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<div class="phx-topic abstract-wrapper">Quotations are offered rates of New York city banks relating to currency transfers of $1 million or </div>

Quotations are offered rates of New York city banks relating to currency transfers of $1 million or

<div>Quotations are offered rates of New York city banks relating to currency transfers of $1 million or larger. Foreign currency values are expressed in terms of currency units per dollar unless otherwise noted. To obtain the comparable dollar value, for those rates not quoted in dollars, divide into one. For example, when one U.S. dollar buys 6.9075 French francs, one dollar divided by 6.9075 francs equals $.1448 or 14.48 U.S. cents per franc.Friday, October 17, 1986Fri. Thu.U.K. (Pound) 1.4305 1.439030 days 1.4240 1.432760 days 1.4167 2.426190 days 1.4110 1.4203CANADA (Dollar) 1.3896 1.390030 days 1.3923 1.392760 days 1.3953 1.395890 days 1.3985...

Quotations are offered rates of New York city banks relating to currency transfers of $1 million or larger. Foreign currency values are expressed in terms of currency units per dollar unless otherwise noted. To obtain the comparable dollar value, for those rates not quoted in dollars, divide into one. For example, when one U.S. dollar buys 6.9075 French francs, one dollar divided by 6.9075 francs equals $.1448 or 14.48 U.S. cents per franc. Friday, October 17, 1986Fri. Thu. U.K. (Pound) 1.4305 1.4390 30 days 1.4240 1.4327 60 days 1.4167 2.4261 90 days 1.4110 1.4203 CANADA (Dollar) 1.3896 1.3900 30 days 1.3923 1.3927 60 days 1.3953 1.3958 90 days 1.3985 1.3989 NETHERLANDS (Guilder) 2.2325 2.2350 30 days 2.2313 2.2337 60 days 2.2302 2.2328 90 days 2.2291 2.2318 SWITZERLAND (Franc) 1.6175 1.6195 30 days 1.6136 1.6157 60 days 1.6105 1.6125 90 days 1.6091 1.6110 W. GERMANY (Mark) 1.9750 1.9765 30 days 1.9723 1.9739 60 days 1.9699 1.9713 90 days 1.9679 1.9694 FRANCE (Franc) 6.4690 6.4745 30 days 6.4805 6.4880 60 days 6.4940 6.5030 90 days 6.5090 6.5195 JAPAN (Yen) 154.25 154.22 30 days 154.05 154.02 60 days 153.91 153.88 90 days 153.81 153.80 OTHER EUROPEAN Fri. Thu. AUSTRIA (Shilling) 1389.00 1389.00 xBELGIUM (Franc) 41.0400 41.0900 zBELGIUM (Franc) 41.4000 41.4500 DENMARK (Krone) 7.4460 7.4485 GREECE (Drachma) 133.55 133.20 Fri. Thu. ITALY (Lira) 1367.50 1368.50 NORWAY (Krone) 7.2860 7.2820 PORTUGAL (Escudo) 145.65 145.50 SPAIN (Peseta) 131.45 131.15 SWEDEN (Krona) 6.8195 6.8150 ASIAN AND OTHER COUNTRIES AUSTRALIA (Dollar) .6385 .6401 HONG KONG (Dollar) 7.7955 7.7980 INDIA (Rupee) 12.74 12.74 ISRAEL (Shekel) 1.4850 1.4850 KUWAIT (Dinar) .29135 .29137 LEBANON (Pound) 45.75 45.75 MALAYSIA (Ringgit) 2.6175 2.6200 NEW ZEALAND (Dollar) 49.80 50.30 PAKISTAN (Rupee) 17.0000 17.0000 PHILIPPINES (Peso) 20.30 20.30 SAUDI ARABIA (Riyal) 3.7503 3.7503 SINGAPORE (Dollar) 2.1710 2.1700 SOUTH AFRICA (Rand) 44.60 44.65 LATIN AMERICA ARGENTINA (Austral) 1.0830 1.0830 BOLIVIA (Peso) 1925000.00 1925000. BRAZIL (Cruzado) 13.77 13.77 CHILE (Peso) 190.00 190.00 COLOMBIA (Peso) 205.56 205.56 MEXICO (Peso) 799.00 794.00 PERU (Inti) 13.95 13.95 URUGUAY (Peso) 161.50 161.50 VENEZUELA (Bolivar) 21.70 22.85 GOLD P rice per oz. Fri. Thu. LONDON, 2nd fixing 419.25 425.50 x-Commercial rate z-Financial rate. These currencies are expressed in dollar price per unit. CUSTOMS RATES Federal Reserve Bank of New York certified buying rates for certain foreign currencies to be used for customs purposes or appropriate cases. Friday, (noon), October 17, 1986 Country Rate AUSTRALIA (Dollar) .6378 AUSTRIA (Shilling) 13.8900 BELGIUM (Franc) 41.03 BRAZIL (Cruzado) 14.09 CANADA (Dollar) 1.3903 CHINA (Yuan) 3.7240 DENMARK (Krone) 7.4490 FINLAND (Markka) 4.8450 FRANCE (Franc) 6.4700 GERMANY (Mark) 1.9750 GREECE (Drachma) 133.70 HONG KONG (Dollar) 7.7975 INDIA (Rupee) 12.84 IRELAND (Pound) 1.3775 ISRAEL (Shekel) N.A. ITALY (Lira) 1368.00 JAPAN (Yen) 154.23 MALAYSIA (Ringgit) 2.6200 Country Rate MEXICO (Peso) 782.00 NETHERLANDS (Guilder) 2.2320 NEW ZEALAND (Dollar) .4970 NORWAY (Krone) 7.2950 PHILIPPINES (Peso) N.A. PORTUGAL (Escudo) 142.80 SINGAPORE (Dollar) 2.1735 SOUTH AFRICA (Rand) .4465 SOUTH KOREA (Won) 887.60 SPAIN (Peseta) 131.48 SRI LANKA (Rupee) 2.3875 SWEDEN (Krona) 6.8270 SWITZERLAND (Franc) 1.6210 TAIWAN (Dollar) 36.64 THAILAND (Baht) 26.08 UNITED KINGDOM (Pound) 1.4315 VENEZUELA (Bolivar) N.A. Value in U.S. dollar. Commercial.

