Lloyd’s List, a shipping industry journal, says its “rough calculations” suggest that the massive container vessel Ever Given, which has blocked Egypt’s Suez Canal since Tuesday, is halting about $9.6 billion worth of daily marine traffic.

Lloyd’s List puts westbound traffic at around $5.1 billion a day and eastbound traffic at approximately $4.5 billion.

Satellite pictures released by Planet Labs Inc show the 400-meter long vessel wedged diagonally across the entire canal, one of the busiest trade routes in the world.

Lloyd’s estimates that about 165 vessels are waiting to transit the waterway, while data compiled by Bloomberg show that the figure is 185.

The Suez Canal Authority (SCA) on Thursday announced it was “temporarily suspending navigation” along the waterway, which connects the Mediterranean to the Red Sea and drastically shortens travel between Asia and Europe, as efforts by tugs and diggers to dislodge the vessel have failed.

Egyptian President Abdel Fattah al-Sisi’s advisor on seaports, Mohab Mamish, told AFP late Thursday that “maritime navigation will resume again within 48-72 hours, maximum”.

“I have experience with several rescue operations of this kind and as the former chairman of the Suez Canal Authority, I know every centimeter of the canal,” Mamish added.

However, salvage experts had warned earlier on Thursday the Suez blockage could last days or even weeks.

Vortexa senior freight analyst, Arthur Richier, said about 13 million barrels of crude oil on 10 tankers could be affected by the disruption, adding nine vessels carrying clean petroleum products, along with biodiesel, sitting outside Suez, were awaiting the resumption of northbound convoys.

How long it takes to refloat the grounded megaship will dictate further impact on markets.

According to shipping data compiled by Bloomberg, around 300 vessels globally are either stuck in the Suez Canal, waiting to transit the waterway or signaling it as their next destination.

Amid the continued closure of the waterway, shiping giants are looking into re-routing cargo ships around the southern tip of Africa.

Japanese ship-leasing firm Shoei Kisen Kaisha, the owner of the giant vessel, said it was facing “extreme difficulty” trying to refloat it.

“We sincerely apologize for causing a great deal of worry to ships in the Suez Canal and those planning to go through the canal,” it said in a statement.

On Wednesday, historic sections of the canal were reopened in a bid to ease the congestion.

In 2018, the canal was temporarily shut after a Greek-owned bulk carrier suffered engine failure that led to a five-ship collision.

Source: Presstv

A cargo container ship that’s among the largest in the world has turned sideways and blocked all traffic in Egypt’s Suez Canal, officials said Wednesday, threatening to disrupt a global shipping system already strained by the coronavirus pandemic.

The MV Ever Given, a Panama-flagged container ship that carries trade between Asia and Europe, became grounded Tuesday in the narrow, man-made waterway dividing continental Africa from the Sinai Peninsula.

It wasn’t immediately clear what caused the Ever Given to turn sideways in the canal. GAC, a global shipping and logistics company, described the Ever Given as suffering “a blackout while transiting in a northerly direction,” without elaborating.

Evergreen Marine Corp., a major Taiwan-based shipping company that operates the ship, said in a statement provided to The Associated Press that the Ever Given had been overcome by strong winds as it entered the Suez Canal from the Red Sea but none of its containers had sunk.

An Egyptian official, who spoke to the AP on condition of anonymity as he wasn’t authorized to brief journalists similarly blamed a strong wind in the area for the incident. Egyptian forecasters said high winds and a sandstorm plagued the area Tuesday, with winds gusting as much as 50 kph (31 mph).

Source: AFP

Nigeria’s Ngozi Okonjo-Iweala looks set to be confirmed Monday as the first woman and first African leader of the beleaguered World Trade Organization, a near-paralysed institution desperately needing a kick-start.

The WTO has called a special general council meeting at which the former Nigerian finance minister and World Bank veteran is expected to be formally selected as the global trade body’s new director-general.

