US Container Imports Plunge As Recession Fears Mount

The article was written by Tyler Durden, and was originally published on ZeroHedge

Amid the mounting speculation of a soft landing and even talk of a “no landing” (read: here and here), we’ve pointed out multiple strategists who don’t share that sense of optimism but rather one that is typical of an end-cycle environment (read: here & here).

A new report by Canada-based logistics company Descartes Systems Group indicates that US shipping container imports plunged 20% in the first two months, according to Bloomberg.

In January and February of this year, the total volume of inbound containers, measured in 20-foot equivalent units, was 3.8 million, which marks a decrease from 4.78 million recorded during the same period in 2022. The latest reading is in line with 3.86 million in January-February of 2019.

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Container rates worldwide for 40-foot boxes have returned to levels before the pandemic. This comes as global central banks aggressively hike interest rates in response to inflation, curbing consumer spending.

Container rates worldwide for 40-foot boxes have returned to levels before the pandemic. This comes as global central banks aggressively hike interest rates in response to inflation, curbing consumer spending.

The financial burden of soaring inflation and increasing rates falls  heavily on low-income consumers. Given that consumerism represents 68.5% of GDP, the troubling slowdown in container shipping suggests that the economy is showing signs of faltering.

Descartes said container volumes from China, Japan, and Germany slumped the most.

Container import declines into the world’s largest economy is an ominous sign as some strategists believe a recession might unfold in the second half of the year. Also, rate increases from last year are only beginning to filter in and will strongly curb economic activity in the coming months.

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Chaos Theory: How Tankers Thrive Amid Energy Crisis And War

The article was written by Alex Kimani, and was originally published on FreightWaves

Global crises and geopolitical chaos are bad for most businesses. Not so in industries like defense and energy shipping. Go to a commodity shipping conference in troubled times and you’ll hear a lot about how bullish all that trouble is for freight rates.

The focus at Marine Money’s New York Ship Finance Forum on Thursday was on the worsening global energy crunch, the war in Ukraine, looming sanctions on Russia, the evolving situation in China — and how phenomenal the rate outlook is for tankers carrying crude, refined petroleum products and liquefied natural gas.

‘The party hasn’t even started yet’

The sweet spot for rates is when disruptions are severe enough for inelastic vessel capacity to fall behind demand, but not so severe that demand is destroyed and the global economy melts down. Bad news is good news, until it gets too bad.

“The market likes chaos and dislocations,” said Bart Kelleher, CFO of Ardmore Shipping.

According to Scorpio Tankers President Robert Bugbee, “The party hasn’t even started yet. The host may be drinking a couple of drinks but nobody has come yet. They are at the pub, waiting to go to the party later. The stress hasn’t even begun to be put on the product-tanker market.”

“What we are worried about and I’m sure some of the other people here are worried about is that this gets too good,” said Bugbee. “This could get crazy. We cannot do the mathematics now to get required [future] demand for products to match the ships able to transport it.”

On the geopolitical front, the Russia-Ukraine war has been a boon for tankers. One moderator asked a tanker panel: “Do you have any concerns on the horizon — maybe [Russian President Vladimir] Putin concedes?”

But geopolitical chaos, like the energy crunch, is only good for rates if it doesn’t go too far. LNG shipping panelists warned of dire consequences in the event of a China-U.S. war.

“If that happens we’re all screwed,” said Oystein Kalleklev, CEO of Flex LNG (NYSE: FLNG). “It’s almost not even worth worrying about because the consequences are so big. Russia and Ukraine would look like a small bump in the road compared to what would happen. You would have an energy shock like you’d never seen before. The whole world economy would stop. It would be like the Great Depression.”

‘Worst energy crisis since 1979-1980’

Average spot rates for very large crude carriers (tankers that carry 2 million barrels of crude) are now above $100,000 per day. Bugbee said one of Scorpio’s product tankers was just booked at $98,000 per day. Average spot rates for tri-fuel, diesel-engine LNG carriers are now over $450,000 per day.

The more that different parts of the world fall short of energy, the higher the demand for shipping to balance out supply. That’s good for tanker owners — until the supply of energy maxes out and consumer and industrial demand is destroyed by high prices.

“We now have the worst energy crisis since 1979-1980,” said Francisco Blanch, head of global commodities at Bank of America Securities.

“Back then, we had a global oil crisis. Today, we have a crisis in gas and power markets. For the most part, it’s local prices; as people like to say in financial lingo, it’s a ‘glocal’ crisis. It hit China a year and a half ago and Europe a year ago. And unfortunately, I think it is heading straight to the U.S. Northeast.”

Utilities in New England depend on LNG. Import prices have skyrocketed due to war-driven demand in Europe. Furthermore, many New Englanders use heating oil. “Northeast inventories of heating oil are the lowest ever coming into this winter,” said Blanch. “All they can do now is first, pay, and second, pray for warm weather.”

Globally, he said, government strategic oil stocks are the lowest ever and commercial storage is also low. Spare oil production is limited. “When you don’t have inventories and you don’t have spare capacity, any incremental upward demand swing has to be met simply by higher prices and lower demand. You have to restrict demand,” he said.

Fight for LNG to heat up in 2023

Countries are bidding against each other for supplies of LNG and petroleum products. The losing bidders fall short of energy. The shipowner transporting cargo wins either way, providing a vital service for end consumers (and for cargo shippers, who profit even after paying often exorbitant freight).

Gordon Shearer, senior adviser of project development at Poten & Partners, said, “India, Pakistan and Bangladesh made big bets that they could buy LNG at spot prices, and they’ve taken the brunt of this swing in price driven by Europe. We’ve seen demand destruction and blackouts in Pakistan and Bangladesh and cargoes being diverted away from India.”

Competition for LNG supplies will heat up even further next year. According to Jason Feer, global head of business intelligence at Poten & Partners, Europe was able to fill its inventories this winter “because they had piped gas from Russia for four to five months” in addition to LNG imports. Plus, they didn’t face as much competition from China, where imports dropped 20%.

“The issue for Europe is going to be next year,” said Feer.

Europe won’t get Russian pipeline gas in 2023 and Chinese LNG buying will likely rebound. Blanch also noted that there is significantly more regasification (LNG import) capacity coming into service next year compared to liquefaction (LNG export) capacity. “So, we will have more mouths to feed but we don’t really have the amount of liquid gas to feed those mouths,” he said. “That will create more arbitrage opportunities and longer travel distances, and therefore very firm LNG [shipping] rates.”

