Conflict Intelligence Team, a group of independent Russian military analysts.

Gigantic military trucks are parked within sight of the roads, which have, strangely, remained open to public traffic.

news release to announce the redeployment of the naval landing craft closer to Ukraine, in case anybody was curious. The vessels sailed along rivers and canals connecting the Caspian Sea to the Black Sea. The ministry posted pictures.

forces for a possible incursion.

But Mr. Burns said U.S. officials were still trying to determine if the Kremlin was preparing for military action or merely sending a signal.

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Sliding in the Polls, Erdogan Kicks Up a New Storm Over the Bosporus

ISTANBUL — The unpredictable roller coaster that has become Turkish politics was on full display this past week after 104 retired admirals publicly challenged President Recep Tayyip Erdogan in an open letter — and 10 of them ended up in jail, accused of plotting a coup.

It was no accident that the episode came as Mr. Erdogan finds himself in the midst one of the most intense political passages of his career, as the worsening pandemic and economy have left the president sliding in the opinion polls even as he amasses more powers.

To inspire the party faithful, Mr. Erdogan has returned again to herald one of his favorite grand ideas: to carve a canal, through Istanbul, from the Black Sea to the Marmara Sea to open a new shipping route parallel to the narrow Bosporus.

For now, the use of those natural waterwaysis governed by the Montreux Convention, an international treaty forged in 1936, between the two World Wars, in an attempt to eliminate volatile tensions over one of the world’s most vital maritime choke points.

blog, the Yetkinreport, “shifts the current agenda from the pandemic and the economy to fields that the A.K.P. likes.”

The pandemic’s toll is now worse than ever in Turkey, with more than 50,000 new cases recorded daily. An increasingly sharp economic crunch looms, too, as the government’s pandemic support for businesses is scheduled to end and inflation and unemployment remain alarmingly high.

In the midst of the troubles, Mr. Erdogan’s party has slipped to below 30 percent in a recent opinion poll, and his political ally, the Nationalist Movement Party, has fallen as low as 6 percent, making his re-election to the presidency in 2023 seem increasingly difficult.

Even his own supporters recognize that a bruising fight lies ahead. “We have entered the long two-year election process leading to the 2023 elections,” Burhanettin Duran, the director of SETA, a pro-government research organization, wrote in a column in the Daily Sabah newspaper this past week.

“Due to the recent declaration,” he said, referring to the admirals’ letter, “now there is a possibility that the process will be painful.” He predicted a combined domestic and international campaign against Mr. Erdogan’s government.

Mr. Erdogan has promised that his multibillion-dollar canal plan would create a construction and real estate boom and bring in revenue from an increase in shipping traffic.

Investigative journalists have exposed real estate deals in which prospectors from the Middle East have bought up much of the land along where the canal will be built.

Yet Mr. Erdogan said at a regional party congress in Istanbul in February that the project would go ahead, despite opposition.

“They don’t like it, do they? They are trying to prevent it, aren’t they?” he said in his keynote speech. “Despite them, we will build the Istanbul Canal.’’

The admirals are far from the only opponents of the canal. Others include the popular mayor of Istanbul, Ekrem Imamoglu, along with environmentalists, ecologists and urban planners.

But the admirals raised particular ire from Mr. Erdogan and his fellow Islamists by including in their letter criticism of a currently serving admiral who was caught on video attending prayers with a religious sect.

The retired admirals made a point of reaffirming their adherence to the secular ideals of the Turkish republic’s founding father, Mustafa Kemal Ataturk.

The government machinery pounced swiftly.

Ten of the signatories were detained on Monday, and another four were ordered to report to the police but were not jailed in view of their advanced years. Mr. Erdogan accused them of plotting a coup, a toxic allegation after four years of thousands of detentions and purges since the last failed coup. Some saw that as a warning to serving officers who might have similar thoughts.

Mr. Erdogan had “got his groove back” Steven A. Cook, a senior fellow for Middle East and Africa Studies at the Council on Foreign Relations in New York, wrote in an analysis.

The admirals’ letter did not come out of the blue. A year earlier, 126 retired Turkish diplomats had penned an open letter warning against withdrawing from the convention. The debate reveals the deep divisions between secularists and Islamists that have been tearing Turkey apart since Mr. Erdogan’s rise to power in 2002.

Caught up in their own dislike of the secular republic that replaced the Ottoman Empire, the Islamists distrust the Montreux Convention, said Asli Aydintasbas, a senior fellow with the European Council on Foreign Relations. That was an erroneous reading of history, she added, but Mr. Erdogan feels that the convention needs “to be modernized to meet Turkey’s new coveted role as a regional heavyweight.”

Secularists, as well as most Turkish diplomats and foreign policy experts, see the Montreux Convention as a win for Turkey and fundamental to Turkish independence and to stability in the region.

Russia would have most to lose from a change in the treaty, said Serhat Guvenc, a professor of international relations at Kadir Has University in Istanbul, although any alteration or break up of the convention seems inconceivable, since it would demand consensus from the multiple signatories.

“Russia would resent it and be provoked,” he said. The United States and China would gain, since neither currently is allowed to move large warships or aircraft carriers into the Black Sea.

Most analysts said that Mr. Erdogan and his advisers knew the impossibility of changing the Montreux Convention, but that the veteran politician is using the issue to kick up a storm.

“It is the government’s way of lobbying for the canal,” Ms. Aydintasbas said. “Erdogan is adamant about building a channel parallel to the Bosporus, and one of the government’s arguments will likely be that this new strait allows Turkey to have full sovereignty — as opposed to the free passage of Montreux.”

That interpretation is both inaccurate and dangerous, she said. “Inaccurate because as long as Montreux is there, no vessel is obliged to use the new canal. Dangerous because it could aggravate the Russians and the international community.”

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Syrian Refugees in Rebel Controlled Idlib Are Stuck in Limbo

IDLIB, Syria — Among the millions of Syrians who fled as the government bombed their towns, destroyed their homes and killed their loved ones are 150 families squatting in a soccer stadium in the northwestern city of Idlib, sheltering in rickety tents under the stands or in the rocky courtyard.

Work is scarce and terror grips them whenever jets buzz overhead: New airstrikes could come at any time. But the fear of government retribution keeps them from returning home. More than 1,300 similar camps dot Syria’s last bastions under rebel control, eating up farmland, stretching along irrigation canals and filling lots next to apartment buildings where refugee families squat in damaged units with no windows.

“People will stay in these places with all the catastrophes before they go live under the regime of Bashar al-Assad,” said Okba al-Rahoum, the manager of the camp in the soccer stadium.

On a rare visit to Idlib Province, examples abounded of shocked and impoverished people trapped in a murky and often violent limbo. Stuck between a wall to prevent them from fleeing across the nearby border with Turkey and a hostile government that could attack at any moment, they struggle to secure basic needs in a territory controlled by a militant group formerly linked to Al Qaeda.

bused them here after conquering their towns. They drove in with trucks piled high with blankets, mattresses and children. Some arrived on foot, with few possession besides the clothes they wore.

Last year, an offensive by the Syrian government, backed by its Russia and Iran, pushed nearly a million more people into the area.

About 2.7 million of the 4.2 million people in the northwest, one of the last of two strips of territory held by a rebel movement that once controlled much of Syria, have fled from other parts of the country. That influx has transformed a pastoral strip of farming villages into a dense conglomeration of makeshift settlements with strained infrastructure and displaced families crammed into every available space.

SHINE, an education organization, urged a group of women at an event in Idlib to refuse polygamous marriages, which are permitted under Islamic law.

