key importers to seek alternative sources, increasing tonne-miles. But this could be offset by a drop in trade volumes, which would weigh on vessel demand. Another key risk is the potential introduction of an additional war risk premium (AWRP) for the region. This would complicate clean product exports from the Mideast Gulf, although Iranian volumes would be unaffected, as Iranian exporters do not rely on western marine insurance and would not be subject to the premium. Tensions between Iran and Israel have flared several times in recent years but have not caused prolonged disruption to trade flows. Market participants noted that while the closure of the strait of Hormuz — through which 20pc of global oil trade passes — remains a possibility, it is seen as unlikely, as it would severely hamper Iran's own exports. By Erika Tsirikou 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


25/06/13
25/06/13

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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