Tuesday, May 28, 2019
Southwest declined to discuss the expense, but one industry veteran said such sojourns run about US$2,000 a month for each plane, which is small but critical cost amid Boeing's many looming financial penalties.The attention lavished now on the planes will help determine how fast the Max get back in the air once a worldwide grounding is lifted."Planes are meant to be flying and being used," said Tim Zemanovic, who used to own an Arizona storage park and estimated monthly storage costs, which include labour and materials. "You've got to keep them that way even when they're in storage."The constant care extends to almost 500 grounded Max planes around the world, a total that includes about 100 factory-fresh jets that can't be delivered to customers because of the flying ban, which began in March after the second deadly crash in five months. Managing aircraft upkeep on such a scale is unprecedented, as Boeing grapples with a crisis that has already lopped $41.5 billion off its market value.The maintenance costs are just the start of Boeing's financial exposure. The Chicago-based aircraft manufacturer also faces an estimated $1.4 billion bill for airlines' cancelled flights and lost operating profit if the Max fleet is still grounded by the end of September, said Bloomberg Intelligence analyst George Ferguson.Boeing's inventory could balloon by nearly $12 billion by the end of September if regulators don't act and 737 production continues at the current pace, Mr Ferguson said."They can't keep building and parking planes indefinitely," he said. "We don't think it will get to that, but it's going to take a lot of cash to park those in the desert."
Air China and China Southern Airlines have filed formal claims with Boeing, according to the carriers' representatives. China Eastern Airlines said it had sought compensation, stating that the suspension has caused big losses that continue to widen.The "big three" state-run carriers operate 53 of the 96 Max planes now lying idle in the country, according to data from local aviation statistics provider VariFlight. They also account for 65 per cent of passengers who flew Chinese airlines in 2018, according to the Civil Aviation Administration of China."The 737 MAX aircraft have been grounded globally for security concerns and the technical problems have yet to be solved," Ministry of Foreign Affairs spokesman Lu Kang said in Beijing when asked about China Eastern's claim. "A company can claim its legitimate rights."The back-to-back claims could give the airlines leverage to gain concessions as China's influence in the aviation world soars. The country was the first major authority to ground the top-selling Max in March, disregarding the views of the US authority at the time that the plane was safe to fly.Other Chinese carriers including Xiamen Airline, Hainan Airlines, Shenzhen Airlines and Shandong Airlines have also taken delivery of the Max, while Ruili Airlines, Donghai Airlines and Okay Airways are awaiting their first jets.It's uncertain when the Max might return to service. US aviation regulators expect to receive Boeing's proposed software fix for the aircraft soon and will then begin a review that will include test flights and input from a technical advisory board, reports Bloomberg.
Passenger traffic inched up 2.8 per cent year on year with the airport handling 5.58 million passenger movements in April, reports Mumbai's STAT Trade Times.The airport said through a statement: "For the month of April, passenger traffic growth was recorded for all regions, except for South Asia. Among Changi's top 10 markets, Australia led the gainers, with an 8 per cent year-on-year increase in passenger movements."
The develoment has sparked criticism that it breaches Australian, American and United Nations' international sanctions against the Burmese regime."Adani rejects insinuations that this investment is unethical or will compromise human rights," the group said in a statement. "As with all its international investments, the Adani Group has been guided by the Securities and Exchange Board of India and other key international guidelines and will inform the concerned authorities when we firm up the agreements."The land where the port is proposed to be built has been leased from the Myanmar Economic Corporation (MEC)."An Adani Group company, the Adani Yangon International Terminal Co, has received approval from the Myanmar Investment Commission for an investment in a new container port in the Yangon Region," the company said in a statement without giving details of the investment it is going to make in developing the terminal to receive containers sailing on ships.Adani operates five ports in India including Mundra and Hazira in Gujarat and has three terminals at ports in Murmugao, Vishakhapatnam and Tuna-Tekra. It is building a container terminal at Ennore in Tamil Nadu and Vizinjham port in Kerala. It also has a port in Australia.
Presidential spokesman Salvador Panelo said at a news conference that President Duterte is "outraged" by Canada's inaction in collecting the tonnes of waste that Canada shipped to the Philippines from 2013 to 2014."President Duterte is upset about the inordinate delay of Canada in shipping back its containers of garbage. We are extremely disappointed with Canada's neither here nor there pronouncement on the matter," Mr Panelo told reporters.The Canadian garbage has been sitting in the Philippines for about six years. In 2013 and 2014, a private Canadian firm exported 103 shipping containers of garbage to the Philippines. Thirty-four of the containers were already disposed of while 69 are now quarantined in ports in Manila and Subic Freeport north of Manila.The Philippine Bureau of Customs (BOC) found the containers were consisting of household trash, plastic bottles and bags, newspapers, and used adult diapers, according to local media reports.
He also praised the administration's removal of all retaliatory tariffs imposed on American goods by those countries, reports AJOT."Trucking and trade are synonymous, and this decision by President Trump is a huge step toward achieving a vital national priority - ratification of the United States-Mexico-Canada Agreement."The more than seven million Americans in the trucking industry cheer this decision and will work hard to see ratification of this critically-needed modernisation of trade policies with our neighbours to the North and South," Mr Spear added.
