Good morning, folks. The news cycle slowdown continues. In today’s issue, we have updates on rail production and road projects from Egypt and Bahrain, as well as the latest on Egypt’s efforts to adapt to the incoming changes in global trade. But first, more on Trump’s ever-developing tariff moves…

THE BIG LOGISTICS STORY- Trump confirmed a new 25% “secondary tariff” on any country purchasing oil or gas from Venezuela, which will also take effect on 2 April, the US President said on his social media platform Truth. The US, however, remains an importer of Venezuelan oil, accounting for about 4.3% of its imported crude in January. China, Spain, Russia, India, Singapore, and Veitnam are some of the top candidates to be hit with this tariff.

US tariffs on auto imports are also incoming: US President Donald Trump said auto tariffs will land “in the next few days,” with additional duties on pharma, lumber, and semiconductors set to follow “down the road.” Speaking to reporters at the White House yesterday, Trump said many of these levies would take effect on 2 April, which he framed as a “Liberation Day” for the US economy. However, some duties would be phased in later, and some allies could receive exemptions.

Markets reax: Wall Street closed higher on Monday on hopes that Trump’s long-threatened tariff package may end up being narrower in scope than initially feared. The S&P 500 gained nearly 1.8%, hitting a two-week high. But one White House official told Reuters that people “should not expect a reprieve,” saying the president is still “determined to implement reciprocal tariffs that are very strong.”

The story made headlines in the international press: Reuters | Associated Press | Bloomberg | Financial Times | CNN | BBC | CNBC | New York Times

WATCH THIS SPACE-

#1- Iraq is in talks with several firms to secure two floating storage regasification units (FSRU) by early June, Bloomberg reports. The FSRUs will carry and convert LNG to gas and will be installed near the Khor al-Zubair Gulf port in Basra. Iraq has also launched a tender for a fixed regasification platform in the Grand Faw port in the south.

In context: Iraq has been working to limit its energy imports — electricity and natural gas — from Iran in response to US pressure and ramping up efforts to prep its natural gas supply chain infrastructure to accommodate for increased inflows from alternative sources, such as Oman and Qatar. This includes plans for installing two offshore LNG facilities, with one facility planned to receive imported LNG to run the power stations in southern Iraq near the Grand Faw Port and the other slated for Khor Al-Zubair port near the oil hub in Basra.

#2- Egypt makes headway on West Delta Deep Marine project: UK-based oil and gas giant Shell — in collaboration with its partners — is working to accelerate gas production from the 11th phase of the West Delta Deep Marine field in a bid to boost the nation’s natural gas output, according to a statement. The new phase will include drilling three wells with a projected production of 150 mn cubic feet per day (cf/d). Initial production from this phase is scheduled to start in June.

The company also wrapped its 10th phase in early January, which included three wells with 160 mn cf/d production capacity, according to the statement. The new wells added in 2025 are set to increase the field’s production rates to 320 mn cf/d this year, up from 222 mn cf/d in 2024, chairman of Rashid Petroleum Company Mohamed Samir said.

ICYMI: Shell is investing some USD 300 mn alongside Petronas in its ongoing drilling operations in the West Delta Deep Marine concession as part of its 11th phase. Shell started production from one well in the West Delta Deep Marine in October, producing 30-40 mn cf/d.

REMEMBER- Egypt is working to become a net LNG exporter once again, with a plan to become a hub for the regasification and export of Cypriot gas. The country also hopes that new natural gas discoveries and wells could help it reverse its dependence on imported gas by next year. Egypt reportedly needs around 6.2 bn cubic feet per day (bcf/d), but domestic production only contributes 4.4 bcf/d.

#3- The Gulf Mercantile Exchange (GME) has launched trading on its Alternative Crude Ecosystem (ACE), Wam reports. The first sale saw 500 contracts of Oman Crude Oil sold for May 2025 delivery.

What’s ACE? The bilateral trading platform allows participants to trade multiple crude grades as differentials against the GME Oman sour crude futures benchmark. These include Oman, Al Shaheen, Basrah Medium, Basrah Heavy, Dubai, Murban, and Upper Zakum.

ICYMI- GME logged a 12% increase in 2024 trading volume with 1.3 mn contracts. Meanwhile, front-month contract volume grew 20% y-o-y during the year to a record 959.6k.

MARKET WATCH-

#1- Oil prices saw very limited movement this morning amid uncertainty over the possible impact of Trump’s floated secondary tariffs on importers of Venezuelan oil, Reuters reports. Brent crude futures gained USD 0.01 to USD 73.01 a barrel, while the US West Texas Intermediate (WTI) decreased by USD 0.01 to USD 69.10 a barrel by 04.24 GMT.

#2- Baltic index on an upward trajectory: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — grew 0.6% 1,652 points on Monday. The capesize was up 0.5% to 2,690 points, while the panamax index gained 1% to reach 1,389. Only the smaller supramax index rose to 1,013 points — almost a four-month high.

DATA POINT-

Oman’s seaports recorded OMR 16.5 bn in trade in FY 2024, accounting for 77% of the country’s total foreign trade, according to a statement. Omani ports saw their general, bulk, and liquid cargo volumes rise 15% y-o-y to 137 mn tons, while the number of docked ships at ports saw a 1.5% y-o-y jump to 12k vessels.

The breakdown: Sohar Port saw a 72% boost in the volume of goods processed, handling around 942k TEUs. Salalah Port saw a 10% jump across the general, liquid, and bulk categories, with some 3.3 mn TEUs handled. Suwaiq also recorded a 10% climb across the board, while Duqm Port saw a 152% spike in cargo handling across all categories.

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CIRCLE YOUR CALENDAR-

The UAE will host the Gulf Ship Finance Forum on Thursday, 10 April in Dubai. The forum will host shipping and finance executives from around the region and the world to host presentations, interviews, and panel discussions on ownership, management, chartering, legal, and trading in shipping.

The UAE will host the CargoIS Forum on Monday, 14 April in Dubai. The event will discuss industry insights and strategies from leading logistics players, including Emirates SkyCargo and Lufthansa Cargo.

The UAE will host the IATA World Cargo Symposium from Tuesday, 15 April to Thursday, 17 April in Dubai. The event will host sessions, specialized streams, workshops, and summits related to technology, security, customs, cargo operations, and sustainability for over 1.4k industry leaders.

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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