Latest news with #OmarNokta
Zawya
a day ago
- Business
- Zawya
Gulf shipping costs drop as Israel-Iran ceasefire holds
Shipping costs for the Gulf have fallen in the past two days after a ceasefire was reached between Israel and Iran, although rates could rebound if tensions increase, shipping and insurance industry sources said on Thursday. The conflict had raised concerns that Iran could close Hormuz, the strait between Iran and Oman through which around 20% of global oil and gas demand flows amid broader fears that oil could soar to $100 a barrel. Shipping rates for supertankers, which can carry 2 million barrels of oil, jumped over the past week before the ceasefire - more than doubling to over $60,000 a day. Rates were quoted around $50,000 a day on Thursday, freight data showed. "Tanker rates ... have been pulling back following the halt to hostilities between Israel and Iran," Jefferies analyst Omar Nokta said in a note. Israel and Iran agreed to a ceasefire on Tuesday after 12 days of war. Greece's shipping ministry on Thursday eased requirements for its merchant fleet, no longer advising them to report voyages through Hormuz, saying the situation "appears to have been improved". War risk insurance premiums for Gulf shipments softened to between 0.35-0.45%, from a peak of 0.5% on Monday, sources said. This compares with levels of around 0.3% in recent months. The cost of a seven-day voyage is based on the value of the ship and the drop will translate into tens of thousands of dollars less in additional costs each day. "Rates have definitely softened," said David Smith, head of marine with insurance broker McGill and Partners. "Whilst war premiums are still significant there is a large number of war risk insurers looking to underwrite risks and offer capacity, which in combination with the improved political situation is adding ever downward pressure on rates. That said, the situation remains very fluid." Iran would respond to any future U.S. attack by striking American military bases in the Middle East, Supreme Leader Ayatollah Ali Khamenei said on Thursday, in his first televised remarks since the ceasefire. (Reporting by Jonathan Saul, Renee Maltezou and Yannis Souliotis with Reuters, additional reporting by Michael Jones with The Insurer, editing by Ed Osmond)
Reuters
2 days ago
- Business
- Reuters
Gulf shipping costs drop as Israel-Iran ceasefire holds
LONDON, June 26 (Reuters) - Shipping costs for the Gulf have fallen in the past two days after a ceasefire was reached between Israel and Iran, although rates could rebound if tensions increase, shipping and insurance industry sources said on Thursday. The conflict had raised concerns that Iran could close Hormuz, the strait between Iran and Oman through which around 20% of global oil and gas demand flows amid broader fears that oil could soar to $100 a barrel. Shipping rates for supertankers, which can carry 2 million barrels of oil, jumped over the past week before the ceasefire - more than doubling to over $60,000 a day. Rates were quoted around $50,000 a day on Thursday, freight data showed. "Tanker rates ... have been pulling back following the halt to hostilities between Israel and Iran," Jefferies analyst Omar Nokta said in a note. Israel and Iran agreed to a ceasefire on Tuesday after 12 days of war. Greece's shipping ministry on Thursday eased requirements for its merchant fleet, no longer advising them to report voyages through Hormuz, saying the situation "appears to have been improved". War risk insurance premiums for Gulf shipments softened to between 0.35-0.45%, from a peak of 0.5% on Monday, sources said. This compares with levels of around 0.3% in recent months. The cost of a seven-day voyage is based on the value of the ship and the drop will translate into tens of thousands of dollars less in additional costs each day. "Rates have definitely softened," said David Smith, head of marine with insurance broker McGill and Partners. "Whilst war premiums are still significant there is a large number of war risk insurers looking to underwrite risks and offer capacity, which in combination with the improved political situation is adding ever downward pressure on rates. That said, the situation remains very fluid." Iran would respond to any future U.S. attack by striking American military bases in the Middle East, Supreme Leader Ayatollah Ali Khamenei said on Thursday, in his first televised remarks since the ceasefire.
Yahoo
2 days ago
- Business
- Yahoo
US demand for China-made goods ebbs on tariff worries; ocean shipping rates drop
By Lisa Baertlein LOS ANGELES(Reuters) -Rates for shipping cargo containers from China to the U.S. have dropped by more than half since earlier this month, as imports rebounded less than expected after the slump that followed President Donald Trump slapping 145% tariffs on China. Trump quickly reversed course by lowering the rate to 30%. That cost increase on goods from the nation's No. 1 ocean trading partner remains significant, especially at a time when U.S. economic data is signaling weakness. Rates on the closely watched Shanghai-to-U.S. West Coast route appear to have found a near-term floor at around $2,500 per 40-foot container, after peaking early this month at around $6,000, Jefferies shipping analyst Omar Nokta said in a note on Thursday. Shipping rates had surged to their recent peaks after Trump cut tariffs on China to 30% from 145%. That led U.S. importers to rush in new orders on goods they had halted because of the astronomical levy. The retreat in shipping rates "is a sign that the recent surge in imports to the U.S. ... will fail to have the lasting impact we had initially expected," maritime consultancy Drewry said on Thursday. Drewry's World Container Index fell 9% for the second consecutive week following five weeks of gains. U.S. consumers have yet to feel the full effects of tariffs because many importers stockpiled goods ahead of the new duties - delaying price hikes. Now, time is running out. Walmart, the world's largest retailer and top ocean importer, warned it would start raising prices in late May and June. Federal Reserve Chair Jerome Powell on Wednesday said he expects tariffs to start stoking inflation this summer. Tariffs have already risen on some goods, but there is a coming July 9 deadline for higher levies on a broad set of countries. No one is certain whether Trump will back down to a 10% baseline tariff that analysts are using as a minimum, or whether he will impose something more aggressive. Some maritime experts say Trump has painted the U.S. into a corner with his trade war. Import shipments to the U.S. virtually ceased in April, due to Trump's short-lived 145% tariffs on China. That volume is rebounding. But the bounce may be less than expected as tariffs begin to weigh on consumer spending and economic growth. "The more volume goes down, the less economic activity goes up. The less volume goes down, the more inflation goes up," said John McCown, senior fellow at the Center for Maritime Strategy. "There is actually no comfortable place to land."
