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US railroad-labor contract talks heat up

  • : Agriculture, Biofuels, Coal, Coking coal, Crude oil, Fertilizers, Metals, Oil products, Petrochemicals, Petroleum coke
  • 24/11/04

Negotiations to amend US rail labor contracts are becoming increasingly complicated as railroads split on negotiating tactics, potentially stalling operations at some carriers.

The multiple negotiating pathways are reigniting fears of 2022, when some unions agreed to new contracts and others were on the verge of striking before President Joe Biden ordered them back to work. Shippers feared freight delays if strikes occurred.

This round, two railroads are independently negotiating with unions. Most of the Class I railroads have traditionally used the National Carriers' Conference Committee to jointly negotiate contracts with the nation's largest labor unions.

Eastern railroad CSX has already reached agreements with labor unions representing 17 job categories, which combined represent nearly 60pc of its unionized workforce.

"This is the right approach for CSX," chief executive Joe Hinrichs said last month. Getting the national agreements on wages and benefits done will then let CSX work with employees on efficiency, safety and other issues, he said.

Western carrier Union Pacific is taking a similar path. "We look forward to negotiating a deal that improves operating efficiency, helps provide the service we sold to our customers" and enables the railroad to thrive, it said.

Some talks may be tough. The Brotherhood of Locomotive Engineers and Trainmen (BLET) and Union Pacific are in court over their most recent agreement. But BLET is meeting with Union Pacific chief executive Jim Vena next week, and with CSX officials the following week.

Traditional group negotiation is also proceeding. BNSF, Norfolk Southern and the US arm of Canadian National last week initiated talks under the National Carriers' Conference Committee to amend existing contracts with 12 unions.

Under the Railway Labor Act, rail labor contracts do not expire, a regulation designed to keep freight moving. But if railroads and unions again go months without reaching agreements, freight movements will again be at risk.


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24/12/10

Brazil's inflation accelerates to near 5pc in November

Brazil's inflation accelerates to near 5pc in November

Sao Paulo, 10 December (Argus) — Brazil's headline inflation accelerated to a 14-month high in November, led by gains in food and transportation, according to government statistics agency IBGE. The consumer price index (CPI) rose to an annual 4.87pc in November from 4.76pc in the previous month, IBGE said. Food and beverage costs rose by an annual 7.63pc in November, accounting for much of the monthly increase, following a 6.65pc annual gain in October. Beef costs increased by an annual 15.43pc in November following an 8.33pc annual gain for the prior month. Higher beef costs in the domestic market are related to the Brazilian real's depreciation to the US dollar, with the exchange rate falling to a record-low R6.11/$1 at the end of November. The stronger dollar leads producers to prefer exports over domestic sales. Beef prices rose by 8pc for the month alone. Soybean oil prices rose by 27.75pc over the year. Transportation costs, another major contributor to the monthly acceleration, rose by an annual 3.11pc in November after a 2.48pc gain in October. On a monthly basis, transportation costs rose by 0.89pc in November, reversing a contraction of 0.38pc in October. Housing costs rose by 4pc over the 12-month period. Brazil's central bank last month hiked its target rate to 11.25pc, its second increase off a low of 10.5pc between May and September, to try to head off a resurgence in inflation. It was at a cyclical peak of 13.75pc from August 2022 through July 2023 as it sought to tamp down the post-Covid-19 surge in inflation. Fuel prices rose by an annual 8.78pc in November after a 7.22pc gain in October. Motor fuel costs fell by 0.15pc in November compared with a 0.17pc drop in October — thanks to lower ethanol and gasoline prices. Diesel prices contracted by 2.25pc in the 12-month period. Power costs slowed to an annual 3.46pc in November following a 11.58pc gain in October. Electricity prices contracted by a monthly 6.27pc after a decrease in power tariffs on 1 November. Monthly inflation slowed to 0.39pc in November from 0.56pc in October. The central bank's inflation goal for 2024 is 3pc, with a margin of 1.5pc above or below. By Maria Frazatto and Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Mexico’s CRE lays off officials after reform