The next day, gunmen closed SHINE’s office and threatened to jail its manager, Ms. Kisar said.

a cease-fire between Russia and Turkey has stopped outright combat in Idlib, but on one day last month there were three attacks. A shell hit a refugee camp; an airstrike ignited a fuel depot on the Turkish border; and three artillery shells struck a village hospital in Al Atarib, killing seven patients, including an orphan boy who had gone for a vaccination, according to the Syrian American Medical Society, which supports the facility.

While the area’s displaced struggle to survive, others try to provide simple pleasures.

In the city of Idlib, the Disneyland restaurant entices visitors to dine on salads and grilled meat, and to forget their woes with video games, bumper cars, air hockey and stuffed animal claw machines.

The basement storeroom doubles as a shelter when the government shells nearby, and the terrace is enclosed with plastic sheeting instead of glass so it doesn’t shatter on diners if something explodes nearby.

The manager, Ahmed Abu Kheir, lost his job at a tourist restaurant that shut down when the war began, he said, so he opened a smaller place that was later destroyed by government shelling.

He opened another restaurant, but left it behind when the government seized the area last year and he fled to Idlib.

Like all of Idlib’s displaced, he longed to take his family home, but was glad to work in a place that spread a little joy in the meantime.

“We are convinced that normal life has to continue,” he said. “We want to live.”

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In a Syrian Rebel Bastion, Millions Are Trapped in Murky, Violent Limbo

IDLIB, Syria — Among the millions of Syrians who fled as the government bombed their towns, destroyed their homes and killed their loved ones are 150 families squatting in a soccer stadium in the northwestern city of Idlib, sheltering in rickety tents under the stands or in the rocky courtyard.

Work is scarce and terror grips them whenever jets buzz overhead: New airstrikes could come at any time. But the fear of government retribution keeps them from returning home. More than 1,300 similar camps dot Syria’s last bastions under rebel control, eating up farmland, stretching along irrigation canals and filling lots next to apartment buildings where refugee families squat in damaged units with no windows.

“People will stay in these places with all the catastrophes before they go live under the regime of Bashar al-Assad,” said Okba al-Rahoum, the manager of the camp in the soccer stadium.

On a rare visit to Idlib Province, examples abounded of shocked and impoverished people trapped in a murky and often violent limbo. Stuck between a wall to prevent them from fleeing across the nearby border with Turkey and a hostile government that could attack at any moment, they struggle to secure basic needs in a territory controlled by a militant group formerly linked to Al Qaeda.

bused them here after conquering their towns. They drove in with trucks piled high with blankets, mattresses and children. Some arrived on foot, with few possession besides the clothes they wore.

Last year, an offensive by the Syrian government, backed by its Russia and Iran, pushed nearly a million more people into the area.

About 2.7 million of the 4.2 million people in the northwest, one of the last of two strips of territory held by a rebel movement that once controlled much of Syria, have fled from other parts of the country. That influx has transformed a pastoral strip of farming villages into a dense conglomeration of makeshift settlements with strained infrastructure and displaced families crammed into every available space.

SHINE, an education organization, urged a group of women at an event in Idlib to refuse polygamous marriages, which are permitted under Islamic law.

The next day, gunmen closed SHINE’s office and threatened to jail its manager, Ms. Kisar said.

a cease-fire between Russia and Turkey has stopped outright combat in Idlib, but on one day last month there were three attacks. A shell hit a refugee camp; an airstrike ignited a fuel depot on the Turkish border; and three artillery shells struck a village hospital in Al Atarib, killing seven patients, including an orphan boy who had gone for a vaccination, according to the Syrian American Medical Society, which supports the facility.

While the area’s displaced struggle to survive, others try to provide simple pleasures.

In the city of Idlib, the Disneyland restaurant entices visitors to dine on salads and grilled meat, and to forget their woes with video games, bumper cars, air hockey and stuffed animal claw machines.

The basement storeroom doubles as a shelter when the government shells nearby, and the terrace is enclosed with plastic sheeting instead of glass so it doesn’t shatter on diners if something explodes nearby.

The manager, Ahmed Abu Kheir, lost his job at a tourist restaurant that shut down when the war began, he said, so he opened a smaller place that was later destroyed by government shelling.

He opened another restaurant, but left it behind when the government seized the area last year and he fled to Idlib.

Like all of Idlib’s displaced, he longed to take his family home, but was glad to work in a place that spread a little joy in the meantime.

“We are convinced that normal life has to continue,” he said. “We want to live.”

View Source

Business Groups Push Back on Tax Increase in Biden Plan: Live Updates

15 years of higher taxes on corporations to pay for eight years of spending. The plans include raising the corporate tax rate to 28 percent from 21 percent. The corporate tax rate had been cut from 35 percent under former President Donald J. Trump.

The Business Roundtable said it supported infrastructure investment, calling it “essential to economic growth” and important “to ensure a rapid economic recovery” — but rejected corporate tax increases as a way to pay for it.

Policymakers should avoid creating new barriers to job creation and economic growth, particularly during the recovery,” the group’s chief executive, Joshua Bolten, said in a statement.

The U.S. Chamber of Commerce echoed that view. “We strongly oppose the general tax increases proposed by the administration, which will slow the economic recovery and make the U.S. less competitive globally — the exact opposite of the goals of the infrastructure plan,” the chamber’s chief policy officer, Neil Bradley, said in a statement.

Wall Street has been wary of possible tax increases since the presidential election and has hoped that gridlock in Washington would moderate Mr. Biden’s agenda. On Wednesday, a spokesman for JPMorgan Chase said the bank’s chief executive, Jamie Dimon, believed “that the corporate tax rate for companies in the U.S. has to be competitive globally, which it is now.”

But “he has no problem with high-income people like himself paying a higher tax rate,” said the spokesman, Joseph Evangelisti.

The Biden administration has indicated that tax increases for wealthy Americans will help fund the second phase of the infrastructure plan, which is expected to be announced next month and will focus on priorities like education, health care and paid leave. The increase in corporate taxes is an effort to “ensure that corporations pay their fair share,” White House officials said in a news release.

“With vaccinations becoming more widespread and confidence in travel rising, we’re ready to help customers reclaim their lives,” the chief executive of Delta Air Lines said.
Credit…Chang W. Lee/The New York Times

Delta Air Lines said Wednesday that it would sell middle seats on flights starting May 1, more than a year after it decided to leave them empty to promote distancing. Other airlines had blocked middle seats early in the pandemic, but Delta held out the longest by several months and is the last of the four big U.S. airlines to get rid of the policy.

The company’s chief executive, Ed Bastian, said that a survey of those who flew Delta in 2019 found that nearly 65 percent expected to have received at least one dose of a coronavirus vaccine by May 1, which gave the airline “the assurance to offer customers the ability to choose any seat on our aircraft.”

Delta started blocking middle seat bookings in April 2020 and said that it continued the policy to give passengers peace of mind.

“During the past year, we transformed our service to ensure their health, safety, convenience and comfort during their travels,” Mr. Bastian said in a statement. “Now, with vaccinations becoming more widespread and confidence in travel rising, we’re ready to help customers reclaim their lives.”

Air travel has started to recover meaningfully in recent weeks, with ticket sales rising and as well over one million people per day have been screened at airport checkpoints since mid-March, according to the Transportation Security Administration. More than 1.5 million people were screened on Sunday, the busiest day at airports since the pandemic began. Air travel is still down about 40 percent from 2019.