The scramble for diesel

The same competition for resources is playing out in diesel markets and refined product markets in general.

“The big question is: Do we have the refined products to meet the [post-pandemic] reopening of the global economy? I think the answer is no, because we have severely underinvested in refineries,” said Blanch.

According to Arthur Richier, head of strategic partnerships at Vortexa, “The world needs diesel and we’re in very short supply of diesel. Europe is taking a lot of that diesel away from other economies, especially from Latin America. Europe has the cash to outbid buyers in Latin America.”

The scramble for diesel is leading to fallout in other refined products markets, as well.

“Because diesel markets are tremendously tight, refineries have adjusted their yields to do a lot less naphtha and gasoline,” said Richier. “Some of those trades, such as the gasoline trades in the Atlantic Basin and the naphtha trades heading east [to Asia], have suffered.”

Sanctions on Russian oil loom

The energy crisis caused by underinvestment has been exacerbated by the war. The conflict has already had a major effect on crude, products and LNG shipping markets, boosting rates.

It’s about to have an even bigger effect as sanctions create a whole new level of chaos. Starting Dec. 5, the EU will no longer import seaborne Russian crude. U.K. and EU shipping insurance will no longer be available for any Russian crude exports unless the oil is priced below the G-7 and EU price caps. The same restrictions will apply to Russian products starting Feb. 5.

Replacement EU imports will travel much longer distances, increasing tanker demand measured in ton-miles (volumes multiplied by distance). The question is how much upside will be offset by downside from lower Russian export volumes.

“We’re going to lose about a million barrels of crude oil and petroleum products [per day] as those sanctions come down,” predicted Blanch. “Why someone picked those [sanctions] dates in the middle of winter I have no idea. I’m not sure the politicians understood what they were doing.”

Richier estimated that 2 million barrels per day “will be taken out of the market next year from Russia for both logistical and sanctions reasons.”

Russia will be able to move a portion of its crude aboard “shadow tankers,” vessels insured via non-Western insurers that do not do business in U.S. dollars. But availability of shadow product tankers to carry Russian diesel will be far more limited.

“With clean [products] exports, it’s a very, very different story,” warned Richier. “Whether the oil price cap is agreed to or not, Russia will face a physical logistics issue to move those cargoes. There simply aren’t going to be enough vessels to transport those Russian barrels.”

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Oil Tanker Rates Soar To Astronomical Levels

The article was written by Tsvetana Paraskova, and was originally published on OilPrice.com

On Monday, the earnings on the benchmark key crude oil trading route hit $100,000 per day, according to Bloomberg’s estimates. That’s the highest crude oil tanker rate since the beginning of 2020, just before Covid sapped global oil demand.

The much higher cost of shipping crude this year is the result of the longer voyages many tankers are now making because of the EU sanctions on Russian exports. Russia’s oil cargoes from the Baltic ports in Russia are now traveling months on a return trip to Asia – now Moscow’s key export market – instead of just a week from a Russian Baltic port to Rotterdam in the Netherlands

Falling premiums on spot prices for various crudes, however, could offset some of the high shipping costs, traders told Bloomberg.

The surge in freight rates adds an additional layer of uncertainty for crude oil buyers, on top of the EU embargo and price cap set to enter into force on December 5. After that date, Russian oil will have to be sold at or below a certain price – yet to be announced – otherwise the cargo will not be able to use Western maritime transportation services, including financing and insurance.

Some analysts say that there aren’t enough non-Western tankers available to carry the current volumes of Russian oil to markets. Yet, other analysts note increased vessel-buying from unknown entities in recent weeks in preparation for what they believe is Russia’s copycatting the oil export tactics of Iran and Venezuela, which have been exporting their crude under the radar for years now after the U.S. sanctioned their oil exports in 2018 and 2019, respectively.

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China Shipyards Rake In Record LNG Tanker Orders Amid Russia Sanctions

The article was written by Sameer Joshi and was originally published on Financial Express.

Chalk up another way that China is benefitting from Western sanctions against Russia.

First we saw China seize the opportunity to buy Russian oil at a steep discount. Now, China’s shipyards are racking up record orders for liquefied natural gas (LNG) tankers as world markets adjust to supply disruptions caused by the sanctions regime.

In 2022, China has scored 45 LNG tanker orders — quintupling the country’s tally from last year. Having assembled only 9% of the world’s existing LNG tankers, China captured 30% of this year’s orders and now accounts for 21% of global orders on the books, Reuters reports. That’s about $60 billion in business.

China’s growing presence in this speciality shipbuilding market represents demand spilling over from South Korea, which has long dominated the LNG tanker category. Hudong-Zhonghua Shipbuilding accounts for 75% of China’s 2022 orders.

https://www.zerohedge.com/markets/china-shipyards-rake-record-lng-tanker-orders-amid-russia-sanctions
https://www.zerohedge.com/markets/china-shipyards-rake-record-lng-tanker-orders-amid-russia-sanctions

South Korean shipbuilders have been deluged with orders for ships that will be used to transport gas from Qatar’s North Field expansion. That will bring huge growth in Qatar’s production capacity — to the extent that QatarEnergy’s CEO in October said his company will, within the next five to ten years, surpass Shell as the world’s largest natural gas trader. In that endeavor, Qatar is itself capitalizing on Europe’s drive to replace Russia’s pipeline gas with shipborne imports.

Building modern, membrane LNG tankers is a highly technical process that requires certification by Gaztransport & Technigaz (GTT), a the French company that holds the patents and licenses its designs to shipyards. The need for precision — as hundreds of workers painstakingly laser-weld seams inside 40-meter-tall LNG tanks — translates into build times of up to 30 months.

Some of the tanker demand is coming from China itself. SIA Energy’s Li Yao tells Reuters that China will need some 80 LNG tankers to haul 20 million tons of gas a year just from the United States.

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The Global Gas Crunch Is Set To Worsen As China Reopens

The article was written by Irina Slav and was originally published on OilPrice.com

China’s natural gas imports are set for a 7-percent rise next year as the country reopens after Covid lockdowns, which could aggravate an already tight supply situation globally.

The 7-percent import increase forecast was made by state-owned energy major CNOOC, which said, as quoted by Bloomberg, that it was already looking for LNG cargoes for next year.

