• President-elect Donald Trump has threatened to retake control of the Panama Canal.
• Trump blasted the "exorbitant" fees charged to US vessels using the canal.
• Panama's president responded on X, saying that "every square meter" of the canal belongs to Panama.

President-elect Donald Trump has threatened to retake control of the Panama Canal as he hit out at what he called the "exorbitant" fees charged to US ships traversing the passage.

Panama charges tariffs for vessels traveling through the iconic waterway, with fees varying by size and purpose.

"The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the US," Trump said in a post on Truth Social, adding: "This complete 'rip-off' of our Country will immediately stop."

The US transferred control of the canal to the Panama Canal Authority (PCA) in 1999 in accordance with the Torrijos-Carter Treaties.

"If the principles, both moral and legal, of this magnanimous gesture of giving are not followed, then we will demand that the Panama Canal be returned to us, in full, and without question," Trump continued in a separate post. "To the Officials of Panama, please be guided accordingly!"

Panama President José Raúl Mulino responded in a video statement on X, stating that "every square meter of the Panama Canal and its adjacent zones" belongs to Panama.

The president held up a red book titled "Torrijos Carter Treaty" as he referenced the 1977 agreement that would lead to the dissolution of the Panama Canal Zone and hand over the canal to Panamanians on December 31, 1999.

The roughly 80-kilometer (around 50 miles) canal was officially opened in 1914, offering a new link between the Atlantic and Pacific oceans.

According to the PCA's website, between 13,000 and 14,000 ships use the waterway each year, "connecting 1,920 ports across 170 countries." The United States is the largest user of the canal.

In 2023, a shipping company paid almost $4 million on top of regular fees to get through the Panama Canal following a logjam, Bloomberg reported.

Japan's Eneos Group paid $3.98 million in an auction to jump the queue after a drought caused congestion, the report said.

• FedEx will spin off its freight business into a new publicly traded company.
• FedEx Freight will separate from FedEx over the next 18 months.
• Express delivery services have seen slowing demand for their services.

FedEx is spinning off its freight arm into a new publicly traded company.

Called FedEx Freight, the new company will handle large cargo, while FedEx will continue to handle the parcel shipping business that shoppers might be more familiar with as their holiday packages arrive.

The separation will happen over the next 18 months, FedEx said in a statement on Thursday. Shares of FedEx jumped about 9% in after-hours trading.

"Through this process, we will unlock value for our Freight business and position FedEx to create even greater value for stockholders," CEO Raj Subramaniam said in the statement.

FedEx also cut its profit estimates for its 2025 fiscal year in earnings released on Thursday and cited a "challenging demand environment." It said it had seen lower-than-expected FedEx Freight revenue and profit as "sustained weakness in US industrial production continued to pressure less-than-truckload industry demand."

The spinoff will allow FedEx to focus more on the parcel shipping market, it said in its statement.

Bloomberg reported in October that the company, along with rival UPS, has faced less demand this year for next-day shipping as many customers look to save money with slower options.

• Two Russian vessels were damaged during a heavy storm on Sunday, causing a massive oil spill.
• The tankers, both over 50 years old, carried nearly 9,000 metric tons of oil products.
• On Monday, the EU sanctioned 52 dark fleet ships.

A massive oil spill involving two Russian tankers is underscoring the dangers of the dark fleet of ships that's been boosting President Vladimir Putin's war chest.

On Sunday, the Volgoneft 212 and Volgoneft 239 vessels were damaged during a heavy storm, discharging 3,700 tons of low-grade fuel oil into the Kerch Strait between the Russian-occupied Crimean Peninsula and Russia.

Both ships are over 50 years old and were carrying nearly 9,000 metric tons of oil products in total, reported TASS state news agency.

One crewmember died, and 12 were rescued from the Volgoneft 212, which split in half. All 14 crew aboard the Volgoneft 239 were rescued.

Greenpeace Ukraine has warned of an "environmental catastrophe" in the Kerch Strait.

While the extent of damage depends on the product involved, the region already experienced "severe damage to the environment" in 2007 when 1,200 to 1,600 tons of oil was spilled," Greenpeace said.

Aging ships are transporting Russian energy

The problem is more than environmental.

The G7 imposed an oil price cap on Russian oil in December 2022, prompting Russia to grow its shadow network of mostly aging ships.

