Drug smuggling on the rise

1

What we're tracking today

ODAY: Shipping rates to Israel fall, but air freight rates rise amid escalating violence + Abu Dhabi’s autonomous vehicles cluster attracts 30 firms

Good morning, friends. We wrap an eventful and increasingly tense week with a tight issue, with some updates on freight rates in the region as well as big moves from DP World and AD Ports in the UAE.

THE BIG LOGISTICS STORY- Logistics giant DP World inked an MoU with India’s port authority to develop India’s Vadhvan Port, located north of Mumbai on the Arabian Sea coast. The port expects to add container capacity of some 15 mn TEUs by 2035, and 23.9 mn TEUs by 2040.

^^ We have everything on this story and more in the news well, below.

HAPPENING TODAY-

Ocean shipping rates to Israel are falling despite escalating violence: Israel’s air cargo and marine trade gateways are still functioning amid the war in Gaza, with ocean shipping rates for goods shipped from Asia and Western Europe to Israel actually falling last week, Bloomberg quotes Freightos head of research Judah Levine as saying. However, this may not remain the case for too long, as there have been hikes in ins. costs as carriers pass along war risk premiums.

But some are introducing war risk premiums: Haifa-based container line Zim Integrated Shipping Services announced that while it continues to operate and accept bookings to Israel, it has implemented a new war risk premium charge as of 12 October, it said in a statement. The war risk premium for cargo to and from Israel range from USD 50-100 TEU depending on the service, according to the statement. Shipments between the US and Israel were subject to the surcharge from 17 October. The war risk premium is subject to change every 24 hours, the statement adds.

Andair freight costs have increasedas of Monday, with the cost to fly goods from Frankfurt to Tel Aviv increasing to USD 2.26 per kg from USD 2.12 a kg, Bloomberg writes. Freight rates for shipping goods from Tel Aviv to Frankfurt saw an even sharper increase, going up to USD 2.41 up from USD 1.76, according to Bloomberg.

Container line MSC says it is facing increased waiting times at its terminals in Ashdod, and that there are new restrictions on hazardous freight, the outlet adds. Ashdod and Haifa have also introduced restrictions on dangerous goods, according to an AP Moller-Maersk ’s statement.

S&P expects Israeli ports to close at some point: The risk levels at five Israeli ports range from high to severe, with Ashhdod and Ashkelon “very likely” to see unscheduled closure on short notice, Bloomberg cites research from S&P Global Market Intelligence.

Abu Dhabi’s new autonomous vehicles cluster attracts 30 companies: Some 25 new companies from China, South Korea, and the US have inked agreements with Abu Dhabi to move into the emirate’s smart and autonomous vehicle industries (SAVI) cluster over the next three months, joining six announced earlier in the week, Chief Competitiveness Officer at the Abu Dhabi Investment Office (ADIO) Massimo Falcioni told The National. The 30 companies that have signed up so far run the gamut from start-ups to fully-established companies and represent “several tens of mns” of USD in new investments, Falcioni also said.

This includes Neta Auto, which will set up its MENA hub at SAVI: Neta Auto, China-based Hozon Auto’s EV brand, will establish an assembly plant and R&D center at SAVI, Wam reported. The outfit’s new MENA hub will allow it to test its latest technologies at the Yas Island autonomous vehicle test bed that is part of SAVI, Wam said.

ICYMI- Abu Dhabi launched a SAVI cluster at Masdar City earlier this week. The move looks to establish the emirate as a SAVI hub with applications for air, land, and sea mobility.

Iranian national maritime carrier Islamic Republic of Iran Shipping Lines (IRISL) is investing USD 7.2 mn into Assaluyeh’s Pars Port, Tehran Times reports. IRISL is looking to operate the loading and unloading of 18k containers in Pars Port by late March 2024. The investment follows an agreement reached between IRISL and the Pars Special Economic Energy Zone (PSEEZ), which included a USD 1.7 mn investment in the construction of buildings and infrastructures of the port, as well as USD 5.5 mn allocated to port equipment.