The report notes that gas inventories at ports in the northern part of the country are depleting at a faster rate than usual because the weather is colder, pushing consumption higher, and this will, too, have an effect on future demand for imports.

What’s more, pipeline supply of natural gas from Central Asia is in decline, which means China will need to rely more on LNG in its gas import mix to make up the difference. And this means more intense competition for a limited number of cargoes between Asia and Europe next year as well.

This year, Chinese gas demand has been trending lower for most of the year, with imports declining consistently over the first ten months of the year, per a report by Energy Intelligence. LNG imports were down by a sizeable 21.6 percent over the ten-month period, reflecting the effects of lockdowns and other restrictions under the country’s zero-Covid policy.

Yet now this policy is being reversed, mass mandatory testing is being dropped and analysts expect a rebound in economic activity before too long. This will drive higher demand for energy and contribute to higher prices due to the tight supply situation in both oil and gas.

This reversal of Beijing’s Covid policy surprised many, who expected tepid demand for energy to continue in one of the world’s largest consumers. If activity rebounds fast, securing sufficient gas supply for the next heating season will likely become a major problem for most importers.

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India Predicts 500% Increase In Domestic Natural Gas Demand

The article was written by Charles Kennedy and was originally published on OilPrice.com

Indian Prime Minister Narendra Modi on Monday projected that the country’s gas demand would rise 500% due to the rapid pace of development, while its share of global oil demand would more than double.

While the Indian prime minister did not offer a specific time frame for this major boost in demand, he said that the country’s energy demand would be highest in the present decade.

Modi’s statement, delivered during the opening ceremony of India Energy Week 2023, coincides with a recent OPEC report that expects India to be the largest contributor to incremental demand, with the country expected to add some 6.3 million bpd until 2045.

Overall, OPEC said it saw demand increasing to 110 million bpd in 2045, up from 97 million bpd in 2021.

Modi predicts India’s share in global oil demand will increase from 5% to 11%. 

The Indian prime minister used the occasion to highlight the country’s plans to boost exploration and production, which he said would provide opportunities for investors. Right now, India relies on imports for some 85% of its energy needs, with India and China being the largest importers of oil and gas in the world.

With this in mind, India will remove significant restrictions on exploration, reducing “no-go” areas for E&P companies. India also plans to expand its refining capacity, along with its LNG import capacity by 2030.

Asia is now the biggest buyer of Russian crude since the imposition of Western sanctions following Putin’s invasion of Ukraine. Some 70% of Russian Urals January loading cargoes were bound for India, according to Reuters data.

India’s oil minister, Hardeep Singh Puri, also said on Monday that regardless of Western sanctions, the country would not shun Russian oil, which it receives at a discount to Brent crude.

“I will be very frank,” Puri said“we will play the market card …”

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Will the energy crisis crush European industry?

The article was written by Silvia Sciorilli Borrelli, Sylvia Pfeifer, Alice Hancock, Rafe Uddin, Peter Campbell, Lauly Li and was originally published on Financial Time.

As European businesses brace for energy shortages, workers at one plant in south-eastern France are getting a new winter wardrobe.

Saint-Gobain, the French building materials group, has ordered extra-warm coats and gloves for staff at its warehouse in the Alpine town of Chambéry, who have agreed to turn down the heat this winter. In order to cut gas consumption, temperatures will be closer to 8C, instead of the usual 15C.

“It will be just like working outside so we have to give them all the tools to work in an outside environment,” says Benoit d’Iribarne, senior vice-president of manufacturing.

Turning down the thermostat is no mere cost saving for many of Europe’s industrial companies as they dig in for a hard winter. With energy prices soaring to unprecedented highs after Russia’s invasion of Ukraine, it has become a matter of survival.

Europe’s industrial base employs some 35mn people or roughly 15 per cent of the working population. The bloc’s leading industrialists warned earlier this month about the potentially devastating economic impact of the energy crisis.

“Soaring energy prices are currently precipitating an alarming decline in the competitiveness of Europe’s industrial energy consumers,” said the European Round Table for Industry in a letter to Ursula von der Leyen, president of the European Commission, and Charles Michel, head of the European Council. Without immediate action to cap prices for energy-intensive companies, “the damage will be irreparable”.

On the surface, European industrial companies are putting a brave face on it — talking about the energy-saving measures they are implementing and the other costs they are finding to cut. While some are looking to coal and other fossil fuels to get them through the winter, others talk optimistically about the green revolution that the crisis is spurring.

But there is already evidence that major companies are reducing production in some sectors because of the energy shortage, even before the winter kicks in. And executives from chemicals to fertilisers to ceramics businesses warn that they risk losing permanent market share and could be forced to move some of their production to parts of the world that can offer cheaper and more reliable energy.

The alarm bells are ringing among Europe’s politicians. “We are risking a massive deindustrialisation of the European continent,” says Alexander De Croo, Belgium’s prime minister.

Saving energy In the meantime, companies in sectors from steel to chemicals, ceramics to papermaking, fertilisers to automotives are racing to reduce consumption both to cut crippling energy costs and to prepare for gas shortages over the winter, should governments impose rationing.

Many are finding ingenious ways to reduce energy use. French carmaker Renault, for example, is reducing the time it keeps paint hot — a process that accounts for up to 40 per cent of its gas demand.

Such innovations promise to deliver more efficient factories and processes in future. But first, these businesses have to get through the winter.

the energy crisis crush European industry
The energy crisis in Europe

Those that could do so have increased prices. Cologne-based chemicals company Lanxess, which makes base chemicals and active ingredients for the pharmaceuticals market, increased base prices by up to 35 per cent when energy costs began to surge.

But price increases will not address the problem of gas shortages. Paper and packaging group DS Smith has ordered its factories to cut consumption by 15 per cent, a voluntary reduction agreed by EU member states in July. Machines that used to be idled between production runs will now be turned off, and thermostats turned down. “If we do things like this and turn down the thermostat from 20 to 18.5 degrees we reduce gas consumption significantly,” says Miles Roberts, chief executive.

Valeo, the French automotive supplier, has asked factories to reduce energy consumption by 20 per cent, with measures such as halting production at the weekend and turning down temperatures during the week. Solvay, the Belgian chemicals company, says it is organising its factories to operate on 30 per cent less gas using alternative energy and mobile diesel-fuelled boilers.

