Maersk Raises Profit Outlook

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A.P. Moller-Maersk A/S is a bellwether of global trade. It said that the ripple effect from the congestion at the Red Sea has a greater impact on the world’s supply chains than was previously expected.

The container carrier based in Copenhagen raised its profit forecasts late on June 3, as the disruptions have effectively removed capacity from the global fleet, thereby increasing freight rates.

Maersk is ranked No. 5 on the Transport Topics Top 50 global freight companies list. Transport Topics Top 50 global cargo companies list places Maersk at No. 5.

Maersk has raised its forecast for the second time in a little over a month, as Houthi militants attacks in the Red Sea forced it and other companies to sail south from Africa. Bloomberg Intelligence estimates that the disruptions have reduced container-line transits in the Suez Canal by about 80%.

Maersk upgrades full-year guidance.

Learn more in our press release here: https://t.co/oiyofwq74d #maersk pic.twitter.com/efamwwKNyg — Maersk (@Maersk) June 3, 2024

Maersk stated on June 3 that they also see signs of further congestion in ports, especially in Asia, the Middle East and Africa, which is driving rates up. The company also said that the demand for containers has remained “strong”.

Maersk stated that “this development is gradually building and is expected contribute to a better financial performance in 2024’s second half.”

Lee Klaskow is a Bloomberg Intelligence Transport Analyst. He said: “Earnings expectation will need to be raised for Maersk as well as the broader liner industry amid a surge of freight rates due to increased port congestion, and an earlier peak in demand due to the dislocation caused by the Red Sea Crisis. Strong pricing will continue as long as ships cannot safely navigate the Suez Canal.

Maersk’s earnings before interest, taxes, depreciation, and amortization are now expected to be $7 billion to $8 billion this year. This is a significant increase from the previous forecast of $4 to $6 billion. Bloomberg’s estimates showed that analysts expected an average of $5.86 billion.

Maersk shares in Copenhagen rose by as much as 3,7% at the opening of trading on June 4. In May, rates were rising and they had already gained 22 %. According to Morgan Stanley analysts including Cedar Ekblom in a note, the earnings upgrade was “not a shock” to the market.

Analysts said that “the Red Sea disruptions only provide temporary respite from the structural oversupply of container shipping.”

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Meta just delayed its EU AI roll out–here’s why it matters

Facebook parent Meta was forced to delay its AI offering for Europe due to privacy concerns and regulatory obstacles. Meta confirmed the news via an update to a Blog that was originally published in order to defend its AI plans.

Meta was in the process of implementing a privacy policy that would allow it to use people’s personal data to train its AI model. new Terms, which allowed it to use Instagram user data collected since 2007, to train its AI model, faced a legal challenge across 11 European countries. The Irish Data Protection Commission was also strongly opposed.

Meta cited legitimate interests under EU General Data Protection as the basis for doing so, since the data it used was chosen by users and made public on social media profiles.

The firm has now been forced to stop collecting this data. Without this local information, the company said that it would only be able to provide a “second-rate experience” to its customers.

Meta wrote a blog post saying that they were disappointed by the request made by the Irish Data Protection Commission (our lead regulator) on behalf of the European DPAs to delay the training of our large language models using content shared by adults via Facebook and Instagram. This is especially disappointing since we have incorporated regulatory feedback, and the European Data Protection Authorities (DPAs), have been informed since march.

It called the move a “step backwards” for European innovation and competition in AI Development and pointed out that it would cause “further delay in bringing AI benefits to people in Europe.”

Meta’s Rivals Train AI Using Data

Meta was keen on pointing out that its competitors such as Google and OpenAI use data to train AI models. “AI training isn’t unique to our services and we are more transparent than our industry counterparts.”

Facebook’s parent company has a valid point: massive amounts of data are required to train AI models no matter who is offering the solution. Facebook, however, has a large amount of historical data from its users. The firm is also known for violating data privacy.

Jake Moore, global security advisor at ESET, says that artificial intelligent algorithms require “an extortionate” amount of data to produce a level of output expected to pass as human consumption.

Moore says that Meta has access to a large amount of personal information, but if the users have not consented to their data being analysed in this way, then data regulations may have stipulated a delay.

Moore says that AI programs “are likely to collect and analyze what is available in order to tweak their processing” each time we interact. It is important to be aware of how easily personal information can be misused.

Will Meta AI launch in Europe?

You’d be mistaken if you thought Meta would not roll out its AI offerings in Europe. The company says it’s “committed to bring Meta AI and the models that drive it to more people around world, including in Europe.”

