FREIGHT: Panama Canal Slot Costs Drop as Shippers Take Detours
Jan-12 18:20
The cost to jump ahead of the congestion and book a slot at the Panama Canal has eased back sharply from multimillion dollar highs, according to Bloomberg.
- The average auction price for a Neopanamax slot as of Jan. 11 was $269k, compared to around $4m in November.
- This is because shippers are increasingly avoiding the Canal and using alternative routes, which has eased the backlog.
- The number of transit slots has been reduced by two thirds due to ongoing droughts which are expected to continue until May.
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US: GOP Senators Report Progress In US-Mexico Border Talks
Dec-13 18:01
Manu Raju at CNN reporting on X that, "things are moving on [US-Mexico] border policy talks but unclear if deal will be reached," adding the White House has, "made some key concessions, GOP senators are saying major progress. [Senator Thom] Tillis [R-SC] believes a deal in principle is within reach over next few days. McConnell and Schumer meeting now. Many Ds unhappy."
- Note: A deal on the US-Mexico border is central unlocking USD$110bln in supplemental funding for Ukraine and Israel.
- Senate Majority Leader Chuck Schumer (D-NY) told reporters a short time ago: "Progress is being made... I hope we can reach an agreement soon to pass a supplemental through the Senate."
- Senate Minority Leader Mitch McConnell (R-KY) said: "I'm hopeful we can reach an agreement and address two national security priorities."
- CBS reported yesterday that the White House may be willing to back new authority to expel migrants and a “dramatic expansion of detention and deportation” of undocumented migrants.
- The White House rejected the CBS report but indicated again that Biden is prepared to make concessions. Biden said told reporters: “Compromise is how democracy works. And I am ready, and offered compromise already. (But) holding Ukraine funding hostage in an attempt to force through an extreme Republican agenda on the border is not how it works.”
- Primary question is how much is Biden willing to concede in order to push funding through Congress? If progressives believe Biden has conceded too much it could significantly impact his chances of re-election next year.
OPTIONS: UK Rate Upside, Bobl Put Strips Feature Wednesday
Dec-13 17:52
Wednesday's Europe rates/bond options flow included:
- OEG4 118.00/117.25ps 1x2 with OEG4 117.75/117.00ps 1x2, bought the 1 strip for-7 (receive) in 2k.
- OEG4 118/116.75ps 1x2 with OEH4 117.5/116ps 1x2 bought the strip for 45 in 1k. Recall same strip was bought Yesterday for 44 in 1k
- ERM4 96.87/97.12/97.37c fly bought for 2.5 in 8.5k
- 0RH4 97.625/98.125 1x1.5 call spread bought for 10.25 - 10.5 in 10k
- SFIM4 95.40/95.60cs vs 94.75/94.55ps, bought for 2.25 and 2.75 in 10k
- SFIU4 95.80/96.00cs vs 94.75/94.55ps, bought for 2.75 in 5k.
PIPELINE: Corporate Debt Issuance Stalls Ahead FOMC
Dec-13 17:38
- Date $MM Issuer (Priced *, Launch #)
- 12/13 No new high grade issuance Wednesday, running total for week at $3.25B
- $500M Priced Tuesday
- 12/12 $500M Icahn Enterprises 5NCL 9.75%