US President Joe Biden strongly swung behind her candidacy shortly after the only other remaining contender, South Korean Trade Minister Yoo Myung-hee, pulled out.

“I look forward to finalising the process,” Okonjo-Iweala said on February 6 after securing the Biden administration’s support.

The organisation is also eager to conclude the drawn-out process, having been leaderless since Brazilian career diplomat Roberto Azevedo stepped down last August, a year ahead of schedule.

The process of picking one of eight candidates to succeed him had been expected to wrap up by November, but the administration of former US president Donald Trump blocked the consensus to appoint Okonjo-Iweala. 

‘Reform candidate’

The 66-year-old will not be at the WTO’s Geneva headquarters for Monday’s virtual session and it is not known when she would take up her duties.

The 164-member organisation’s special session gets under way at 1400 GMT and Okonjo-Iweala is scheduled to hold an online press conference two hours later.

The WTO picks its leaders through consensus-finding, so even though she is the only candidate still in the race — boasting US, EU and African backing — there is always the chance of a spanner being thrown in the works.

She will take over an organisation mired in multiple crises and struggling to help member states navigate the severe global economic slump triggered by the coronavirus pandemic.

Okonjo-Iweala argued during the race that she was best placed out of the eight candidates for the post to steer the WTO through the crises.

“I am a reform candidate,” she insisted.

She has among other things warned that growing protectionism and nationalism have been spurred on by the pandemic and insists barriers need to be lowered to help the world recover.

Even before Covid-19 battered the global economy, the WTO was weighed down by stalled trade talks and struggled to curb trade tensions between the United States and China.

The WTO also faced relentless attacks from Washington under Biden’s predecessor Donald Trump. Among other things, Trump brought the WTO’s dispute settlement appeal system to a grinding halt in late 2019.

‘Boldness, courage’

Okonjo-Iweala has said her priorities include getting long-blocked trade talks on fishery subsidies across the finish line and breathing life back into WTO’s Appellate Body.

Twice Nigeria’s finance minister (2003-2006 and 2011-2015) and its first female foreign minister in a two-month stint in 2006, Okonjo-Iweala is seen as a trailblazer in her west African homeland.

She has brushed off claims she lacks experience as a trade minister or negotiator, insisting that what is needed to lead the WTO is not technical skills but “boldness, courage”.

She has portrayed herself as a champion against Nigeria’s rampant corruption — saying her own mother was even kidnapped over her attempts to tackle the scourge.

But her critics argue she should have done more to tackle it while in power.

A development economist by training with degrees from the Massachusetts Institute of Technology and Harvard, Okonjo-Iweala has also had a 25-year career as a development economist at the World Bank, eventually becoming its number two.

She is on the Twitter board of directors and chaired Gavi, the Vaccine Alliance.

(AFP)

New Age has received formal approval from Cameroon’s government to apply for a new Etinde Exploitation Agreement (EEA) for the Etinde offshore license.

The existing EEA came into force by presidential decree in January 2015.

According to New Age’s partner Bowleven, the new EEA would cover production of hydrocarbons, including delivery of gas to thermal power plants or other projects confirmed by the state.

The decision followed discussions with the state oil and gas company, Société Nationale des Hydrocarbures (SNH).

Eli Chahin, CEO of Bowleven, said: “This is very positive news for the Etinde development, as it essentially eliminates the possibility of the government of Cameroon removing the Etinde license from the JV partners, following the end of the initial six-year development implementation period in January 2021.”

Bowleven expects the partners to take a final investment decision on the license later this year.

Source: Offshore-mag.com

A historic deal on the UK’s future trading and security relationship with the European Union has been struck on Christmas Eve, a week before the end of the Brexit transition period.

As the country leaves the single market and customs union on 31 December, new arrangements allowing for tariff-free trade in goods and close police and judicial cooperation will come into force.

The announcement followed a final call between Boris Johnson in Downing Street and the European commission president, Ursula von der Leyen, in her Berlaymont headquarters in Brussels – at least the fifth such telephone conversation over the last 24 hours.

