It’s another aviation-heavy day

Good morning, friends. We have another compact issue for you this morning as the newsflow quiets down in the logistics world, with a few updates from the UAE on sustainable aviation production and fresh cargo handling agreements from Kuwaiti Agility’s Menzies Aviation.

ALSO IN TODAY’s ISSUE-Global avionics leader Embention and Dubai-based Urban Air Mobility Eanan are setting up a joint venture to manufacture 3k Veronte Autopilots per year, with an initial investment of USD 5 mn. Over in Egypt, we have the lowdown on a memo from the Alexandrian Chamber of Commerce calling for measures to boost transit trade.

^^ We have everything on these stories and more in the news well, below.

PSA-Saudi Arabia’s Roads General Authority is reminding trucks in the kingdom to comply with the required dimensions and weights, according to a statement. The dimensions of the truck should be 23 meters long, 2.6 meters wide, and 4.8 meters high, with violators facing a fine of up to SAR 1k, the statement adds. As for load weight, trucks with two axles are allowed up to 21 tons, three axles up to 34 tons, four axles up to 42 tons, and five axles up to 45 tons. Trucks that exceed these limits face a 100 SAR fine for every extra 100 kg, with a maximum penalty of SAR 100k.

The seized commercial ship Galaxy Leader is now in Yemen’s Hodeidah port, Reuters reports. Yemen's Houthis released footage on Monday showing armed men descending from a helicopter and hijacking the cargo ship in the southern Red Sea. The Bahamas-flagged Galaxy Leader's crew is made up of nationals from Bulgaria, Ukraine, the Philippines, Mexico and Romania, Galaxy Maritime said.

Two commercial ships diverted course away from the Red Sea following the hijacking, Reuters reported, citing data from maritime security company Ambrey. Both vessels are connected to Ray Car Carriers, the shipping company whose vessel was seized. The diversion caused one of the vessels, the Hermes Leader, to suffer a four-day business disruption and to sail an additional 1.8k nautical miles. The other vessel, Glovis Star, drifted for a number of hours in the Red Sea before continuing its journey.

WATCH THIS SPACE- Iran + Pakistan are looking to establish joint freezones and trade centers, state-aligned Tasnim News Agency reports. Tehran is also looking to enhance its exports to Pakistan through the Chabahar freezone. The countries are looking to increase their trade volume to USD 5 bn from the current USD 2.5 bn.

HAPPENING THIS WEEK-

SOUNDBITE OF THE WEEK-Current sustainable aviation fuel production represents “less than 1% of demand,” despite a threefold y-o-y hike in production and usage of the fuels in 2023, International Air Transport Association (IATA) Area Manager for the Gulf and Near East Khaled AlEisawi said in statements to Wam on the sidelines of the ongoing International Civil Aviation Organisation’s (ICAO)Conference on Aviation and Alternative Fuels (CAAF/3) in Dubai, UAE.

The mismatch is drawing investments to the field, with airlines purchasing all quantities of SAF that are on offer, Al Eissawi said. Government support is lacking, however, and SAF prices remain high, he added.

SAF is key to achieving the sector’s sustainability goals: Plans to reach zero emissions in aviation by 2050 depend on alternative fuels “by more than 65%,” the IATA official noted. The 77th IATA Annual General Meeting in Boston in October 2021 saw the passing of a resolution which commits member airlines to net-zero emissions by 2050.

The first GCC-Egyptian Business Forum kicks off today and wraps tomorrow in Cairo, Egypt, Bahrain News Agency reports. The event is being held under the theme Business, Investment, Partnership, with a focus on investments in real estate, agriculture, the food industry, and tourism in the region. The event is hosted by the Federation of Egyptian Chambers of Commerce and organized in cooperation with the Federation of Gulf Cooperation Council.

The GCC’s first annual data center industry conference,Touchdown Middle East, is taking place today and tomorrow at the Gulf Hotel in Bahrain. Developed by the Gulf Data Center Association and Amsterdam-based data and tech conference providers KickStart Europe, the event aims to provide attendees with insight from industry experts as well as networking with operators, industry influencers, executive leaders, and decision makers.