Meta says that it needs data to create a useful product: “If our models are not trained on the public content shared by Europeans on our services or others, like public posts or comments, the models and AI features powered by them will not accurately understand important regional language, cultures, or trending topics in social media,” Meta stated.

Meta believes that “complexity and inconsistency” in the application regulations in the EU “risks placing people in Europe further in front of other countries in their adoption of new technology.”

The firm also emphasizes its “transparent” approach, saying it remains committed in putting AI “into the hands of more people throughout the world, including Europe.”

It also raises concerns for users of Facebookin other parts of the world. The data protection regulation in Europe and UK is very strict. They put consumer privacy first. The US is also starting to adopt this ethos, but it is still far behind the EU in terms of data protection.

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PM Modi shares highlights of G7 Summit in Italy

Prime Minister

Narendra Modi

On Saturday, he shared highlights of his participation in the

G7 Summit

He said that he was in Italy

India’s perspective

On the world stage

A video shared by Prime Minister Modi shows the highlights of his trip to Italy, from his arrival to the welcome of Italian PM Giorgia Melanie at the venue of G7 Summit in Apulia City in Italy.

Meloni gave PM Modi a ‘namaste,’ and then the two leaders posed for pictures for the cameras.

The video shows moments from PM Modi’s bilateral meetings with Ukrainian president

Volodymyr Zelenskyy

On the sidelines of G7 Summit, Rishi Sunak (UK Prime Minister), Fumio Kishhida (Japanese PM) and Emmanuel Macron, the French President, were present.

In the video, you can see PM Modi interacting with Pope Francis. They held talks together while walking. PM Modi also had a chance to interact with other world leaders including US President Joe Biden and German Chancellor Olaf Scholz. Justin Trudeau of Canada, Turkish President Recep T. Tayyip Erdoan, UAE President Mohammed bin Zayed Al Nahyan as well as President Luiz Inacio Lula Da Silva of Brazil.

Modi shared the video on his X Platform, writing, “An important G7 Summit where I presented India’s perspective on the world stage.” Here are the highlights. Noteworthy, PM Modi returned to Delhi on Saturday after attending the G7 Summit held in Apulia. This was at the invitation of Italian Prime Minister Giorgi Meloni.

The G7 summit, to which India was invited as a ‘Outreach Country’, had participation from all seven member countries: the US, UK and Canada, Germany, Italy and Japan, as well France, as part of the European Union. This was India’s eleventh G7 Summit and PM Modi’s fifth consecutive appearance.

At the G7 Summit PM Modi reiterated India’s commitment to advocating the well-being for the Global South and highlighted the importance of Africa in global affairs. He emphasized India’s commitment to fostering close relations with Africa by citing the historic moment when the African Union was made a permanent G20 member during India’s presidency.

He spoke at the G7 Outreach session on AI and Energy in Africa and the Mediterranean, addressing various topics, including the transformative power of technology for human progress.

“Spoke in the G7 Outreach Session about AI and Energy for Africa and Mediterranean. The speech covered a wide range topics, including the widespread use of technology to advance human progress. Cyber security has become more important as technology has taken over many aspects of human life. Spoke about India’s use of AI to drive its development. In a post on X, PM Modi said that it is crucial that AI remains transparent, secure and accessible.

He stressed the importance of cybersecurity, given the widespread use of technology, and highlighted India’s efforts to leverage AI for development, while ensuring transparency and security, accessibility and responsibility.

On the energy front PM Modi outlined India’s approach focused on accessibility, affordability, acceptability, and availability. He reaffirmed India’s commitment to fulfill its Climate Change Conference of the Parties commitments ahead of time and highlighted India’s efforts to move towards a sustainable and green era, based on the Mission LiFE principles.

Modi also highlighted the “Ek Ped Ma Ke Naam”, a campaign aimed at promoting sustainability in the environment and making the world more habitable for the future generations.

“India’s approach to energy is based on accessibility, affordability, and acceptability. We are working hard to meet our CoP obligations before the deadline. India is working hard to usher in the Green Era based on Mission LiFE. PM Modi also highlighted the campaign “Ek Ped Ma Ke Naam”, to make our planet sustainable,” he stated in a X post.

In a post on X, PM Modi stated that he had a “very productive day” at the G7 Summit held in Apulia. Interacted with world leaders to discuss various topics. Together, we strive to create impactful global solutions that will benefit the global community.

“I thank the Italian people and government for their warm hospitality,” said the president.

India’s fourth largest trading partner in the European Union is Italy, which invited Modi to the G7 Summit Outreach Sessions. Bilateral trade between the two countries currently stands at USD 15 billion.