The trade agreement – running to 2,000 pages – is unprecedented in scope, containing provisions on subjects varying from civil nuclear cooperation and energy interconnections to fishing and aviation.

A No.10 spokesman said: “The Deal is done. Everything that the British public was promised during the 2016 referendum and in the general election last year is delivered by this deal.

“We have taken back control of our money, borders, laws, trade and our fishing waters. The deal is fantastic news for families and businesses in every part of the UK. We have signed the first free trade agreement based on zero tariffs and zero quotas that has ever been achieved.”

Von der Leyen was more sombre in her comments at a press conference in Brussels.

“At the end of a successful negotiation I normally feel joy. But today I only feel quiet satisfaction and frankly speaking relief,” she said. “I know this is a difficult day for some and to our friends in the United Kingdom, I want to say parting is such sweet sorrow but to use the line from TS Elliot, what we call the beginning is often the end. And to make an end is often a beginning. So to all Europeans I think it is time to leave Brexit behind.”

The deal guarantees “zero tariff and zero quota” trade on goods worth £668bn in 2019. But it will also mean significant costs to businesses as exporters face a host of border checks from 1 January and its ends freedom of movement for most UK nationals.

The Downing Street spokesman said, however, that the agreement would guarantee that the UK was “no longer in the lunar pull of the EU, we are not bound by EU rules, there is no role for the European Court of Justice and all of our key red lines about returning sovereignty have been achieved”.

The statement went on: “It means that we will have full political and economic independence on 1st January 2021. A points-based immigration system will put us in full control of who enters the UK and free movement will end

“We have delivered this great deal for the entire United Kingdom in record time, and under extremely challenging conditions, which protects the integrity of our internal market and Northern Ireland’s place within it.

“We have got Brexit done and we can now take full advantage of the fantastic opportunities available to us as an independent trading nation, striking trade deals with other partners around the world.”

The prime minister told his cabinet late on Wednesday night that the deal respected the sovereignty of both sides, as he urged senior figures to help him sell it.

On Wednesday, the Brexiter European Research Group of Conservative MPs said it would ask a self-styled “star chamber” of lawyers to scrutinise the terms before giving its support.

The agreement avoids a no-deal exit that the Office for Budget Responsibility had warned would reduce Britain’s economic output by £40bn in 2021 and cost more than 300,000 jobs.

The UK left the EU on 31 January but has benefited from continued membership of the single market and customs union over the last year, with British citizens retaining the right to freedom of movement around the bloc.

The end of the transition period will bring widespread changes for British businesses and citizens, as a new chapter in the country’s relationship with its neighbours begins.

Businesses will face extra paperwork and costs when trading with the UK’s biggest export market. Freedom of movement for most UK nationals will end, with restrictions imposed on stays in EU member states. As a “third country” to the EU, coronavirus travel restrictions could be imposed on UK nationals as of 1 January.

The agreement will nevertheless be a matter of huge relief to millions of people on both sides, four and a half years since the UK decided to leave the EU in June 2016. The negotiations, staged in Brussels and London, had weaved precariously through a pandemic, appearing doomed to failure at several points.

Only two weeks ago, Johnson told the cabinet to prepare for a no-deal exit, warning the public that such an eventuality was “very, very likely”.

The sticking points at the end of the talks had been on EU access to British fishing waters and Brussels’ demand for rules that would ensure neither side could gain a competitive advantage in trade as their rulebook diverged over time.

In the final days, it had been future EU access and quotas in British fishing waters, an issue of small economic impact but high political salience for both sides, that was the difference between a deal and a breakdown in talks.

The EU had offered a six-year transition period for phasing in a 25% reduction in the catch by value taken by European fleets in British waters, with access guaranteed to a six to 12 nautical mile zone from the British coastline.

Downing Street had tabled a counter-proposal of a three-year transition period with a 60% reduction – and no access to the nautical zone.