Gas is the single most important source of energy for Europe’s industrial companies. But gas is also an important feedstock, used in the chemicals and fertiliser industries. In total, industry consumes about 27-28 per cent of the bloc’s total supply, according to Anouk Honoré, ​deputy director of the gas research programme at the Oxford Institute for Energy Studies.

But it is not that easy to cut the fuel out of many industrial processes. Roughly 60 per cent of industrial gas consumption is used for high-temperature processes of 500C and above, such as glassmaking, cement or ceramics. “For lower temperature processes, there are more options to use renewable energy and heat pumps,” Honoré says.

For that reason some companies are turning to fossil fuels, in a potential setback for the EU’s green transition plans. Bayer, the German pharmaceutical and biotech company, in 2019 announced plans to move entirely to renewable energy. But it has now reactivated oil as a fuel “just in case” it is unable to meet heat needs for production.

Carmaker Volkswagen is running power plants in Wolfsburg, its largest site, with coal for the next two winters, instead of switching to gas as planned as part of its decarbonisation efforts.

Even for the lower temperature industrial processes, alternatives are unusually scarce at the moment. The summer’s drought has depleted hydropower capacity, while France’s ageing nuclear reactors are unable to meet demand due to protracted shutdowns and maintenance issues.

The carmaker Volkswagen plans to run its largest power plants
The carmaker Volkswagen plans to run its largest power plants

So some industries, faced with crippling energy prices and softening consumer demand, have decided that the best way to cope is simply to cut production.

Analysts at investment bank Jefferies estimate that close to 10 per cent of Europe’s crude steel capacity has been idled in recent months. ArcelorMittal, Europe’s biggest steelmaker, expects output from its European operations to be 17 per cent lower this quarter compared with last year after it cut production.

Metals trade body Eurometaux says all of the EU’s zinc smelters have had to curtail or even completely halt operation, while the bloc has lost 50 per cent of primary aluminium production. Some 27 per cent of silicon and ferroalloy output has also been mothballed, and 40 per cent of the furnaces, it adds.

The fertiliser sector, which relies on gas as a feedstock to create ammonia, has also been hit, with 70 per cent of capacity offline, according to Fertilizers Europe. Goldman Sachs estimates that 40 per cent of Europe’s chemical industry “is at risk of permanent rationalisation” unless energy prices are contained.

“With the rapid rise in energy prices, we are constantly reviewing our production levels across Europe,” said German chemicals group Covestro in a statement.

The same story is playing out in the plastics, ceramics and other energy-hungry industries. Consultancy Rhodium estimates that just five sectors account for roughly 81 per cent of Europe’s industrial gas demand: chemicals, basic metals such as steel and iron, non-metallic minerals products such as cement and glass, refining and coking, and paper and printing.

In some of these sectors, temporary shutdowns are not only costly; often they are almost impossible to implement without permanently damaging equipment.

 the French glassmaker, would normally run its furnaces all day, but has idled some after gas bills rose almost fourfold this year
the French glassmaker, would normally run its furnaces all day, but has idled some after gas bills rose almost fourfold this year

Saint-Gobain’s d’Iribarne says the potential for energy reduction is limited in the company’s glass factories, where furnaces have to keep burning to keep the glass from solidifying. “You can’t reduce consumption by 30 per cent because that means you would have to shut down and that would damage the factory. You would need six months to a year to restart.”

Arc International, a French glassware maker, has had to do just that. Normally furnaces at its plant in northern France need to run 24 hours a day, making up about half the factory’s energy usage. Now the company has idled two of nine furnaces, and extended the maintenance period on another two, after gas bills increased almost fourfold this year. The company has also been hit by a sudden downturn in demand for some of its products, says Nicholas Hodler, the chief executive. As a result roughly a third of staff have been put on furlough two days a week.

The widespread shutdowns are raising concerns that the crisis is opening the door to rivals from regions with lower energy costs. “A reduction or halt of the exports, albeit temporary, risks translating into a permanent loss of market share,” says Giovanni Savorani, president of Confindustria Ceramica, the trade body for Italy’s €7.5bn a year ceramics industry.

European manufacturers have long complained about the competitive disadvantage posed by the bloc’s fragmented energy market. Over the 10 years to 2020, European gas prices were on average two to three times higher than the US, according to the International Energy Agency.

That gap has widened to as much as 10 times since Russia began cutting back supplies.

“You can import [fertiliser] for half the price we can produce at,” says Jacob Hansen of Fertilizers Europe.

Cefic, the European chemicals industry trade body, points out that since March this year Europe has become a net importer of chemicals by both volume and value for the first time. “This is seriously concerning,” says Marco Mensink, director-general. “We are just way too expensive on a global basis because of energy costs.”

In an effort not to cede ground to competitors, some companies are tapping their lower cost plants outside Europe. Ilham Kadri, chief executive of Belgium’s Solvay, says the chemicals group could step up production of more energy-intensive products in lower cost markets if needed. “We are looking at how to prioritise products,” she says “We are a global company and can leverage assets outside Europe to compensate for any reduction in volume there.”

One Italian steel executive says the combination of high energy costs and Europe’s carbon levy is forcing a rethink about where to produce steel, priced at €800 a tonne. “The price of gas used to have a €40 [a tonne] impact, it has now risen to €400,” he says. “If we add the carbon tax on top, the overall impact of energy costs is €600. It makes a lot more sense for us to move production” to Asia.

Packaging groups Smurfit Kappa and DS Smith are both looking to their factories in North America for paper supplies.

“We are bringing in more from the US than we have done in the past,” says DS Smith’s Roberts. “To make paper you use a lot of energy. In the US it is much more available and energy costs are much much lower.”

Experts warn that the longer companies are forced to shift production from Europe, the greater the risk that some output may never return. Honoré of the Oxford Institute for Energy Studies says this happened before.

“When European gas prices were at relatively high levels between 2010 and 2014, we saw relocation to regions with lower prices — such as the Middle East, north Africa and US,” she says. “Industrial gas demand never went back to pre-financial crisis levels.” “Once investment decisions are made . . . it is hard to ask companies to come back,” says Matthias Berninger, a senior executive at Bayer. “If we were to invest in a new site that has decades-long consequences.”

Lower-margin, gas-hungry commodity producers, such as the fertiliser industry, could be among the first victims, suggests Trevor Houser of Rhodium.

Will the energy crisis crush European industry?
Will the energy crisis crush European industry?

