Good morning, folks. The news cycle slowdown continues as we get closer to the weekend. Leading today’s brisk read is a big project update from Egypt after the government finally tapped the consortium that will develop the long-anticipated Cairo-Alexandria rail freight corridor. PLUS: Debt and trade updates from the UAE, Saudi, and Syria. Let’s dive right in.

WATCH THIS SPACE-

#1- Top Ships eyes USD 200 mn Dubai portfolio: Greece-based international tanker operator Top Ships is weighing a move into Dubai real estate, signing a letter of intent to potentially acquire a portfolio worth more than USD 200 mn from a company affiliated with CEO Evangelos Pistiolis, according to a press release. The firm said Dubai’s property market is “one of the world’s most attractive.”

The option terms: Top Ships will receive an exclusive right to buy all or part of the portfolio — which includes residential assets — at a 10% reduction to fair market value, based on two independent valuations. The company will make an advance payment of USD 23.5 mn before 31 December 2025, credited against the purchase price if it proceeds or otherwise refunded. A 90-day option window, which will begin once this payment is made, will include due diligence procedures.

#2- UAE joins US-led AI supply chain push: The UAE will be among several countries attending a meeting hosted by the US at the White House on 12 December to discuss boosting critical mineral and semiconductor supply chains, Bloomberg reports, citing US economic affairs state undersecretary Jacob Helberg.

On the agenda: The US is looking to secure agreements in sectors like advanced semiconductor manufacturing, critical minerals, AI infrastructure, energy, and logistics. Other countries attending include Japan, South Korea, Singapore, the Netherlands, the UK, Israel, and Australia — all of whom either possess critical mineral resources or hosting big semiconductor firms.

The summit comes as the US looks to reduce allied nations’ reliance on China in these key areas, especially in AI, Helberg said. The initiative builds on similar efforts from previous administrations to counter Chinese dominance in the sector — with limited success given that over 90% of rare earth resources are located in China.

So far in US-UAE cooperation: The US recently gave the green light to export 35k Nvidiachips to state AI giant G42, after a broader ruling allowed the UAE to use USD bns worth of Nvidia chips in US-linked data infrastructure. The move comes alongside Emirati plans to invest in US AI infrastructure, as well as partnerships between G42 and US tech giants, including Nvidia, to develop a 5 GW UAE-US AI campus in Abu Dhabi — the first deployment under the US’ wider USD 500 bn Stargate initiative.

#3- South Africa takes CMA CGM, Maersk to court? Global shipping giants CMA CGM and Maersk are reportedly facing prosecution after South Africa’s antitrust body escalated a decade-long price-fixing probe — alleging they colluded on a general rate increase for cargo transported between South Africa and Asia, as well as routes linking the country with West Africa, from 2008 to 2018, Bloomberg reports. The probe comes amid efforts to push for competitive pricing and cut logistics costs for South African trade.

What we know: The commission stated that this conduct inflated shipping costs on core lanes such as Shanghai-Ningbo, Shekou-Durban, Durban-Hong Kong, and Qingdao-Durban. The investigation also names MSC, Pacific International Lines, Mitsui, Evergreen, Cosco, and K Line Shipping.

MARKET WATCH-

#1- Oil prices saw a slight drop this morning amid mixed signals on the outlook of future supply, Reuters reported. Brent crude futures rose USD 0.02 to trade at its lowest since October with USD 62.47 / bbl as of 04:27 GMT, while US West Texas Intermediate (WTI) was down USD 0.03 to USD 58.67 / bbl.

#2- Baltic index continues its upward streak: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — was up 0.7% to 2,600 points on Tuesday, driven by the larger-size segment. The capesize gained 1.5% to 4,633, while the panamax index shed by 1% to 1,915 points, and the smaller supramax index lost 1 point to 1,441.