FOREIGN EXCHANGE

<div class="phx-topic abstract-wrapper">Forcing liners to wait for the 30-day notice period to end before implementing war-related surcharges reflects a multi-year ascendency of shipper influence in Washington and the corresponding decline in carrier heft, writes Peter Tirschwell.</div>

Forcing liners to wait for the 30-day notice period to end before implementing war-related surcharges reflects a multi-year ascendency of shipper influence in Washington and the corresponding decline in carrier heft, writes Peter Tirschwell.

Feature image

<div class="phx-topic">The <a href="https://www.joc.com/article/fmc-rejects-requests-by-carriers-to-waive-waiting-period-for-middle-east-surcharges-6191881">unanimous rejection by the US Federal Maritime Commission (FMC)</a> of ocean carriers’ desire to waive the 30-day notice period for imposing emergency surcharges due to the war in the Middle East is a reminder of how US shipping politics have turned hostile to carriers’ interests. Carriers were accused by FMC Chairperson Laura DiBella of lacking transparency in justifying the surcharges. “An assertion that there are increased costs, without any data on what those costs are, how long they may last, and what steps the carrier is taking to mitigate them, is insufficient in demonstrating good cause,” DiBella said. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6195098_0.1.jpg"></img></div>Her comments gave voice to decades of shipper frustration with opaque carrier surcharges and suspicion that the fees are revenue generators meant to offset weak freight rates, rather than a tool to pass along costs. Whereas the FMC in an earlier era would most likely have sided with carriers, accepting the premise of higher costs that need to be offset, this time — reflecting a multi-year ascendency of shipper influence in Washington and the corresponding decline in carrier influence — there was little to lose by rejecting the waiver requests made by CMA CGM, Hapag-Lloyd, Maersk and Zim Integrated Shipping Services. The action drew praise from agricultural exporters, whose Washington representative Peter Friedmann said he was “shocked by the manner in which these requests were drafted, the disrespect shown to carriers’ customers, and even to the [FMC].” Though the practical effect of the FMC’s move will end up being limited because the war-related surcharges will be allowed to take effect in early April, the reminder of how shipping politics have fundamentally shifted in Washington was stark. Lost in the dialogue around the requested surcharge waiver was the reality of increased fuel and other costs due to the war. The conflict has raised Hapag-Lloyd’s operating costs by $40 million to $50 million per week, <a href="https://www.joc.com/article/war-adding-40-50-million-per-week-to-hapag-lloyds-costs-ceo-6193532">CEO Rolf Habben-Jansen said last week</a>. “To counterbalance that, we have introduced a number of contingency and emergency fuel surcharges,” he said. “This is not to collect more than the extra costs, but an extra cost of $40 million or $50 million per week is not something that you can sustain for very long.” <h3>Little sympathy in US for carriers </h3>A lack of sympathy for carriers runs deep in the US. Few shed any tears, for example, for carriers incurring the world’s highest container handling costs, reflecting generous longshore labor contracts on both coasts, or the US being one of the only countries where carriers can’t recoup those costs through a terminal handing charge, or THC. Even the FMC <a href="https://www.fmc.gov/articles/commissioner-dye-releases-final-report-for-fact-finding-no-29/">concluding</a> in 2022 that the COVID-era rate increases resulted from port congestion and strong demand, not carrier collusion, failed to assuage many shippers who took financial hits due to shipping disruption, and blamed carriers as a result. The political shift behind the FMC’s rejection of the carriers’ waiver requests was years in the making. With the demise of US-flag carriers APL, Sea-Land Service Inc., United States Lines, and others that for decades anchored a strong carrier presence in Washington, carriers have been left essentially without friends in Washington. The 2022 Ocean Shipping Reform Act (OSRA-22), the first shipping legislation signed into law in nearly a quarter century, was passed over the objections of the World Shipping Council (WSC), the carriers’ trade group, in contrast to earlier legislation in 1984 and 1998 that would not have passed without the carriers’ sign off. Even port authorities, for whom carriers are customers, supported the 2022 law. Carriers’ criticism that the 2022 law failed to address the root landside causes of the COVID disruption were all but ignored amid the focus on detention and demurrage — a longtime shipper grievance — and wave of anti-carrier sentiment during COVID, <a href="https://www.worldshipping.org/news/world-shipping-council-statement-on-congressional-passage-of-the-ocean-shipping-reform-act">leaving the WSC to say</a> “we are appalled by the continued mischaracterization of the industry.” In rejecting carriers’ surcharge waiver last week, moreover, the FMC incurred virtually no risk in potentially alienating carriers. <h3>‘Global’ carriers need US market </h3>Despite whatever hardships carriers face when operating in the US — including being harshly disparaged by US presidents, union officials and legislators, as well as being forced into accepting a whopping 62% wage increase for East Coast dockworkers in the fall of 2024 — major carriers are highly unlikely to walk away from the US. In other words, the risk remains minimal that the US controlling a mere half of 1 percent of global shipping, <a href="https://www.heritage.org/military-strength/assessment-us-military-power/us-merchant-marine">according to the Heritage Foundation</a>, would come back to haunt the country in the form of vital trade connections being severed by the loss of carrier services. Industry veterans can recall of no instance when an established east-west carrier withdrew from the US trades for reasons other than mergers, acquisition or bankruptcy. That dependence might explain the FMC’s longtime hesitation to go after carriers in ways that would truly hurt, like rejecting proposed alliances or mergers. Arguing against the possibility of carriers withdrawing US services, the major carriers are increasingly global — the top 10 control a record 85% of the global fleet, according to Alphaliner — a figure that will grow if Hapag-Lloyd succeeds in closing on its acquisition of Zim. As the world’s largest economy and consumer market, the US is core to carrier networks. “It’s hard to do global tenders if you don’t have a presence here,” said George Goldman, who led CMA CGM and Zim in the US following a lengthy career at APL. “You basically can’t call yourself a global carrier if you don’t operate in the US.” Another reason carriers would likely never walk away from the US is their substantial and growing landside investments, especially in terminals, with carriers only seeking further opportunities to expand their US terminal footprints. As Goldman said, the US is viewed by carriers as “the land of opportunity.” Contact Peter Tirschwell at <a href="mailto:peter.tirschwell@spglobal.com">peter.tirschwell@spglobal.com</a>. </div>