The Intermobility Expo 2023 is kicking off today and will run till Thursday at the Dubai World Trade Center. The transport event brings together 3.5k industry members and decision makers from the Middle East, Turkey, and Africa to look at new products, network, and showcase the latest in rail, road, and transport industry products and technologies.

The Arab International Aluminium Conference and Exhibition 2023 (ARABAL) started today at the Hilton Riyadh Hotel & Residences in Riyadh, and will run till Thursday. The event, hosted by multi-commodity mining and metals company Ma’aden, is a platform for the Arab aluminum industry that is hosted rotationally by primary aluminum manufacturers and brings together 500 attendees to network and conduct business.

MARKET WATCH-

The global oil market is set to experience a modest surplus in supply in 2024despite OPEC+ countries extending their cuts into next year, according to head of the International Energy Agency (IEA) Toril Bosoni, Reuters reports. The oil market is, however, at a current deficit and stocks are declining rapidly, Bosoni added. OPEC+ will discuss additional oil supply cuts later this month, following a 16% fall in price since September.

HELP SUPPORT GAZANS-

Want to support relief efforts in Gaza, but don’t know how? We’ve got you. More than a mn people in Gaza have been thrown from their homes and every human being there lacks access to food, water, and fuel amid the most intense bombardment any population has endured this century. The charities we’re listing below are organizations working on Gaza relief that we think you can trust if you want to make a donation.

#1- Egyptian Red Crescent Society is one of Egypt's leading providers of humanitarian and emergency medical services. The Egypt Red Crescent accepts donations in EGP online and is on Fawry with the service code 99981. You can also donate to the organization through this Banque du Caire account: 49/403/30 (EGP) or 1065/601/30 (USD — code: BCAIEGCX030).

#2- The Emirates Red Crescent Authority has launched the Tarahum — For Gaza campaign and is accepting donations online via What’s App, SMS, Apple Pay, credit card, or bank transfer to ADIB (AE370500000000020000417).

#3-The King Salman Humanitarian Aid and Relief Center has launched the Sahem campaign accepting donations via their website, mobile apps on Apple Store and Google Play, or bank transfer to Al Rajhi Bank (SA5580000504608018899998).

#4- UNICEF has been on the ground in Gaza since the start of the crisis, providing urgent supplies and aid. You can donate to the agency directly using your card in your local currency here.

ALSO- The folks at Talabat are processing donations for a range of Gaza relief appeals by charities including the Egyptian Food Bank, Misr El Kheir and the Emirates Red Crescent Authority’s Tarahum campaign. You can make the donation via the Talabat app using your credit card.

CIRCLE YOUR CALENDAR-

The Aviation and Alternative Fuels conference kicked off earlier this week and will run through to Friday in Dubai. The event brings together senior government officials and international organizations to assess progress in the development and deployment of sustainable aviation fuels (SAF) and lower-carbon aviation fuel measured according to the targets outlined in the 2050 Vision for SAF.

Antwerp XL will take place on 28-30 November at Antwerp Expo Hall 4 in Antwerp, Belgium. The event provides a platform for breakbulk, roro, heavy lift, and project cargo industry members to network, learn about important industry topics, talk to experts, meet top cargo owners and freight forwarders, and discuss trends and solutions as well as how to overcome challenges in the industry.

The third Caspian Economic Forum will be held in mid-November in Iran, state-owned Islamic Republic News Agency reports. The event is set to focus on transportation, joint ventures, oil and gas, finance, banking and technical cooperation in Iran, with Alireza Jahangiri, Iran’s deputy foreign caspian sea affairs minister, calling on economic institutions to attend, IRNA adds. The exact location and dates of the forum have yet to be confirmed.

Iranian President Ebrahim Raisi will visit Turkey next month to discuss bilateral ties, as well as proposals by the Iran-Turkey Joint Chamber of Commerce for boosting bilateral trade, including through a potential trade agreement, state-aligned Tasnim News Agency quotes chairman of the chamber Mehrdad Saadat as saying. Saadat said that Iran’s trade with Europe could grow by taking advantage of Turkey’s trade capacities.

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

Menzies bags more cargo handling agreements at Heathrow Airport

Menzies secures new contracts + retains existing ones at Heathrow Airport:Kuwait-based Agility’s aviation services and ground handling subsidiary Menzies Aviation has renewed cargo contracts and secured new ones with airlines at London’s Heathrow Airport (LHR), including Royal Air Maroc Cargo, Thai Airways, Royal Jordanian Airlines, Middle East Airlines, SAS Cargo and Tarom, according to a press release.

NEW CONTRACTS-

#1- Menzies inked a new agreement with Morocco’s Royal Air Maroc Cargo to manage its cargo handling at Heathrow, managing seven turns per week, the release says.

#2- The company is also set to deliver cargo handling and airside trucking services to Thailand’s national carrier Thai Airways. The contract includes 14 turns per week, whereby local teams will oversee the transport of upwards of 16k tonnes of vegetables and fresh fish from Thailand, the statement said.

EXTENDED CONTRACTS-

#1- Menzies extended its contract with Royal Jordanian Airlines, to add cargo handling and airside trucking at 14 turns a week, with more than 6k tonnes pre cargo expected a year, the release said. The agreement currently includes passenger and ramp handling.

#2- Menzies Aviation has also secured a further five-year agreement with Lebanon’s Middle East Airlines to provide cargo handling services and airside trucking for more than 14 turns per week, including more than 1.7k tonnes of fresh vegetables from Lebanon, the release says.

#3- Finally, the company extended its contract with Scandinavia’s SAS Cargo and Romanian flag carrier Tarom for cargo handling services managing up to 35 turns per week for SAS Cargo and seven turns for Tarom.

What they said: The momentum is in line with Menzies Aviation’s efforts to expand its cargo footprint in Europe, Menzies Aviation’s Vice President Cargo for Europe Karl Aldwinckle said. “We have an ambitious cargo expansion strategy,” he added.

OTHER AVIATION NEWS-

Qatar Airways Cargo rolls out new automobile air freight service: The new product, dubbed Drive, is designed to transport automobiles of various types by air in a safe and efficient manner, according to a press release. The service caters to the specific requirements of different automobile categories including regular, vintage, premium, luxury, new, sports, personal, and commercial vehicles, offering full and part-charters, it added.

Vehicles will be transported on the carrier’s freighter and passenger flights to upwards of 160 belly-hold and 70 freighter destinations, in addition to unscheduled destinations, the statement adds. Vehicles are monitored throughout their transport journey, with specialists from the carrier’s teams working together to optimize loadability and secure the cargo, it added.

Qatar Airways Cargo has been transporting automobiles for several years: 2022 saw the carrier move upwards of 1.4k vehicles of different segments, the statement explained.

Embention + Eanan form JV for the production of autopilot systems for Eanan’s aircraft

Global avionics leader Embention and Dubai-based Urban Air Mobility Eanan are setting up a joint venture to manufacture 3k Veronte Autopilots per year, with an initial investment of USD 5 mn, according to a press release. The agreement will serve Eanan’s fleet of unmanned aircraft, which are designed and produced in Dubai. It also covers the manufacturing of Embention’s Veronte autopilot system — which is the core flight control system for Eanan’s aircraft — in Dubai.

About the aircraft: The S-700 unmanned aircraft have a payload capacity of up to 200k, the release adds. The aircraft will enable the transport of heavy loads between cities which will boost logistics efficiency, according to the release.

REMEMBER- Eanan launched its unmanned aircraft for the first time at the Dubai Airshow: The company launched what it said was the first locally produced unmanned aircraft in Dubai in a bid to become the first commercially operating air mobility company in the emirate.

About the companies: Eanan is a technology company focused on advanced air mobility, creating unmanned aircraft, including eVTOL aircraft, in Dubai. Embention has expertise in autopilots and critical components for autonomous vehicles, with its flagship Veronte Autopilot product becoming the first UAV and eVTOL autopilot design adhering to certification standards, according to the release.