Using that shadow fleet of ships has helped Russia circumvent Western restrictions and allowed it to continue trading its oil at market prices, according to the European Union.

However, because many of those ships are old, they are also more prone to accidents. Should the ships not have adequate insurance, the burden of clean-up and salvage costs could fall on coastal countries.

Last month, 206 out of the 369 vessels that exported Russian crude oil and oil products were shadow tankers, according to the Finland-based Centre for Research on Energy and Clean Air, a think-tank.

About 30% of the shadow tankers carrying Russian oil were at least 20 years old, according to CREA. Major Western oil companies generally do not use ships above 15 years old.

Europe to step up checks on tanker insurance

The European Union is already cracking down on Russia's dark fleet.

On Monday, the EU sanctioned 52 dark fleet ships. That's in addition to the 27 ships it had previously sanctioned. These vessels will not be able to access EU ports and services.

"These ships have been found to be engaged in high-risk shipping practices when transporting Russian oil or petroleum products, in arms deliveries, grain theft, or supporting the Russian energy sector," the European Commission said in its announcement.

A group of European countries — including Denmark, Estonia, Norway, and Sweden — is also planning to increase checks on the insurance coverage of tankers carrying Russian oil, Bloomberg reported on Monday, citing people with knowledge of the matter.

Bloomberg's sources said they expect no consequences for ships that are short on their coverage in the immediate term, although the information collected could help with the crafting of such measures in the future.

The company is focused on various transportation markets, including maritime shipping, long-haul trucking, and agriculture.

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• Container ships are avoiding the threat of Houthi attacks in the Red Sea, The New York Times reported.
• Sailing around Africa extends journeys by up to 10 days and adds significant to fuel costs.
• Sending US and EU warships to the region has done little to improve the situation for shipping companies.

Some cargo ships are extending their journeys by up to 10 days and thousands of miles to avoid Houthi attacks in the Red Sea, The New York Times reported on Wednesday.

More than a year ago, Houthi rebels based in Yemen began targeting ships and vessels in the Red Sea, which they said was in response to Israel's escalations in Gaza.

However, the rebels have also attacked ships with no obvious connection to the Israel-Hamas conflict.

Maritime historian Salvatore Mercogliano told the Times the situation was one of the most significant challenges shipping had faced for some time.

A report by the Defense Intelligence Agency said that at least 65 countries' trade interests had been affected by Houthi attacks on commercial shipping as of April.

There have been about 130 such incidents involving commercial ships since October 2023, per figures collated by the Armed Conflict Location and Event Data Project.

Diverting ships around Africa's Cape of Good Hope adds thousands of nautical miles, up to two weeks of transit time, and about $1 million in fuel costs for each voyage, per the report.

It also said container shipping through Red Sea, which typically accounts for about 10% to 15% of international maritime trade, had declined by about 90% between December 2023 and February.

The US and EU have sent warships to the Red Sea and Gulf of Aden to prevent Houthi attacks, but the move has had little impact.

According to Portwatch, a database run by the IMF and Oxford University, the average number of container ships passing through the Red Sea a week as of December 1 was 26, down from 73 the same time last year.

As well as longer journey times and higher costs, the management consultancy Inverto estimated that an additional 14 million tonnes of carbon dioxide had been emitted since the crisis began.

• A Chinese cargo ship is under investigation related to severed data cables in the Baltic Sea.
• A probe found that the vessel steamed ahead while dragging its anchor for over 100 miles.
• Western officials believe Russia likely orchestrated the attack on EU maritime infrastructure.

Two key undersea data cables in the Baltic Sea were severed earlier this month, prompting an investigation into a Chinese cargo ship for suspected sabotage.

European authorities said the Chinese-flagged bulk carrier, identified as Yi Peng 3, dragged its anchor over the Baltic seabed for over 100 miles, cutting the critical internet cables that link four NATO countries.

A timeline of events

On November 15, Yi Peng 3 departed from Russia's Ust-Luga port on the Baltic Sea carrying Russian fertilizer.

The Ust-Luga port is the largest universal port on the Baltic Sea and the Kremlin's second-largest port after Novorossiysk on the Black Sea. Since Sweden and Finland joined the alliance, the Baltic Sea has been referred to as "NATO lake" because it is almost entirely populated by alliance members.

Two days later, investigators established that the Chinese vessel dropped its anchor around 9 p.m. local time, The Wall Street Journal reported Wednesday. However, the ship continued steaming with its anchor dropped and is believed to have severed an undersea telecoms cable connecting Sweden and Lithuania, per The Journal.

Investigators said Yi Peng 3 continued to sail for another 111 miles with its dragging anchor, which then cut the only communications cable connecting Finland with Germany less than twenty-four hours later.

It was only then that investigators said the vessel raised anchor and continued its route.

It's highly unusual for any vessel to drag its anchor for this long due to the dangers and fuel waste, an impediment that cannot go unnoticed by the ship's watch-standers. A crew typically recovers the anchor, or in the worst case, jettisons it, before steaming ahead.

The Chinese bulk carrier is now anchored in the Kattegat Strait and is being monitored by Danish naval patrol vessels as European authorities continue to investigate the potential sabotage.

Concerns of potential sabotage

Investigators said Yi Peng 3's movements couldn't be charted after it went "dark," meaning that the ship's transponder was shut down or disabled, thus obscuring its position.

Open-source satellite imagery, however, reportedly placed the Chinese ship near the damaged cables at the time of the respective incidents.

An investigator on the case told The Journal that it's "extremely unlikely" that the ship's captain wouldn't have noticed the vessel's dragging anchor.

"It's extremely unlikely that the captain would not have noticed that his ship dropped and dragged its anchor, losing speed for hours and cutting cables on the way," the investigator said.

An analysis by Kpler, a global trade analytics firm, provided to The Journal found that "given the mild weather conditions and manageable wave heights, the likelihood of accidental anchor dragging appears minimal."

Germany's Defense Minister Boris Pistorius said he believed the incident was a result of potential sabotage, telling reporters last week that "nobody believes that these cables were accidentally severed."

"We have to know that, without knowing specifically who it came from, that it is a hybrid action, and we also have to assume that, without knowing by whom yet, that this is sabotage," Pistorius said.

Russia accused of waging 'hybrid warfare'

Yi Peng 3's origin of departure raised concerns over potential Russian involvement in the incident, possibly in connection to the war in Ukraine.

Though the Chinese vessel and associated parties are under investigation over damaged cables, Western officials believe that Russian intelligence agencies orchestrated the incident.

Kremlin spokesman Dmitry Peskov denied Russian involvement, calling the accusations "absurd."

"It's quite absurd to keep blaming Russia for everything without any grounds. It is laughable in the context of the lack of any reaction to Ukraine's sabotage activities in the Baltic Sea," Peskov told reporters on November 20.

Foreign ministers of Finland and Germany released a joint statement on November 18, saying they were "deeply concerned" about the incident, which "immediately raises suspicions of intentional damage [and] speaks volumes about the volatility of our times.

"Our European security is not only under threat from Russia's war of aggression against Ukraine but also from hybrid warfare by malicious actors," the ministers said in the statement. "Safeguarding our shared critical infrastructure is vital to our security and the resilience of our societies."

The incident in the Baltic Sea comes just weeks after US officials warned that Russia would likely target undersea cables and other critical maritime infrastructure.

"We are concerned about heightened Russian naval activity worldwide and that Russia's decision calculus for damaging US and allied undersea critical infrastructure may be changing," a US official told CNN in September.

The official added that "Russia is continuing to develop naval capabilities for undersea sabotage" through its dedicated military unit known as the General Staff Main Directorate for Deep Sea Research, or GUGI.

China complying with the investigation

Denmark's foreign ministry said in a statement earlier this week that investigators were engaged in ongoing "diplomatic dialogue" with the countries "most involved in handling this case, including China."

A Chinese foreign ministry spokesperson confirmed the talks in a statement last Friday, saying Beijing "is currently working with relevant parties, including Denmark, to maintain smooth communication through diplomatic channels."

Chinese company Ningbo Yipeng Shipping, which owns Yi Peng 3, is also cooperating with the probe and allowed the vessel to be stopped while Swedish and German authorities negotiate access to the ship and its crew, The Journal reported.

The vessel's crew, which also includes a Russian sailor, has yet to be questioned due to restrictions under international maritime law.