24/12/10
24/12/10

Mexico’s CRE lays off officials after reform

Mexico City, 10 December (Argus) — Mexico's energy regulatory commission (CRE) has dismissed high-ranking officials and other staff shortly after congress approved constitutional amendments to eliminate independent regulators, market sources said. At least two unit chiefs — the heads of the legal and hydrocarbons units — were let go in recent days, sources with close knowledge of the matter told Argus . These positions are now marked as vacant in the CRE's online directory. In addition, seven subunits within the hydrocarbons division — overseeing natural gas, fuel and LPG markets, including storage and transportation — also appear vacant. The CRE did not respond to requests for comment. The CRE's commissioner president Leopoldo Melchi has designated Guadalupe Hernandez, a legal official in the hydrocarbons undersecretary at the energy ministry (Sener), to oversee certain functions, a source said. The layoffs are also expected to extend to the electricity unit, including its chief, Francisco Varela, according to market sources. Yet, these positions are still listed as filled in the online directory. These dismissals follow congress' approval of constitutional amendments to dismantle seven independent regulators, including the CRE and hydrocarbons regulator CNH. While the regulators will continue operating until laws implementing these changes are enacted — expected by early 2025 — the finance ministry has proposed a 33pc budget cut for the CRE and CNH in 2025. Some recent departures are linked to commissioner Luis Linares, who announced in November that he will step down on 1 January 2025. But the recent layoffs may signal a broader restructuring of the energy regulator. Under the amendments, the CRE's functions will be absorbed by a new office within Sener. The specifics of this transition will depend on the upcoming legal framework. Industry experts and companies are calling for the new regulatory bodies to retain technical independence and sufficient funding to oversee energy markets effectively, even after the constitutional changes. By Édgar Sígler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Moselle river crash to have limited impact on AM


24/12/10
24/12/10

Moselle river crash to have limited impact on AM

London, 10 December (Argus) — A collision at a lock gate in the river Moselle near the German-Luxembourg border will have a limited impact on nearby steelmaker ArcelorMittal, the company said, despite ship transportation likely to be disrupted for months. On Sunday 8 December, a vessel carrying 1,500t of scrap metal en route to Mertert, Luxembourg, collided with and broke the lock gate at Muden, southwest Germany. The accident has resulted in the halting of continuous shipping traffic on the Moselle, the German Waterways and shipping Authority (WSA) said. ArcelorMittal said the accident should have a limited impact on its Luxembourg business, and is currently working on alternative short-and-medium term transport solutions to offset disruptions caused to incoming and outgoing flows. "To date, only 10pc of scrap supplies to ArcelorMittal's electric furnaces in Luxembourg and 10pc of shipments pass through the port of Mertert," the steelmaker said. Work is already under way by the authorities to mend the broken lock, but it is estimated repairs will not be completed until March 2025. Under WSA estimates around 70 vessels are stuck in that area of the Moselle up to the French border, no longer able to leave the Moselle valley towards the Rhine. Authorities also said they are looking at ways to release the trapped ships so they can leave the river in the direction of the Rhine. A meeting is scheduled for Wednesday to discuss whether this could be done, the WSA added. Gummed vessels and halted shipping transportation along the Moselle will probably have some impact on scrap metal transport logistics in the region, market participants told Argus . The Moselle is a main waterway to Luxembourg with metal transported via barges. Large scrap metal recycler Theo Steil operates one of its larger yards in Trier, a town in southwestern Germany, which the Moselle runs through. By Corey Aunger Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Norway to end new international fossil fuel financing


24/12/10
24/12/10

Norway to end new international fossil fuel financing

London, 10 December (Argus) — Norway will from January no longer provide public finance for new unabated international fossil fuel projects, in line with a commitment it made in December last year. Norway's export credit agency, Eksfin, provides most of the country's financing for overseas fossil fuel projects. Eksfin provided between 8.78bn Norwegian kroner and 10.98bn NKr ($786mn- 983mn) over July 2021-June 2023 for fossil fuel projects, civil society organisation Oil Change International found. Norway signed the Clean Energy Transition Partnership (CETP) at the UN Cop 28 climate summit in 2023. The CETP aims to shift international public finance "from the unabated fossil fuel energy sector to the clean energy transition". The CETP, which now has 41 signatories, was launched at Cop 26 in 2021, with an initial 39 signatories including most G7 nations and several development banks. Signatories commit to ending new direct public support for overseas unabated fossil fuel projects within a year of joining. Abatement, under the CETP, refers to "a high level of emissions reductions" through operational carbon capture technology or "other effective technologies". It does not count offsets or credits. Australia, which also signed the CETP at Cop 28, said last week that it would no longer finance overseas fossil fuel projects. "Norway is also working to introduce common regulations for financing fossil energy within the international main agreement for state export financing in the OECD", the Norwegian government said today. Norway's policy "helps increase momentum" for an OECD deal that could end $41bn/yr in oil and gas export financing, Oil Change said. Countries are involved in "final negotiations" on the deal today, Oil Change added. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Opec+ crude output rises in November