The Centers for Disease Control and Prevention continues to recommend against travel, even for those who have been vaccinated. This week, its director, Dr. Rochelle Walensky, warned of “impending doom” from a potential fourth wave of the pandemic if Americans move too quickly to disregard the advice of public health officials.

Delta also said on Wednesday that it would give customers more time to use expiring travel credits. All new tickets purchased in 2021 and credits set to expire this year will now expire at the end of 2022.

Starting April 14, the airline plans to bring back soft drinks, cocktails and snacks on flights within the United States and to nearby international destinations. In June, it plans to start offering hot food in premium classes on some coast-to-coast flights. Delta also announced changes that will make it easier for members of its loyalty program to earn points this year.

Deliveroo is now in 12 countries and has over 100,000 riders.
Credit…Toby Melville/Reuters

Deliveroo, the British food delivery service, dropped as much as 30 percent in its first minutes of trading on Wednesday, a gloomy public debut for the company that was promoted as a post-Brexit win for London’s financial markets.

The company had set its initial public offering price at 3.90 pounds a share, valuing Deliveroo at £7.6 billion or $10.4 billion. But it opened at £3.31, 15 percent lower, and kept falling. By the end of the day, shares had recovered only slightly, closing at about £2.87, 26 percent lower.

The offering has been troubled by major investors planning to sit out the I.P.O. amid concerns about shareholder voting rights and Deliveroo rider pay. Deliveroo, trading under the ticker “ROO,” sold just under 385 million shares, raising £1.5 billion.

The business model of Deliveroo and other gig economy companies is increasingly under threat in Europe as legal challenges mount. Two weeks ago, Uber reclassified more than 70,000 drivers in Britain as workers who will receive a minimum wage, vacation pay and access to a pension plan, after a Supreme Court ruling. Analysts said the move could set a precedent for other companies and increase costs.

Deliveroo, which is based in London and was founded in 2013, is now in 12 countries and has more than 100,000 riders, recognizable on the streets by their teal jackets and food bags. Last year, Amazon became its biggest shareholder.

Demand for Deliveroo’s services could soon diminish, as pandemic restrictions in its largest market, Britain, begin to ease. In a few weeks, restaurants will reopen for outdoor dining. Last year, Deliveroo said, it lost £226.4 million even as its revenue jumped more than 50 percent to nearly £1.2 billion.

Last week, a joint investigation by the Independent Workers’ Union of Great Britain and the Bureau of Investigative Journalism was published based on invoices of hundreds of Deliveroo riders. It found that a third of the riders made less than £8.72 an hour, the national minimum wage for people over 25.

Deliveroo dismissed the report, calling the union a “fringe organization” that didn’t represent a significant number of Deliveroo riders. The company said that riders were paid for each delivery and earn “£13 per hour on average at our busiest times.”

On Monday, shares traded hands in a period called conditional dealing open to investors allocated shares in the initial offering. The stock is expected to be fully listed on the London Stock Exchange next Wednesday and can be traded without restrictions from then.

Last week, Ed Bastian, the chief executive of Delta, said he thought Georgia’s voting law had been improved, but on Wednesday he sounded a very different note.
Credit…Etienne Laurent/EPA, via Shutterstock

The chief executive of Delta, Ed Bastian, sent a letter on Wednesday to employees expressing regret for the company’s muted opposition to a restrictive voting law passed last week by the Georgia legislature.

“I need to make it crystal clear that the final bill is unacceptable and does not match Delta’s values,” he wrote in an internal memo that was reviewed by The New York Times.

Mr. Bastian’s position is a stark reversal from last week. As Republican lawmakers in Georgia rushed to pass the new law, Delta, along with other big companies headquartered in Atlanta, came under pressure from activists to publicly and directly oppose the effort. Activists called for boycotts, and protested at the Delta terminal at the Atlanta airport.

Instead, Delta chose to offer general statements in support of voting rights, and work behind the scenes to try and remove some of the most onerous provisions as the new law came together. After the law was passed on Thursday, Mr. Bastian said he believed it had been improved and included several useful changes that make voting more secure.

But on Wednesday, after dozens of prominent Black executives called on corporate America to become more engaged in the issue, Mr. Bastian reversed course.

“After having time to now fully understand all that is in the bill, coupled with discussions with leaders and employees in the Black community, it’s evident that the bill includes provisions that will make it harder for many underrepresented voters, particularly Black voters, to exercise their constitutional right to elect their representatives,” he said. “That is wrong.”

Mr. Bastian went further, saying that the entire premise of the new law — and dozens of similar bills being advanced in other states around the country — was based on false pretenses.

“The entire rationale for this bill was based on a lie: that there was widespread voter fraud in Georgia in the 2020 elections,” Mr. Bastian said. “This is simply not true. Unfortunately, that excuse is being used in states across the nation that are attempting to pass similar legislation to restrict voting rights.”

Also on Wednesday, Larry Fink, the chief executive of BlackRock, issued a statement on LinkedIn saying the company was concerned about the wave of new restrictive voting laws. “BlackRock is concerned about efforts that could limit access to the ballot for anyone,” Mr. Fink said. “Voting should be easy and accessible for ALL eligible voters.”

Kenneth Chenault, left, a former chief executive of American Express, and Kenneth Frazier, the chief executive of Merck, organized a letter signed by 72 Black business leaders.
Credit…Left, Justin Sullivan/Getty Images; right, Spencer Platt/Getty Images

Seventy-two Black executives signed a letter calling on companies to fight a wave of voting-rights bills similar to the one that was passed in Georgia being advanced by Republicans in at least 43 states.

The effort was led by Kenneth Chenault, a former chief executive of American Express, and Kenneth Frazier, the chief executive of Merck, Andrew Ross Sorkin and David Gelles report for The New York Times.

The signers included Roger Ferguson Jr., the chief executive of TIAA; Mellody Hobson and John Rogers Jr., the co-chief executives of Ariel Investments; Robert F. Smith, the chief executive of Vista Equity Partners; and Raymond McGuire, a former Citigroup executive who is running for mayor of New York. The group of leaders, with support from the Black Economic Alliance, bought a full-page ad in the Wednesday print edition of The New York Times.

“The Georgia legislature was the first one,” Mr. Frazier said. “If corporate America doesn’t stand up, we’ll get these laws passed in many places in this country.”

Last year, the Human Rights Campaign began persuading companies to sign on to a pledge that states their “clear opposition to harmful legislation aimed at restricting the access of L.G.B.T.Q. people in society.” Dozens of major companies, including AT&T, Facebook, Nike and Pfizer, signed on.

To Mr. Chenault, the contrast between the business community’s response to that issue and to voting restrictions that disproportionately harm Black voters was telling.

“You had 60 major companies — Amazon, Google, American Airlines — that signed on to the statement that states a very clear opposition to harmful legislation aimed at restricting the access of L.G.B.T.Q. people in society,” he said. “So, you know, it is bizarre that we don’t have companies standing up to this.”

“This is not new,” Mr. Chenault added. “When it comes to race, there’s differential treatment. That’s the reality.”

A Huawei store in Beijing. The United States has placed strict controls on Huawei’s ability to buy and make computer chips.
Credit…Greg Baker/Agence France-Presse — Getty Images

The Chinese tech behemoth Huawei reported sharply slower growth in sales last year, which the company blamed on American sanctions that have both hobbled its ability to produce smartphones and left those handsets unable to run popular Google apps and services, limiting their appeal to many buyers.

Huawei said on Wednesday that global revenue was around $137 billion in 2020, 3.8 percent higher than the year before. The company’s sales growth in 2019 was 19.1 percent.