“The economics of producing natural-gas-based fertiliser in Europe will be poor for a long time,” he says. The threat is particularly acute in central and eastern Europe, where many countries have been heavily reliant on Russian gas. Of Europe’s 45mn tons of fertiliser production a year, Poland alone produces 6mn, according to industry sources. All five of its factories are idle. Another 3mn tons of capacity are offline in Hungary, Romania and Croatia. In eastern Europe, 20 per cent of European capacity has been shut down. Hungary-based fertiliser-maker Nitrogénművek is among those that have had to scale back. Zoltan Bige, chief strategy officer, warns that the implications of capacity reductions this winter could be devastating. “If we do not produce in the summer, the stock does not accumulate,” he says.

“Across Europe, there is not the inventory that should be available in the spring when demand starts to increase.” The lasting impact of the shutdowns across Europe will not be known for many months. But already the reduction in output of chemicals, steel and other critical, basic products is worrying those further down the value chain.

BASF’s Ludwigshafen site is the world’s largest integrated chemical plant, supplying industries from carmakers to toothpaste manufacturers © Thomas Lohnes/Getty Images Companies such as Volvo and Bayer have begun to stockpile parts and materials in case suppliers run into trouble. “Our main concern is not the energy price but the availability of inputs we convert into pharmaceuticals,” says Bayer’s Berninger.

The future of Europe’s gas-reliant chemicals industry — and in particular of BASF’s Ludwigshafen site, the largest integrated chemical plant in the world — is deeply concerning for some industrialists. Ludwigshafen is a key supplier to manufacturers of everything from cars to toothpaste and is the engine of Germany’s chemicals sector. “If the German chemicals industry goes down, three weeks later every supply chain in Europe has a problem,” says Cefic’s Mensink.

Germany’s dominance in the supply chain with industrial giants such as BASF, means that even companies based elsewhere are exposed to the fallout of any gas rationing in the country. “If Germany is not able to supply . . . that will have ripple effect all across Europe,” says Saint-Gobain’s d’Iribarne.

German companies, which account for 27 per cent of the bloc’s sold industrial production by value, are on the frontline. At the beginning of this year, more than 50 per cent of Germany’s gas imports came from Russia and industry accounts for just over a third of demand.

The German government recently unveiled a €200bn support package to offset high energy costs for households and business. But German manufacturers like steelmaker ThyssenKrupp do not rule out the need for drastic action if the crisis continues. The group has already relocated production away from two of its plants to its flagship site at Duisburg, which runs on its own energy network, and is less reliant on natural gas.

The company says it is also prepared to shut down individual plants if energy bills continue to rise. “The costs of gas and electricity . . . pose an existential threat to energy-intensive industries such as the steel industry,” Thyssenkrupp says.

Other countries may not have Germany’s industrial heft, but their economies — and employment — are even more reliant on manufacturing. The OECD estimates that Poland, the Czech Republic, Slovakia, Austria Slovenia, Sweden, Finland and northern Italy have the highest shares of employment in vulnerable gas-intensive sectors.

All these countries are scrambling to offer support to their industries and citizens as the weather grows chillier and energy demand rises. But many companies are already looking beyond this winter to the next, and predicting even tougher conditions.

“In 2022, there were decisive volumes from Russian sources,” says Nitrogénművek’s Bige. “If this all goes away, it paints a rather pessimistic picture for next winter [2023-4]. The proportion of new gas sources will increase, but the infrastructure is far from being able to catch up.”

Arc’s Hodler says the scope for increasing prices next year will also be limited. “The real question is whether in 2023 we will see a significant increase in energy costs,” he says. “We are not going to be able to pass on all those extra costs to our customers without seeing a significant impact in volume.”

But there are those who believe the result of the crisis will be a stronger, greener industrial base. Companies such as Saint-Gobain, Solvay and Smurfit Kappa told the Financial Times they were all accelerating energy-transition plans that were in place before Russia’s invasion. Tony Smurfit, chief executive of Smurfit Kappa, says his company is “spending three times what we would have spent” under previous plans. So there are reasons to be optimistic. “This will accelerate the green revolution. Fifty years ago there were no options for green energy and now there are. I think this will make Europe very green.”

Additional reporting by Silvia Sciorilli Borrelli, Sylvia Pfeifer, Alice Hancock, Rafe Uddin, Peter Campbell, Lauly Li Data visualisation by Chris Campbell This article has been amended since original publication to clarify Bayer’s plans on the use of oil to meet its heat needs

How to Invest in Oil Tanks and Earn Monthly Passive Income with Foundation Capital

If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest with. Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the energy industry.

For more detailed information on how to make a capital investment in oil and gas tanks with Foundation Capital, as well as the terms, conditions, and risks, refer to the following FAQs and guides:

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China Becomes World’s Biggest LNG Buyer With Flurry Of Long-Term Deals

The article was written by Tyler Durden and was originally published on Zerohedge

Take Chinese energy giant Sinopec Group, which reached a 27-year agreement with state-owned QatarEnergy late last year to buy 4 million tonnes of LNG annually. The imports are due to begin around 2026. As a key client, China is also negotiating to invest in a massive Qatari project to expand LNG output.

At the same time, a private-sector Chinese energy company, ENN Group, signed a contract last year with Texas-based Energy Transfer to buy 2.7 million tonnes of LNG annually for 20 years. ENN increased its purchasing agreement with NextDecade, also headquartered in Texas, to 2 million tonnes a year for 20 years as well. In addition, NextDecade has agreed to supply 1 million tonnes of LNG yearly to China Gas Holdings, whose principal shareholder is an investment vehicle controlled by the city of Beijing. Imports are to start in the latter 2020s.

China Becomes World's Biggest LNG Buyer
China Becomes World’s Biggest LNG Buyer

Over 2021 and 2022, China closed long-term LNG purchasing contracts worth nearly 50 million tonnes a year, European research firm Rystad Energy reports. In this not so covert attempt to corner the LNG market, China has tripled the scale of purchases through long-term contracts in just two years, up from the annual volume of roughly 16 million tonnes from 2015 through 2020.

In 2020 and 2021, spot transactions accounted for 40%-50% of China’s natural gas imports, well above the estimated 30% for Japan. But China appears to have changed strategy to fit long-term demand. Long-term contracts offer more stability in supplies compared with spot contracts.

