1. Freight fiasco…
Shipping activity measured in ton miles is heading for its biggest annual jump since 2010 after attacks in the Red Sea forced ships to reroute and travel longer distances, Clarksons Research found. Avoiding the Red Sea and detouring around the Cape of Good Hope adds approximately 6,500km (3,500 nautical miles) and approximately 10-12 days to journeys. This is not good news for freights costs, as well as carbon emissions.
Source: Clarksons Research Services, JP Morgan
Source: E&P, Bloomberg
2. It’s not EV to get a loan…
The falling value of used electric vehicles may make it harder for customers to get loans. The growing use of EVs as collateral for asset-backed securities risks driving up the cost of raising debt, analysts warn.
According to Drive, 23% of CBA’s car loans were spent on electric and hybrid vehicles in the year to March, while 17% of total loans were for new and used vehicles. The average price of a used Tesla has dropped from a peak of ~$68k to below $34k.
Source: Charlie Bilello
3. Getting the gas…
According to the Australian Competition and Consumer Commission, Australia’s east coast could face a shortfall in LNG supply from 2027, a year earlier than previously expected, unless new sources of supply are made available. The nation faces a challenge balancing local energy needs against servicing overseas markets. Australia still ranks among the largest exporters of LNG after losing top spot to the US and Qatar in recent years. in addition, the Australian Government recently outlined their updated domestic gas policy – which will see domestic gas remain a critical transition fuel in the transition to net zero by 2050. It also acknowledged the need for new supply.
Source: UBS