Good morning, nice people. It is a brisk read this morning, with zones, trucking, and trade updates from Egypt, UAE, and Iraq. But first, an update on a US lawsuit attempting to put a halt to Trump’s tariff…

THE BIG LOGISTICS STORY- US firms take Trump tariffs to court: A group of five small US firms is suing to block US President Donald Trump’s sweeping tariffs spree on international trading partners, arguing that the tariffs are illegal under the International Emergency Economic Powers Act (IEEPA). “The Constitution gives the power to set tax rates—including tariffs—to Congress, not the President,” the firm’s Senior Counsel Jeffrey Schwab added.The lawsuit — filed by legal aid firm Liberty Justice Center — raises objections to Trump's comprehensive tariffs imposed on 2 April, as well as levies slapped separately against China.

Who are the plaintiffs? The five small businesses — who say they were “severely harmed” by the tariffs — vary from a New York wine and spirits importer to a Virginia-based education kits and musical instruments manufacturer.

This story grabbed a lot attention in int’l press: Reuters | Bloomberg | CNBC | CNN | The Guardian

WATCH THIS SPACE-

#1- The Red Sea Ports Authority is mulling awarding Taba Port development project to Suez Canal Authority’s subsidiary Suez Canal Ports Company, unnamed government sources told Al Borsa. The EGP 4 bn project — spanning some 52.2 acres in South Sinai — aims to reduce the time allotted for transport operations between Egypt, Jordan, and Saudi Arabia, the sources told Al Borsa. The port is also slated to give local exports access to new markets at lower costs and ease the reliance on traditional land routes.

Background: We first heard about the port in 2023 when Egypt completed feasibility studies for the new maritime port in Taba. Construction is targeted to begin sometime this year, but a formal date is not yet locked in. The port will become an imperative gateway in the Arab Trade Line logistics scheme, which will see cargoes hauled by ferries from Jordan’s Aqaba Port to Taba before being unloaded onto trains bound for the port cities of El Arish and Port Said, where they will be loaded onto container ships.

ALSO- Egypt is looking to attract some USD 4 bn in new Kuwaiti investments this year in various sectors, including logistics, ports, and roads, Asharq Business reports, citing two government officials. The investment — to be part of a wider USD 6.5 bn target through the end of 2026 — would cover other sectors, such as auto manufacturing, tourism, banking, real estate, pharma and medical equipment, renewables, infrastructure, agriculture, telecoms, petrochemicals, and food. All incoming Kuwaiti projects will be granted golden licenses immediately, one of the sources said, mirroring Prime Minister Moustafa Madbouly’s pledge to Saudi investors earlier this week.

#2- Algeria eyes trade bureaucracy revamp amid non-oil exports push: Algeria is moving to restructure its trade bureaucracy, announcing that the state’s agency responsible for promoting exports — the National Agency for the Promotion of Foreign Trade’s (Algex) — will be replaced with two state bodies — one overseeing imports management and the other managing exports, the Algerian Press Service reports here and here, citing Algerian President Abdelmadjid Tebboune as saying. The restructuring will begin by the end of May 2025.

In context: Algeria has been working on diversifying its exports beyond fossils, with non-oil exports hitting USD 7 bn last year. Algeria is targeting USD 10 bn in non-oil exports in 2025.

#3- Demand for cargo and air freight services has yet to weaken despite the recently imposed tariffs, VP at Emirates SkyCargo Badr Abbas said during a press conference at the World Cargo Symposium in Dubai, Khaleej Times reports. While industry players maintained that it’s too early to determine the full potential impact of tariffs on the industry, the general sentiment is that the industry will need to adapt and build “systems that can withstand future shocks, whether geopolitical, economic or environmental,” Abbas explained.

UAE’s aviation services provider dnata also indicated that the situation for ground handling remains unchanged so far, Khaleej Times reports, citing remarks by dnata’s CEO Clive Sauve-Hopkins.Some trade flow shifts are, however, still expected, and dnata is monitoring the situation to adapt accordingly, Sauve-Hopkins said.

The general sentiment is positive: It’s still “far too early to predict” the impact of tariffs, director-general at IATA Willie Walsh said, stressing his confidence that the industry will continue to maintain a strong front through the crisis.

#4- China slams the brakes on Boeing jet deliveries: China has ordered its airlines to stop taking Boeing jet deliveries and halt any acquisitions of aircraft-related equipment or parts from US companies, Bloomberg reports, citing people familiar with the matter. The move comes amid an intensifying US-China trade war that saw the Asian giant impose retaliatory tariffs of 125% on American products, effectively doubling the cost of US-made aircraft and their parts for Chinese customers.

Too late? Nearly 10 of the aircraft manufacturer’s 737 Max jets are already in line to join Chinese airlines’ fleets, with some already in a finishing center in eastern China’s Zhoushan, Bloomberg reports, citing data from Aviation Flights Group. However, many of these aircraft’s paperwork and payment may have been completed before China announced this decision, Bloomberg reports.

Market reax: The move caused Boeing's shares to fall by nearly 2.5% by the end of Tuesday trading. The US aircraft manufacturers has already saw its stock value fall by nearly 10% this year, Bloomberg reports.

MARKET WATCH-

#1- Oil prices dipped this morning amid continued uncertainties on the impact of US tariff policy, Reuters reports. Brent crude futures decreased by USD 0.18 to USD 64.49 a barrel, while the US West Texas Intermediate (WTI) was USD 0.16 down, reaching USD 61.17 a barrel by 03.15 GMT.

HSBC joins Bloomberg and Emirates NBD to lower its Brent crude price forecast, citing a rise in trade tensions and an expected reduction in global demand, Reuters reports. The bank predicts Brent crude oil prices will reach USD 68.5 per barrel for 2025 and USD 65 per barrel for 2026. The bank also lowered its global demand growth forecast to 0.7 mn bpd for 2025 and 0.8 mn bpd for 2026, as it predicts a 1% point hit to the global GDP.

#2- US natural gas futures fell by nearly 6% on Monday, hitting a nine-week record on the back of hiked output, Reuters reports. Gas futures for May deliveries on the New York Mercantile Exchange fell by USD 0.20 to USD 3.325 per mn British thermal units, the lowest since February. US average gas output increased to 106.3 bn cubic feet per day in April, up from March’s 106.2 bn cubic feet per day, according to LSEG data.

#3- Baltic index snaps winning streak: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — fell 1.5% to 1,263 points on Tuesday. The capesize slipped 4.1% to 1,753 points, while the panamax index surged 18 points to 1,208. The smaller supramax index gained one point to 937.

***YOU’RE READING EnterpriseAM Logistics, the essential MENA publication for senior execs who care about the industry that connects producers and retailers to global markets. We’re out Monday through Thursday by 9:15am in Cairo and Riyadh and 11:15am in the UAE.

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CIRCLE YOUR CALENDAR-

The UAE will host the Airport Show on Tuesday, 6 May to Thursday, 8 May in Dubai. The event will show products and technology for the airport industry from over 160 international suppliers and manufacturers across 20 countries. It will also provide a platform for networking with key players across seven airport sectors.

Saudi Arabia will host the Saudi Smart Logistics trade fair on Monday, 12 May to Thursday, 15 May in Riyadh. The event will provide insights into the latest international and local technology, solutions, equipment providers, and sustainable workflow practices within the logistics industry in the country.

The UAE will host the Global Ports Forum on Tuesday, 13 May to Wednesday, 14 May in Dubai. The forum will cover topics such as port strategy and development, port automation, finance and efficiency.

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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