These numbers are being driven by impacts on specific commodities, such as: soybean exports - 69 per cent lower in 2018 than in 2017; seafood exports - down 36 per cent; dairy exports - down 41 per cent; apple exports - down 26 per cent; and exports of fresh cherries - down 33.4 per cent.NWSA, aka SeaTac, handled agricultural exports of just under US$5 billion in 2017. In 2018, it was just shy of $3.5 billion. Agricultural exports dropped from 224,000 TEU in 2017 to 169,000 TEU in 2018.Agricultural exports at NWSA had been growing for five years "until they took a wrong turn" last year, said Tong Zhu, NWSA's chief commercial officer. Allowing that a strong dollar contributed to suppressed export levels, she said: "I can't be convinced that was driven mainly by currency rates."At the Port of Oakland, another major agricultural exporting gateway, outbound cargo was also down in 2018, although it saw surprising upticks in March and April of this year. It suggests Chinese importers were loading up on commodities in advance of a tariff hike much as US importers did late last year."The broad assumption is that retaliatory tariffs will have a negative impact on the agricultural sector," said Oakland port spokesman Mike Zampa. "We have been worried about this since the dispute arose and we really hope this thing gets resolved.""We have been shipping a lot of empties back to Asia," said Mr Zampa, noting that this has also been due to the surge of imports Oakland has seen over the last six months.The US agricultural sector is particularly vulnerable to disruptions in international trading patterns, because, as Peter Friedmann, executive director of the Agriculture Transportation Coalition, said: "Nothing we produce in agriculture or in forest products can't be sourced somewhere else in the world. And if we don't deliver affordably and dependably," he said, "our foreign customer will go elsewhere to buy".
The move on industrial subsidies is expected to top the agenda at meetings between trade ministers from the three economies in Paris this week. It's part of an effort to modernise global trade rules that the US and others claim have failed to address China's rise as a global economic power.If the talks advance, people close to the discussions say, they would become the most significant attempt to rewrite WTO rules since the ultimately unsuccessful Doha Round of trade negotiations was launched in 2001.US Trade Representative Robert Lighthizer is due to meet his European Union counterpart, Cecilia Malmstrom, and Japan's Hiroshige Seko on the sidelines of an OECD meeting. People close to the negotiations caution that the three have not yet fully agreed on how to proceed or on when and whether to include China in the discussions.But they have agreed to begin opening the discussions to other World Trade Organization members with Australia, Canada, Norway and Taiwan, with all said to be interested, Bloomberg reported.The goal, according to people close to the discussions, is to pursue a negotiation among a small group of nations that might eventually be opened to the WTO's broader membership. Such "plurilateral" negotiations have become common at the WTO in recent years and are seen by some members as a way around the institution's cumbersome negotiating rules, which require consensus among all 164 members.An agreement on industrial subsidies, though it could still take years to negotiate, would be consequential. According to researchers at the Global Trade Alert, which tracks subsidies around the world, roughly 64 per cent of global exports compete with subsidised rivals. In 2017 that trade would have been worth US$11.3 trillion.About 17 per cent of trade around the world has been hit by tariff increases as a result of tariff wars of the past year.The US, EU and Japan published a scoping paper a year ago that called for "clarified and improved" WTO rules on industrial subsidies to "ensure that certain emerging developing members do not escape its application."Among their goals is crafting new rules that would require timely notification of subsidies to the WTO and a clearer definition of what constitutes a "public body," with the US eager to see state-owned banks included.A key question is whether and how to encourage the participation of China. Targeting Beijing's state-led industrial policies has been a priority for the Trump administration, which blames China for the decline in America's manufacturing base over the past decade and a half.In its latest review of the Chinese economy, the WTO said the state retains a majority share in all but one of China's 100 largest publicly listed companies.
An inauguration was held for the Magenta Singapore Terminal, a joint venture terminal between Ocean Network Express (ONE) and PSA Singapore (PSA), to operate four mega container berths at Pasir Panjang Terminal with a combined annual handling capacity of four million TEU.This strategic long term partnership was announced in December 2018, to provide capacity and scale of operations in meeting ONE's needs of establishing Singapore as its transshipment hub in Southeast Asia.The Magenta Singapore Terminal is named after ONE's distinctive brand identity and the inauguration also saw ONE'S 14,000 TEU-class magenta containership berthed at the new joint venture terminal.
"We have as a company a long history of not being disciplined on our capex [capital expenditure], but now we are focusing on capex," said Mr Skou, reported New York's FreightWaves.In recent months the company has maintained a tight rein on capital expenditure over the past year with no large terminal projects or costly new ships ordered and this policy will continue until at least 2020, said the company.The group's chief holding, the container carrier Maersk Line with its four million TEU capacity, expects trade to grow one to three per cent this year."The moderation of container demand growth reflects a broad-based slowdown in all the main economies, following the recovery of 2016 and 2017, as well as negative effects from fast-forwarding of US imports in the fourth quarter 2018 when retailers prepared for a tariff hike," Maersk said in a statement.Even though the company had a strong start to the year with revenue up 2.5 per cent and operating profit increasing a third, Mr Skou reaffirmed earlier caution stated about 2019 results."We are still facing considerable uncertainties from weaker macro numbers as well as the risk from trade tensions" and the implementation of the International Maritime Organisation's 2020 mandate for reducing sulphur emissions from ships, he said.