Good morning, friends. The news slowdown has not abated as we wrap the week, but there are a few updates from the UAE on the trade and diplo front worth noting, so let’s dive in.

THE BIG LOGISTICS STORY- The UAE and Iraq agreed to finance imports and trade in AED, in keeping with a trend in the region towards dedollarization.

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

Close call for jet fuel-laden tanker near Yemen: Two missiles fired from Houthi-held territory in Yemen missed a commercial tanker near the Bab El Mandeb strait, ABC News reported citing unnamed US officials. The Marshall Island-flagged tanker, dubbed Ardmore Encounter, was carrying Indian-manufactured jet fuel and traveling through the Bab el-Mandeb Strait in preparation for transiting the Suez Canal. The Ardmore Encounter was also targeted by speedboats and an American warship shot down a drone that was headed in the vessel’s direction, ABC also said.

ICYMI: A Norwegian tanker, the Strinda, was struck by a Houthi-fired rocket 60 miles north of the Bab El Mandeb strait earlier this week. Houthi attacks on ships transiting the Red Sea strait have escalated, following the group’s announcement that it will target Israel-bound ships in the Red Sea regardless of their nationality, amid Israel’s ongoing war in Gaza.

UKMTO warns vessels to remain “vigilant”: Voluntary reporting mechanism United Kingdom Maritime Trade Operations (UKMTO) also received a report of an entity describing itself as the Yemeni Navy directing vessels to divert to a port in Yemen, according to a statement. Accordingly, the UKMTO has advised nearby vessels to be vigilant.

US lobbies for a multinational naval force to counter Houthi threat: The Biden administration is calling for a multinational naval force to protect shipping in the Red Sea and the Bab El Mandeb Strait, following a spate of Houthi-led attacks, the Washington Post reports. The administration plans to expand pre-existing Combined Task Force 153, which is focused on the Red Sea and Gulf of Aden.

The move has been described as “aspirational” and lacking a clear timeline, an American defense official close to the matter said.

PSA-SCA amends transit fee reductions for petroleum derivative tankers: The Suez Canal Authority (SCA) has extended transit fee reductions granted to loaded petroleum derivative tankers from the US Gulf Coast, the Caribbean, and Latin America to destinations in Asia, with some amendments going to effect in January and continuing until June 2024, Al Borsa reports. The rundown:

  • Tankers from the US Gulf Coast and the Caribbean boundfor ports on the western coast of the Indian subcontinent, beginning with Karachi Port and ending with Cochin Port, will receive a 30% reduction on transit fees;
  • Tankers from the US Gulf Coast and the Caribbean with cargoes bound for ports east of India’s Cochin Port until just west of Malaysia’s Kalang Port will receive a 65% reduction on transit fees;
  • Tankers from the US Gulf Coast and the Caribbean bound for Kalang Port and eastward; as well as those loaded in Latin America and bound for Karachi Port and eastward, will get a 75% discount;

ICYMI:In October, the SCA also rebated transit fees for dry bulk ships moving between Egypt’s Red Sea ports and continental Africa by 20-45% until June 2024.

DP World Australia calls on arbiter to intercede to end strikes: DP World has requested that the Fair Work Commission (FWC), a workplace umpire that arbitrates industrial disputes in Australia, mandate a 90-day “cool off” from strikes to allow for the resumption of talks with the Maritime Union of Australia, Australia’s Financial Review reported. The strikes, which have been ongoing since 1 October, have caused a backlog of 45k containers at terminals throughout Australia, more than the 30k containers left stuck by the cyberattack DP World Australia witnessed last month, the outlet said.

DATA POINT- Dubai’s Hatta Customs Center processed 50.8k trucks loaded with goods in 2023, according to a press release. The center also processed 655k vehicles and 1.8k passenger buses amid an increase in tourism to Dubai.

HAPPENING THIS WEEK-

#1- Food Africa Cairo 2023 wraps up today at the Egypt International Exhibition Center in Cairo, Egypt. The three-day agro-food exhibition brings together wholesalers, distributors, and retailers to create a network between international traders and vendors with their counterparts from Egypt, MENA, and Africa. The event aims to address the different needs of buyers and importers and to serve new markets in Egypt and Africa.

#2- Egyptian trade mission to Saudi wraps up tomorrow: The Engineering Export Council of Egypt’s weeklong trade mission to Saudi Arabia kicked off on Saturday and is set to end tomorrow. The delegation hopes to drum up orders and investments from the Kingdom for pumps, car parts, boilers, and everything in between.

MARKET WATCH-

DATA POINT- Oil stockpiles at Port Fujairah dipped to a four-week low hitting 9.2% in 4Q 2023, with a notable decrease in oil residues, according to a report by S&P Global. Fuel oil reserves used for power generation and shipping hit a seven-week low at 8.8 mn barrels. Heavy distillates experienced a 13% decline in 2023, while light distillates saw a 22% drop, and middle distillates recorded a significant 31%.

CIRCLE YOUR CALENDAR-

Iranian President Ebrahim Raisi will visit Turkey this month to discuss bilateral ties, as well as proposals by the Iran-Turkey Joint Chamber of Commerce for boosting bilateral trade, including through a potential trade agreement, state-aligned Tasnim News Agency quotes chairman of the chamber Mehrdad Saadat as saying. Saadat said that Iran’s trade with Europe could grow by taking advantage of Turkey’s trade capacities.

The Iran-UAE Joint Economic Cooperation Commission meeting will be held in the coming weeks in a bid to develop bilateral cooperation, deepen commercial ties, and boost trade. The location has yet to be announced.

The International Exhibition of Transportation, Logistics, and Related Industries (Iran Trans Expo 2023) will take place on 18-20 December at the Imam Khomeini Grand Prayer Campus (Mossala) in Tehran, Iran. The event is organized by Iran’s Trade Promotion Organization, the Transport and Urban Development Ministry, and the Fund for Innovation and Prosperity of Unions and Associations.

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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