Good morning, friends. We wrap an eventful and increasingly tense week with a tight issue, with some updates on freight rates in the region as well as big moves from DP World and AD Ports in the UAE.

THE BIG LOGISTICS STORY- Logistics giant DP World inked an MoU with India’s port authority to develop India’s Vadhvan Port, located north of Mumbai on the Arabian Sea coast. The port expects to add container capacity of some 15 mn TEUs by 2035, and 23.9 mn TEUs by 2040.

^^ We have everything on this story and more in the news well, below.

HAPPENING TODAY-

Ocean shipping rates to Israel are falling despite escalating violence: Israel’s air cargo and marine trade gateways are still functioning amid the war in Gaza, with ocean shipping rates for goods shipped from Asia and Western Europe to Israel actually falling last week, Bloomberg quotes Freightos head of research Judah Levine as saying. However, this may not remain the case for too long, as there have been hikes in ins. costs as carriers pass along war risk premiums.

But some are introducing war risk premiums: Haifa-based container line Zim Integrated Shipping Services announced that while it continues to operate and accept bookings to Israel, it has implemented a new war risk premium charge as of 12 October, it said in a statement. The war risk premium for cargo to and from Israel range from USD 50-100 TEU depending on the service, according to the statement. Shipments between the US and Israel were subject to the surcharge from 17 October. The war risk premium is subject to change every 24 hours, the statement adds.

Andair freight costs have increasedas of Monday, with the cost to fly goods from Frankfurt to Tel Aviv increasing to USD 2.26 per kg from USD 2.12 a kg, Bloomberg writes. Freight rates for shipping goods from Tel Aviv to Frankfurt saw an even sharper increase, going up to USD 2.41 up from USD 1.76, according to Bloomberg.

Container line MSC says it is facing increased waiting times at its terminals in Ashdod, and that there are new restrictions on hazardous freight, the outlet adds. Ashdod and Haifa have also introduced restrictions on dangerous goods, according to an AP Moller-Maersk ’s statement.

S&P expects Israeli ports to close at some point: The risk levels at five Israeli ports range from high to severe, with Ashhdod and Ashkelon “very likely” to see unscheduled closure on short notice, Bloomberg cites research from S&P Global Market Intelligence.

Abu Dhabi’s new autonomous vehicles cluster attracts 30 companies: Some 25 new companies from China, South Korea, and the US have inked agreements with Abu Dhabi to move into the emirate’s smart and autonomous vehicle industries (SAVI) cluster over the next three months, joining six announced earlier in the week, Chief Competitiveness Officer at the Abu Dhabi Investment Office (ADIO) Massimo Falcioni told The National. The 30 companies that have signed up so far run the gamut from start-ups to fully-established companies and represent “several tens of mns” of USD in new investments, Falcioni also said.

This includes Neta Auto, which will set up its MENA hub at SAVI: Neta Auto, China-based Hozon Auto’s EV brand, will establish an assembly plant and R&D center at SAVI, Wam reported. The outfit’s new MENA hub will allow it to test its latest technologies at the Yas Island autonomous vehicle test bed that is part of SAVI, Wam said.

ICYMI- Abu Dhabi launched a SAVI cluster at Masdar City earlier this week. The move looks to establish the emirate as a SAVI hub with applications for air, land, and sea mobility.

Iranian national maritime carrier Islamic Republic of Iran Shipping Lines (IRISL) is investing USD 7.2 mn into Assaluyeh’s Pars Port, Tehran Times reports. IRISL is looking to operate the loading and unloading of 18k containers in Pars Port by late March 2024. The investment follows an agreement reached between IRISL and the Pars Special Economic Energy Zone (PSEEZ), which included a USD 1.7 mn investment in the construction of buildings and infrastructures of the port, as well as USD 5.5 mn allocated to port equipment.

CIRCLE YOUR CALENDAR-

SCZone is in China: A delegation from Egypt’s Suez Canal Economic Zone (SCZone), led by Chairman Walid Gamal El-Din, is on tour in China in the provinces of Suzhou and Hefei, after visiting Hangzhou to drum up investments from Chinese companies into Egypt’s textile and garment industry and establish projects in the West Qantara Industrial Zone. The SCZone delegation also met with members of the electricity and fiber optic cable industries, and is set to visit electric car manufacturing company NIO.

The G7 Trade Ministers meeting will take place at the Osaka International Convention Center in Sakai, Osaka, Japan between 28 and 29 October. The event will bring together trade ministers from Canada, France, Germany, Italy, United States, United Kingdom, Germany and the European Union to discuss the changing environment surrounding trade, and growth of the global economy.

The Dubai Precious Metals Conference 2023 is taking place on 20-21 November 2023 at the ballroom at the SO/ Uptown Dubai in the UAE. The event will bring together industry experts, innovators, and leaders to discuss emerging trends, technologies, and strategies driving the metals industry.

The Eurasian Economic Union (EAEU) exhibition is taking place from 4 to 7 December at Tehran Permanent International Fairgrounds in Tehran, Iran. The exhibition will be attended by EAEU members, members of the Shanghai Cooperation Organization, and the Persian Gulf Cooperation Council, and will bring together domestic and foreign companies in the industrial, mineral, and agricultural fields to showcase their latest products at the event. Seminars and conferences on transport, trade, and tourism will take place on the sidelines of the event.

Check out our full calendar at the bottom of this email for a comprehensive listing of upcoming news events and news triggers.

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