Good morning, everyone — we hope you had a nice, restful weekend. We have a packed issue for you this morning, with tons of updates from across the region. Let’s dive in.

THE BIG LOGISTICS STORY- Iraq launched a USD 17 bn road development project, which will involve 1.2k km of railways and highways linking Asia to Europe.

ICYMI-Suez Canal traffic back to normal after stranded ship towed: Three tugboats towed a large vessel that had been stranded for several hours in the Suez Canal on Thursday, according to a Suez Canal Authority statement. The ship suffered a technical malfunction at around 5:30am and was towed two-and-a-half hours later, Reuters reports. Canal traffic returned to normal by 11am. The ship was identified as Xin Hai Tong 23, a 190m bulk carrier sailing under the Hong Kong flag and operated by shipping agent Leth Agencies.

PSA- UAE calling on residents to register transport vehicles: The UAE’s Federal Authority for Identity, Citizenship, Customs, and Port Security is calling on UAE residents own trucks or other vehicles used to transport goods to register on the Electronic National System for Tracking Trucks and Shipments before 30 October, WAM reports. The system helps Emirati authorities track the movement of trucks and shipments through electronic tracking devices that are installed on shipments and trucks at the country’s ports.

Iran calls for multinational transport fund: Iranian officials are calling for the establishment of a multinational fund for logistics companies in countries in the region to improve transit, according to Tasnim News Agency. In a regional ministerial meeting in Iraq, Iran’s Deputy Roads and Urban Development Minister Shahriyar Afandizadeh said governments should promote trade and supply chain management through multinational agreements and aligned policies. The Iranian proposal also involves establishing a joint steering committee to manage and supervise the initiative.

WATCH THIS SPACE #1-Google Cloud to establish data centers in Kuwait:Google Cloud is set to establish three data centers in Kuwait to support the country’s digital transformation, Kuwait’s Communication and Information Technology Regulatory Authority said in a statement. Google Cloud will also hold an annual cloud computing training program, the first year of which will involve training 1k government employees, 1k fresh graduates, and 1k women.

Google Cloud is doubling down on the region: The move follows Google’s launch of its first Middle East cloud region in Qatar last week.

WATCH THIS SPACE #2-Saudi Public Investment Fund to invest in DigitalBridge:The Saudi Public Investment Fund will invest in digital infrastructure investment firm DigitalBridge to develop data centers in Saudi Arabia and the GCC, according to a press release. The investment is meant to support the development of digital infrastructure in Saudi Arabia.

WATCH THIS SPACE #3- UAE port terminal operator wants direct UAE-Pakistan shipping route: UAE-based port terminal operator Gulftainer is planning to establish a direct shipping route between Khor Fakkan in the port of Sharjah and Karachi, Pakistan, Arab News quotes CCO Andrew Hoad as saying. The port terminal operator is trying to “hook up with shipping line services that are looking to directly connect the UAE with Pakistan,” Hoad said. He said the short steaming time — just 25-26 hours — between the two destinations and the quick clearance procedures makes this a rational alternative to going through the Strait of Hormuz.

Roadshows to lure exporters: Gulftainer will hold roadshows in Pakistan to attract exporters. The operator will be “talking to the exporting community for various commodities and trying to sell to them the benefits of that fast transaction into the UAE through Khor Fakkan,” Hoad said.

WATCH THIS SPACE#4- Pakistan looking to GCC for USD 500 mn for port projects:Pakistan is reportedly negotiating a government-to-government agreement with the UAE to fund USD 500 mn worth of port projects, Pakistani news outlet The News International quoted Pakistani Maritime Affairs Minister Faisal Sabzwari as saying. Work on three projects is reportedly underway, including bulk terminals, Sabzwari said, adding that 1.2k acres of industrial parks are set to be built in Port Qasim, Pakistan.

DATA POINT #1- DP World slashed 4% of its total emissions and 5% of its gross carbon emissions in 2022, according to its Environmental, Social, and Governance report (pdf). The company joined the Green Shipping Challenge last year, pledging an investment of up to USD 500 mn to reduce CO2 emissions by around 700k tons within five years.

DATA POINT #2- Saudi Arabia’s merchandise exports 2023 fell 25.3% y-o-y in March to SAR 106.1 bn, according to trade figures (pdf) published by KSA’s General Authority for Statistics. The drop was due to a decline in oil exports, which fell by SAR 30 bn, or 26.5% y-o-y. Merchandise exports in March rose 4.4% on a monthly basis to SAR 4.4 bn.

MARKET WATCH-

The Baltic Exchange’s main sea freight index fell at its fastest rate in four months on Friday as shipping rates declined across the board,Reuters reports. The index fell 3.5%, while the overall index, which factors in rates for capesize, panamax, and supramax vessels hauling dry bulk, fell 15.3% on a weekly basis — its biggest tumble since 20 January. The capesize index — which is the index’s largest component — was down 20%. Meanwhile, the panamax and supramax components of the index fell 8.4% and 12.3% for the week, according to Reuters.

Drewry’s weekly World Container Index (WCI) is down 2% this week and 78% y-o-y, according to Drewry. The composite index value is 84% below its peak in September 2021, but remains 37% higher than the 10-year average, indicating a return to normalcy following the pandemic. The index is 19% above average pre-pandemic rates.

LNG exports from the US in the first four months of 2023 saw the country become the biggest LNG exporter in the world, pulling ahead of Australia and Qatar, according to ship brokerage reports and Refinitiv data cited by Hellenic Shipping News. The US exported 28.8 mn tons of LNG in the first four months of 2023, which was enough to put the country as the world’s top exporter despite only representing a 2.5% increase from the same period last year. Seaborne LNG transfers started to surge in 2022 on the back of higher demand from Europe as the region sought to diversify away from Russian pipeline supplies. LNG loadings in the first four months of 2023 continued to grow and were up 3.8% y-o-y at 140.3 mn tons, according to data cited by Hellenic Shipping News.

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