The unanimous rejection by the US Federal Maritime Commission (FMC) of ocean carriers’ desire to waive the 30-day notice period for imposing emergency surcharges due to the war in the Middle East is a reminder of how US shipping politics have turned hostile to carriers’ interests. Carriers were accused by FMC Chairperson Laura DiBella of lacking transparency in justifying the surcharges. “An assertion that there are increased costs, without any data on what those costs are, how long they may last, and what steps the carrier is taking to mitigate them, is insufficient in demonstrating good cause,” DiBella said. Her comments gave voice to decades of shipper frustration with opaque carrier surcharges and suspicion that the fees are revenue generators meant to offset weak freight rates, rather than a tool to pass along costs. Whereas the FMC in an earlier era would most likely have sided with carriers, accepting the premise of higher costs that need to be offset, this time — reflecting a multi-year ascendency of shipper influence in Washington and the corresponding decline in carrier influence — there was little to lose by rejecting the waiver requests made by CMA CGM, Hapag-Lloyd, Maersk and Zim Integrated Shipping Services. The action drew praise from agricultural exporters, whose Washington representative Peter Friedmann said he was “shocked by the manner in which these requests were drafted, the disrespect shown to carriers’ customers, and even to the [FMC].” Though the practical effect of the FMC’s move will end up being limited because the war-related surcharges will be allowed to take effect in early April, the reminder of how shipping politics have fundamentally shifted in Washington was stark. Lost in the dialogue around the requested surcharge waiver was the reality of increased fuel and other costs due to the war. The conflict has raised Hapag-Lloyd’s operating costs by $40 million to $50 million per week, CEO Rolf Habben-Jansen said last week . “To counterbalance that, we have introduced a number of contingency and emergency fuel surcharges,” he said. “This is not to collect more than the extra costs, but an extra cost of $40 million or $50 million per week is not something that you can sustain for very long.” Little sympathy in US for carriers A lack of sympathy for carriers runs deep in the US. Few shed any tears, for example, for carriers incurring the world’s highest container handling costs, reflecting generous longshore labor contracts on both coasts, or the US being one of the only countries where carriers can’t recoup those costs through a terminal handing charge, or THC. Even the FMC concluding in 2022 that the COVID-era rate increases resulted from port congestion and strong demand, not carrier collusion, failed to assuage many shippers who took financial hits due to shipping disruption, and blamed carriers as a result. The political shift behind the FMC’s rejection of the carriers’ waiver requests was years in the making. With the demise of US-flag carriers APL, Sea-Land Service Inc., United States Lines, and others that for decades anchored a strong carrier presence in Washington, carriers have been left essentially without friends in Washington. The 2022 Ocean Shipping Reform Act (OSRA-22), the first shipping legislation signed into law in nearly a quarter century, was passed over the objections of the World Shipping Council (WSC), the carriers’ trade group, in contrast to earlier legislation in 1984 and 1998 that would not have passed without the carriers’ sign off. Even port authorities, for whom carriers are customers, supported the 2022 law. Carriers’ criticism that the 2022 law failed to address the root landside causes of the COVID disruption were all but ignored amid the focus on detention and demurrage — a longtime shipper grievance — and wave of anti-carrier sentiment during COVID, leaving the WSC to say “we are appalled by the continued mischaracterization of the industry.” In rejecting carriers’ surcharge waiver last week, moreover, the FMC incurred virtually no risk in potentially alienating carriers. ‘Global’ carriers need US market Despite whatever hardships carriers face when operating in the US — including being harshly disparaged by US presidents, union officials and legislators, as well as being forced into accepting a whopping 62% wage increase for East Coast dockworkers in the fall of 2024 — major carriers are highly unlikely to walk away from the US. In other words, the risk remains minimal that the US controlling a mere half of 1 percent of global shipping, according to the Heritage Foundation , would come back to haunt the country in the form of vital trade connections being severed by the loss of carrier services. Industry veterans can recall of no instance when an established east-west carrier withdrew from the US trades for reasons other than mergers, acquisition or bankruptcy. That dependence might explain the FMC’s longtime hesitation to go after carriers in ways that would truly hurt, like rejecting proposed alliances or mergers. Arguing against the possibility of carriers withdrawing US services, the major carriers are increasingly global — the top 10 control a record 85% of the global fleet, according to Alphaliner — a figure that will grow if Hapag-Lloyd succeeds in closing on its acquisition of Zim. As the world’s largest economy and consumer market, the US is core to carrier networks. “It’s hard to do global tenders if you don’t have a presence here,” said George Goldman, who led CMA CGM and Zim in the US following a lengthy career at APL. “You basically can’t call yourself a global carrier if you don’t operate in the US.” Another reason carriers would likely never walk away from the US is their substantial and growing landside investments, especially in terminals, with carriers only seeking further opportunities to expand their US terminal footprints. As Goldman said, the US is viewed by carriers as “the land of opportunity.” Contact Peter Tirschwell at peter.tirschwell@spglobal.com .

