A new direct shipping route between India and the Maldives has opened, bringing fresh fruits, vegetables, and other perishables directly to the southern atolls of Addu. The new route is expected to significantly reduce costs and improve efficiency for the region.
Despite a new UN regulation banning heavy fuel oil (HFO) in Arctic waters, loopholes and exemptions are allowing many ships to continue using this polluting fuel. The ban, intended to protect the sensitive Arctic ecosystem, faces challenges from countries like Russia, which has a large fleet and is not planning to implement the regulation. Environmental groups warn that the ban may not significantly reduce HFO usage for another five years, leaving the Arctic vulnerable to its harmful emissions and spill risks.
UPS, the $124 billion carrier, has struggled since inflation began to accelerate in early 2021. Data shows UPS is down 10.44% since May 2021, while the S&P 500 has gained 25.75% during the same period. Management’s guidance suggests little to no revenue growth this year, with rising costs and declining shipping volumes. The company’s aggressive capital expenditure plans and reliance on automation fail to address its dependence on unionized labor and the challenges posed by competitors like Amazon. Analysts predict only 4-5% revenue growth for UPS over the next several years, yet the stock trades at a growth multiple of nearly 18x predicted forward GAAP earnings. Given its slowing revenue, declining EPS, and valuation concerns, UPS should not be trading at more than a multiple of 12-14x expected forward earnings.
A deeper channel has been opened in Baltimore, allowing five of seven cargo ships stuck in the harbor to leave. The new channel is 35 feet deep, a significant improvement over previous temporary channels. Crews have cleared over 2,900 tons of debris to make the channel accessible. Officials hope to reopen the main channel in May after removing the grounded ship, the Dali, which caused the bridge collapse. The mayor and city council have called for the ship’s owners to be held liable for the economic impact of the closure.