The compromise involves a transition period of five and a half years to phase in the changes, according to sources, with the UK accepting a 25% repatriation of quotas. But Downing Street has knocked back attempts by the EU to establish a mechanism under which changes to the quotas in the future could lead to tariffs on British exports. The issue had been key to No 10’s claims to have taken back control of British waters.

Following the announcement of a deal, the European commission sent the draft treaty to the member states. Should the 27 capitals be content with the deal, ministers on the council of the EU will agree on provisional application of the agreement on 1 January.

EU ambassadors were due to meet on Thurday morning to take the first step. The European parliament declined to stage a vote of consent this year given the lack of time for scrutiny. MEPs will have their say later next month.

Source: The Guardian

Shares of gun makers have been gaining ground as Democratic candidate Joe Biden leads polls, and if he wins the presidential election in November there are expectations of a renewed surge in gun sales that could drive shares even higher.

Shares of Smith & Wesson Brands and Sturm Ruger  have both rallied around 8% since late September, mirroring Biden’s widening lead in the polls since his debate against President Donald Trump. The S&P 500 is up 4% in that period.

Fears about the coronavirus pandemic, civil unrest related to protests over racial justice and worries about a potentially disputed presidential election on Nov. 3 have created a surge in gun demand this year. Smith & Wesson CEO Mark Smith last month said the industry was unable to keep up with demand.

A victory by Biden and his vice presidential running mate Kamala Harris, who favor increased gun regulation, could further stoke demand for firearms – and shares of firearms makers – particularly if Democrats wrest control of the Senate from Republicans, giving them majorities in both houses of Congress and making it easier to approve legislation.

“Should we see a Biden-Harris administration get elected, I would anticipate a surge in sales of modern sporting rifles, high-capacity magazines and corresponding ammunition,” said Aegis Capital analyst Rommel Dionisio, using an industry term for military-style rifles, a high-margin product category for firearm manufacturers.

An aggregation of betting odds by RealClearPolitics reflects a 65% chance Biden will defeat Trump, up from 55% before the Sept. 29 presidential debate.

Smith & Wesson’s stock is up 135% this year, while Sturm Ruger has gained 51%.

Shares of Sturm Ruger surged nearly 900% in the eight years from Democratic President Barack Obama’s election victory in November 2008 to the November 2016 election, which Trump won. Sturm Ruger is up just 10% during Trump’s nearly years in office. During the same 2008 to 2016 period, the S&P 500 rose about 113%.

Biden has promised to prohibit the sale of military-style rifles and high-capacity magazines, similar to a 10-year ban that expired in 2004. He also promises to require owners of military-style weapons to either sell them to the government or register them with the government.

Shares of gun makers surged ahead of the 2016 election on expectations Democratic candidate Hilary Clinton would win. Trump’s victory drove the industry into a two-year slump, with customers no longer worried they would lose access to firearms.

Firearm sales surged anew in 2020 due to fears related to the pandemic, and following social unrest in several U.S. cities and calls to defund police departments.

Federal background checks, a proxy for firearm sales to U.S. consumers, in the first nine months of 2020 reached 28.8 million, even before the typically busy holiday shopping season, topping the record 28.4 million checks done in the 2019 full year.

First-time buyers made up 40% of gun sales in early 2020, compared to an average of 24% in recent years, according to a survey of gun shops by the National Shooting Sports Foundation, a trade association.

Even if Trump wins a second term and dispels expectations of gun control measures, the potential for renewed protests against across the deeply divided country could drive additional demand for handguns for self-defense, Dionisio said.

(Source: Reuters)

The EU called Friday on the United States to lift tariffs imposed in a long-running dispute over aircraft subsidies after Airbus said it had brought itself into compliance with World Trade Organization rulings.

The billions of dollars in tariffs, which apply to a wide range of food and agricultural goods in addition to planes, have been even more burdensome due to the economic disruption caused by the coronavirus pandemic.