Yahoo
2 days ago
- Business
- Yahoo
US demand for China-made goods ebbs on tariff worries; ocean shipping rates drop
By Lisa Baertlein LOS ANGELES(Reuters) -Rates for shipping cargo containers from China to the U.S. have dropped by more than half since earlier this month, as imports rebounded less than expected after the slump that followed President Donald Trump slapping 145% tariffs on China. Trump quickly reversed course by lowering the rate to 30%. That cost increase on goods from the nation's No. 1 ocean trading partner remains significant, especially at a time when U.S. economic data is signaling weakness. Rates on the closely watched Shanghai-to-U.S. West Coast route appear to have found a near-term floor at around $2,500 per 40-foot container, after peaking early this month at around $6,000, Jefferies shipping analyst Omar Nokta said in a note on Thursday. Shipping rates had surged to their recent peaks after Trump cut tariffs on China to 30% from 145%. That led U.S. importers to rush in new orders on goods they had halted because of the astronomical levy. The retreat in shipping rates "is a sign that the recent surge in imports to the U.S. ... will fail to have the lasting impact we had initially expected," maritime consultancy Drewry said on Thursday. Drewry's World Container Index fell 9% for the second consecutive week following five weeks of gains. U.S. consumers have yet to feel the full effects of tariffs because many importers stockpiled goods ahead of the new duties - delaying price hikes. Now, time is running out. Walmart, the world's largest retailer and top ocean importer, warned it would start raising prices in late May and June. Federal Reserve Chair Jerome Powell on Wednesday said he expects tariffs to start stoking inflation this summer. Tariffs have already risen on some goods, but there is a coming July 9 deadline for higher levies on a broad set of countries. No one is certain whether Trump will back down to a 10% baseline tariff that analysts are using as a minimum, or whether he will impose something more aggressive. Some maritime experts say Trump has painted the U.S. into a corner with his trade war. Import shipments to the U.S. virtually ceased in April, due to Trump's short-lived 145% tariffs on China. That volume is rebounding. But the bounce may be less than expected as tariffs begin to weigh on consumer spending and economic growth. "The more volume goes down, the less economic activity goes up. The less volume goes down, the more inflation goes up," said John McCown, senior fellow at the Center for Maritime Strategy. "There is actually no comfortable place to land."
Yahoo
2 days ago
- Business
- Yahoo
5 Insightful Analyst Questions From Scorpio Tankers's Q1 Earnings Call
Scorpio Tankers' first quarter results were received positively by the market, with management attributing performance to a combination of strong product tanker earnings and a focus on operational efficiency. CEO Emanuele Lauro noted that structural changes, such as refinery closures, have increased demand for seaborne transportation of refined products, even as policy shifts and geopolitical developments have introduced greater uncertainty. Operational improvements, including the completion of drydock upgrades on a significant portion of the fleet, also contributed to the company's ability to maintain vessel efficiency and reduce repositioning costs. Is now the time to buy STNG? Find out in our full research report (it's free). Revenue: $204.2 million vs analyst estimates of $200.8 million (47.6% year-on-year decline, 1.7% beat) Adjusted EPS: $1.03 vs analyst estimates of $0.74 (38.6% beat) Adjusted EBITDA: $123.7 million vs analyst estimates of $98.54 million (60.6% margin, 25.5% beat) Operating Margin: 29.6%, down from 62.9% in the same quarter last year total vessels: 99, down 11.9 year on year Market Capitalization: $1.93 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Omar Nokta (Jefferies) asked about the disconnect between ship values and equity prices, and whether ship values are holding up or reflecting recent uncertainty. CEO Emanuele Lauro replied that ship values have corrected alongside rising global uncertainty but expects values to realign with rates when the macro outlook stabilizes. Omar Nokta (Jefferies) followed up on whether recent trade policy shifts and tariffs have altered chartering behavior. Chief Commercial Officer Lars Dencker Nielsen observed increased naphtha shipments to Asia and noted strong demand for LR2 vessels, with tariffs having limited immediate impact. Chris Robertson (Deutsche Bank) questioned the significant drop in vessel operating expenses, asking if this level was sustainable. CFO Chris Avella cautioned against extrapolating from a single quarter, suggesting a 12-month trailing average provides a more reliable estimate for future operating costs. Chris Robertson (Deutsche Bank) also asked about the flexibility of Chinese ethane-based crackers to switch feedstocks and the implications for naphtha demand. Management responded that there is meaningful switching capacity, especially as naphtha becomes favored in Asian markets. Liam Burke (B. Riley) inquired about the effect of increased crude production from OPEC and non-OPEC countries on the refined product market. Management stated the risk of cross-cannibalization from crude to product tankers has diminished and that low inventory levels could further support demand. Looking forward, the StockStory team will be monitoring (1) the pace and impact of further refinery closures and how they alter trade flows, (2) the effectiveness of the company's ongoing capital allocation and cost management strategies in preserving liquidity, and (3) the evolution of policy and tariff developments that could shift supply-demand dynamics. Progress on maintaining vessel utilization and efficiency will also be key to performance. Scorpio Tankers currently trades at $40.93, up from $37.70 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