FMC rejection of carriers’ surcharge waiver shows shift in US shipping politics

<div class="phx-topic abstract-wrapper">The Omani port operated by APM Terminals is one of the alternative container drop-off points in the region being used by ocean carriers unable to pass through the Strait of Hormuz. </div>

The Omani port operated by APM Terminals is one of the alternative container drop-off points in the region being used by ocean carriers unable to pass through the Strait of Hormuz.

<div class="phx-topic">A drone strike on Saturday closed the APM Terminals regional hub of Salalah in Oman, disrupting operations at one of the key access points for containers being offloaded and trucked overland to Persian Gulf markets that are otherwise inaccessible by ocean due to the war. One port worker was injured in the attack, and a container terminal crane was damaged. No one has claimed responsibility for the strike, although some media is reporting that the drones were fired by Houthi militants in neighboring Yemen. APMT owner Maersk said in a customer advisory Monday that Salalah will gradually resume operations beginning Tuesday, although operational constraints “might remain for some time.” “Additional precautionary security measures have been implemented at the port, and we remain in contact with the relevant authorities and port stakeholders,” the carrier said. Following the attack, Hapag-Lloyd announced that its vessel Lisbon Express has been moved out of the port “as a precautionary measure.” With the Strait of Hormuz effectively closed to commercial shipping, ocean carriers are discharging containers in ports near the Persian Gulf, such as Salalah and Sohar in Oman and Khor Fakkan and Fujairah in the UAE. The cargo is then trucked vast distances inland to the UAE, Qatar, Bahrain, Kuwait and Iraq. But customer advisories from forwarders and ocean carriers paint a picture of growing congestion across regional overland networks. Crane Worldwide Logistics said Khor Fakkan congestion was at 100% with wait times longer than 11 days and “vessel queues and dwell times unrelenting.” The region’s main port hub of Jebel Ali is experiencing systemic backlogs with DP World’s emergency land corridors to Dammam in Saudi Arabia and Sohar providing only marginal landside relief. Cross-border trucking capacity shortages persist in key corridors and are most acute in Oman, the UAE’s Fujairah, and Saudi Arabia, Crane noted. The landside disruption for cargo was exacerbated by the Eid holidays and flooding from a severe storm that lashed the UAE last week. Rolf Habben Jansen, CEO of Hapag-Lloyd, <a href="https://www.joc.com/article/war-adding-40-50-million-per-week-to-hapag-lloyds-costs-ceo-6193532">told reporters during a briefing last week</a> that the carrier was trying to come up with overland solutions for customer cargo that is stranded short of its Persian Gulf destinations. ”But capacity there is limited, and that means it is possible for things that are urgent or critical, but it is not possible for the volume that normally would be carried via the water,” Habben Jansen said. “There is simply not enough inland infrastructure and there are not enough trucks to support that,” he added. <h3>Trucking costs rising </h3>It is not only inbound containers that are impacted by the ongoing conflict. The Journal of Commerce has been told that a shipper with containers that urgently need exporting from the Persian Gulf in the next two months is paying $15,000 per container to truck 140 boxes across Saudi Arabia to the port of Jeddah on the Red Sea. That figure was far above the current $2,000-$6,000 per container market price for a cross-desert truck journey from the UAE to Jeddah, according to the Middle East CEO for a global forwarder, who added the $15,000 per box was likely escalated by the urgent nature of the shipment. Still, the forwarder said trucking complications across the Gulf Cooperation Council (GCC) countries — Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE — extended well beyond high rates. ”For example, if you have a Saudi truck and want to drive to an Omani port, it’s not possible,” the source told the Journal of Commerce. “They are currently making some exceptions, but we have just learned that Oman will charge an entry fee per tire.” Another problem that has been escalated by the conflict, according to the executive, is the issuing of visas. “There is so much more cross-border trucking now and drivers need to queue for half a day and longer to get a visa,” he said. “That limits the number of journeys a trucker can make, it creates delays and traffic backlogs, and inflates the price.” <h3>Operational restrictions </h3>Crane Worldwide Logistics said a new operational restriction now in effect bars drivers of Syrian, Pakistani and Yemeni nationality from entering Qatar, directly impacting road-based freight operations in an out of the country. With ocean cargo handling suspended in the Qatari port of Doha, the Crane advisory said containers already discharged in the region were accruing storage charges daily and the driver nationality ban was limiting the ability of cargo owners to collect and move their boxes. Michael Aldwell, executive vice president of sea logistics at Kuehne + Nagel, acknowledged that trucking capacity was a challenge, but said the forwarder had a road network in place before the conflict that it was able to utilize. Priority was being given to transporting healthcare and perishable cargo into the Middle East. “To keep cargo moving, we are working on solutions to find alternative gateways and corridors with trucks into the Persian Gulf markets, such as cross-border trucking between Sohar or Khor Fakkan, and via Mersin (Turkey) or Aqaba (Jordan),” Aldwell told the Journal of Commerce. “We are also implementing air-road solutions via airports in Saudi Arabia (Jeddah) and Oman (Salalah) with cross-border trucking to the UAE, Qatar, Bahrain and Kuwait,” he added. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