CIRCLE YOUR CALENDAR-

SCZone is in China: A delegation from Egypt’s Suez Canal Economic Zone (SCZone), led by Chairman Walid Gamal El-Din, is on tour in China in the provinces of Suzhou and Hefei, after visiting Hangzhou to drum up investments from Chinese companies into Egypt’s textile and garment industry and establish projects in the West Qantara Industrial Zone. The SCZone delegation also met with members of the electricity and fiber optic cable industries, and is set to visit electric car manufacturing company NIO.

The G7 Trade Ministers meeting will take place at the Osaka International Convention Center in Sakai, Osaka, Japan between 28 and 29 October. The event will bring together trade ministers from Canada, France, Germany, Italy, United States, United Kingdom, Germany and the European Union to discuss the changing environment surrounding trade, and growth of the global economy.

The Dubai Precious Metals Conference 2023 is taking place on 20-21 November 2023 at the ballroom at the SO/ Uptown Dubai in the UAE. The event will bring together industry experts, innovators, and leaders to discuss emerging trends, technologies, and strategies driving the metals industry.

The Eurasian Economic Union (EAEU) exhibition is taking place from 4 to 7 December at Tehran Permanent International Fairgrounds in Tehran, Iran. The exhibition will be attended by EAEU members, members of the Shanghai Cooperation Organization, and the Persian Gulf Cooperation Council, and will bring together domestic and foreign companies in the industrial, mineral, and agricultural fields to showcase their latest products at the event. Seminars and conferences on transport, trade, and tourism will take place on the sidelines of the event.

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

DP World ink MoU to develop India’s Vadhvan Port

Logistics giant DP World has inked an MoU with India’s Jawaharlal NehruPort Authority(JNPA) to develop India’s Vadhvan Port, north of Mumbai on the Arabian Sea coast, according to a press release (pdf). The tentative timeline for finalizing the agreement and its investment value were not disclosed, and Enterprise did not hear back from a representative ahead of dispatch time.

About the port: The proximity of the location to Mumbai along the Arabian Sea coast and Gujarat connects it to northern and central India via the national railway network and the NH8 highway makes it an attractive trade gateway for the region, the company said in the press release. The port has a water depth of 20 meters at a distance of 10 km, which means dredging is not required in the channel and harbor area because of its naturally deep draft, according to JNPA.

The port’s development targets: The port expects to add container capacity of some 15 mn TEUs by 2035, and 23.9 mn TEUs by 2040, JNPA said on its website.

DP World has been making moves in India: DP World currently operates five container terminals in India, one in each of Mundra, Cochin, and Chennai, and two in Nhava Sheva, with a combined capacity of some 6 mn TEUs, according to the press release. The logistics outfit recently signed a USD 510 mn concession agreement for a new mega container terminal at Kandla in India, and later said it plans to invest INR 2.15 bn in the logistics and warehousing sector in India’s Telangana state. Once the terminal at Kandla begins operations, it will bring DP World’s combined capacity in the country to 8.19 mn TEUs, according to the statement.

AD Port’s Safeen signs a strategic MoU with Azerbaijan’ Socar for crude shipping + cargo transport

Safeen eyes more Central Asian expansion: AD Ports subsidiary Safeen Group has inked a strategic memorandum of understanding (MoU) with State Oil Company of Azerbaijan Republic (Socar) to cooperate with Azerbaijan’s maritime and shipping sectors, according to a press release. The agreement will see the companies collaborate on shipping of crude and petroleum products, infrastructure development, cargo transport and onshore and offshore logistics.

The details: The companies will exchange expertise to boost maritime and logistics services in Azerbaijan, the press release adds. The agreement will also focus on modernizing onshore and offshore logistics, particularly wind projects, according to a statement.

What they said: “Azerbaijan’s strategic location and Socar’s expertise would ensure a dynamic platform for elevating maritime services, infrastructure, and logistics in the region. Furthermore, it would enable the facilitation of the further development of trade corridors in this geographically significant area,” CEO of Safeen and AD Ports’ maritime cluster Ammar Al Shaiba said.

AD Ports has also been focused a lot on Asia: AD Ports has inked a heads of terms agreement with Kazakh company Semurg to potentially invest in Kazakh grain terminal Sarzha Multifunctional Marine Terminal in Kuryk Port. Its Fujairah Terminal was also looking to use its Etihad Rail connection to boost trade with Asia.

