Good morning, nice people. We have another brisk issue for you this morning as the news cycle slows down ahead of the weekend.

THE BIG LOGISTICS STORIES- Saudi PIF-owned aircraft lessor AviLease and Chinese aircraft lessor SDH Wings have inked an MoU for the supply of up to 20 new technology aircraft and The African Development Bank will disburse EUR 246 towards construction of Morocco’s Guercif-Nador highway project.

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

DISRUPTION WATCH-

IT’S OFFICIAL- The US sends in a naval coalition to counter Red Sea attacks: The US is heading a 10-nation maritime safety coalition to protect Red Sea and Gulf of Aden shipping routes from Houthi attacks, according to a statement by the US Department of Defense. Aside from the US, the members of the coalition are the UK, Bahrain, Canada, France, Italy, the Netherlands, Norway, Seychelles, and Spain. Some countries will conduct joint patrols while others will provide intelligence support. The mission will be coordinated by the existing Combined Task Force 153.

What they said: “Countries that seek to uphold the foundational principle of freedom of navigation must come together to tackle the challenge posed by this non-state actor,” US Defence Secretary Lloyd Austin said in the statement.

Houthis denounce the coalition: “The Yemeni Armed Forces [the Houthis] will turn the Red Sea into a graveyard of the US-led coalition if the alliance decides to take any action against Yemen,” said Major General of the Houthi government Mohammad al-Atifi, Mehr reports.

Shipping has already been disrupted by the attacks: BP announced earlier this week that it would halt all tanker transit through the Red Sea as a precautionary measure over Houthi attacks. Norwegian oil firm Equinor, Belgian oil tanker firm Euronav, and Norway’s Frontline have all made similar announcements over the past 24 hours, Reuters reports. German container shipping line Hapag Llyod and Taiwanese Yang Ming Marine Transport have said they will all divert ships from the Red Sea route to the Cape of Good Hope.

WATCH THIS SPACE #1-SCA and Bahri meet to explore cooperation: Egypt’s Suez CanalAuthority (SCA) Chairman Osama Rabie and Egyptian Transport Minister Kamel Al-Wazir met with a high-level delegation from Saudi national shipping company Bahri, headed by BOD Chairman Hisham Al-Khalidi, to discuss boosting cooperation in maritime transport, according to a statement.

Details: The officials evaluated investments in maritime transport and potential cooperation in building and scrapping ships. The SCA aims to develop and modernize Egypt’s naval fleet and support Egyptian exports and imports to ensure secure supply chains for dry bulk goods, the statement said. Bahri expressed its aspiration to cooperate with the SCA in maritime and logistical projects to serve their mutual development goals. The two sides also discussed expanding their partnership to allow for the exchange of expertise and the transfer of technology.

WATCH THIS SPACE #2-Is ADQ eyeing DB Schenker? Abu Dhabi sovereign wealth fund ADQ may submit a bid for the acquisition of freight forwarder DB Schenker, as state-owned German railway company Deutsche Bahn looks to offload the company, Air Cargo News reported, citing German newspaper Handelsblatt. Despite some in the German government being averse to transferring ownership of a strategically important company to a GCC state, ADQ is expected to make a competitive offer that will provide funds for improvements to Germany’s railways. Deutsche Bahn kicked off the sales process for DB Schenker yesterday, with the sale expected to be worth up to USD 21.8 bn, Reuters reported, citing sources with knowledge of the matter.

WATCH THIS SPACE #3-Iran + India close to finalizing Chabahar port agreement: India is reportedly set to finalize the investment contract for the development of Chabahar Port soon, Tasnim News Agency reports, citing Iran’s Ports and Maritime Organization chief executive Ali Safaei. India has so far poured USD 25 mn into developing the Beheshti Port of Chabahar with a majority of the funds funneled towards gantry and coastal cranes, Tasnim writes.

We’ve been here before: The agreement on Chabahar port was reportedly close to being finalized back in September on the sidelines of the Iran Rail Expo. India and Iran had mostly settled issues to do with the terms of the contract for the port development, with only one paragraph remaining to be settled. The two sides were expected to finalize the long-term agreement by early October. The two countries, which have been relying on short-term one-year agreements for the development and running of the terminal at Chabahar Port, have been looking to implement a longer term, self-renewing 10-year agreement. They also recently agreed that they would not turn to commercial arbitration for disputes that arise between users and operators of the port.

ALSO- The Rasht-Caspian railway connecting Iran to the Caspian Sea will start operation starting next month, Tasnim News Agency reports. Domestic railway projects, including the Tehran-Qom and Tehran-Isfahan railways, are also set to be operational once certain “barriers” are settled.

WATCH THIS SPACE #5- The EU slaps more sanctions on Russia: The EU is enforcing the 12th package of sanctions against Russia including notification rules for the sale of tankers to any third country, Splash247 reports. The aim of the sanctions is increased transparency of secondhand carrier sale and export, tightening compliance rules implemented to reduce attempts to circumvent the pre-existing G7 price cap on Russian oil, Reuters reports. The sanctions include an import ban on LPG, with a one-year transition period, as well as Russian-origin diamonds and metal products, including foil, tubes, pipes, and copper and aluminum wires, effective 1 January 2024.

ICYMI- The US cracked down on oil shippers for violating Russia sanctions back in October. The G7 cap bans Western corporations from supplying maritime services for Russian seaborne oil exports sold above USD 60 a barrel.

MARKET WATCH-Fujairah marine bunker sales dropped to five-months low: November sales, excluding lubricants, dropped 6.7% m-o-m to 610k cubic meters, Reuters reported, citing Fujairah Oil Industry Zone data published by S&P Global Commodity Insights. The decline conforms to an overall drop in bunker fuel sales at major ports in November and comes as attacks on shipping in the region drive shippers to be more cautious, the newswire notes.

CIRCLE YOUR CALENDAR-

Iranian President Ebrahim Raisi will visit Turkey this 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.

The Iran-UAE Joint Economic Cooperation Commission meeting will be held in the coming weeks in a bid to develop bilateral cooperation, deepen commercial ties, and boost trade. The location has yet to be announced.

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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