A drone strike on Saturday closed the APM Terminals regional hub of Salalah in Oman, disrupting operations at one of the key access points for containers being offloaded and trucked overland to Persian Gulf markets that are otherwise inaccessible by ocean due to the war. One port worker was injured in the attack, and a container terminal crane was damaged. No one has claimed responsibility for the strike, although some media is reporting that the drones were fired by Houthi militants in neighboring Yemen. APMT owner Maersk said in a customer advisory Monday that Salalah will gradually resume operations beginning Tuesday, although operational constraints “might remain for some time.” “Additional precautionary security measures have been implemented at the port, and we remain in contact with the relevant authorities and port stakeholders,” the carrier said. Following the attack, Hapag-Lloyd announced that its vessel Lisbon Express has been moved out of the port “as a precautionary measure.” With the Strait of Hormuz effectively closed to commercial shipping, ocean carriers are discharging containers in ports near the Persian Gulf, such as Salalah and Sohar in Oman and Khor Fakkan and Fujairah in the UAE. The cargo is then trucked vast distances inland to the UAE, Qatar, Bahrain, Kuwait and Iraq. But customer advisories from forwarders and ocean carriers paint a picture of growing congestion across regional overland networks. Crane Worldwide Logistics said Khor Fakkan congestion was at 100% with wait times longer than 11 days and “vessel queues and dwell times unrelenting.” The region’s main port hub of Jebel Ali is experiencing systemic backlogs with DP World’s emergency land corridors to Dammam in Saudi Arabia and Sohar providing only marginal landside relief. Cross-border trucking capacity shortages persist in key corridors and are most acute in Oman, the UAE’s Fujairah, and Saudi Arabia, Crane noted. The landside disruption for cargo was exacerbated by the Eid holidays and flooding from a severe storm that lashed the UAE last week. Rolf Habben Jansen, CEO of Hapag-Lloyd, told reporters during a briefing last week that the carrier was trying to come up with overland solutions for customer cargo that is stranded short of its Persian Gulf destinations. ”But capacity there is limited, and that means it is possible for things that are urgent or critical, but it is not possible for the volume that normally would be carried via the water,” Habben Jansen said. “There is simply not enough inland infrastructure and there are not enough trucks to support that,” he added. Trucking costs rising It is not only inbound containers that are impacted by the ongoing conflict. The Journal of Commerce has been told that a shipper with containers that urgently need exporting from the Persian Gulf in the next two months is paying $15,000 per container to truck 140 boxes across Saudi Arabia to the port of Jeddah on the Red Sea. That figure was far above the current $2,000-$6,000 per container market price for a cross-desert truck journey from the UAE to Jeddah, according to the Middle East CEO for a global forwarder, who added the $15,000 per box was likely escalated by the urgent nature of the shipment. Still, the forwarder said trucking complications across the Gulf Cooperation Council (GCC) countries — Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE — extended well beyond high rates. ”For example, if you have a Saudi truck and want to drive to an Omani port, it’s not possible,” the source told the Journal of Commerce. “They are currently making some exceptions, but we have just learned that Oman will charge an entry fee per tire.” Another problem that has been escalated by the conflict, according to the executive, is the issuing of visas. “There is so much more cross-border trucking now and drivers need to queue for half a day and longer to get a visa,” he said. “That limits the number of journeys a trucker can make, it creates delays and traffic backlogs, and inflates the price.” Operational restrictions Crane Worldwide Logistics said a new operational restriction now in effect bars drivers of Syrian, Pakistani and Yemeni nationality from entering Qatar, directly impacting road-based freight operations in an out of the country. With ocean cargo handling suspended in the Qatari port of Doha, the Crane advisory said containers already discharged in the region were accruing storage charges daily and the driver nationality ban was limiting the ability of cargo owners to collect and move their boxes. Michael Aldwell, executive vice president of sea logistics at Kuehne + Nagel, acknowledged that trucking capacity was a challenge, but said the forwarder had a road network in place before the conflict that it was able to utilize. Priority was being given to transporting healthcare and perishable cargo into the Middle East. “To keep cargo moving, we are working on solutions to find alternative gateways and corridors with trucks into the Persian Gulf markets, such as cross-border trucking between Sohar or Khor Fakkan, and via Mersin (Turkey) or Aqaba (Jordan),” Aldwell told the Journal of Commerce. “We are also implementing air-road solutions via airports in Saudi Arabia (Jeddah) and Oman (Salalah) with cross-border trucking to the UAE, Qatar, Bahrain and Kuwait,” he added. Contact Greg Knowler at greg.knowler@spglobal.com .