DISRUPTION WATCH-

Black Sea navigation sees heightened risk after another attack off Turkish coast: A Russian-flagged tanker traveling from Russia to Georgia was hit by a drone while off the Turkish coast on the Black Sea, Reuters reports, citing Turkey’s maritime authority. The attack on the Midvolga-2, which was carrying sunflower oil, occurred just days after two sanctioned tankers were struck by Ukraine a few dozen nautical miles off Turkish coasts while en route to the Russian energy port of Novorossiysk.

Turkey stands firm, but Moscow may hit back: Turkish Premier Recep Tayyip Erdogan blasted the attacks on Monday, warning they are unacceptable and jeopardize navigation safety in the waterway and Turkey’s Exclusive Economic Zone. Meanwhile, Russia is expected to retaliate with attacks on Ukrainian ports, and its shipping activities in the Black Sea, Control Risks Maritime Security Analyst Arran Kennedy told Lloyd’s List.

The chaos is driving up ins. rates: War risk ins. rates — calculated based on the value of the ship — covering the waterway went up after the attacks, with rates for Ukrainian port calls rising by 0.1% to reach 0.5% compared to last week’s 0.4%, Reuters reports, citing industry sources. Meanwhile, war risk ins. for Russian Black Sea ports rose to a range between 0.65% and 0.8% — up from 0.6% quoted last week. These premiums will influence the trade of commodities conveyed via the Black Sea, notably oil, oil products, and grain.

DATA POINTS-

#1-Boeing projects Africa’s passenger traffic is set to surge: African airlines’ fleets are set to more than double in size by 2044 to about 1.7k jets, including 1.2k of new deliveries — largely driven by an average annual growth of 6% in passenger traffic, Boeing predicts in a recent forecast. The US-based jet maker expects the surge in Africa’s fleet size to drive USD 130 bn worth of demand for services, requiring 74k pilots, technicians, and cabin crew over the next 20 years.

Budget carriers to lead the charge: Narrow-bodies are set to account for 70% of the new additions, reflecting the growing market potential for low-cost carriers in the region. The forecasted surge will be driven by rising demand for domestic and international short-haul flights — primarily to serve a growing demand for new routes within the continent, as well as to Europe and the Middle East, Boeing’s Managing Director of Commercial Marketing for the Middle East and Africa Shahab Matin said.

#2- Russian Railways’ cargo volumes are slipping: Cargo volumes handled by the state-owned Russian Railways fell 5.6% y-o-y to around 1 tn tons from January to November, Reuters reported, citing a Russian Railways statement. The slip is another sign of a slowing Russian export-driven economy, which already fell to a 15-year low in 2024.

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CIRCLE YOUR CALENDAR-

Egypt will host the International Procurement Supply Chain Conference on Saturday, 6 December in Cairo. The event will gather over 1k delegates, more than 400 organizations, and over 30 global speakers to discuss the future of trade through keynotes and panel discussions. The discussions will center on Egypt’s transformation in the logistics sector, the future of smart ports and supply chains, as well as digital ecosystems.

Morocco is hosting the Rail Industry Summit on Tuesday, 9 December until Wednesday, 10 December in El Jadida. The two-day event will gather 130 exhibitors, 250 companies, and over 900 participants from 15 countries. It will feature business meetings, high-level conferences, and workshops focused on new market trends and future strategies.

Saudi Arabia is hosting the Saudi Airport Exhibition on Tuesday, 16 December until Wednesday, 17 December in Riyadh. Upwards of 10k global attendees are expected to participate in the event from over 100 countries. The two-day event will focus on airport-related innovation, and will feature participation from Saudia, SolitAir, and Amadeus.

Saudi Arabia is hosting SkyMove Air Cargo MENA on Tuesday, 27 January until Wednesday, 28 January in Riyadh. The event is expected to welcome more than 600 attendees from over 60 countries. The event will unite the whole air cargo value chain, analyze market trends, mitigate potential challenges, and leverage emerging windows.

The UAE is hosting the Middle East ProcureTech Summit on Tuesday, 27 January until Wednesday, 28 January in Dubai. The two-day event will spotlight the shifts in the procurement sector, paying special attention to digital and cloud procurement, and provide a networking platform for executives and industry innovators.

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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