Over the past two years, Washington has placed strict controls on Huawei’s ability to buy and make computer chips and other essential components. United States officials have expressed concern that the Chinese government could use Huawei or its products for espionage and sabotage. The company has denied that it is a security threat.

In recent months, Huawei has continued to release new handset models. But sales have suffered, including in its home market. Worldwide, shipments of Huawei phones fell by 22 percent between 2019 and 2020, according to the research firm Canalys, making the company the world’s third largest smartphone vendor last year. In 2019, it was No. 2, behind Samsung.

Huawei remained top dog last year in telecom network equipment, according to the consultancy Dell’Oro Group, even as Britain and other governments blocked Huawei from building their nations’ 5G infrastructure.

Announcing the company’s financial results on Wednesday, Ken Hu, one of its deputy chairmen, said that despite the challenges, Huawei was not changing the broad direction of its business. Another Huawei executive recently revealed on social media that the company was offering an artificial intelligence product for pig farms, which some people took as a sign that Huawei was diversifying to survive.

Mr. Hu took note of the news reports about Huawei’s pig-farming product but said it was “not true” that the company was making any major shifts. “Huawei’s business direction is still focused on technology infrastructure,” he said.

Apple led the $50 million funding round in UnitedMasters, which allows musicians keep ownership of their master recordings.
Credit…Kathy Willens/Associated Press

Apple is investing in UnitedMasters, a music distribution company that lets musicians bypass traditional record labels.

Artists who distribute through UnitedMasters keep ownership of their master recordings and pay either a yearly fee or 10 percent of their royalties.

Apple led the $50 million funding round, announced on Wednesday, which values UnitedMasters at $350 million, the DealBook newsletter reports. Existing investors, including Alphabet and Andreessen Horowitz, also participated in the funding.

Musicians are increasingly taking ownership of their work. Taylor Swift, most famously, and Anita Baker, most recently, have publicized their fights with labels over their master recordings. Artists once needed the heft of major publishing labels — which typically demand ownership of master recordings — to build a fan base. But with social media, labels no longer play as significant a gatekeeping role. UnitedMasters has partnerships with the N.B.A., ESPN, TikTok and Twitch, deals that reflect the new ways that people discover music.

“Technology, no doubt, has transformed music for consumers,” said Steve Stoute, the former major label executive who founded UnitedMasters. “Now it’s time for technology to change the economics for the artists.” The deal with UnitedMasters is about “empowering creators,” Eddy Cue, Apple’s head of internet software and services, said.

As streaming services, including Apple’s, compete for subscribers, they are cutting more favorable deals with the artists who attract users to platforms. Spotify announced an initiative called “Loud and Clear” this week to detail how it pays musicians following public pressure.

An H&M store in Beijing. The retailer’s chief executive, Helena Helmersson, said H&M had a “long-term commitment” to China.
Credit…Kevin Frayer/Getty Images

More than a week after the Swedish retailer H&M came under fire in China for a months-old statement expressing concern over reports of Uyghur forced labor in the region of Xinjiang, a major source of cotton, the company published a statement saying it hoped to regain the trust of customers in China.

In recent days, H&M and other Western clothing brands including Nike and Burberry that expressed concerns over reports coming out of Xinjiang have faced an outcry on Chinese social media, including calls for a boycott endorsed by President Xi Jinping’s government. The brands’ local celebrity partners have terminated their contracts, Chinese landlords have shuttered stores and their products have been removed from major e-commerce platforms.

Caught between calls for patriotism among Chinese consumers and campaigns for conscientious sourcing of cotton in the West, some other companies, including Inditex, the owner of the fast-fashion giant Zara, quietly removed statements on forced labor from their websites.

On Wednesday, H&M, the world’s second-largest fashion retailer by sales after Inditex, published a response to the controversy as part of its first quarter 2021 earnings report.

Not that it said much. There were no explicit references to cotton, Xinjiang or forced labor. However, the statement said that H&M wanted to be “a responsible buyer, in China and elsewhere” and was “actively working on next steps with regards to material sourcing.”

“We are dedicated to regaining the trust and confidence of our customers, colleagues, and business partners in China,” it said.

During the earnings conference call, the chief executive, Helena Helmersson, noted the company’s “long-term commitment to the country” and how Chinese suppliers, which were “at the forefront of innovation and technology,” would continue to “play an important role in further developing the entire industry.”

“We are working together with our colleagues in China to do everything we can to manage the current challenges and find a way forward, ” she said.

Executives on the call did not comment on the impact of the controversy on sales, except to state that around 20 stores in China were currently closed.

H&M’s earnings report, which covered a period before the recent outcry in China, reflected diminished profit for a retailer still dealing with pandemic lockdowns. Net sales in the three months through February fell 21 percent compared with the same quarter a year ago, with more than 1,800 stores temporarily closed.

Stocks on Wall Street rose as investors waited for President Biden to lay out plans for a $2 trillion package of infrastructure spending on Wednesday, which he is expected to propose funding with an increase in corporate taxes.

The S&P 500 index gained about 0.7 percent by midday, while the Nasdaq composite climbed about 1.9 percent. Bonds fell, with the yield on 10-year Treasury notes at 1.72 percent. On Tuesday, the 10-year yield climbed as high 1.77 percent, a level not seen since January 2020.

Prospects of a strong economic recovery in the United States, supported by large amounts of fiscal spending and the vaccine rollout, have pushed bond yields higher. Economic growth and higher inflation have made bonds less appealing as investors adjust their expectations for how much longer the Federal Reserve will need to keep its easy-money policies.

The Ever Given cargo ship was stuck in the Suez Canal nearly a week.
Credit…Agence France-Presse — Getty Images

The traffic jam at the Suez Canal will soon ease, but behemoth container ships like the one that blocked that crucial passageway for almost a week aren’t going anywhere.

Global supply chains were already under pressure when the Ever Given, a ship longer than the Empire State Building and capable of carrying 20,000 containers, wedged itself between the banks of the Suez Canal last week. It was freed on Monday, but left behind “disruptions and backlogs in global shipping that could take weeks, possibly months, to unravel,” according to A.P. Moller-Maersk, the world’s largest shipping company.

The crisis was short, but it was also years in the making, reports Niraj Chokshi for The New York Times.

For decades, shipping lines have been making bigger and bigger vessels, driven by an expanding global appetite for electronics, clothes, toys and other goods. The growth in ship size, which sped up in recent years, often made economic sense: Bigger vessels are generally cheaper to build and operate on a per-container basis. But the largest ships can come with their own set of problems, not only for the canals and ports that have to handle them, but for the companies that build them.

“They did what they thought was most efficient for themselves — make the ships big — and they didn’t pay much attention at all to the rest of the world,” said Marc Levinson, an economist and author of “Outside the Box,” a history of globalization. “But it turns out that these really big ships are not as efficient as the shipping lines had imagined.”

Despite the risks they pose, however, massive vessels still dominate global shipping. According to Alphaliner, a data firm, the global fleet of container ships includes 133 of the largest ship type — those that can carry 18,000 to 24,000 containers. Another 53 are on order.

A.P. Moller-Maersk said it was premature to blame Ever Given’s size for what happened in the Suez. Ultra-large ships “have existed for many years and have sailed through the Suez Canal without issues,” Palle Brodsgaard Laursen, the company’s chief technical officer, said in a statement on Tuesday.

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CreditCredit…By Erik Carter

In today’s On Tech newsletter, Shira Ovide talks to New York Times reporter Karen Weise about the vote on whether to form a union at an Amazon warehouse in Bessemer, Ala., and how the outcome may reverberate beyond this one workplace.