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Owner-op Bruce Roche’s summertime hauling ’91 Kenworth K100

Bruce Roche has owned the 1991 Kenworth K100, since June 2006. Roche said that it was originally purchased in Texas by John Crowe Productions. This was then bought out by National Mobile Television of Torrence. The Cummins N14 powered rig is now owned by Roche and only used during the summer months to move trailers for dealers, and haul some of Roche’s antique tractors.

[ Related to: Dale Ziegler’s Custom ’24 Peterbilt pulls a Flatbed]

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Edison Ventures is looking to raise $650M

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Trucker advances in Mr. Health and Fitness Competition

Francis Junto, an OTR driver for DGH (Dutch Gold Honey), has been climbing the ladder to be named Mr. Health and Fitness is an online competition where men (and women in a separate event) share their stories about health and/or transformations of the body. The public voting has been open since 7 May, and trucker Junto, a 30-plus-year veteran of the industry, is currently one of 20 competitors in his group.

The public voting for the next round of elimination, which will eliminate five competitors, continues until today, May 23 at 9 pm Central time.

Junto sent you this link where you can vote – the rules state that the public may vote once per day for their favorite winner. There’s also an option to purchase extra votes; according to the competition rules, a minimum of 25 percent of the net proceeds of those purchased votes will go to a charity that supports or researches childhood cancer. The winner of the competition will receive $20K, and will be featured on Muscle & Fitness Magazine’s cover.

Junto is not the type of muscular bodybuilder you will see on the cover of this magazine. He is 5’7″ and has slimmed down from nearly 200 pounds to between 170 and180 pounds today.

He was 45 years old and had been in the trucking business for about 20 years. He drove for the Harley-Davidson motorcycle firm, based out of York, Pennsylvania.

The former Marine said that he could “sling some weight” around in the gym. He added that Harley-Davidson plants “have the equivalent to a Gold’s Gym” in them.

The OTR driver’s regular doctor gave him a little wake-up call when it came to cardiovascular fitness. (York, Minnesota to Minneapolis, Minnesota was a regular run back then.)

She told him, “You are a heart attack in the making.” “Your cholesterol is a pinball,” she told him. The sedentary lifestyle and diet of OTR certainly didn’t help. He said that she wanted to put him on this medication to help control these levels, but it “messed up my liver”. I began walking regularly before you knew it. Then, “it was 10ks and half-marathons, and 5ks.”

As this picture of a board shows, he’s completed 10 half marathons today. He also finished three Marine Corps Marathon events. Junto has done it all “while trying get a truck to move up and down the street.” This is not a profession that lends itself to a healthy life. You have to work hard at it.”

He attributes his continued existence to all of that. He told the doctor at the time that he was not ready to retire at 45. He’s still on the road at 57. His routes, which he has been doing for DGH for five years now, take him mostly to the Northeast and New York City. He spends less time on layovers than in the past. The work put into health has made it easier to be at home in Pennsylvania.

He said that he still packed his running clothes, sneakers and other items in the truck. “People think I’m crazy,” he said in some cases. “I’ve ran six miles in South Bronx right by Hunt’s Point,” he said. “I’ve done that kind of thing since years,” taking advantage time, delays in deliveries, and getting another kind of work.

As mentioned, you need to work hard to make health a part of your daily routine. Junto said, “I try to go to the gym or run at least twice a week.” “That’s what you need to do.”

He added that Junto and Dale, his physical therapist, “run every Sunday morning.” With DGH today, I know my schedule a full week in advance but the start times vary from day to day.

Junto said that trucking is not a profession where routine exercise is a given. But he emphasized to others that “it’s possible.” He is also a living example of how to eat well. The lack of sit-down restaurants on the road, which has been decreasing in recent years, means that “Truck Stops aren’t helping” the situation when it comes to general health. “I pack everything” food-wise, he said.

He said that you “really need to push yourself” in order to make it work. It can work, if the effort and time are put in.

Junto is married with two children, two grandchildren, and another one on the way. “You want it for them,” said Junto, but ultimately any pursuit of a better health is to protect the most important thing that you have: Your life.

Francis Junto is also wishing everyone the best of luck in the contest. You may vote for him by visiting this page. I’m hoping to get away from my desk for half an hour and run three miles. Happy trails.

[ Related Small business owners and the problem of ‘work-life’ balance]

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Launch of the Moonshot Ideas Program by Microsoft Israel R&D and Ground Up Ventures

The Liftoff program supports 10 companies per year. The program will focus on projects which solve significant and difficult problems, such as energy supply, storage of energy and smart grid, food safety for a growing populace, smart construction, sustainable construction, defense, and the future battlefield.