Airbus said Friday it had reached agreement with the French and Spanish governments that raises the interest rates on funds provided to help develop its long-haul A350 jet to levels the WTO considers appropriate.

The European Commission said this removes any grounds for the US to maintain tariffs imposed on EU exports under WTO rulings as well as making a strong case for a rapid settlement of the dispute.

“Unjustified tariffs on European products are not acceptable and, arising from the compliance in the Airbus case, we insist that the United States lifts these unjustified tariffs immediately,” EU trade commissioner Phil Hogan said in a statement.

– Epic legal battle –

An epic legal battle between Airbus and Boeing at the WTO began in 2004 when Washington accused Britain, France, Germany and Spain of providing illegal subsidies and grants to support the production of a range of Airbus products.

A year later, the EU alleged that Boeing had received $19.1 billion worth of prohibited subsidies from 1989 to 2006 from various branches of the US government.

The two cases were then tangled up in a legal quagmire, with each side being given partial vindication after a long series of appeals and counter appeals.

In 2019 the WTO authorised the US to impose up to 100 percent in taxes on $7.5 billion of European goods, its biggest ever penalty.

Washington then slapped 25 percent tariffs on a number of EU goods including wine, cheese and olives.

A 10 percent tariff on Airbus planes was increased to 15 percent in March, which also affects US airlines which buy Airbus aircraft, as the manufacturer points out.

In June the US threatened to levy tariffs on another $3.1 billion in EU goods as it has been authorised to do under a WTO ruling.

– Resolution in ‘mutual interest’ –

Airbus said the impact of those tariffs plus the coronavirus pandemic were the reason it was making the effort to resolve the dispute.

“The tariffs imposed by the United States Trade Representative (USTR) are currently harming all targeted industry sectors, including US airlines, and are adding to a very difficult environment as a consequence of the COVID-19 crisis,” the firm said.

Airbus said Friday that it “considers itself in complete compliance with all WTO rulings” after increasing the interest rate paid on the government funds it received.

The low interest rates on these funds were one of the arguments the US made that the EU was improperly subsidising Airbus.

“After 16 years of litigation at the World Trade Organization, this is the final step to stop the long-standing dispute and removes any justification for US tariffs,” said Airbus.

In addition to there no longer being a justification for the tariffs, the EU believes that in light of the global recession triggered by the coronavirus pandemic it makes sense to resolve the dispute.

“Especially under the current economic circumstances, the EU believes that it is in the mutual interest of the EU and the US to discontinue damaging tariffs that unnecessarily burden our industries and agricultural sectors,” the Commission statement said.

Hogan noted a WTO decision is expected soon that could give the EU the right to impose tariffs against the United States.

“In the absence of a settlement, the EU will be ready to fully avail itself of its own sanction rights,” he warned.

Source: AFP

The International Chamber of Commerce (ICC) has established a new presence in Cameroon, building on the organisation’s regional focus in Africa.

On 23 June, ICC’s World Council approved the opening of a new regional office (known as a national committee) in Cameroon. ICC Cameroon, which is located in Douala, works in cooperation with the Chamber of Commerce, Industry, Mines, and Artisans of Cameroon. The new office is led by Perrial Jean Nyodog, as Chair, and Ebenezer Njanga, as Secretary General. Mr Nyodog is also the CEO of Tradex, which trades in oil and oil by-products, while Mr Njanga is also the CEO of the Free Market Foundation of Central Africa.

John W.H. Denton AO said: “We’re pleased to welcome ICC Cameroon to our growing community of regional offices around the world. As Cameroon is a critical economy in Central Africa, ICC Cameroon will equip local businesses – both large and small – with the expertise required to address emerging challenges and forge long-term solutions for the future.”

The opening of ICC Cameroon is the latest step in ICC’s regional expansion in Africa. In response to the COVID-19 pandemic, Mr Denton convened a landmark Sub-Saharan Africa action group that brought together participants from close to 20 African countries to discuss a wide variety of regional issues, including operationalising the African Continental Free Trade Area. This past week, ICC joined the United Nations Capital Development Fund (UNCDF) and other partner organisations to launch a major survey to understand the unique challenges faced by small- and medium-sized enterprises (SMEs) in least-developed countries (LDCs), such as Burkina Faso.