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Delta reverses course, calling Georgia’s voting law ‘unacceptable.’

15 years of higher taxes on corporations to pay for eight years of spending. The plans include raising the corporate tax rate to 28 percent from 21 percent. The corporate tax rate had been cut from 35 percent under former President Donald J. Trump.

The Business Roundtable said it supported infrastructure investment, calling it “essential to economic growth” and important “to ensure a rapid economic recovery” — but rejected corporate tax increases as a way to pay for it.

“Business Roundtable strongly opposes corporate tax increases” to pay for infrastructure investment, the group’s chief executive, Joshua Bolten, said in a statement. Policymakers should avoid creating new barriers to job creation and economic growth, particularly during the recovery.”

The U.S. Chamber of Commerce echoed Business Roundtable’s view. “We strongly oppose the general tax increases proposed by the administration, which will slow the economic recovery and make the U.S. less competitive globally — the exact opposite of the goals of the infrastructure plan,” the chamber’s chief policy officer, Neil Bradley, said in a statement.

Automakers embraced Mr. Biden’s bet to increase the use of electric cars. The plan proposes spending $174 billion to encourage the manufacture and purchase of electric vehicles by granting tax credits and other incentives to companies that make electric vehicle batteries in the United States instead of China.

“Customers want connected and increasingly electric vehicles, and we need to work together to build the infrastructure to help this transformation,” Jim Farley, the chief executive of Ford Motor, said in a statement. “Ford supports the administration’s efforts to advance a broad infrastructure plan that prioritizes a more sustainable, connected and autonomous future — including an integrated charging network and supportive supply chain, built on a foundation of safe roads and bridges for our customers.”

“With vaccinations becoming more widespread and confidence in travel rising, we’re ready to help customers reclaim their lives,” the chief executive of Delta Air Lines said.
Credit…Chang W. Lee/The New York Times

Delta Air Lines said Wednesday that it would sell middle seats on flights starting May 1, more than a year after it decided to leave them empty to promote distancing. Other airlines had blocked middle seats early in the pandemic, but Delta held out the longest by several months and is the last of the four big U.S. airlines to get rid of the policy.

The company’s chief executive, Ed Bastian, said that a survey of those who flew Delta in 2019 found that nearly 65 percent expected to have received at least one dose of a coronavirus vaccine by May 1, which gave the airline “the assurance to offer customers the ability to choose any seat on our aircraft.”

Delta started blocking middle seat bookings in April 2020 and said that it continued the policy to give passengers peace of mind.

“During the past year, we transformed our service to ensure their health, safety, convenience and comfort during their travels,” Mr. Bastian said in a statement. “Now, with vaccinations becoming more widespread and confidence in travel rising, we’re ready to help customers reclaim their lives.”

Air travel has started to recover meaningfully in recent weeks, with ticket sales rising and as well over one million people per day have been screened at airport checkpoints since mid-March, according to the Transportation Security Administration. More than 1.5 million people were screened on Sunday, the busiest day at airports since the pandemic began. Air travel is still down about 40 percent from 2019.

The Centers for Disease Control and Prevention continues to recommend against travel, even for those who have been vaccinated. This week, its director, Dr. Rochelle Walensky, warned of “impending doom” from a potential fourth wave of the pandemic if Americans move too quickly to disregard the advice of public health officials.

Delta also said on Wednesday that it would give customers more time to use expiring travel credits. All new tickets purchased in 2021 and credits set to expire this year will now expire at the end of 2022.

Starting April 14, the airline plans to bring back soft drinks, cocktails and snacks on flights within the United States and to nearby international destinations. In June, it plans to start offering hot food in premium classes on some coast-to-coast flights. Delta also announced changes that will make it easier for members of its loyalty program to earn points this year.

Deliveroo is now in 12 countries and has over 100,000 riders.
Credit…Toby Melville/Reuters

Deliveroo, the British food delivery service, dropped as much as 30 percent in its first minutes of trading on Wednesday, a gloomy public debut for the company that was promoted as a post-Brexit win for London’s financial markets.

The company had set its initial public offering price at 3.90 pounds a share, valuing Deliveroo at £7.6 billion or $10.4 billion. But it opened at £3.31, 15 percent lower, and kept falling. By the end of the day, shares had recovered only slightly, closing at about £2.87, 26 percent lower.

The offering has been troubled by major investors planning to sit out the I.P.O. amid concerns about shareholder voting rights and Deliveroo rider pay. Deliveroo, trading under the ticker “ROO,” sold just under 385 million shares, raising £1.5 billion.

The business model of Deliveroo and other gig economy companies is increasingly under threat in Europe as legal challenges mount. Two weeks ago, Uber reclassified more than 70,000 drivers in Britain as workers who will receive a minimum wage, vacation pay and access to a pension plan, after a Supreme Court ruling. Analysts said the move could set a precedent for other companies and increase costs.

Deliveroo, which is based in London and was founded in 2013, is now in 12 countries and has more than 100,000 riders, recognizable on the streets by their teal jackets and food bags. Last year, Amazon became its biggest shareholder.

Demand for Deliveroo’s services could soon diminish, as pandemic restrictions in its largest market, Britain, begin to ease. In a few weeks, restaurants will reopen for outdoor dining. Last year, Deliveroo said, it lost £226.4 million even as its revenue jumped more than 50 percent to nearly £1.2 billion.

Last week, a joint investigation by the Independent Workers’ Union of Great Britain and the Bureau of Investigative Journalism was published based on invoices of hundreds of Deliveroo riders. It found that a third of the riders made less than £8.72 an hour, the national minimum wage for people over 25.

Deliveroo dismissed the report, calling the union a “fringe organization” that didn’t represent a significant number of Deliveroo riders. The company said that riders were paid for each delivery and earn “£13 per hour on average at our busiest times.”

On Monday, shares traded hands in a period called conditional dealing open to investors allocated shares in the initial offering. The stock is expected to be fully listed on the London Stock Exchange next Wednesday and can be traded without restrictions from then.

Last week, Ed Bastian, the chief executive of Delta, said he thought Georgia’s voting law had been improved, but on Wednesday he sounded a very different note.
Credit…Etienne Laurent/EPA, via Shutterstock

The chief executive of Delta, Ed Bastian, sent a letter on Wednesday to employees expressing regret for the company’s muted opposition to a restrictive voting law passed last week by the Georgia legislature.

“I need to make it crystal clear that the final bill is unacceptable and does not match Delta’s values,” he wrote in an internal memo that was reviewed by The New York Times.

Mr. Bastian’s position is a stark reversal from last week. As Republican lawmakers in Georgia rushed to pass the new law, Delta, along with other big companies headquartered in Atlanta, came under pressure from activists to publicly and directly oppose the effort. Activists called for boycotts, and protested at the Delta terminal at the Atlanta airport.

Instead, Delta chose to offer general statements in support of voting rights, and work behind the scenes to try and remove some of the most onerous provisions as the new law came together. After the law was passed on Thursday, Mr. Bastian said he believed it had been improved and included several useful changes that make voting more secure.

But on Wednesday, after dozens of prominent Black executives called on corporate America to become more engaged in the issue, Mr. Bastian reversed course.

“After having time to now fully understand all that is in the bill, coupled with discussions with leaders and employees in the Black community, it’s evident that the bill includes provisions that will make it harder for many underrepresented voters, particularly Black voters, to exercise their constitutional right to elect their representatives,” he said. “That is wrong.”

Mr. Bastian went further, saying that the entire premise of the new law — and dozens of similar bills being advanced in other states around the country — was based on false pretenses.