Drone strike closes key Middle East transit hub of Salalah

<div class="phx-topic abstract-wrapper">Total transit collapse and escalating infrastructure threats are forcing project cargo shippers to step up their contingency planning. </div>

Total transit collapse and escalating infrastructure threats are forcing project cargo shippers to step up their contingency planning.

<div class="phx-topic">The near-total closure of the Strait of Hormuz amid the war in the Middle East will haunt global breakbulk and project markets long after the final missiles are fired, sector specialists say. Speaking during a March 26 Journal of Commerce webcast, José Enrique Sevilla-Macip, senior research analyst for Latin America Country Risk at S&amp;P Global Market Intelligence, said there had been a 97% decrease in transits across the Strait of Hormuz over the past 25 days, noting that on March 25, for the first time since the conflict began, not a single vessel crossed the waterway. The paralysis is triggering a shift from initial price shocks to actual physical shortages of fuel and goods. On the ground, the logistics of moving breakbulk and project cargo goods has become a balancing act of cancellations and rerouting. Marc Cowie, CEO for North America at project cargo forwarder Trans Global Projects (TGP), said that many carriers are refusing to even quote for cargo entering the war region due to skyrocketing insurance premiums. The disruption is also creating a "lag impact" that will persist for months. "There will undoubtedly be ships out of position, cargo out of position, and there's going to be a knock-on effect," Cowie said on the webcast. "It's going to take some time to get back to normality.” For panelist Christian Ohlrich, global director for logistics at energy storage products manufacturer Fluence Energy, the crisis is manifesting most acutely in the energy sector. He described the "fuel shock" as a primary concern, with bunker supplies depleting rapidly, particularly in Asia. This has led to a chaotic environment for manufacturing and project execution. ”It’s creating quite some havoc,” Ohlrich said. “It’s crunching schedules. It’s increasing costs.” He noted that while larger projects can still attract the necessary multipurpose vessels, smaller, less “enticing” shipments are being delayed by weeks. That is not, however, stopping Fluence’s project operations. “We have plenty of buffers,” Ohlrich said. “I'm still making all my commitments. It's just changing the flow of project execution.” This includes changing internal team arrangements to meet the sequence of a project. “It's an inconvenience rather than a hindrance,” he said. <h3>Oil prices expected to remain elevated </h3>The bunker fuel shortage is unlikely to ease in the short term. Sevilla-Macip expects oil prices to remain above $100 per barrel for at least the next month, though he holds out hope they could return to $60 by year-end if hostilities cease soon. However, the path to peace is cluttered with "signposts" of further escalation, he said. These include potential Iranian attacks on US aircraft, the involvement of Tehran-backed Houthi militants in the Bab-el-Mandeb Strait, or the targeting of critical civilian infrastructure like desalination plants. In the face of this volatility, the advice from project shippers and forwarders is a mix of tactical flexibility and rigorous planning. TGP’s Cowie urged shippers to work in close partnership with forwarders to find alternative routes or modes, such as trucking cargo across the Arabian Peninsula to safer ports. ”We have to remain flexible, remain calm,” Cowie said. “Logistics is about challenges. It is about overcoming those challenges.” Ohlrich echoed that, stressing the need for better foresight. ”Tighten up your planning and forecasting as much as possible,” he advised the webcast. “The better you can plan ahead, especially in situations where you see these kinds of disruptions, the better.” Contact Carly Fields at <a href="mailto:carly.fields@spglobal.com">carly.fields@spglobal.com</a>. </div>