DP World is the most sustainable logistics firm in MENA, according to Forbes + Three MENA airlines nab air cargo awards. PLUS: More from Kezad, JAFZA and Air Arabia

The top ten sustainable transport and logistics firms in the Middle East, according to Forbes: Emirati logistics company DP World has come in first place on Forbes Middle East Sustainable 100 for the transport and logistics sector, according to a statement. The UAE’s AD Ports Group came in second, while Kuwait’s Agility came in third, and Oman’s Asyad Group in fourth, with Qatar’s Nakilat rounding out the top five. In sixth place was Etihad Rail, with AP Moller-Maersk in seventh, DHL Express MENA in eighth, and Qatar’s GWC in ninth place, while Qatar Navigation (Milaha) came in tenth.

Three air cargo awards given to MENA airlines:Qatar Airways Cargo snagged the air cargo pharma award at the Air Cargo News Awards, while Etihad Cargo bagged the digital innovation award, and Dnata secured ground handler of the year, according to the published list of awards for 2023.

OTHER THINGS WORTH NOTING-

KSA’s Air Arabia has achieved first place in Airfinance Journal’s annual ranking of the world’s top 100 airlines. (WAM)
NYK Middle East has awarded QTerminalsa certificate of excellence for maintaining a perfect track record of zero accidents and damage in roll-on/roll-off (roro) operations in 2022 in its Hamad Port. (Statement)
The Jebel Ali Free Zone (JAFZA) has received the excellence award for sustainability and for non-fiscal incentives at the 2023 fDi Global Freezones of the Year awards, as well as the “industrial champion” in the Middle East award. (Statement)
KEZAD nabs UN award for furthering investments in renewable energy: Khalifa Economic Zones Abu Dhabi (Kezad) has received the United Nations Investment Promotion Award for 2023 for its role in promoting investments that further the energy transition. (Press release)

A ramp-up in drug smuggling is threatening supply chains, Maersk executive says + Will the decarbonization of shipping drive up inflation?

Criminal gangs are threatening supply chains, according to a Maersk executive: Smugglers are hiding narcotics shipments in shipping supply chains, the Financial Times reports. Cocaine shipments to the EU have spiked in recent years, reaching a record 303 mn tonnes, according to numbers from the EU’s drug monitoring agency EMCDDA, cited by the FT. “The way that these people are infiltrating the whole supply chain, not only the shipping side or the port side, is rather extreme,” CEO of AP Moller Maersk subsidiary APM Terminals Keith Svendsen told the FT.

Solutions come with costs: The European Commission is looking to propose new measures to tackle the issue, according to a draft communication picked up by FT, but most of these come with added costs to shippers. Proposals center around additional screening and monitoring of international shipments; however, tighter controls will have knock-on effects on global shipping as companies suffer higher costs and delays due to more stringent checks.

Decarbonization of the shipping industry will drive up consumer inflation: Steps to decarbonize the global shipping industry will incur additional costs on consumers, according to industry leader statements cited by a CNBC report. “There will be an inflationary impact coming from [the] decarbonization of shipping … there is no question of it,” Global Shipping Business Network CEO Bertrand Chen said at an event hosted by CNBC.

Already happening? The EU’s Emissions Trading System (ETS) will begin being applied to shipping beginning in January 2024, CNBC said. The regime will see charges levied on carriers operating in the EU in accordance with their C02 emissions, costs which they plan to transfer down the line in the form of surcharges to clients.

KSA, Singapore want to boost trade and logistics cooperation + Iran, Belarus take steps towards boosting trade. PLUS: More from Qatar and Iraq

Saudi + Singapore eye stronger trade ties: The Federation of Saudi Chambers and the Singapore Business Federation have signed an MoU to boost trade and investment between the two countries during the third session of the Saudi-Singaporean Business Committee in Riyadh, SPA reports. Several MoUs were also signed to strengthen cooperation in logistics and transport.

Iran + Belarus look to boost bilateral non-USD trade: Iran’s First Vice President Mohammad Mokhber met with Belarusian Prime Minister Roman Golovchenko to discuss using the two countries’ national currencies in bilateral trade, Xinhua News Agency reports. The two sides also touched on enhancing transport cooperation. During the meeting, Iran’s Oil Minister Javad Owji also signed with Belarus’ Belneftekhim Chairman Andrei Rybakov an MoU to export technical and engineering services, oil equipment, and petrochemical products to Belarus.

The two countries alsoagreed to cooperate on production and exports of meds, while the private sectors of the two countries reached agreements to boost cooperation in the medical equipment and meds field, state-owned Islamic Republic News Agency reports. The countries also want to work on removing time consuming and costly obstacles to trade between the countries, including streamlining the registration of pharma products in Belarus, Iranian Health Minister Bahram Einollahi said.

ALSO WORTH KNOWING-

Qatar’s Transport Minister Jassim Saif Ahmed Al Sulaiti and Iran’s Roads and Urban Development Minister Mehrdad Bazrpash discussed boosting ties in transport, ports, and civil aviation. (Statement)
Iraq wants to boost the volume of trade exchange with Saudi Arabia, Iraqi Trade Minister Atheer Al Ghurairi said during a meeting of the Iraq-Saudi coordination council. (INA)

Emirates to provide SAF to Neste + Neom grants contract for freight depot at Trojena. PLUS: Re.life eyes regional expansion

AVIATION-

Emirates + Neste to power SAF flights from Amsterdam to Singapore: The UAE’s national carrier Emirates, in collaboration with Finnish oil refining company Neste, is set to fuel flights from Amsterdam to Singapore using over 3 mn gallons of blended sustainable aviation fuel (SAF) in 2024 and 2025, according to a statement.

STORAGE + WAREHOUSING-

NEOM grants Turkish-Saudi JV infrastructure development contract: Saudi megaproject NEOM has granted an infrastructure development contract to a joint venture between local company Al-Ayuni Investment & Contracting and the Turkish Limak Holding, ITA reports. The contract involves building a tunnel and freight depot as well as excavation works at Trojena, a mountainous area 50 km from the Gulf of Aqaba coast. The Mirage freight depot will be situated by the Mirage visitor center and offer access to the underground Time Travel tunnel.

STARTUP WATCH-

Logistics platform re.life collect eyes regional expansion: UAE-based digital ecosystem re.life has announced plans to expand to Jordan, KSA, Egypt, and Turkey, Wam reported. The company will bring its two flagship platforms — logistics platform re.life collect, which allows booking of trucks and cross-border shipments, and re.life market — to the countries. “Through this strategically planned network of offices, we are looking to add further value to the local and regional economies, while setting up mutually beneficial business relationships,” said re.life CEO Salim Al Owais in comments cited by Wam.Re.life collect, which looks to “uberize” moving and logistics, has logged a 150% increase in trips and a 15% bump in users in 1H 2023, according to Wam.

The start-up already has a strong user base in Dammam: re.life collect is already available in Dammam and helps handle shipments between there and the UAE, Wam adds.

India extends sugar curbs in big blow to global food and beverage players + General Motors pushes back EV pickup truck production amid faltering demand. PLUS: India eyes shipbuilding

India has extended its sugar export restrictions beyond 31 October to protect its domestic supplies, Bloomberg reports, citing a notice from the Directorate General of Foreign Trade. India introduced a quota system in 2022-2023 to limit sugar exports to some 6 mn tons after production dropped due to late rains, down from 11 mn tons a year earlier, the outlet writes. The restrictions extend to shipments of organic sugar, the outlet adds. The extension — which aims to cool down India’s domestic prices — is a blow to manufacturers of fizzy drinks, chocolates, and baked products, who rely on the world’s second biggest sugar producer for supplies, the outlet writes.

India wants to become a top-five shipbuilding and repair nation within 10 years, according to a statement by India’s Prime Minister Narendra Modi. Investors and stakeholders attending the Global Maritime India Summit 2023 were urged by Modi to partner with India to become part of the country’s maritime growth journey, according to Splash.

GM pushes back EV truck production at Michigan:US-based automaker General Motors is pushing back production of electric pickup trucks at its Michigan’s Orion Township plant to late 2025 amid stagnant EV demand, Reuters reports. The company was initially expected to start production in late 2024 at its Detroit plant. The company reiterated in July its goal of producing 400k EVs between 2022 and 1H 2024, forecasting a total production of 100k EVs in 2H 2023. GM is still set to increase EV production in 2024, introducing a new shift at its Detroit-Hamtramck factory. GM is also looking to build the GMC Sierra EV in the following year in Detroit.

A sound analysis wand can help detect engine malfunctions on ships

This futuristic wand helps detect ship engine anomalies: Japanese marine logistics giant NYK Group, tech firm MTI, and engineering outfit Nabtesco have developed a new tool that records, visualizes, and analyzes engine sounds to aid in the early detection of engine anomalies, according to a press release. The wand-shaped gadget — dubbed Kirari MUSE — has been in the works for a few years and is part of NYK Group’s big data initiative. Nabtesco kicked off sales of the Kiari MUSE on Wednesday, the company statement said.

Listening rods have been used to detect engine problems in the past: Elongated metal rods are often used to monitor equipment in factories and on ships. Placing specially designed listening rods on turbines, motors, and other equipment aids in capturing operational sounds without interference from ambient noise, thereby allowing early detection of abnormalities. However, such equipment has been limited in the past in terms of data accumulation and sharing with third parties, the company said.

Kiari MUSE combines a listening rod with a smartphone + special software to overcome these holdups: The device has a recording function and software that allows the analysis and sharing of sounds with peers. An alarm alerts the user if the sounds analyzed deviate from reference data. The attached smartphone permits users to select the type of device being investigated, record memos during tests, and transfer recorded data to software, the company said.

Calendar

OCTOBER

Egypt’s Suez Canal Economic Zone (SCZone) goes on a roadshow to South Korea.

17-19 October (Tuesday-Thursday): MRO Europe, Amsterdam, Netherlands.

17-19 October (Tuesday-Thursday): TOC Americas, Panama City, USA.

19 October (Thursday): Perishable Logistics Africa, Nairobi, Kenya.

22-23 October (Sunday-Monday): Supply Chain and Logistics Conference 2023, Four Seasons, Riyadh, Saudi Arabia.

24-25 October (Tuesday-Wednesday): Future Fuels Europe, Amsterdam, Netherlands.

26-29 October (Thursday-Sunday): ICASM 2023, Conrad, Etihad Towers, Abu Dhabi, UAE.

28-29 October (Saturday-Sunday): G7 Trade Ministers Meeting, Osaka International Convention Center, Sakai, Osaka, Japan.

30 Oct-2 Nov (Monday-Thursday): XLP AGM 2023, Barcelona, Spain.

30-31 October (Monday-Tuesday): Gartner Supply Chain Planning Summit, London, UK.

31 Oct-2 Nov (Tuesday-Thursday): IAPH World Ports Conference, Abu Dhabi, UAE.

September-November: Emirates Postal Group’s “Logistics Unleashed” competition, UAE.

NOVEMBER

November: Abu Dhabi Airports Terminal A set to become operational.

1 November (Wednesday): Smart Maritime Network Dubai Conference, Conrad Dubai, UAE.

11-13 November (Saturday-Monday): GCC-Türkiye Economic Forum, Çırağan Palace Kempinski Hotel, Istanbul, Turkey.

9-15 November (Thursday-Wednesday): Intra-African Trade Fair, Cairo, Egypt.

15-17 November (Wednesday-Friday): Global Freight Summit 2023, Coca Cola Arena, Dubai, UAE.

13-17 November (Monday-Friday): Dubai Airshow, Dubai World Center, UAE.

17-18 November (Friday-Saturday): 17th Iran-Turkmenistan Joint Economic Commission, Ashgabat, Turkmenistan.

14-15 November (Tuesday-Wednesday): Supply Chain & Logistics Arabia, Narcissus, Riyadh, Saudi Arabia.

14-17 November (Tuesday-Friday): IATA Slot Conference, Dubai World Trade Centre, Dubai, UAE.