“The entire rationale for this bill was based on a lie: that there was widespread voter fraud in Georgia in the 2020 elections,” Mr. Bastian said. “This is simply not true. Unfortunately, that excuse is being used in states across the nation that are attempting to pass similar legislation to restrict voting rights.”

Also on Wednesday, Larry Fink, the chief executive of BlackRock, issued a statement on LinkedIn saying the company was concerned about the wave of new restrictive voting laws. “BlackRock is concerned about efforts that could limit access to the ballot for anyone,” Mr. Fink said. “Voting should be easy and accessible for ALL eligible voters.”

Kenneth Chenault, left, a former chief executive of American Express, and Kenneth Frazier, the chief executive of Merck, organized a letter signed by 72 Black business leaders.
Credit…Left, Justin Sullivan/Getty Images; right, Spencer Platt/Getty Images

Seventy-two Black executives signed a letter calling on companies to fight a wave of voting-rights bills similar to the one that was passed in Georgia being advanced by Republicans in at least 43 states.

The effort was led by Kenneth Chenault, a former chief executive of American Express, and Kenneth Frazier, the chief executive of Merck, Andrew Ross Sorkin and David Gelles report for The New York Times.

The signers included Roger Ferguson Jr., the chief executive of TIAA; Mellody Hobson and John Rogers Jr., the co-chief executives of Ariel Investments; Robert F. Smith, the chief executive of Vista Equity Partners; and Raymond McGuire, a former Citigroup executive who is running for mayor of New York. The group of leaders, with support from the Black Economic Alliance, bought a full-page ad in the Wednesday print edition of The New York Times.

“The Georgia legislature was the first one,” Mr. Frazier said. “If corporate America doesn’t stand up, we’ll get these laws passed in many places in this country.”

Last year, the Human Rights Campaign began persuading companies to sign on to a pledge that states their “clear opposition to harmful legislation aimed at restricting the access of L.G.B.T.Q. people in society.” Dozens of major companies, including AT&T, Facebook, Nike and Pfizer, signed on.

To Mr. Chenault, the contrast between the business community’s response to that issue and to voting restrictions that disproportionately harm Black voters was telling.

“You had 60 major companies — Amazon, Google, American Airlines — that signed on to the statement that states a very clear opposition to harmful legislation aimed at restricting the access of L.G.B.T.Q. people in society,” he said. “So, you know, it is bizarre that we don’t have companies standing up to this.”

“This is not new,” Mr. Chenault added. “When it comes to race, there’s differential treatment. That’s the reality.”

A Huawei store in Beijing. The United States has placed strict controls on Huawei’s ability to buy and make computer chips.
Credit…Greg Baker/Agence France-Presse — Getty Images

The Chinese tech behemoth Huawei reported sharply slower growth in sales last year, which the company blamed on American sanctions that have both hobbled its ability to produce smartphones and left those handsets unable to run popular Google apps and services, limiting their appeal to many buyers.

Huawei said on Wednesday that global revenue was around $137 billion in 2020, 3.8 percent higher than the year before. The company’s sales growth in 2019 was 19.1 percent.

Over the past two years, Washington has placed strict controls on Huawei’s ability to buy and make computer chips and other essential components. United States officials have expressed concern that the Chinese government could use Huawei or its products for espionage and sabotage. The company has denied that it is a security threat.

In recent months, Huawei has continued to release new handset models. But sales have suffered, including in its home market. Worldwide, shipments of Huawei phones fell by 22 percent between 2019 and 2020, according to the research firm Canalys, making the company the world’s third largest smartphone vendor last year. In 2019, it was No. 2, behind Samsung.

Huawei remained top dog last year in telecom network equipment, according to the consultancy Dell’Oro Group, even as Britain and other governments blocked Huawei from building their nations’ 5G infrastructure.

Announcing the company’s financial results on Wednesday, Ken Hu, one of its deputy chairmen, said that despite the challenges, Huawei was not changing the broad direction of its business. Another Huawei executive recently revealed on social media that the company was offering an artificial intelligence product for pig farms, which some people took as a sign that Huawei was diversifying to survive.

Mr. Hu took note of the news reports about Huawei’s pig-farming product but said it was “not true” that the company was making any major shifts. “Huawei’s business direction is still focused on technology infrastructure,” he said.

Apple led the $50 million funding round in UnitedMasters, which allows musicians keep ownership of their master recordings.
Credit…Kathy Willens/Associated Press

Apple is investing in UnitedMasters, a music distribution company that lets musicians bypass traditional record labels.

Artists who distribute through UnitedMasters keep ownership of their master recordings and pay either a yearly fee or 10 percent of their royalties.

Apple led the $50 million funding round, announced on Wednesday, which values UnitedMasters at $350 million, the DealBook newsletter reports. Existing investors, including Alphabet and Andreessen Horowitz, also participated in the funding.

Musicians are increasingly taking ownership of their work. Taylor Swift, most famously, and Anita Baker, most recently, have publicized their fights with labels over their master recordings. Artists once needed the heft of major publishing labels — which typically demand ownership of master recordings — to build a fan base. But with social media, labels no longer play as significant a gatekeeping role. UnitedMasters has partnerships with the N.B.A., ESPN, TikTok and Twitch, deals that reflect the new ways that people discover music.

“Technology, no doubt, has transformed music for consumers,” said Steve Stoute, the former major label executive who founded UnitedMasters. “Now it’s time for technology to change the economics for the artists.” The deal with UnitedMasters is about “empowering creators,” Eddy Cue, Apple’s head of internet software and services, said.

As streaming services, including Apple’s, compete for subscribers, they are cutting more favorable deals with the artists who attract users to platforms. Spotify announced an initiative called “Loud and Clear” this week to detail how it pays musicians following public pressure.

An H&M store in Beijing. The retailer’s chief executive, Helena Helmersson, said H&M had a “long-term commitment” to China.
Credit…Kevin Frayer/Getty Images

More than a week after the Swedish retailer H&M came under fire in China for a months-old statement expressing concern over reports of Uyghur forced labor in the region of Xinjiang, a major source of cotton, the company published a statement saying it hoped to regain the trust of customers in China.

In recent days, H&M and other Western clothing brands including Nike and Burberry that expressed concerns over reports coming out of Xinjiang have faced an outcry on Chinese social media, including calls for a boycott endorsed by President Xi Jinping’s government. The brands’ local celebrity partners have terminated their contracts, Chinese landlords have shuttered stores and their products have been removed from major e-commerce platforms.

Caught between calls for patriotism among Chinese consumers and campaigns for conscientious sourcing of cotton in the West, some other companies, including Inditex, the owner of the fast-fashion giant Zara, quietly removed statements on forced labor from their websites.

On Wednesday, H&M, the world’s second-largest fashion retailer by sales after Inditex, published a response to the controversy as part of its first quarter 2021 earnings report.

Not that it said much. There were no explicit references to cotton, Xinjiang or forced labor. However, the statement said that H&M wanted to be “a responsible buyer, in China and elsewhere” and was “actively working on next steps with regards to material sourcing.”

“We are dedicated to regaining the trust and confidence of our customers, colleagues, and business partners in China,” it said.

During the earnings conference call, the chief executive, Helena Helmersson, noted the company’s “long-term commitment to the country” and how Chinese suppliers, which were “at the forefront of innovation and technology,” would continue to “play an important role in further developing the entire industry.”

“We are working together with our colleagues in China to do everything we can to manage the current challenges and find a way forward, ” she said.

Executives on the call did not comment on the impact of the controversy on sales, except to state that around 20 stores in China were currently closed.

