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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


This article is prepared by Firetrail Investments Pty Limited (‘Firetrail’) (ABN 98 622 377 913, AFSL 516821) as the investment manager of the Firetrail Australian High Conviction Fund (ARSN 624 136 045), the Firetrail Absolute Return Fund (ARSN 624 135 879), the Firetrail Australian Small Companies Fund (ARSN 638 792 113) and the Firetrail S3 Global Opportunities Fund (ARSN 653 717 625) (‘the Funds’). Pinnacle Fund Services Limited ('PFSL') (ABN 29 082 494 362, AFSL 238371) is the product issuer of the Fund. PFSL is not licensed to provide financial product advice. PFSL is a wholly-owned subsidiary of the Pinnacle Investment Management Group Limited (‘Pinnacle’) (ABN 22 100 325 184). The Product Disclosure Statement (‘PDS’) and Target Market Determination (‘TMD’) of the relevant Fund are available via the links below. Any potential investor should consider the PDS and TMD before deciding whether to acquire, or continue to hold units in, the Fund.

Links to the Product Disclosure Statement: WHT3810AU, WHT5134AU, WHT3093AU, WHT7794AU

Links to the Target Market Determination: WHT3810AU, WHT5134AU, WHT3093AU, WHT7794AU

For historic TMD’s please contact Pinnacle client service Phone 1300 010 311 or Email

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