In 2021, China surpassed Japan as the world’s top LNG importer. But last year, imports apparently dropped 18% to around 65 million tonnes on the economic fallout of the coronavirus pandemic. Yet China’s demand for natural gas in 2030 is projected to be over 50% higher than in 2021.

Amid global efforts to reduce carbon emissions, many countries have converged on natural gas as a relatively clean bridge fuel. The Institute of Energy Economics, Japan predicts annual worldwide LNG demand will reach 488 million tonnes in 2030, up about 40% from 2020. But global supply is on track to fall short of demand by 7.6 million tonnes a month in 2025.

The China contingent are addressing the risk of being cut off from the LNG supply chain at a time when U.S. and allies work to create China-free supply chains for semiconductors. Long-term contracts are seen as a hedge against such disruptions.

Ironically, the US is already China’s biggest LNG supplier based on long-term contracts. The same US that aggressively ramping up alternative semiconductor supply chains that bypass Beijing and which has cracked down on Chinese reverse engineering of US technology. And while Beijing imposed a 25% tariff on American-made LNG in 2019 during the trade war, it then started issuing waivers on the duties in 2020, and since 2021, Chinese and U.S. companies have signed a series of massive LNG deals.

China now imports about 90 million tonnes of LNG through long-term contracts, with the U.S. responsible for around 25 million. Australia ranks next at roughly 17 million tonnes, while the Middle East supplies 14 million and Russia contributes about 6 million.

Despite being extensively reliant on US long-term deal, Beijing intends to avoid dependence on American LNG, and China “is ready to expand cooperation with Qatar in natural gas and other traditional energy sectors,” President Xi Jinping said during a December meeting with Qatar’s Emir Tamim bin Hamad Al Thani in the Saudi Arabian capital of Riyadh.

Additionally, Beijing is carefully diversifying suppliers in the name of energy security. Beyond tanker-borne LNG, China also brings in natural gas via pipelines. China covers just over half of its natural gas demand through domestic output, and the rest comes from Russia and Turkmenistan. The natural gas supplies are supplemented by LNG from the U.S. and other sources.

“It’s best not to rely on any one country for 30%-40% of our needs,” said an executive at a large Chinese oil company, a lesson which Europe learned the very hard way.

As China emerges as a dominant LNG buyer, the role of Japanese purchasers has diminished.

In 2021 and 2022, Japanese companies agreed to less than 10 million tonnes of LNG per annum in long-term contracts. Utilities are wary of large LNG contracts due to uncertainties about future demand amid the decarbonization movement, Japan’s shrinking population and the restart of nuclear plants.

Japanese LNG importer JERA, a joint venture between utilities Tokyo Electric Power Co. Holdings and Chubu Electric Power, decided at the end of 2021 not to renew a 25-year contract with Qatar to buy 5 million tonnes of LNG annually. China’s Sinopec was quick to step in and has emerged as Qatar’s replacement buyer.

Before LNG developers start production at new projects, they sign long-term contracts with importers to secure income and take in financing from lenders. Japanese power and gas companies once took leading roles for projects in Southeast Asia and Australia, but now Chinese players are looking to fill that function.

How to Earn Passive Income with Foundation Capital

If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in.  Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.

For more detailed information on how to make a capital investment in construction with Foundation Capital, as well as the terms, conditions, and risks, refer to the following FAQs and guides:

(Support) What Is Foundation Capital and How We Invest?

(Support) Construction Investments Vs. Others

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Russia Remains Top Seaborne Oil Supplier To Europe Despite Sanctions

The article was written by Charles Kennedy and was originally published on Oilprice.com,

While the European Union’s seaborne imports of Russian crude oil declined by just over 12% last year, Russia still enjoyed status as the top seaborne oil supplier to the bloc, despite sanctions…

The speaking numbers 

According to data from maritime sector brokerage firm Banchero Costa, last year saw the EU import 98.8 million tonnes of Russian crude via sea, down from 112.5 million tonnes in 2021 and 128.5 million tonnes in 2019.

For 2022, Russia still accounted for 21.9% of European seaborne imports of Russian crude, followed by the North Sea, which accounted for 17%, and North Africa, at 15.4%.

North Sea shipments of oil to Europe were up by 19.2% year-on-year, and well above 2019 numbers, while North African shipments of oil to Europe increased by 6%. Shipments from West Africa to Europe were up by 27.5% for 2022. The United States saw a 43.1% increase of crude oil exports to Europe for a record 51.4 million tonnes.

But the biggest surge came from the Arabian Gulf, registering a 76.4% increase year-on-year in 2022, though this is still down from the levels of 2019, while the U.S. exports to Europe were record-breaking.

Overall, Banchero said, citing Refinitiv data, “2022 has turned out to be a very positive year for crude oil trade, despite the surging oil prices and risks of economic recession”.

Globally, the data shows an 8.5% increase in total crude oil loadings, year-on-year. Total loadings came in at 2,047.3 million compared to 1,886.3 million for 2021 and 2,110.5 million tonnes for 2019.

Though Russia has seen its exports to the EU decline by over 12% last year, the data shows that overall it saw an increase in exports by 10.3% to 2018.5 million tonnes. That figure is only slightly below 2019 levels.

Likewise, the United States also experienced a surge in exports of crude oil, gaining over 22% in the twelve months of 2022, as did Saudi Arabia, showing an over 17% increase.

This compares to West Africa and the North Sea, both of which saw a decline in oil exports for 2022.

On the demand side of the equation, China’s intake of seaborne crude oil overall dropped by 3.6% last year, while India saw the reverse: an 11.7% increase in imports.

 

How to Invest in Oil Tanks and Earn Monthly Passive Income with Foundation Capital

If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest with. Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the energy industry.

For more detailed information on how to make a capital investment in oil and gas tanks with Foundation Capital, as well as the terms, conditions, and risks, refer to the following FAQs and guides:

(Support) What Is Foundation Capital and How We Invest?

(Support) Foundation Capital FAQ Library

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Plan Passive Income Flows for Your Retirement Years

The article was written by Sameer Joshi and was originally published on Financial Express.

Retirement may be a financial milestone in itself, but there are other goals which you may want to accomplish after retirement. For instance, you may want to renovate your home, travel the world with your family, or even set up your own entrepreneurial venture. All this, while also accounting for your everyday needs and healthcare expenses.

Here are more reasons why it is essential to have a financial plan for your retirement.

Source of passive income

Once you have retired, you will not have an active source of income. Planning for your retirement helps you set up a few sources of passive income, so you can continue to have a steady stream of funds.

Remain financially independent

If you want to remain financially independent even in your golden years, retirement planning is the answer. It helps you build a corpus that is enough to meet your post-retirement financial needs.

Maintaining your standard of living

Even though your income may dip once you retire, your expenses may continue to remain at the same level. In fact, taking into account inflation and rising healthcare costs, the expenses would only increase further. Retirement planning ensures that you can continue to maintain your standard of living, without making any compromises on the quality of your life.

It is crucial to invest in the ideal financial instruments depending on your life goals now, to be able to reap the benefits of these products later in your life. A retirement plan gives you the benefit of a corpus that can help sustain your financial needs post retirement. One must keep the following key factors in mind while purchasing a retirement plan:

Vesting period is important

The vesting period is the time after which you start receiving the annuity payouts. If you are closer to retirement, you need to choose an immediate annuity plan or a plan with a shorter vesting period. On the other hand, if you have several years left to retire, choose a plan with a vesting period that aligns with your financial horizon.

Pension corpus should be adequate

The payouts from the pension plan you have chosen should be sufficient for you to get a substantial regular income and meet your post-retirement needs. You need to account for inflation while computing your post-retirement income. You can even invest in more than one retirement plan to increase your passive income. It is crucial to start saving up for your retirement when you are younger, so you can benefit from the power of compounding. The best time to plan for your retirement may have been yesterday, but the second best time is now.

How to Earn Passive Income with Foundation Capital

If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in.  Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.

For more detailed information on how to make a capital investment in construction with Foundation Capital, as well as the terms, conditions, and risks, refer to the following FAQs and guides:

(Support) What Is Foundation Capital and How We Invest?

(Support) Construction Investments Vs. Others

(Support) Foundation Capital FAQ Library

(Support) Schedule Your Free Consultation

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Make Money While You Sleep: Your Guide To Passive Income

The article was written by Neeti Jaychander and was originally published on HerCircle.

Priyanka Chopra might be earning squillions as a global movie star today, but that hasn’t stopped her from exploring side gigs for income. Not only has she opened Sona, a swanky Indian restaurant in New York City and a retail spinoff called Sona Homes with products like tableware, she’s also invested in premium sportswear brand Perfect Moment, haircare brand Anomaly, runs a film production company called Purple Pebble Pictures, and has published her memoirs titled ‘Unfinished’.

What Chopra is essentially doing is creating ‘passive income’, a way to earn extra money through investments or work already completed, without the need to work full-time. The ideal way to earn passive income is to focus on something that will generate long-term revenue with minimal intervention from you.

In contrast, active income requires you to constantly and actively put in the effort to keep it coming. Do not confuse jobs like consulting, freelance writing or computer programming as passive income – these require the same amount of effort as an active job.

Why do we need passive income?  

Delhi-based Jayanth Ranganathan, Senior Director at IIFL Securities says, “Passive income should be a part of every woman’s life. As Warren Buffett once said – ‘If you don’t make money while you are asleep, you have to earn till you die’. Passive income is almost a necessity to survive turbulent economic conditions today. It guarantees greater financial freedom and liberates you from the nine-to-five routine to offer other investing alternatives. It also lets you focus on meaningful financial goals, such as securing money for retirement. Passive income reduces financial stress and takes care of one’s passion, luxury spending or dream holidays.”

In 2021, according to a survey conducted by Fidelity, only 33 per cent of women saw themselves as investors, of which only nine per cent considered themselves better at it than men. They also tended to invest less impulsively and more conservatively – 68 per cent being in cash equivalents as opposed to 59 per cent by men. For some reason, women do not approach finances and investments with the same sophisticated strategies as men. However, with reduced investment comes the reduced opportunity for passive income.

What are the sources of passive income?

Ranganathan says, “There are a lot of ways through which you can start generating passive income. Which or how many you opt for, largely also depends on a woman’s current financial position, her social connects and use of time. While some people invest money, others invest skill and talent to create a source of passive income.” Ranganathan offers a list of passive income sources that beginners can start off with and build upon:

• Rental income is considered one of the safest and oldest means of passive income. If you don’t already have a property, consider buying one to park any excess funds you may have.

• Use the stock market and other investment returns, depending on your risk profile. Consistent passive income can be generated through share market investments, fixed deposit returns and investments in various other financial products. Consult your financial advisor and see which of these balance risk and returns are best for you.

• Lately, social media has spurred a lot of interest cutting across age groups. YouTubers and Instagrammers find themselves earning a passive income, depending on their own passion and usage of social connect. Affiliate marketing is an off-shoot of this as well.

• Consider hosting online mentoring and teaching courses. Particularly after the recent COVID outbreak, there is an increased demand for academic and technical teachers on the digital platform, where they can realise their full potential. You will need to create the material for these courses only once, following which there is only the minimal effort of delivery.

• Creative people can consider copyrighting their music or photographs or books and getting returns from royalties.

How do you start building passive income?

First, make a list of your skill sets that people would constantly pay for. Have you developed an app or an online course? Have you written a riveting book or e-book? Assess what you’re good at that could be used to build parallel income streams. You will also need to start building a nest egg if you’re considering investments – whether it’s an apartment or a fixed deposit. Focus on your long-term passive income goal and work towards building the bank balance that needs it.

What should you consider before plunging into it?

Before opening a passive income stream, there are various aspects to consider, the first and foremost of which is how much it is going to impact you and your lifestyle financially. Passive income isn’t an easy get-rich-quick scheme. So, carefully weigh the positive long-term history, how much you can pump in, how quickly you’ll need the returns, what the minimum risk factors are and the integrity of what you’re investing in.

Says Nrithya Kumar Vardhan, a Bhuvaneshwar-based branch manager with a public sector bank, “While passive income might be a lucrative proposition, always make sure to read the fine print and caveats. Check your primary employer’s rules. Are you allowed to make income on the side? Are there any specific industries or companies that are off-limits? What does your contract state? The last thing you want to do is face legal issues, so be very careful. The other aspect to consider is taxes. Your passive income might come under a different bracket from your active income, but the need to pay taxes definitely exists, so consult an auditor on how to manage and structure payments.”