15 November (Wednesday): Leaders in Logistics UAE Summit, Dubai, UAE.

20-21 November(Monday-Tuesday): Dubai Precious Metals Conference, SO/ Uptown, Dubai, UAE.

21-23 November (Tuesday-Thursday): Intermobility Expo 2023, Dubai World Trade Center, Dubai, UAE.

21-23 November (Tuesday-Thursday): Touchdown Middle East, Gulf Hotel, Bahrain.

21-23 November (Tuesday-Thursday): ARABAL 2023 Conference, Hilton Riyadh Hotel & Residences, Riyadh, Saudi Arabia.

23 November (Thursday): Global Supply Chain and Logistics Summit, Grand Millennium Hotel Business Bay, Dubai, UAE.

30 November-3 December (Saturday-Tuesday): Handling Expo, Egypt International Exhibition Center, Cairo, Egypt.

September-November: Emirates Postal Group’s “Logistics Unleashed” competition, UAE.

DECEMBER

4-7 December (Monday-Thursday): Eurasian Economic Union (EAEU) exhibition, Tehran Permanent International Fairgrounds, Tehran, Iran.

10-11 December (Tuesday-Wednesday): Invest in Logistics, St.Regis Almasa Hotel, New Administrative Capital, Egypt.

EVENTS WITH NO SET DATE

2H 2023:Construction of Neom’s first hydrogen fueling station will kick off.

2H 2023: Expansion of Baghdad International Airport to begin.

3Q 2023: Design and supervision contract for Oman’s proposed Musandam Airport to be awarded.

Before the end of the year: The first phase of the Ain Sokhna port redevelopment will wrap.

2024

1Q 2024: Construction of phase 3 of Agility’s logistic park in Abidjan, Côte d’Ivoire to be completed.

1Q 2024: Egypt’s Transport Ministry to launch pre-qualification tender for Cairo-Alex freight railway.

1H 2024: Civil Construction subcontracts for construction firms in Oman for implementation of the Abu Dhabi – Suhar rail link to be announced.

King Salman Energy Park is set to become operational in 2024

FEBRUARY 2024

13th World Trade Organization Ministerial Conference, Abu Dhabi, UAE.

12-13 February (Monday-Tuesday): Breakbulk Middle East conference, Dubai Trade Centre, UAE.

12-15 February (Monday-Thursday): African Air Expo, Cape Town, South Africa.

28 February-1 March (Wednesday-Friday): MENA Transport Congress and Exhibition 2024, Dubai, UAE.

MARCH 2024

5-6 March (Tuesday-Wednesday): MRO Middle East, Dubai Trade Center, Dubai, UAE.

12-14 March (Tuesday- Thursday): IATA World Cargo Symposium, Hong Kong International Airport, Hong Kong.

20 March (Wednesday): Construction work scheduled to begin on the 162 km Rasht-Astara Railway in Iran.

APRIL 2024

30 April- 2 May(Tuesday-Thursday): Autonomous E-mobility Forum, Doha, Qatar.

MAY 2024

2-3 May (Thursday-Friday): Geneva Dry, Hotel President Wilson, Geneva, Switzerland.

21-23 May (Tuesday-Thursday): WAGA 2024, Riyadh, Saudi Arabia.

JUNE 2024

19-21 June (Wednesday-Friday): World Freezones Organization’s Annual International Conference and Exhibition, Bari, Italy.

OCTOBER 2024

6-8 October (Sunday-Tuesday): Routes World 2024, Bahrain.

NOVEMBER 2024

13-15 November (Wednesday-Friday): The Bahrain International Airshow, Sakhir Airbase, Bahrain.

DECEMBER 2024

10-12 December (Tuesday-Thursday): Middle East Business Aviation, DWC, Dubai, UAE.

2025

Mid-2025: Iraq will complete phase one of the construction of the Grand Faw Port.

DHL and Aramco’s logistics and procurement hub in Saudi Arabia will commence operations.

1Q 2025: Sadr Park’s Logistics Center in Riyadh to be completed.

2027

4Q 2027: Oman’s Musandam Airport construction to be completed.

Sections

About

Privacy & Support

Get EnterpriseAM daily