The near-total closure of the Strait of Hormuz amid the war in the Middle East will haunt global breakbulk and project markets long after the final missiles are fired, sector specialists say. Speaking during a March 26 Journal of Commerce webcast, José Enrique Sevilla-Macip, senior research analyst for Latin America Country Risk at S&P Global Market Intelligence, said there had been a 97% decrease in transits across the Strait of Hormuz over the past 25 days, noting that on March 25, for the first time since the conflict began, not a single vessel crossed the waterway. The paralysis is triggering a shift from initial price shocks to actual physical shortages of fuel and goods. On the ground, the logistics of moving breakbulk and project cargo goods has become a balancing act of cancellations and rerouting. Marc Cowie, CEO for North America at project cargo forwarder Trans Global Projects (TGP), said that many carriers are refusing to even quote for cargo entering the war region due to skyrocketing insurance premiums. The disruption is also creating a "lag impact" that will persist for months. "There will undoubtedly be ships out of position, cargo out of position, and there's going to be a knock-on effect," Cowie said on the webcast. "It's going to take some time to get back to normality.” For panelist Christian Ohlrich, global director for logistics at energy storage products manufacturer Fluence Energy, the crisis is manifesting most acutely in the energy sector. He described the "fuel shock" as a primary concern, with bunker supplies depleting rapidly, particularly in Asia. This has led to a chaotic environment for manufacturing and project execution. ”It’s creating quite some havoc,” Ohlrich said. “It’s crunching schedules. It’s increasing costs.” He noted that while larger projects can still attract the necessary multipurpose vessels, smaller, less “enticing” shipments are being delayed by weeks. That is not, however, stopping Fluence’s project operations. “We have plenty of buffers,” Ohlrich said. “I'm still making all my commitments. It's just changing the flow of project execution.” This includes changing internal team arrangements to meet the sequence of a project. “It's an inconvenience rather than a hindrance,” he said. Oil prices expected to remain elevated The bunker fuel shortage is unlikely to ease in the short term. Sevilla-Macip expects oil prices to remain above $100 per barrel for at least the next month, though he holds out hope they could return to $60 by year-end if hostilities cease soon. However, the path to peace is cluttered with "signposts" of further escalation, he said. These include potential Iranian attacks on US aircraft, the involvement of Tehran-backed Houthi militants in the Bab-el-Mandeb Strait, or the targeting of critical civilian infrastructure like desalination plants. In the face of this volatility, the advice from project shippers and forwarders is a mix of tactical flexibility and rigorous planning. TGP’s Cowie urged shippers to work in close partnership with forwarders to find alternative routes or modes, such as trucking cargo across the Arabian Peninsula to safer ports. ”We have to remain flexible, remain calm,” Cowie said. “Logistics is about challenges. It is about overcoming those challenges.” Ohlrich echoed that, stressing the need for better foresight. ”Tighten up your planning and forecasting as much as possible,” he advised the webcast. “The better you can plan ahead, especially in situations where you see these kinds of disruptions, the better.” Contact Carly Fields at carly.fields@spglobal.com .

Hormuz closure triggers ‘havoc’ for project logistics supply chain

<div class="phx-topic abstract-wrapper">Agency Chairman Laura DiBella said the “intensified inspections” of the vessels appear to be retaliation for Panama canceling the port concessions held at Balboa and Cristóbal by a subsidiary of Hong Kong-based Hutchison. </div>

Agency Chairman Laura DiBella said the “intensified inspections” of the vessels appear to be retaliation for Panama canceling the port concessions held at Balboa and Cristóbal by a subsidiary of Hong Kong-based Hutchison.

<div class="phx-topic">The US Federal Maritime Commission (FMC) is “closely monitoring” an apparent “surge” in detentions of Panama-flag ships by Chinese port authorities and the effect it could have on US container trade, according to the agency’s chairman. Laura DiBella says the moves appear to be retaliation <a href="https://www.joc.com/article/panama-court-voids-ck-hutchison-canal-terminal-leases-6161145">for the Panamanian Supreme Court recently nullifying</a> the operating concessions at Panama’s Balboa and Cristóbal ports that were held for 28 years by Panama Ports Company (PPC), which is 90% owned by Hong Kong-based conglomerate CK Hutchison Holdings. DiBella, in a statement Thursday she said represented her views and not the FMC’s, said the detentions of Panama-flag ships in Chinese ports far exceed “historical norms.” “These intensified inspections were carried out under informal directives and appear intended to punish Panama after the transfer of Hutchison’s port assets,” she said. “Given that Panama‑flagged ships carry a meaningful share of US containerized trade, these actions could result in significant commercial and strategic consequences to US shipping.” DiBella did not say the FMC was doing anything other than monitoring the situation, but noted the agency’s laws give it authority to investigate “whether regulations or practices of foreign governments result in conditions unfavorable to shipping in the foreign trade of the United States.” With PPC removed from its operatorship, Maersk’s APM Terminals <a href="https://www.joc.com/article/maersk-msc-units-begin-interim-management-of-panama-canal-terminals-6175167">was given a transitory concession contract</a> for the Balboa terminal on the Pacific side of the Panama Canal by the Panama Maritime Authority (PMA), while MSC’s Terminal Investment Limited was given the same for Cristóbal on the Atlantic coast. Both contracts are for 18 months. Hutchison has responded by <a href="https://www.joc.com/article/hutchison-seeks-2-billion-in-damages-from-panama-after-terminal-deal-canceled-6183273">filing an international arbitration claim</a> against the Panamanian government and PMA in which it seeks more than $2 billion in damages. China’s Cosco Shipping Lines earlier this month <a href="https://www.joc.com/article/cosco-halts-balboa-calls-in-latest-twist-over-panama-port-row-6185309">halted calls at Balboa</a> and instead is redirecting its services to Manzanillo on the Atlantic side of the canal. Contact Kevin Saville at <a href="mailto:kevin.saville2@spglobal.com">kevin.saville2@spglobal.com</a>. </div>

