Good morning, folks. We’re inching closer to the weekend with a brisk read. In today’s issue, we take a look at the results of the World Bank-led performance index for ports — and it appears that Egypt’s Port Said port had an excellent 2024. Marsa Maroc’s earnings for 1H are also officially out — and they’re looking good. But first, an update on the possible logistics impact of the US federal government shutdown…

THE BIG LOGISTICS STORY- Airlines are bracing for slowed operations at US airports, after the US federal government entered a shutdown starting today. Air traffic and security systems at airports “may need to slow down, reducing efficiency” if the shutdown goes ahead, Airlines for America (A4A), a trade association representing US carriers, warned hours before the shutdown began.

Aviation disruptions are expected to be limited if the shutdown is short-lived. However, a prolonged shutdown — similar to the 2018-2019 35-day shutdown, which cost the country c.USD 3 bn in lost GDP — could lead to wider disruptions as workers become wary of not getting paid. Hundreds of flights in New York and Philadelphia airports were canceled back then after air traffic controllers and security workers called in sick, in protest against not receiving their salaries.

Why a government shutdown? The US government is frequently prone to shutdowns whenever Congress fails to pass funding bills for government agencies, forcing a halt in services and paychecks for federal workers. The US has seen 18 shutdowns since 1980 — with the latest and longest one beginning in 2018 before concluding in January 2019. Currently, Republicans and Democrats are at an impasse, with Republicans demanding extending funding at its current level until 21 November, whereas Democrats are insisting on adding healthcare subsidies and reversing Medicaid cuts to accept any resolution.

The story received a lot of attention in the int’l press: Reuters | CBS | New York Times | ABC | NBC | The Guardian

HAPPENING THIS WEEK-

The Global Freight Summit is on its last day in Istanbul, Turkey. The event hosted independent freight forwarders for an open networking event. The goal is to have over 350 attendees exchange agency recommendations, learn from industry leaders, and build new networks.

The Global Rail Transport Infrastructure Exhibition and Conference kicked off yesterday and will run until Thursday, 2 October in Abu Dhabi, the UAE. The event is hosted by Etihad Rail and is set to welcome over 200 global speakers that include top executives from Dubai Airports, Korea National Railway, Keolis, DHL Global Forwarding, Parsons, Saudi Arabia Railway, and Talgo.

The Saudi Maritime and Logistics Congress is on its first day and will wrap up on Thursday, 2 October in Dammam, Saudi Arabia. The event will host over 200 registered exhibitors and some 15k attendees from over 90 countries to discuss AI-powered fleet optimization, shifts in global trade, and intelligence-driven infrastructure. Speakers include the Kingdom’s Transport Minister Saleh bin Nasser Al-Jasser, Bahri CEO Ahmed Alsubaey, and King Abdullah Port CEO Jay New.

WATCH THIS SPACE-

#1- China’s Keeta is investing big in the UAE: Keeta, the food delivery arm of Chinese consumer service tech giant Meituan, will invest hundreds of mns of USD in the UAE over the next 3-5 years as part of its regional expansion, under an MoU with the Investment Ministry, state news agency Wam reports. The agreement will see Keeta establish its UAE headquarters and roll out advanced last-mile logistics solutions, including drones and autonomous vehicles.

REMEMBER- Keeta has been on a regional expansion, launching operations in Saudi and Kuwait in just one year.

Keeta is coming into a crowded market: Talabat, Deliveroo, and Noon already have a tight grip on the food delivery sector in UAE, but Keeta’s entry could shake up market shares as it enters with aggressive promotions and success in markets like Saudi Arabia and Kuwait.

#2- Dutch vessel attacked in Gulf of Aden: A Dutch-flagged and operated cargo ship — called Minervagracht — was attacked by an explosive device in the Gulf of Aden, leading to the evacuation of its 19 crew members, Reuters reports, citing the EU’s Red Sea naval mission Aspides and the ship’s operator Spliethoff. Minervagracht was reportedly in international waters and about 128 nautical miles southeast of Yemen’s port of Aden. The vessel was previously attacked last week while en route to Djibouti, British security firm Ambrey said.

While Yemen’s Houthi militants have not claimed responsibility for the attack, they have been targeting Israeli-linked vessels in the Red Sea. Their latest salvo involved a close-miss ballistic missile attack on a Liberian-flagged, Israeli-owned tanker near Saudi Arabia’s Yanbu earlier this month. Earlier this year, the group released a set of frequently asked questions to help shippers navigate their ‘sanctions policies,’ ostensibly promising safe passage through Yemeni waters for any vessel not on their list of “sanctioned” entities.

#3- We may have more details about Iraq’s Development Road Project soon: The Iraqi government is set to present the techno-economic study for its Development Road project to Gulf investors and Turkey at a ministerial meeting next month, Zawya reports, citing comments by Iraqi Transport Minister Razzaq Muhaibas Al Saadawi. The report was prepared by US consulting firm Oliver Wyman, which signed up to provide consulting services for the project last year.

About the project: The 1.2k km Development Road project aims to connect Iraq’s southern Grand Faw Port — slated to become a major commodities port — to Turkey’s border via rail and road networks, and is backed by the UAE, Turkey, and Qatar.

#4- Boeing’s 737 Max successor in the works: US planemaker Boeing is reportedly working on a new narrowbody aircraft that may replace the 737 Max, Bloomberg reports. Boeing CEO Kelly Ortberg reportedly met with Rolls-Royce executives earlier this year to discuss engine specifications for the upcoming model, which is still in its early stages of development.

Remember safety issues with the 737 Max? Boeing’s 737 Max reputation has been under scrutiny amid ongoing safety concerns for years, following two major fatal crashes on Lion Air and Ethiopian Airlines in 2018 and 2019, respectively, as well as a mid-flight incident on an Alaska Air flight in 2024.

Regional airlines awaiting 737 MAX orders: Several regional carriers currently have orders for 737 Max jets. Budget carrier flydubai is expecting five 737 Max 8s by year-end, and EgyptAir is set to receive a Boeing 737 Max in January 2026 — the first of an 18-jet order secured back in 2023.

MARKET WATCH-

#1- Oil prices went up this morning as buyers continued to weigh the impact of a possible Opec+ production surge and US government shutdown on market outlook, Reuters reports. Brent crude futures for November rose by USD 0.28 to USD 66.31 / bbl as of 05.00 GMT, while US West Texas Intermediate (WTI) surged by USD 0.26 to trade at USD 62.63 / bbl. Today’s surge is a reversal from two successive days of rate declines.

#2- Baltic index continues downward spiral: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — eased 86 points to 2,134 on Tuesday, driven by decline across vessel segments. The capesize dropped 219 points to 3,305 points, while the panamax index fell 42 points to 1,776. The smaller supramax index shed 5 points to 1,473.

DATA POINTS-

#1-Global air cargo demand inches upwards: Global demand for air cargo — measured in cargo ton kilometers — rose 4.1% y-o-y last month, driven, in part, by a shift of players away from maritime shipping, according to the International Air Transport Association. Meanwhile, global cargo capacity surged 3.7% y-o-y.

#2- The Suez Canal’s topline fell 47.7% to USD 3.8 bn during FY 2024-2025, as geopolitical tensions in the region continued to impact maritime trade. Meanwhile, the contraction of the global waterway eased to just 5.5% in 4Q FY 2024-2025, compared to a sharp contraction of 68.2% in the same period a year earlier.

***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 UK will host the Marine Environment Protection Committee Extraordinary Session from Tuesday, 14 October until Friday, 17 October at the International Maritime Organization’s (IMO) HQ in London. The session is set to see the intergovernmental body formally adopt its Net-Zero Framework — rolling out new fuel standards for ships and a global pricing mechanism for emissions.

Belgium will host the AntwerpXL on Tuesday, 14 October until Thursday, 16 October in Antwerp. The expo will host 3.8k project cargo, break bulk, RoRo, heavy lift, and industry experts to expand collaborations. It will co-locate with the Transport and Logistics conference and exhibition.

Morocco will host the International Forum and Expo on Mobility, Transport, and Logistics (Logiterre) on Thursday, 16 October until Saturday, 18 October in Casablanca. Logiterre will host main operators within the industry from West and Central Africa.

The UAE will host the Adipec Maritime and Logistics Exhibition and Conference on Monday, 3 November until Thursday, 6 November in Abu Dhabi. The conference will host over 250k attendees working in government entities, finance, and tech.

The UAE will host the Air Cargo Forum on Tuesday, 4 November until Thursday, 6 November in Abu Dhabi. The forum — hosted by Etihad Cargo — will bring together air freight industry leaders, policymakers, innovators, and stakeholders to discuss industry solutions, tech, strategies, and collaborative initiatives for global air logistics.

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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