The harsh truth is, we’ve all got 24 hours every single day to work with. Within this time, not only do most of us work an active job, we also look towards leading enriching lives for ourselves, our families and those around us. But that doesn’t mean we don’t need the money to lead this enriching life. It’s a catch-22 situation, but passive income can be the solution. In the words of entrepreneur and author Robert Kiyosaki, “To obtain financial freedom, one must be either a business owner, an investor, or both, generating passive income, particularly on a monthly basis.” Remember, the only thing that’s truly passive, is no income at all!

How to Start Investing with Foundation Capital

If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in.  Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.

For more detailed information on how to make a capital investment in construction with Foundation Capital, as well as the terms, conditions, and risks, refer to the following FAQs and guides:

(Support) What Is Foundation Capital and How We Invest?

(Support) Construction Investments Vs. Others

(Support) Foundation Capital FAQ Library

(Support) Schedule Your Free Consultation

(Social Media) Foundation Capital Facebook

(Social Media) Foundation Capital LinkedIn

(Social Media) Foundation Capital Twitter

No Saving at 50? These Streams of Passive Income Can Help

Many people forego retirement and work for as long as possible, mainly because they don’t have enough savings. Have you not saved money for retirement, either? Don’t worry; you will not be one of them as long as you know how to create passive income streams by safe investment, shown below.  

High-yield savings accounts

High-yield savings accounts may be a suitable option to get a monthly income. It offers higher interest than traditional ones and helps to grow your money passively. This investment type is FDIC-insured, so you won’t have to worry about significant financial risks or monthly fees. In addition, the interest is compounded every day. This may give you the incentive to save your money and watch it grow faster than you could with a traditional savings account.

For example, if you were to deposit $25,000 of your savings into an AMEX high-yield savings account at 0.40% annual percentage yield. With zero monthly deposit, you will earn $504 in interest after five years. It may not provide you the high return as stocks and other types. Still, for some people, this might be the safest and most convenient choice, mainly when you are more into relaxing than brainstorming for a complex strategic investment plan. 

Certificates of deposit

Like High-yield savings accounts, Certificates of deposit (CDs) are one of the safest investment options for seniors. With CDs, a fixed amount of money will be put away for a set time to generate a guaranteed return. These can be purchased at brokerage firms, banks, and credit unions, with the bank paying higher fixed interest on the fixed amount. It can be considered savings account with a limited money rate over time.

Like an FDIC-insured high-yield savings account, CDs are insured for up to $250,000. You’ll receive the money you invested and the interest when you redeem the CD. CDs have zero risk and higher interest rates than traditional savings accounts. These rates are fixed, unlike APYs for other accounts. Plus, you can enjoy higher interest rates on your deposit and no monthly fees.

High-quality dividend stocks

With retirement potentially lasting 30 or more years, it’s necessary to have a source of growth in your investment portfolio. Stocks may be the best choice to provide this growth and a hedge against inflation. However, not any stock belongs in a retirement portfolio.

When allocating to equities within a retiree’s account, investors should consider high-quality, mature companies with competitive positions within their industries, reasonable valuations, and growing dividends. The highest valuation companies in the market seem to suffer the most in a market downturn and give those post-retirement or old investors a “heart attack.” To guarantee the return, investors should look for quality companies with a history of paying regular and growing dividends that can serve as a source of income regardless of the stock’s current valuation. 

Also, be aware that dividends are not guaranteed. A company can stop paying its premium or change the dividend amount at any time. Therefore, Investors should pair dividend-paying stocks with more reliable income sources, such as bonds and annuities.

Leasing and Buyback investment

It is not hard to miss the need for companies to watch the dollar closer than ever before.

Leasing and Buyback investment is a stream of passive income which assure investors monthly returns without having them do any duties. This model has anything post-retirement or old investors need: security, high interest, and convenience. 

The premise of Lease and Buyback is straightforward: you invest in the machinery and technology needed for mega builds around the world through a company. That company then leases your equipment to those businesses managing the projects, earning you a monthly income. At the end of the contract, investors could get their money back by selling the asset at the price they paid for it.

Lease and Buyback is among the smartest, safest, and most sustainable investment choices, especially when the market is in a downturn. Business leaders in manufacturing, construction, maintenance, and other heavy industries often face a dilemma when using new equipment. What are they doing to maintain a steady sail in the economic storm? They are taking a financial inventory of their business and rethinking their heavy equipment acquisition methods by searching for reliable suppliers to provide them with the equipment quickly for a reasonable fee. 

Investing in Leasing and Buyback investment, the return may be flexible due to your package and the type of equipment you use. Heavy equipment rental is the most common in the construction, energy, medical, and transportation industries. 

Lease and Buyback with Foundation Capital 

Foundation Capital is the initiative in leasing and buyback investment. With a proven track record working across many megastructure projects, Foundation Capital have reached all the requirement to ensure the return for investors: The contacts to reliable businesses, the know-how, the policy, and the reach to enable the monthly income streams to investor’s portfolios.

Foundation Capital offers all the advantages that investors want for a passive income stream:

The convenience: 

Contact Foundation Capital, Investors will be consulted carefully to decide on the investment strategy and equipment that best suits their targets by well-trained specialists who determine potential projects. Am I responsible for the day-to-day tasks that come along with rental investments?

The flexibility: 

Your exit strategy is easy. We provide trusted investment solutions that enable unique opportunities for you to capitalize on the megastructure construction, medical equipment, and transportation projects that are happening across the globe.

The high return: 

We have continuously been trusted to bring an average return of 19.63%. In 2019, we hit the mark on investment return at 24.76%. Returns generated will be paid to you monthly in cash.

The security: 

A guaranteed buyback protects your capital at the price you paid. When the contract ends, or at any given time, we help you sell your assets and get your initial investment back. There will be no other fee or hidden cost to the returns. You will also enjoy 100% capital preservation because your investment is protected through insurance.

Therefore, if you are 50 and still searching for a sustainable source of passive income with 100% capital preservation to compensate for your lack of savings, dial +852.300.11.111; Foundation Capital’s experts can get you started right now. 

How to Start Investing with Foundation Capital

If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in.  Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.

For more detailed information on how to make a capital investment in construction with Foundation Capital, as well as the terms, conditions, and risks, refer to the following FAQs and guides:

(Support) What Is Foundation Capital and How We Invest?

(Support) Construction Investments Vs. Others

(Support) Foundation Capital FAQ Library

(Support) Schedule Your Free Consultation

(Social Media) Foundation Capital Facebook

(Social Media) Foundation Capital LinkedIn

(Social Media) Foundation Capital Twitter

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