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Sidley Names Cooley Atty As Leader of VC Fund Formation Team

Sidley Austin LLP announced the hiring of a former Cooley LLP Palo Alto partner to lead its newly-formalized venture capital fund…

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Many shippers are unwilling to insist on the value of their service.

You’re enjoying your first cup of coffee in the morning as your device starts up and you start your first search for loads. It’s a new day of lower-than-desirable interest rates. You keep asking yourself: When is this cycle going to end and when will things start to improve?

You negotiate the best price, but then realize it’s time to do a reality check.

For many, trucking is not just a job, but also their passion, their life’s work and identity. We spend our entire lives chasing a dream, which is sometimes not what we imagined. The latest economic downturn has us re-evaluating our business model. We spend hours improving our skills, sharpening our pencils to reduce expenses, and finding new revenue streams only to realize that the expenses are eating into the razor-thin profit margins that were present just a few months ago.

We must, however, find a way of being successful and profitable so that our dream remains viable.

When we were negotiating rate structures with customers, it became clear that accepting a lower rate per kilometer today in the hope that we would ask for a more expensive price next week is a way to fool ourselves and pretend that we have made progress. A shipper will assume that we will move their product for the same price as we did this week. Why wouldn’t they think so?

Here’s our dilemma: If my truck is running below my cost then I have a finite amount of time before I run into a financial liquidity problem. If my truck is running below my cost, there is a limited amount of time until I run into a liquidity issue. Carriers who operate in this manner and hope for better times create more of the problem. Each week, an operator offers a lower rate to a shipper. They run below cost and draw on their cash. The shipper expects the same low price at the next request. The carrier will eventually be unable to provide service and the shipper will have to pay someone else’s rate (which is probably higher, but who knows in today’s market).

If it can even be called a plan, it’s not a good one to burn cash until the market is saturated and rates rise again. What else can an operator do?

Service limitations and loyalty are both clear, but don’t give up on either

During a long-lasting downturn, such as the one we are experiencing, we can clearly see the limits of service and loyalty to shippers. Many, perhaps even the majority, are willing, in exchange for lower rates, to take on risk with shipments. There are still shippers who will value your services and are willing pay for them. Look for ways to maximize your opportunities within their company and help them in all areas of their businesses.

Prioritize those customers who are loyal to you as a carrier.

[ Related: Leave Trucking Better Than You Found It: Work Hard on Real Relationships across the Board]

Understanding your costs is easier than ever. To fully understand where your business stands in terms of profitability, you need to know your cost per mile as well as per unit of time (per hour, per day). Think creatively and maximize those rates while looking for ways to cut costs. Is it more profitable to outsource tasks you could do yourself, or to stop using a route that is not profitable? You can easily do without a difficult customer or one that is not profitable.

Don’t let fear drive your decisions about your business.

We must be careful not to confuse activity with achievement. The old saying that you can’t earn when the wheels aren’t turning isn’t always true. You can increase your bottom line profit by doing less non-profitable work. This will reduce maintenance, tire wear and fuel and insurance expenses. In difficult times, it may be better to run a few high-paying loads in order to cover your overhead than run mediocre freight for the entire month.

Consider a brokerage service for loads that do not fit into your lanes or to make the most of your office staff. You can also generate revenue if your operation offers mechanical services.

Although most small fleets and owner-operators don’t have the luxury of parking equipment and hoping for rates to rise or expenses to drop, taking a balanced, long-term approach to business decisions can have a positive impact on revenue and profits.

In business as well as in life, surviving the storm and regaining the sun is a great win.

Don’t give up hope, stay focused and keep going. There are better times ahead.

[ Related to More cheap freight curves in the future: Better ways of assessing rates and revenue, costs, and emotions]

Find more information on load revenue/cost evaluation and customer management in Chapters 3 (“Understanding your revenue and costs”) and 18 (“Going independent”) of the updated

Overdrive

/ATBS-coproduced

“Partners in Business”

book for new and established owner-operators, a comprehensive guide to running a small trucking business

sponsored for 2024 by the Rush Truck Centers dealer network

. Follow

this link to download the most recent edition of Partners in Business free of charge.

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Japan defense startups draw interest from U.S. venture capital

TOKYO — Japan’s defense and aerospace startups are seeing growing interest from U.S. venture capital as the government here pushes to bolster the country’s defenses, while receiving less attention from investors at home, where there is a less-developed funding mechanism for the industry.

U.S. venture capital firms began expressing more interest in Japanese defense-related startups around two years ago, when Japan decided to boost its defense spending, according to an official at the Ministry of Defense’s Acquisition, Technology and Logistics Agency.

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