Alexandria Chamber of Commerceoutlines strategy to increase Egypt’s transit trade

ACC puts forward suggestions to boost Egypt’s transit trade: The Alexandria Chamber of Commerce (ACC) is calling for private sector and regulatory reforms to boost Egypt's transit trade volumes and generate FX, according to a memo by the chamber presented to the Transport Ministry’s marine sector and picked up by Al Mal. ACC’s proposals call for a greater role for private industry and for a scaling back of customs, administrative procedures, and regulatory requirements.

A larger role for private industry: ACC’s proposals see private players in Egypt’s shipping sector rolling out investments in ports, logistical zones, and digitization as a way to improve maritime trade infrastructure. The memo also calls for more partnerships between Egyptian firms and global shipping lines, whereby local companies could provide end-to-end solutions that include storage, distribution, express freight, and customs clearances, in addition to value-added services such as packaging, redirection of shipments, and marketing services, Al Mal wrote. ACC also calls for greater coordination between the private sector and the government, Al Mal explained.

Egypt’s ports also need more connectivity: The chamber has called for the development of new routes between Egyptian ports and global trading hubs as a means to cut down shipping times and freight rates, Al Mal writes.

Less regulation is also key to boosting transit trade: ACC’s memo cites security controls and worries over consignment responsibility as reasons for Egypt losing transit trade to neighbors such as Turkey. Accordingly, ACC’s proposals call for streamlined controls and clearance procedures and for customs duties on transshipments to be cut in half as a means to incentivize transshipments. This also includes exempting transit shipments from registering on the government’s digital customs window Nafeza, the memo reportedly said.

Iraq, Azerbaijan ink air services agreement + Egypt, KSA mull currency swap. PLUS: More from Iran, Oman and Bahrain

Iraq + Azerbaijan ink air services agreement: Iraq and Azerbaijan have inked MoUs to enhance bilateral relations, including an air services agreement, according to an Iraqi presidency statement. The MoUs were signed following a meeting between Iraqi President Abdul Latif Jamal Rashid with Azeri President Ilham Aliyev in Baku between the Azeri Digital Development and Transport Minister Rashad Nabiyev and Iraqi Civil Aviation Authority president Iman Al Asadi.

Egypt and KSA might be doing a currency swap: Egypt and Saudi Arabia are studying the possibility of conducting local currency-denominated trade soon, Asharq Business reported, citing remarks by Egyptian Commercial Representation Service head Yahya Al Wathiq Billah. The Saudi commerce minister has already submitted a proposal to discuss the possibility of paying a portion of trade operations in local currencies and the proposal will be discussed between the central banks of the two countries before a consensus is reached by 2024, Al Wathiq Billah was quoted as saying.

ICYMI- Local currency trade with India may also be in the works following discussions between Finance Minister Mohamed Maait and the Indian ambassador, the Finance Ministry said last week.

ALSO WORTH KNOWING-

Iran’s Secretary of Supreme Council of Industrial-Trade and Special Economic Zones Hojatollah Abdolmaleki and Oman’s Chairman of the Public Authority for Special Economic Zones and Free ZonesAli bin Masoud Al Sunaidymet in Muscat to discuss the implementation of previously signed trade agreements and bilateral cooperation on freezones. (Mehr)
Bahraini Industry and CommerceMinister Abdulla bin Adel Fakhro and Director of the Council of the European Commissioner for Trade Michael Hager discussed boosting bilateral cooperation. (BNA)

It’s a good year to be a seafarer

Seafarers are witnessing a 10-15% rise in salaries across all senior officer ranks, Seatrade Maritime News reports, citing data collected during a survey at the Seatrade Maritime Crew Connect Global 2023. The top four ranks for dry bulk carriers saw a significant increase despite the sector seeing recent freight and charger rates. “We are witnessing a wage spiral like we saw leading up to the previous financial crisis,” CEO of Danica Maritime Henrik Jensen told the news outlet.

What’s causing the spike? “The root cause for these wage increases is the combination of a general shortage of very competent seafarers and a better financial situation for most vessel owners which is making employers more generous with remuneration,” he explained. “And, with a surplus of job offers, seafarers can afford to be picky.”

This might not last long: Jensen expects shipowners to be more cautious about costs over the next year in light of falling shipping rates and sluggish trade conditions.

