Good morning, nice people. It’s a calm morning on the regional logistics front as we kick off the week slowly with a smattering of regional trade and data center updates. But first, another day, another Trump tariff threat…

THE BIG LOGISTICS STORY- The EU hits back: The European Commission said it would extend its suspension of retaliatory tariffs on the US until early August, keeping the door open for a negotiated solution to US President Donald Trump’s latest protectionist threats. Trump is pushing ahead with a 30% blanket tariff on EU imports starting 1 August unless better offers are made, according to White House economic adviser Kevin Hassett.

Europe isn’t exactly staying quiet: EU leaders are pushing to avoid escalation, but they do plan to ramp up engagement with other US trading partners affected by the tariffs for potential coordination. Some — like France’s Emmanuel Macron — are calling for countermeasures including the potential use of the anti-coercion instrument, the bloc’s most powerful trade tool, though EU Commission chief Ursula von der Leyen said there are no plans to use it at this point.

The story grabbed headlines in Reuters, Bloomberg, the FinancialTimes, Politico, and the Guardian.

WATCH THIS SPACE-

#1- Syria, Azerbaijan partner up on gas: Syria’s Energy Ministry has inked an MoU with State Oil Company of Azerbaijan Republic (Socar) to export Azerbaijani natural gas to Syria through Turkey, AsharqBusiness reports, citing a post on X by Syrian Energy Minister Mohammed Al Bashir. Details on the volume of natural gas to be delivered have not been disclosed.

Syria’s trade links: Syria’s Al Bashir agreed with Turkey back in May on the supply of 6 mn cbm of natural gas per day to power plants in Syria through a natural gas pipeline between Kilis, Turkey, and Aleppo. Turkey was set to begin exporting nearly 2 bn cbm of gas annually to Syria during the same month. Qatar also plans to supply Syria with 2 mn cubic meters of natural gas per day to boost the country’s output by 400 MW back in March.

#2- Is G42 planning a hyperscale data center in Vietnam? Abu Dhabi state-backed AI firm G42 is reportedly in discussions to establish a USD 2 bn hyperscale data center project in Ho Chi Minh City, according to an investment proposal sent by local authorities to Vietnam’s prime minister that was picked up by Reuters and the Vietnamese press last Thursday. The “AI factory” will likely include data centers and advanced infrastructure for cloud computing and processing.

What we know: G42 will be part of a consortium of Vietnamese companies — FPT Corporation, VinaCapital Investment Fund, and Viet Thai Investment Group — planning to build the centers in Ho Chi Minh City. Local authorities are asking Vietnam’s Prime Minister Phạm Minh Chính to issue a special mechanism for international projects to override legislative and policy hurdles faced by investors.

Not the first Emirati AI venture in Vietnam: The UAE’s Benya Group and Vietnam’s Vingroup earmarked USD 3.5 bn to develop a hyperscale data center in the Southeast Asian country last year. The move also comes as part of G42’s domestic and international expansion drive, which is seeing it commit tens ofbnsUSD in the US — as well as develop a 5 GW US-UAE data center complex in Abu Dhabi.

#3- Moroccan flag carrier Royal Air Maroc (Ram) is in talks with Brazilian planemaker Embraer for an aircraft order, with eyes on the small aircraft size category, Reuters reported last week, citing an unnamed source familiar with the matter. The airline is also in talks with multiple unnamed planemakers to order up to 200 jets — including Embraer’s E2 aircraft line, the newswire said, quoting Brazilian news outlet Folha de S.Paulo.

The carrier’s current fleet…: Ram’s fleet consists of 52 aircraft, including five Boeing models, one from ATR, and one from Embraer, according to the airline’s website. Its commercial Boeing models include 28 737-800s, six 787-9 Dreamliners, five 787-8 Dreamliners, two 737 MAX 8s, and a 767-300 Cargo jet. The fleet also features six ATR 72-600 aircraft and four Embraer 190s.

…and its expansion plans: Ram intends to quadruple its fleet in anticipation of Morocco co-hosting the World Cup in 2030, as Rabat plans to raise airport capacity to 78 mn passengers per year. Ram was reportedly close to clinching an order of some two dozen Boeing 787 Dreamliners, up to 50 Boeing 737s for short-haul routes, and 20 Airbus A220s for regional travel last month during the Paris International Airshow.

#4- Aramco eyes purchase pact with US LNG export project: Saudi Arabia-based Aramco is reportedly looking to strike an agreement with Commonwealth LNG to purchase 2 mn tons of LNG per annum from the firm’s planned LNG export facility in Cameron, Louisiana, unnamed sources told Reuters last week. The Saudi energy giant is also considering pacts with other US LNG export ventures, namely with Delfin LNG’s floating plant in the Gulf of Mexico and Energy Transfer’s Lake Charles facility in Louisiana, sources told the newswire.