24/12/10
24/12/10

Opec+ crude output rises in November

London, 10 December (Argus) — Opec+ members subject to targets increased their collective crude output by 150,000 b/d in November, marking the alliance's first monthly production rise since March, Argus estimates. Although output increased to 33.55mn b/d last month, it was still 3.97mn b/d below the level the group was producing at when it announced the first of its current round of cuts in October 2022. It was also 300,000 b/d below the group's collective production target for the month. November's increase was mainly driven by Kazakhstan, where output was boosted by the restart of the 400,000 b/d Kashagan project following maintenance in October. Kazakh production rose by 220,000 b/d to 1.56mn b/d last month, leaving the country 90,000 b/d above its official production target. Kazakhstan has been one of the group's biggest overproducers this year, alongside Iraq and Russia. It has repeatedly pledged to compensate for exceeding its targets but has so far largely failed to deliver. Iraq — the group's largest overproducer — has made progress in recent months in reducing its production. Its output in November was again 20,000 b/d below its target at 3.98mn b/d, the same as in October. But it will need further reductions if it is to fully compensate for past overproduction. Compliance with output targets is a key measure of group discipline and crucial to the success of Opec+ production policy. Argus calculates that eight members of the coalition have produced above their targets on average between January and October of this year. Opec+ producers agreed earlier this month to push back a plan to start unwinding 2.2mn b/d of voluntary cuts by three months to April 2025 and agreed to return the full amount over 18 months rather than a year. Last month's production increase by the entire group — including quota-exempt Iran, Libya and Venezuela — was 350,000 b/d, with total output at 39.03mn b/d. This was mainly driven by Libya, which increased its output by 160,000 b/d to 1.24mn b/d as it continued to ramp up after emerging from a partial oil blockade in early October. Iran's output rebounded by 60,000 b/d to 3.36mn b/d. By Aydin Calik Opec+ crude production mn b/d Nov Oct* Nov target† ± target Opec 9 21.12 21.18 21.23 -0.11 Non-Opec 9 12.43 12.22 12.62 -0.19 Total 33.55 33.40 33.85 -0.30 *revised †includes additional cuts where applicable Opec wellhead production mn b/d Nov Oct* Nov target† ± target Saudi Arabia 8.93 8.95 8.98 -0.05 Iraq 3.98 3.98 4.00 -0.02 Kuwait 2.40 2.43 2.41 -0.01 UAE 2.97 2.93 2.91 0.06 Algeria 0.91 0.91 0.91 0.00 Nigeria 1.40 1.42 1.50 -0.10 Congo (Brazzaville) 0.25 0.27 0.28 -0.03 Gabon 0.22 0.23 0.17 0.05 Equatorial Guinea 0.06 0.06 0.07 -0.01 Opec 9 21.12 21.18 21.23 -0.11 Iran 3.36 3.30 na na Libya 1.24 1.08 na na Venezuela 0.88 0.90 na na Total Opec 12^ 26.60 26.46 na na *revised †includes additional cuts where applicable ^Iran, Libya and Venezuela are exempt from production targets Non-Opec crude production mn b/d Nov Oct* Nov target† ± target Russia 8.97 8.97 8.98 -0.01 Oman 0.76 0.76 0.76 0.00 Azerbaijan 0.48 0.48 0.55 -0.07 Kazakhstan 1.56 1.34 1.47 0.09 Malaysia 0.33 0.33 0.40 -0.07 Bahrain 0.17 0.18 0.20 -0.03 Brunei 0.08 0.08 0.08 0.00 Sudan 0.02 0.02 0.06 -0.04 South Sudan 0.06 0.06 0.12 -0.06 Total non-Opec 12.43 12.22 12.62 -0.19 *revised †includes additional cuts where applicable Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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