The US Federal Maritime Commission (FMC) is “closely monitoring” an apparent “surge” in detentions of Panama-flag ships by Chinese port authorities and the effect it could have on US container trade, according to the agency’s chairman. Laura DiBella says the moves appear to be retaliation for the Panamanian Supreme Court recently nullifying the operating concessions at Panama’s Balboa and Cristóbal ports that were held for 28 years by Panama Ports Company (PPC), which is 90% owned by Hong Kong-based conglomerate CK Hutchison Holdings. DiBella, in a statement Thursday she said represented her views and not the FMC’s, said the detentions of Panama-flag ships in Chinese ports far exceed “historical norms.” “These intensified inspections were carried out under informal directives and appear intended to punish Panama after the transfer of Hutchison’s port assets,” she said. “Given that Panama‑flagged ships carry a meaningful share of US containerized trade, these actions could result in significant commercial and strategic consequences to US shipping.” DiBella did not say the FMC was doing anything other than monitoring the situation, but noted the agency’s laws give it authority to investigate “whether regulations or practices of foreign governments result in conditions unfavorable to shipping in the foreign trade of the United States.” With PPC removed from its operatorship, Maersk’s APM Terminals was given a transitory concession contract for the Balboa terminal on the Pacific side of the Panama Canal by the Panama Maritime Authority (PMA), while MSC’s Terminal Investment Limited was given the same for Cristóbal on the Atlantic coast. Both contracts are for 18 months. Hutchison has responded by filing an international arbitration claim against the Panamanian government and PMA in which it seeks more than $2 billion in damages. China’s Cosco Shipping Lines earlier this month halted calls at Balboa and instead is redirecting its services to Manzanillo on the Atlantic side of the canal. Contact Kevin Saville at kevin.saville2@spglobal.com .

FMC ‘monitoring’ recent detention of Panama-flag ships at Chinese ports

<div class="phx-topic abstract-wrapper">Wary of potential US actions to undermine the agreement, EU lawmakers inserted three clauses into the deal that provide “strong and clear safeguards.”</div>

Wary of potential US actions to undermine the agreement, EU lawmakers inserted three clauses into the deal that provide “strong and clear safeguards.”

<div class="phx-topic">The European Union has approved a trade deal with the US that was agreed to last year, but set conditions aimed at protecting the European Commission from the frequent and unpredictable adjustments of US President Donald Trump’s tariffs. Members of the European Parliament (MEPs) on Thursday <a href="https://www.europarl.europa.eu/news/en/press-room/20260323IPR38830/eu-us-trade-deal-meps-set-conditions-for-lowering-tariffs-on-us-products">approved the EU-US Turnberry</a> trade deal that was struck in July last year but delayed as tensions between the two parties rose over Trump’s musings about a proposed US takeover of Greenland. Wary of potential US action to undermine the agreement, the EU lawmakers inserted three clauses into the deal — the “suspension clause,” “sunrise clause,” and “sunset clause” — that German MEP Bernd Lange said would be “firmly” defended. “MEPs will only be able to sign up to the trade terms of the deal if the regulation contains very strong and clear safeguards, and only after the US has fully respected the terms of the deal,” Lange said in a statement. “They include a sunrise clause requiring full US compliance before the regulation can take effect, and a sunset clause ensuring full parliamentary oversight of any extension of the concessions, all the while remaining World Trade Organization-compliant,” he added. Lange warned that any further tariff threats from the US, or failure of the deal to deliver for EU producers and consumers, would lead to the expiry of the legislation. “I intend to defend this mandate firmly in the negotiations,” he said. The trade deal now requires agreement from member states, and if passed as is, will set tariffs at 15% for most EU goods, down from the threatened 30%, in exchange for European investment in the US and the removal of EU import duties on US industrial goods. It will also give preferential European market access for a wide range of US seafood and agricultural goods. In a “safeguard mechanism,” the European Commission will be tasked with monitoring the impact of the new rules and will be able to suspend the new tariffs temporarily “should US imports reach a level that could cause serious harm to EU industry, for instance in the event of a 10% increase in imports of a particular group of products,” the statement said. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

The European Union has approved a trade deal with the US that was agreed to last year, but set conditions aimed at protecting the European Commission from the frequent and unpredictable adjustments of US President Donald Trump’s tariffs. Members of the European Parliament (MEPs) on Thursday approved the EU-US Turnberry trade deal that was struck in July last year but delayed as tensions between the two parties rose over Trump’s musings about a proposed US takeover of Greenland. Wary of potential US action to undermine the agreement, the EU lawmakers inserted three clauses into the deal — the “suspension clause,” “sunrise clause,” and “sunset clause” — that German MEP Bernd Lange said would be “firmly” defended. “MEPs will only be able to sign up to the trade terms of the deal if the regulation contains very strong and clear safeguards, and only after the US has fully respected the terms of the deal,” Lange said in a statement. “They include a sunrise clause requiring full US compliance before the regulation can take effect, and a sunset clause ensuring full parliamentary oversight of any extension of the concessions, all the while remaining World Trade Organization-compliant,” he added. Lange warned that any further tariff threats from the US, or failure of the deal to deliver for EU producers and consumers, would lead to the expiry of the legislation. “I intend to defend this mandate firmly in the negotiations,” he said. The trade deal now requires agreement from member states, and if passed as is, will set tariffs at 15% for most EU goods, down from the threatened 30%, in exchange for European investment in the US and the removal of EU import duties on US industrial goods. It will also give preferential European market access for a wide range of US seafood and agricultural goods. In a “safeguard mechanism,” the European Commission will be tasked with monitoring the impact of the new rules and will be able to suspend the new tariffs temporarily “should US imports reach a level that could cause serious harm to EU industry, for instance in the event of a 10% increase in imports of a particular group of products,” the statement said. Contact Greg Knowler at greg.knowler@spglobal.com .

Europe Union approves US trade deal, but sets firm conditions

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