ICC Cameroon will add to the success of these regional initiatives, by strengthening dialogue with regional, continental and international business communities. Local commissions and working groups are being created by ICC Cameroon in the following areas: arbitration and law; banking and finance; e-Commerce and digital economy; energy and environment; intellectual property; international trade; marketing and communication; and transport and logistics.

Mr Njanga, ICC Cameroon’s Secretary General, said that his team is well positioned to strengthen commercial relations between Central African businesses and ICC’s global network of over 45 million companies. “ICC Cameroon is looking forward to working with the ICC Global Headquarters in Paris and with ICC offices and members around the world to bring the perspective of Cameroonian businesses to ICC’s policies and standards for global trade,” said Mr Njanga. “This partnership will strengthen ties between Cameroon and the international business community, which will lead to improved development opportunities for all.”

Mr Njanga also noted the timeliness of the announcement as the world continues to respond to the economic and social consequences of COVID-19. “ICC Cameroon’s action plan includes activities that will allow companies to efficiently tackle challenges and issues that negatively impact international trade – and more urgently – give support to Cameroon and the business community in our ongoing response against COVID-19.”

With the addition of Cameroon, ICC now operates national offices in 90 countries worldwide. ICC Cameroon becomes the latest national committee since ICC Vietnam, which opened in November 2019.

Culled from International Chamber of Commerce

Mask wearing, temperature controls, disinfection of aircraft: the International Civil Aviation Organization on Monday published a series of health recommendations for a pandemic-hit airline industry as it relaunches air travel.

The protocol was drawn up by an international task force formed by the Montreal-based ICAO with the help of other UN agencies like the World Health Organization and the powerful International Air Transport Association (IATA).

Its report on relaunching aviation in the wake of COVID-19 was expected to be approved Monday by the ICAO’s executive committee.

The changes being suggested are the most important for air travel since the massive security measures put in place after the September 11, 2001 attacks on the United States.

IATA’s director general, Alexandre de Juniac, unveiled the main measures proposed in the “best practices” guide at the end of last week.

The recommendations are intended to serve as a “framework” for assuring the safety of passengers and workers on planes and at airports.

On their arrival at airports, travelers should present a health certificate and undergo an initial temperature check, under the guidelines.

Online check-in before arriving at the airport should be given priority, and passages through security should be re-thought to limit physical contact and waiting in lines.

The wearing of a mask or face covering should be obligatory inside aircraft and terminals, where physical distancing of at least three feet (one meter) should be respected.

Aboard planes, passengers should wear masks, move as little as possible within the cabin, and not line up outside toilets to lessen the risk of infecting other passengers.

– ‘Global reference’ –

But the ICAO does not advocate leaving every other seat open to assure physical distancing, a restriction that the airline industry industry sees as a threat to its profitability.

The organization, nevertheless, asks passengers to remain as far from one another as possible, to the extent occupancy rates allow it.

It also advocates that food on board be pre-packaged and that aircraft be regularly disinfected.

Temperature checks should also be taken on a flight’s arrival, according to the recommendations.

The measures aren’t obligatory but they are the product of a broad consensus that imparts “an authority that will make them a global reference for the first time on this issue since the start of the COVID-19 crisis,” said Philippe Bertoux, France’s representative on ICAO’s board, which led the “task force” debate.

“These measures will facilitate a safe and sustainable return of the air travel,” Bertoux told AFP.

To reopen after having been grounded for months and brought to its knees financially, the airline industry is pressing for rules to be harmonized to reassure passengers and states that have closed their borders in an attempt to halt the spread of the virus.

The ICAO estimates that the pandemic will reduce the number of air passengers by 1.5 billion by the end of the year.

Source: AFP