Emirati firms make big moves on SAF + DSV unveils green EV trucks in UAE. PLUS: More from DP World + Star Shine

AVIATION-

UAE consortium to develop and utilize renewable aviation fuel: A consortium led by the Energy and Infrastructure ministry unveiled the UAE Centre for Renewable and Advanced Fuel Technologies for Aviation (Air-CRAFT), a research center for developing, producing, and utilizing sustainable aviation fuel (SAF) technologies, Emirates Airlines said in a press release. The initiative was announced on the margins of the 3rd ICAO Conference on Aviation and Alternative Fuels, a week ahead of COP28.

Who’s on board? The consortium will bring together the Energy and Infrastructure Ministry, the General Civil Aviation Authority, ADNOC, Boeing, Emirates, ENOC Group, Etihad, Honeywell, Khalifa University, and Masdar to accelerate SAF production in line with the National SAF Roadmap.

TRUCKING-

DSV unveils green EV trucks in the UAE for the first time: Transport and logistics leader DSV has introduced its fully electric long range heavy load truck fleet in the UAE, according to a press release. The fully electric vehicles are digitally integrated, fast charging, double-trailer electric vehicles (EV) with zero carbon emissions, which should help reduce the UAE’s road transport carbon footprint and achieve the group's net-zero goal by 2050, the release adds. The heavy-duty trucks are made by Chinese heavy equipment manufacturer Sany and its UAE agent EGME, and have an 80-ton gross combined weight capacity. They have a battery range of 250-800 km and are able to charge in seven minutes.

TRADE FINANCE-

DP World’s fintech arm, DP World Trade Finance has agreed to use UAE Trade Connect (UTC) to detect suspicious behavior in its trade finance transactions, Gulf News reports, citing a statement from the company. DP World’s fintech arm will use UTC 's platform to identify suspicious invoices as a means of mitigating risk in its lending.

What’s UTC? UTC is a blockchain-enabled consortium-led trade finance solution founded by e& enterprise and the UAE banking industry in 2021.

ALSO WORTH KNOWING-

Star Shine Shipping & Logistics inked a cooperation protocol with Egypt’s Professional Syndicate for Seafarers to train and assist seafarers in acquiring credentials and certifications necessary for employment aboard Egyptian and international vessels. (Al Mal)

Will the EU + the Mercosur block secure a trade treaty?

The EU and the Mercosur bloc of South American nations are looking to complete a long delayed trade treaty by early December, the Financial Times reports, citing diplomats involved in the negotiations. “It is down to a few details… we will need a political decision on a couple of issues,” one Brazilian diplomat said. Javier Milei’s recent election as Argentina’s president could affect the trade pact, however, as Milei previously pledged to pull the country out of Mercosur.

They’re racing against the clock: Brussels is working to finalize negotiations before Brazil’s Mercosur presidency ends on 7 December, an EU official said. Paraguayan President Santiago Peña has warned that Merocusr could back out of the agreement if the treaty is not finalized by 6 December.

Background: The treaty was initially agreed on back in 2019; however, negotiations were delayed when the EU demanded additional environmental commitments from South America.

Calendar

NOVEMBER

Mid-November: Third Caspian Economic Forum, Iran.

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

21-22 November (Tuesday-Wednesday): Touchdown Middle East, Al Dana Hall, Gulf International Exhibition Centre, Gulf Hotel, Bahrain.

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

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

22-23 November (Wednesday-Thursday): GCC-Egyptian Business Forum, Cairo, Egypt.

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

28-30 November (Tuesday-Thursday): Antwerp XL, Antwerp Expo, Hall 4, Antwerp, Belgium.

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

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

DECEMBER

4-6 December (Monday-Wednesday): ACE 23 Air Cargo Conference, Yas Island Hotel, Abu Dhabi, UAE

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

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

12-14 December (Tuesday-Thursday): Food Africa Cairo 2023, Egypt International Exhibition Center, Cairo, Egypt.

18-20 December (Monday-Wednesday): International Exhibition of Transportation, Logistics, and Related Industries (Iran Trans Expo 2023), Imam Khomeini Grand Prayer Campus (Mossala), Tehran, Iran.

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.

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