H&M’s earnings report, which covered a period before the recent outcry in China, reflected diminished profit for a retailer still dealing with pandemic lockdowns. Net sales in the three months through February fell 21 percent compared with the same quarter a year ago, with more than 1,800 stores temporarily closed.

Stocks on Wall Street rose as investors waited for President Biden to lay out plans for a $2 trillion package of infrastructure spending on Wednesday, which he is expected to propose funding with an increase in corporate taxes.

The S&P 500 index gained about 0.7 percent by midday, while the Nasdaq composite climbed about 1.9 percent. Bonds fell, with the yield on 10-year Treasury notes at 1.72 percent. On Tuesday, the 10-year yield climbed as high 1.77 percent, a level not seen since January 2020.

Prospects of a strong economic recovery in the United States, supported by large amounts of fiscal spending and the vaccine rollout, have pushed bond yields higher. Economic growth and higher inflation have made bonds less appealing as investors adjust their expectations for how much longer the Federal Reserve will need to keep its easy-money policies.

The Ever Given cargo ship was stuck in the Suez Canal nearly a week.
Credit…Agence France-Presse — Getty Images

The traffic jam at the Suez Canal will soon ease, but behemoth container ships like the one that blocked that crucial passageway for almost a week aren’t going anywhere.

Global supply chains were already under pressure when the Ever Given, a ship longer than the Empire State Building and capable of carrying 20,000 containers, wedged itself between the banks of the Suez Canal last week. It was freed on Monday, but left behind “disruptions and backlogs in global shipping that could take weeks, possibly months, to unravel,” according to A.P. Moller-Maersk, the world’s largest shipping company.

The crisis was short, but it was also years in the making, reports Niraj Chokshi for The New York Times.

For decades, shipping lines have been making bigger and bigger vessels, driven by an expanding global appetite for electronics, clothes, toys and other goods. The growth in ship size, which sped up in recent years, often made economic sense: Bigger vessels are generally cheaper to build and operate on a per-container basis. But the largest ships can come with their own set of problems, not only for the canals and ports that have to handle them, but for the companies that build them.

“They did what they thought was most efficient for themselves — make the ships big — and they didn’t pay much attention at all to the rest of the world,” said Marc Levinson, an economist and author of “Outside the Box,” a history of globalization. “But it turns out that these really big ships are not as efficient as the shipping lines had imagined.”

Despite the risks they pose, however, massive vessels still dominate global shipping. According to Alphaliner, a data firm, the global fleet of container ships includes 133 of the largest ship type — those that can carry 18,000 to 24,000 containers. Another 53 are on order.

A.P. Moller-Maersk said it was premature to blame Ever Given’s size for what happened in the Suez. Ultra-large ships “have existed for many years and have sailed through the Suez Canal without issues,” Palle Brodsgaard Laursen, the company’s chief technical officer, said in a statement on Tuesday.

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CreditCredit…By Erik Carter

In today’s On Tech newsletter, Shira Ovide talks to New York Times reporter Karen Weise about the vote on whether to form a union at an Amazon warehouse in Bessemer, Ala., and how the outcome may reverberate beyond this one workplace.

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Clearing the Suez Canal Took Days. Figuring Out the Costs May Take Years.

TOKYO — It took six days to prise free a giant container ship that ran aground and clogged the Suez Canal, one of the world’s most crucial shipping arteries. It could take years to sort out who will pay for the mess.

Cargo companies, insurers, government authorities and a phalanx of lawyers, all with different agendas and potential assessments, will not only need to determine the total damage, but also what went wrong. When they eventually finish digging through the morass, the insurers of the ship’s Japanese owner are likely to bear the brunt of the financial pain.

The costs could add up quickly.

There are the repairs for any physical damage to the Ever Given, the quarter-mile-long ship that got stuck in the Suez. There is the bill for the tugboats and front-end loaders that dug the beached vessel out from the mud. The authority that operates the Suez Canal has already said the crisis has cost the Egyptian government up to $90 million in lost toll revenue as hundreds of ships waited to pass through the blocked waterway or took other routes.

And the stalled ship held up as much as $10 billion of cargo a day from moving through the canal, including cars, oil, livestock, laptops, sneakers, electronics and toilet paper. Companies delivering goods may have to pay customers for missed deadlines. If any agricultural goods went bad, producers may look to recoup lost revenue.

Richard Oloruntoba, an associate professor of supply chain management at the Curtin Business School in Perth, Australia.

Jeff N.K. Lee, a lawyer in Taipei who specializes in commercial and transportation law.

“While the ship is just parked there, the cargo isn’t actually being damaged,” Mr. Lee said. “The only damage is that it’s delayed.”

“Say I have a batch of cloth, and on top of the time it took to come to Taiwan, it got stuck for six or seven days,” he said. “It just sat there. Will it go bad? It won’t.”

There is a caveat. The ship’s owner could have to pay for cargo delays, if its crew is found to be at fault for the accident.

Some so-called third-party claims related to delayed cargo may be covered by yet another insurer for the ship, the UK P&I Club. The same goes for any claims by the Suez Canal Authority, which operates the waterway and might file over any loss of revenue.

Nick Shaw, chief executive of the International Group of Protection and Indemnity Clubs, the umbrella group that includes the UK P&I Club, said the insurer would “make decisions together with the shipowner as to which ones had validity and which ones are illegitimate.”

Adding to the complexity of the Suez accident are the layers upon layers of insurance. Reinsurers, companies that covers the risk of other insurance companies, come into play for claims above $100 million. Between insurance and reinsurance, the ship’s owner has coverage for those third-party claims up to $3.1 billion, although few experts believe the damages will run that high.

The sheer size of the Ever Given makes the situation all the more labyrinthine. Aside from time of war, the Suez Canal has never been blocked quite so spectacularly or for as long a time as it was with the Ever Given, and this is the biggest ship to run aground.

The ship is as long the Empire State Building is tall, with the capacity to carry 20,000 containers stacked 12 to 14 high. The Ever Given is one of a fleet of 13 in a series designed by Imabari, part of a push to lower the costs per container and make the ships more competitive in an increasingly fierce market dominated by Chinese and South Korean shipbuilders.

“The bigger the ships get, the risk is whenever you have an incident like this is that you are putting more of your eggs into one basket,” said Simon Heaney, senior manager of container research at Drewry UK, a shipping consultancy. “So the claims will magnify.”

Raymond Zhong and Amy Chang Chien contributed reporting from Taipei, Taiwan. Vivian Yee contributed from Cairo and Makiko Inoue, Hisako Ueno, Hikari Hida from Tokyo.

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Fighting Escalates in Eastern Ukraine, Signaling the End to Another Cease-Fire

MOSCOW — The war in eastern Ukraine, which has been on a low simmer for months, drawing little international attention, has escalated sharply in recent days, according to statements Tuesday from the Ukrainian and Russian governments.

In the most lethal fighting so far this year, four Ukrainian soldiers were killed and another was seriously wounded in a battle against Russian-backed separatists in the Donetsk Region of eastern Ukraine, the country’s military said.

The exchange of artillery and machine-gun fire was unusual in that it lasted most of a day. Fighting across the so-called Line of Contact, an about 250-mile-long barricade of trenches and fortifications, are typically briefer.

But it was not the only sign of tensions in a region where Ukrainian and the Russian-backed separatist forces have settled into trenches that have barely moved over the seven years since fighting first erupted in 2014.

acknowledged the recent uptick in fighting and said that Russia “sincerely hoped” it would not escalate. The fighting, he said, was “canceling out the modest achievements made earlier.”

In Ukraine, Parliament on Tuesday approved a statement declaring an “escalation” along the front, essentially acknowledging that a cease-fire negotiated in July had broken down. The statement noted a “significant increase in shelling and armed provocations by the armed forces of the Russian Federation.”

The statement called for Western governments to “continue and increase international political and economic pressure on Russia,” something Ukraine has been requesting for years. The United States and European allies have imposed financial sanctions on Russia, targeting President Vladimir V. Putin’s inner circle, banks and oil companies.

The war that began in 2014 after pro-Western street protesters ousted a Russian-aligned president in Ukraine, prompting a military response by Russia, is the only active conflict in Europe today.

the cease-fire in July, one that has held longer than dozens of others that have been made over the past seven years. Eight cease-fires have broken down since 2018 alone.

Tensions between Russia and Ukraine have also escalated along the de facto border between the two countries at the isthmus of the Crimean Peninsula, which is to the south and west of the Line of Contact, and which was annexed by Russian forces in 2014.

In February, the Russian military announced rehearsals of paratrooper drops in Crimea that commentators in Russia and Ukraine saw as possibly telegraphing a fresh Russian incursion. The target this time: water canals supplying Crimea from the Dnieper River in Ukraine.

Ukraine cut off the supply of water from the river when Russia annexed the peninsula. Since then, water has been so scarce that a majority of residents in Crimea do not have round-the-clock supplies, according to the Interfax news agency. Most towns ration supplies by turning off water mains except for brief windows in the mornings and evenings.

The Russian military described the exercise with 3,000 paratroopers as practicing “seizure of the enemies’ objects with subsequent defense until uniting with the main force.” It did not mention water canals. The exercise also practiced marine landings by the Black Sea Fleet.

In response, the Ukrainian military announced an exercise rehearsing the defense of the flatlands between Crimea and the river against air or sea attacks, further ratcheting up tensions.

Maria Varenikova contributed research.

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Suez Canal Is Open, but the World is Still Full of Giant Container Ships

The growth of the shipping industry and ship size has played a central role in creating the modern economy, helping to make China a manufacturing powerhouse and facilitating the rise of everything from e-commerce to retailers like Ikea and Amazon. To the container lines, building bigger made sense: Larger ships allowed them to squeeze out savings on construction, fuel and staffing.

“Ultra Large Container Vessels (U.L.C.V.) are extremely efficient when it is about transporting large quantities of goods around the globe,” Tim Seifert, a spokesman for Hapag-Lloyd, a large shipping company, said in a statement. “We also doubt that it would make shipping safer or more environmentally friendly if there would be more or less-efficient vessels on the oceans or in the canals.”

A.P. Moller-Maersk said it was premature to blame Ever Given’s size for what happened in the Suez. Ultra-large ships “have existed for many years and have sailed through the Suez Canal without issues,” said Palle Brodsgaard Laursen, the company’s chief technical officer, said in a statement on Tuesday.

But the growth in ship size has come at a cost. It has effectively pitted port against port, canal against canal. To make way for bigger ships, for example, the Panama Canal expanded in 2016 at a cost of more than $5 billion.

That set off a race among ports along the East Coast of the United States to attract the larger ships coming through the canal. Several ports, including those in Baltimore, Miami and Norfolk, Va., began dredging projects to deepen their harbors. The Port Authority of New York and New Jersey spearheaded a $1.7 billion project to raise the Bayonne Bridge to accommodate mammoth ships laden with cargo from Asia and elsewhere.

The race to accommodate ever-larger ships also pushed ports and terminal operators to buy new equipment. This month, for example, the Port of Oakland erected three 1,600-ton cranes that would, in the words of one port executive, allow it to “receive the biggest ships.”

But while ports incurred costs for accommodating larger ships, they didn’t reap all of the benefits, according to Jan Tiedemann, a senior analyst at Alphaliner, a shipping data firm.

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‘A Very Big Problem.’ Giant Ship in the Suez Remains Stuck.

MANSHIYET RUGOLA, Egypt — The gargantuan container ship that has blocked world trade by getting stuck aslant the Suez Canal has towered over Umm Gaafar’s dusty brick house for four days now, humming its deep mechanical hum.

She looked up from where she sat in the bumpy dirt lane and considered what the vessel, the Ever Given, might be carrying in all those containers. Flat-screen TVs? Full-sized refrigerators, washing machines or ceiling fans? Neither she nor her neighbors in the hamlet of Manshiyet Rugola, population 5,000-ish, had any of those at home.

“Why don’t they pull out one of those containers?” joked Umm Gaafar, 65. “There could be something good in there. Maybe it could feed the town.”

The Japanese-owned Ever Given and the nearly 300 cargo ships now waiting to traverse the Suez Canal, one of the world’s most critical shipping arteries, could supply Manshiyet Rugola many, many times over.

ran aground on Tuesday, blocking all shipping traffic through the canal, global supply chains churned closer to a full-blown crisis.

Already, shipping analysts estimated, the colossal traffic jam was holding up nearly $10 billion in trade every day.

“All global retail trade moves in containers, or 90 percent of it,” said Alan Murphy, the founder of Sea-Intelligence, a maritime data and analysis firm. “So everything is impacted. Name any brand name, and they will be stuck on one of those vessels.”

take the long way around the southern tip of Africa, a journey that could add weeks to the journey and cost more than $26,000 per extra day in fuel costs.

In Manshiyet Rugola, whose name translates to “Little Village of Manhood,” traffic jams of any kind would be difficult to imagine in usual times.

Donkey carts piled high with clover bumped down semi-paved lanes between low brick houses and green fields lined with palm trees, trash and animal dung. A teenager hawked ice cream from his motorcycle. Roosters offered profane competition to the noontime call to prayer. Until the Ever Given showed up, the minarets of the unimposing mosques were the tallest structures around.

“Do you want to see the ship?” a young boy asked a pair of visiting journalists, bobbing in excitement under the window of their car. Ever since the earthquake-like rumble of the ship running aground jolted many awake around 7 a.m. Tuesday, the Ever Given had been the only topic in town.

“The whole village was out there watching,” said Youssef Ghareeb, 19, a factory worker. “We’ve gotten so used to having her around, because we’ve been living on our rooftops just watching the ship for four days.”

It was universally agreed that the view was even better at night, when the ship glowed with light: a skyscraper right out of a big-city skyline, lying on its side.

“When it lights up at night, it’s like the Titanic,” said Nadia, who, like her neighbor Umm Gaafar, declined to give her full name because of the security forces in the area. “All it’s missing is the necklace from the movie.”

Umm Gaafar had asked to go by her nickname so as not to run afoul of the government security personnel who had passed through, warning residents not to take photos of the canal and generally spreading unease. Nadia said she was too intimidated to take pictures of the ship at night, though she badly wanted to.

Villagers and shipping analysts had the same question about the Ever Given, if rooted in different expertise. The ship’s operators have insisted that the ship ran aground because of the high winds of a sandstorm, with the stacked containers acting like a giant sail, yet other ships in the same convoy passed through without incident. So had previous ships in previous storms, the villagers pointed out.

“We’ve seen worse winds,” said Ahmad al-Sayed, 19, a security guard, “but nothing like that ever happened before.”

Shipping experts said the wind might well have been the major factor, exacerbating other physical forces, but suggested that human error may also have come into play.

“I am highly questioning, why was it the only one that went aground?” Captain Foran said. “But they can talk about all that later. Right now, they just have to get that beast out of the canal.”

Nada Rashwan contributed reporting.

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