Good morning, friends. The news cycle has slowed down considerably since earlier in the week, with several shipping analysts and experts making subdued projections for the shipping industry over the next year.

THE BIG LOGISTICS STORY-Jordan’s largest data center to launch by year’s end:Aqaba Digital Hub(ADH) is set to launch the largest data center in Jordan, and one of the largest in the region, by the end of 2023 in Aqaba. The data center is set to have a capacity of 6 MW, and will cost some JD 100 mn to build.

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

HAPPENING TODAY-

PSA- Oman's Salalah port is set to gradually restart operations today, Reuters reports, citing state news agency ONA. The port was temporarily closed due to tropical cyclone Tej.

DISRUPTION WATCH-

Hong Kong-based Cathay Pacific has suspended all flights from Hong Kong to Israel until the end of the year due to the ongoing “situation in Israel,” according to a company statement. Customers who previously purchased tickets through 31 March 2024, have the option to “rebook, reroute or refund their travel without the usual fee,” the statement added.

Lebanon’s Middle East Airways (MEA) has relocated most of its fleet from Beirut to neighboring countries amid the war in Gaza and changes to the airline’s ins. coverage policy, Simple Flying reports. MEA’s ins. coverage for war risks was reduced by almost 80%, Simple Flying adds, citing MEA Chairman Mohamed Al Hout. MEA had previously parked five of its 25 planes in Turkey’s Istanbul Airport, and another 10 planes are set to be moved to Cyprus, Oman, Qatar, and other nearby countries, Simple Flying reports, citing Airways Magazine. The airline is now operating a fraction of its fleet as a result of the relocations, with only eight flights operational during the move.

WATCH THIS SPACE #1-Tariffs on goods traded between Iran and Russia are set to be eliminated by early 2024, Iran’s state-owned Islamic Republic News Agency IRNA reports, citing member of the Iran-Russia Joint Chamber of Commerce Kambiz Mirkarim as saying. Non-USD trade and new border customs between the two countries and Armenia and Belarus could soon follow, according to Tansim news agency. “Considering the development of economic relations between Iran and the members of the Eurasian Economic Union (EAEU), the problems of economic operators in various areas including customs, tariffs, and competitive market will be resolved by the end of the year,” Mirkarimi said, according to a separate Tasnim report.

Background: This builds on previous talks to establish a trade agreement between Iran and the EAEU — a unified economic space comprising Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia — by the end of the year. Iran has held talks with Belarus to discuss using the two countries’ national currencies in bilateral trade. It also discussed cutting tariffs and rolling out e-customs procedures for crossborder truck movements with Armenia.

SPEAKING OF IRAN-ARMENIA RELATIONS-The two countries agreed to construct another bridge over the Aras river, which passes through Armenia and Iran, to support the current bridge, which doesn’t have sufficient throughput capacity, Armenian news agency APA reports. Tehran and Yerevan are looking to create a working group to build the bridge, which will help boost freight traffic, Iranian Roads and Urban Development Minister Mehrdad Bazrpash is quoted as saying.

The two countries also agreed to scrap road duties for trucks moving between them, Interfax reports.

WATCH THIS SPACE #2- Saudi-Omani committee plan Saudi-Omani firm to manage and operate Ezad: TheSaudi-Omani committee overseeing the development of the Integrated Economic Zone at Al Dhahirah Governorate (Ezad) in Oman discussed the latest efforts in establishing a Omani-Saudi company to manage and operate Ezad, according to Oman News Agency (ONA). The committee also discussed a request submitted by Al Dhahirah Company to set up a one-stop shop at the Ezad land port, ONA reports, without clarifying its exact uses.

DATA POINT-Average warehouse rent prices in Riyadh saw a 20% increase in 1H 2023, according to a press release by real estate consultancy Knight Frank. The Saudi warehouse market is continuing to face shortages and is projected to experience further jumps in rent prices amid soaring demand for storage and last-mile logistics facilities, the press release adds. Average rents in Riyadh currently stand at SAR 190 per square meter, and at SAR 205 per square meter in Jeddah. Meanwhile, the Dammam Metropolitan Area (DMA) saw an average increase of 14% in warehouse rents, taking them to an average of SAR 230 per square meter.

MARKET WATCH-

Global supply chains face serious risk in 2024 on the back of expected increases in ocean freight shipping rates, according to analysis by ocean and air freight market analytics platform Xeneta. Global ocean freight rates have plummeted by some 60% in 2023, “so low that shipping liner companies are effectively subsidizing businesses to transport their goods around the world,” Xeneta CEO Patrik Berglund said, stressing that “the big shipping liner companies won’t allow this to continue and will jack up prices.”

Shippers could backtrack on unprofitable contracts: Xeneta is cautioning companies that have committed to extended contracts with shipping liner companies based on the lower prices of 2023 that they might be the first to suffer if the market undergoes a shift. “The shipping liner companies will look at contracts agreed in 2023 and, in many cases, deem them non-profitable,” Berglund said.

Dark clouds on the horizon: The ongoing worldwide economic slump has led to lower consumer spending and a decreased demand for products, which typically does not bode well for the shipping sector, Xeneta explained. “I think about underlying weak macro-economics; inflation, interest rates, cost of living and reduced global consumption of goods. On top of that you have turmoil across the world, whether it is in Ukraine or the Middle East, so there are some heavy dark skies in the horizon for the shipping industry,” Berglund said.

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.

TheParcel + Post Expo 2023 kicks off today and runs through to Thursday in RAI Amsterdam, Netherlands. The event brings together industry experts to network, showcase technologies, with a live conference featuring expert industry analysis and opinion.

TheG7 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.

TheDubai 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.

Etihad Cargo will host the third iteration of ACE in Abu Dhabi between 4 and 6 December. The conference brings together air cargo industry executives with expert speaker debates, workshops, and networking via a one-to-one meeting scheduler and in-person meetings. The event will focus on the air cargo sector in the Middle East.

TheEurasian 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.

Tags: