Good morning, friends. It’s a busy morning and we have a packed issue full of updates cutting across all corners of the regional logistics sector. Let’s dive right in.

WATCH THIS SPACE-

#1-One step closer to IMEC: India’s cabinet has approved an Inter-Governmental Framework Agreement (IGFA) inked with the UAE in February to enable the India-Middle East Europe Economic Corridor (IMEC), WAM reported on Wednesday. “The IGFA includes areas of cooperation between the two countries with the objective of exploring further potential of future joint investment and collaboration in respect of development of the IMEC,” India’s cabinet said in a statement following its approval.

ICYMI- The US-led IMEC initiative was unveiled at the G20 talks in New Delhi in September. The project will consist of an eastern corridor connecting India to the GCC, and a northern corridor linking GCC states with Europe, with the participating countries will also lay cables for power and data lines along the railway route, as well as pipelines for moving clean hydrogen.

#2-The Iraqi-Turkish oil pipeline has been fully repaired, following sabotage by ISIS, with the pipeline connecting production fields in Kirkuk to export terminals at Turkey’s Ceyhan Port, an unnamed source in Iraq’s state-owned North Oil Company told Shafaq on Wednesday. The resumption of flows across the pipeline is now dependent on an Iraqi government decision to restart exports to Turkey, the source said.

REMEMBER- Oil exports to Turkey from Iraq’s northern autonomous region of Kurdistan were halted after a landmark decision by the International Chamber of Commerce deemed the transfers illegal and ordered Turkey to shell out USD 1.5 bn in damages to Baghdad. Recent developments have seen Iraq keen to resume the exports, with Oil Minister Hayyan Abdual Ghani saying as much last November.

#3- The US Federal Aviation Administration (FAA) is investigating how a United Airlines Boeing 737 aircraft landed in Oregon with a missing external panel, Reuters reported on Friday. The airline said no alarm was raised during the flight and the aircraft sustained no damage. The FAA cleared Boeing’s 737 MAX 9 aircraft to return to service early last month, following a mid-flight panel blow out that saw the fleet grounded in January.

#4-G7 threatens to ban Iran Air flights to Europe:G7 nations including the US are looking to roll out new penalties against Iran — including a ban on Iran Air operating in Europe — if Tehran decides to go ahead with the transfer of ballistic missiles and related technologies to Russia, Reuters reported on Friday, citing US officials and a joint G7 statement. The warnings came on the heels of a Reuters report which had indicated that Tehran had already shipped hundreds of ballistic missiles to Russia, which is expected to deploy them in its two-year-long war with Ukraine.

ON A RELATED NOTE- The US is pressing Panama to prevent Iranian ships from using its flag in a bid to clamp down on attempts by Iran to skirt sanctions, IRNA reported on Thursday, citing AFP. The calls came during US Deputy Special Representative for Iran Affairs Abram Paley’s recent trip to Panama to ensure “the Panamanian shipping registry and jurisdiction are not used by entities that are trying to circumvent US sanctions against Iran,” IRNA cites Paley as saying.

MARKET WATCH-

#1-Oil prices eased on Friday a day after surpassing USD 85 a barrel for the first time in five months, Reuters reported on Friday. Brent crude oil futures dipped 0.11% to USD 85.33 a barrel by 17.16 GMT, while West Texas Intermediate (WTI) crude fell 0.21% to USD 81.09 a barrel. Prices were still expected to close 3% higher for the week, stoked by surging demand from US refiners coming out of maintenance, the newswire said. Other factors, including a stronger USD and concerns over the feasibility of a US Federal Reserve interest rate cut given lingering inflation weighed down the market, while IEA and OPEC forecasts for stronger demand for oil and possible disruptions to supplies due to Ukrainian attacks against Russian oil refineries buoyed the oil market, the newswire also said.

#2-Drewry’s World Container Index (WCI) fell 4% to USD 3,162 per 40 ft container for the week ending Thursday, but was up 77% when compared to the same period last year, maritime research and consultancy firm Drewry reported on Thursday. The latest WCI index is also 123% greater than the average 2019 pre-pandemic rate of USD 1,420 per 40 ft container and USD 794 above the 10 year average rate of USD 2,699.

#3-Baltic index posts sixth back-to-back weekly gain: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — climbed 1% to 2,374 points on Friday, and was up 1.2% for the week, seeing its sixth consecutive weekly gain on the back of strong demand for the panamax and supramax vessel segments, Reuters reports. The panamax subindex surged 4.7% to 2,234 points, and was up 20% for the week as it marked its highest in over three months, while the smaller supramax segment gained 12 points to 1,326 points. Meanwhile, the larger capesize subindex slipped 0.6% to 4,019 points, and was down 5.3% for the week. the newswire said.

#4-Bloomberg has included Adnoc’s Murban Crude Oil as a subindex to its flagship Bloomberg Commodity Index, where it will be represented alongside benchmark Brent and West Texas Intermediate (WTI), according to a statement released last week. The move offers investors that trade in Brent and WTI diversification benefits, while also enhancing their abilities to mark geopolitical risks and differences in regional growth dynamics, the statement said.

#5-The International Energy Agency (IEA) boosted its forecast for growth in the demand for oil by 110k barrels per day (bpd) to 1.3 mn bpd on Thursday, marking its fourth upward revision since November as reroutes on the back of Red Sea disruptions see greater demands for fuel and record bunkering sales in Singapore, Reuters reported on Thursday. The agency, which represents the Western bloc, also expects a slight deficit in oil markets this year, as OPEC+ extends production cuts. Despite being increasingly bullish, the IEA’s outlook for growth is 1 mn bpd lower than OPEC’s most recent forecast, which stood unchanged at 1.25 mn bpd. IEA’s announcement drove a USD 0.80 bump in the prices for Brent crude, which approached USD 85 a barrel and hit its highest since November, the newswire also said.

DATA POINTS-

#1-Queen Alia International Airport (QAIA) handled some 13k tons of cargo in January and February,up 40.5 % y-o-y, Petra reports, citing figures from Airport International Group. The first two months of the year also saw QAIA register 11.2k aircraft movements, down 2.3% when compared to the same period last year, and 1.37 mn passengers, up 3.6%, the report said.

#2-UAE’s Commercity records unprecedented growth: Dubai’s first digital commerce freezone, Commercity — a joint venture by Dubai Integrated Economic Zones Authority and Wasl Properties — recorded 158% y-o-y growth in the number of orders fulfilled via its digital trade platform in 2023, according to a statement released last week. The volumes of goods processed through Commercity’s transit platform, DCC Way, also saw a 56% boost during the period, while goods shipping operations from distribution centers facilitated via the digital trade platform surged 92%, DMO said.

#3-Qatar saw a 29% y-o-y hike in the volume of e-commerce transactions in February to 6.02 mn transactions, according to a statement released last week.

CIRCLE YOUR CALENDAR-

The UAE will host Abu Dhabi Mobility Week from Wednesday, 24 April to Wednesday, 1 May in Abu Dhabi. The event, organized by The Department of Municipalities and Transport – Abu Dhabi (DMT), will feature announcements, forums, and introduce a mobility strategy for the emirate.

Iran will host the second Iran-Africa International Summitfrom Wednesday, 24 April through to Friday, 26 April in Tehran. The event will see Iran receive trade ministers from more than 40 African countries.

Saudi Arabia will host a special World Economic Forum event from Sunday, 28 April through to Monday, 29 April in Riyadh. The event will focus on global collaboration and energy.

The UAE will host the 23rd edition of the Airport Show from Tuesday, 14 May through to Thursday, 16 May in Dubai. The 23rd Airport Show will see representation from airport suppliers, airport service providers, aviation executives, and regional decision makers. The event will highlight current innovations and new technologies, while emphasizing this year’s "Sustainability and Innovation," theme.

The UAE will host The Electric Vehicle Innovation Summit from Monday, 20 May to Wednesday, 22 May in Abu Dhabi. The event will see industry leaders come together to discuss sustainable mobility and tapping into groundbreaking advancements in electric vehicles while engaging with key decision-makers.

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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