Good morning, friends. We have a brisk issue this morning with some sizable news from Adnoc L&S on a large order for shipping vessels, but first, the latest on the tech outage that marred the global logistics sector…

WATCH THIS SPACE-

#1- A US congressional panel is calling on global cybersecurity firm CrowdStrike CEO George Kurtz to testify on last week’s global tech outage, Reuters reports. “While we appreciate CrowdStrike’s response and coordination with stakeholders, we cannot ignore the magnitude of this incident, which some have claimed is the largest IT outage in history,” the congressional panel wrote in a Monday letter to Kurtz. The letter urges Kurtz to schedule a hearing with the Subcommittee on Cybersecurity and Infrastructure Protection by this Wednesday, the newswire said.

Blue screens of death for everyone: A glitch in a software update from Crowdstrike caused failures that impacted shipping lines, customer systems, and transport business across the world last Friday. The software update — pushed by Crowdstrike to its Falcon Sensor software — threw some 8.5 mn machines running Microsoft Windows into boot loops. Several flights were grounded around the world, with delays, cancellations, and check-in issues reported globally. Edinburgh Airport, Hong Kong International, and Singapore’s Changi were among the major airports that reported technical issues.

The ins. industry could face business interruption claims worth bns of USD triggered by the event, The Financial Times writes. Leading ins. broker Aon said the outage was set to become “the most important” incident of its kind since the NotPetya cyberattack in 2017.

Some already have an estimated cost: Burns & Wilcox liability broker Derek Kilmer sees an ins. loss of at least USD 1 bn with the figure possibly coming in even higher. PA Consulting sees thousands of claims due to the global outage with claims worth multiple bns.

Others had a more guarded outlook, saying it’s too early to guess how much insurers will have to pay out: Many companies can only file claims if tech outages disrupt operations for 6-12 hours or more, while others have caps on the value of damages they can pursue.

#2- Oman’s Transport Ministry (MTCIT) has begun phase two of the Al-Sharqiya Expressway Project to upgrade an expressway extending from Wilayat Al Kamil and Al Wafi to Wilayat Sur, according to a press release. The project — which costs around OMR 68 mn — stretches along 52 km and links North and South Al Sharqiya. The initiative, slated for completion in 22 months, involves upgrading the road to a three-lane dual carriageway with tunnels, bridges, and intersections.

ICYMI- MTCIT greenlit the second stage of Al-Sharqiya Expressway Project back in February.

More roads for Oman: Oman inaugurated the Shina link project earlier this month, a 5.8 km dual carriageway linking Batinah main road and the Batinah expressway. MTCIT inked a OMR 79 mn agreement in April for the construction of the Batinah Coastal Road project which spans 244 km from the Wilayat of Barka to Khatmat Malaha in the Wilayat of Shinas. Oman kicked off a project last November to connect four villages in Shinas to its Batinah expressway.

#3- UAE’s ECI launches initiative to boost trade: The UAE’s Federal export credit firm Etihad Credit Ins. (ECI) has launched an initiative, dubbed Xport Xponential, to support UAE-based companies, exporters, re-exporters and manufacturers, with registration open until 25 September, Wam reports. The initiative offers innovative financing tools, streamlined procedures, risk management solutions, and consultancy services.

#4- Iran has intercepted a Togo-flagged, UAE-managed tanker carrying 1.5k tons of marine gas oil on smuggling allegations, Reuters reports, citing British security firm Ambrey. The vessel was seized in accordance with a judicial order, Irna reported. The ship, which had loaded fuel off the coast of Iraq and was headed for Sharjah Port in the UAE, was intercepted off Iran’s Bushehr Port on Monday. The vessel and its 12 crew members have been temporarily transferred to Bushehr anchorage. The incident does not appear to be politically motivated and is likely a counter-smuggling operation, according to Ambrey.

#5- Global air cargo demand is on the rise and is exceeding capacity, Etihad Airways Cargo Vice President Stanislas Brun (LinkedIn) told Stat Times in an interview (watch, runtime: 03.31). The air cargo market is subject to rapid fluctuation, affected by geopolitical events as well as the development of e-commerce. Geopolitical developments, including the newly instituted EU tariffs on Chinese EV, are “putting a new stress” on ocean transportation as transpacific shippers rush to move EVs, which in turn is causing air cargo traffic to rise, Brun explained.

MARKET WATCH-

#1- Oil prices are bouncing back after declining for three sessions as US crude inventories fall and supply risks grow in Canada on the back of wildfires, Reuters reports. Brent crude futures for September rose USD 0.37 to USD 81.38 a barrel by 03.343 GMT, while US West Texas Intermediate (WTI) futures rose USD 0.38 to USD 77.34 a barrel. Brent and WTI shed nearly 5% and 7% respectively over the previous three sessions. US inventories fell for the fourth straight week in signs of steady demand from the world’s largest consumer of oil, the newswire writes. This is the first time US crude stocks fall for four consecutive weeks since last September.

#2- Baltic index dips as larger vessels continue decline: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — was down 0.3% to 1,896 points on Monday, weighed down by low vessel rates, Reuters reports. Capesize fell 0.5% to 2,957 points, while panamax decreased 0.1% to 1,712 points. The smaller supramax index remained unchanged at 1,374.

DATA POINT-

#1-Moroccan airports saw a 24% y-o-y boost in air cargo in 1H 2024, transporting 46.2k tonnes of cargo, Morocco World News reports, citing figures from Morocco’s National Airports Office (ONDA). Aircraft movements rose 15% y-o-y during the period to 111k, while passenger numbers increased 19% y-o-y, recording almost 1.5 mn passengers. The jump in traffic could be attributed to increased tourism activity, airline expansions, and eased travel restrictions, the news outlet writes.

#2- The Drewry World Container Index rose by 1% to USD 5.9k per 40-ft container this week, and surged 286% y-o-y when compared to the same period last year, according to Drewry. The latest index is 43% below the peak of USD 10k witnessed in September 2021, but remains 318% higher than the pre-pandemic rates of USD 1.4k.

#3- The UAE’s economy is expected to grow by 3.7% in 2024, outpacing Saudi Arabia’s projected 1.3% growth, as it ramps up oil production and continues to focus on tourism, according to a Reuters poll of economists. The UAE is expected to remain the fastest-growing economy in the GCC next year as well, with growth expected to come in at 4.2% in 2025.

CIRCLE YOUR CALENDAR-

Saudi Arabia will host the Saudi Warehousing and Logistics Expo on Monday, 2 September to Wednesday, 4 September in Riyadh. The event will bring together leaders in the supply chain, warehousing, and logistics industry from across the Kingdom to discuss investments, trade, geopolitical risks, and localized manufacturing.

Egypt will host the Egypt International Airshow on Tuesday, 3 September to Thursday, 5 September in El Alamein. The event will host a range of discussions touching on industrialization, digitalization, and globalization in the regional commercial aviation sector. During the event, aircrafts and innovative aerospace products, and services will be showcased.

Saudi Arabia will host SkyMove MENA on Tuesday, 10 September and Wednesday, 11 September in Riyadh. The event will gather global industry stakeholders, experts, and service providers to discuss challenges in the regional aviation industry.

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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