Aramco’s appetite for US LNG: Aramco and US LNG player NextDecade inked a 20-year agreement for Aramco to buy LNG from Train 4 of NextDecade’s Rio Grande LNG facility last April. Aramco also signed a non-binding agreement for a 25% stake in Sempra’s Port Arthur LNG export plant in Texas last year.

Part of a bigger push: Aramco is making a play to become “a leading global LNG player,” Aramco’s upstream business president Nasir Al Naimi said back inJune2024. The company is securing a foothold in the LNG supply chain to capitalize on its higher margin compared to crude — and aligning with the Saudi Arabian government’s overall strategy to diversify away from oil. The move involves a multi-bn USD plan that spans buying up stakes in the US, being shortlisted for an LNG assets purchase in Singapore, and backing an LNG stake purchase in Peru LNG.

MARKET WATCH-

#1- Oil prices rose in early morning trading, tacking on gains of over 2% since Friday as investors await repercussions from US sanctions on Russia,Reuters reports. Brent crude futures gained by USD 0.15 to USD 70.51 a barrel by 04.00 GMT, while US West Texas Intermediate (WTI) futures inched up USD 0.14 to trade at USD 68.59 a barrel.

Meanwhile, Opec sees oil demand climbing: Global oil demand will average 105 mn bbl/d this year, with Opec expecting demand to grow to average 106.3 mn bbl/d in 2026 and then climb to 111.6 mn bbl/d in 2029, according to Opec’s 2025 World Oil Outlook (pdf). Demand will continue to grow through the mid-century, led by rising use in road transportation, aviation, and petrochemicals.

Demand is set to rise to almost 123 mn bbl/d by 2050, around 3 mn bbl.d higher than the group’s previous forecast. Consumption will increase roughly 9% from 2024 to 2030 — unchanged from last year’s forecast. India alone is expected to contribute an additional 8.2 mn bbl/d in demand by 2050.

Driving the growth: India, the Middle East, and Africa will drive the bulk of the demand growth, while Trump’s withdrawal from the Paris agreement and a slower EV penetration rate in Europe are seen as boosting the trajectory.

Opec+ will capture a larger share of the global oil market by 2050, expanding from around 47% this decade to 52%, as rival producers see growth weaken. The sector needs USD 18.2 tn to be spent by 2050, compared with USD 17.4 tn estimated last year, the group said.

BUT- the cartel’s outlook is contradicting: BP, Bank of America, the International Energy Agency, and Wood Mackenzie, all expect oil demand to peak within the next decade, Bloomberg reported last Thursday. Many of these forecasters point to slowing consumption in China and accelerating clean energy transitions as key turning points.

#2- Baltic index rises once again: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — increased 13.5% to 1,663 on Friday. The capesize increased 26.4% to 2,104 points, while the panamax climbed 8% to 1,860 points. The small supramax index inched up 3.1% to 1,219 points.

#3- The Drewry World Container Index fell by 5% to USD 2,672 per 40-ft container on Thursday, according to the latest index readings. The drop comes on the back of reduced demand for US-bound cargo and an indication that the recent climb in US imports — which occurred shortly after increased US tariffs — will not incur a lasting impact as previously projected.

***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.

EnterpriseAM Logistics is available without charge thanks to the generous support of our friends at Hassan Allam Utilities, Transmar, and AK-Ships.

Were you forwarded this email? Tap or click here to get your own copy of Enterprise Logistics.

Want to send us a story idea, request coverage, ask for a correction, or otherwise get in touch? Reach out to us on logistics@enterprisemea.com.

DID YOU KNOW that we also cover Egypt, Saudi Arabia, the UAE, and the MENAclimate industry ?
***

CIRCLE YOUR CALENDAR-

Intermodal Africa will kick off on Tuesday, 22 July and run till Thursday, 24 July in Beira, Mozambique. The forum will host over 300 senior government officials, industry leaders, academics, senior executives, and harbor masters in the ports, shipping, and logistics sector. Attendees and speakers will be coming from countries across the Middle East, Africa, and Europe.

Transport Middle East 2025 will kick off on Monday, 1 September and will run till Wednesday, 3 September in Salalah, Oman. The conference will host 35 international speakers and over 50 exhibitors from the maritime sector to discuss global transportation and logistics.

The Sustainable Maritime Industry Conference will take place on 3-4 September at the Ritz-Carlton Hotel in Jeddah. The event is set to gather over 60 speakers and more than 3k participants to discuss maritime decarbonization, digital transformation, regulatory frameworks, capacity building, and sustainable practices.

Check out our full calendar at the bottom of this email for a comprehensive listing of upcoming news events and news triggers.

Tags: