Get EnterpriseAM daily

Qatar pauses LNG shipments through the Red Sea as disruptions linger

1

What we're tracking today

TODAY: Qatar pauses LNG shipments through the Red Sea

Good morning, friends. We have a brisk read for you this morning with all the latest from the Red Sea and some significant aviation news emerging from KSA, but first…

ICYMI- There is now an EnterpriseAM for the UAE: Think of it as the UAE analogue to your morning read in Egypt — your essential report on business, finance, the economy, and regulation in one of the world’s most vibrant and exciting economies. You can sign up to have the newsletter delivered fresh to your inbox here.

EnterpriseAM UAE is produced in the United Arab Emirates and in Egypt by the same team that brings you Enterprise Climate, Enterprise Logistics, and our flagship product EnterpriseAM and EnterprisePM in Egypt.

** Stay tuned for the launch later this month of EnterpriseAM KSA. You can tap or click here if you’d like to be added to our list for launch day.

** Having issues clicking links on our website? Or maybe it doesn’t open for you? It’s a caching issue some readers have run into following the launch of the latest build. Hit Ctrl-F5 on a Windows PC or Cmd-Shift-R on a Mac — do that a couple of times and you should be good.

WATCH THIS SPACE-

#1- Abu Dhabi is expected to award the supervision consultancy contract for its Khaleej Al Arabi underpass and two bridges projectby 2Q 2024, a source told Zawya Projects. The tender was issued on 11 January by Abu Dhabi’s Department of Municipalities and Transport (DMT), with bid submission scheduled for 12 February and the contract to be awarded in early April 2024, the source added. The scope of the tender covers contract administration, design management, construction supervision, and independent cost consultant services, the outlet adds. The project is slated for completion in 1Q 2026 at an estimated cost of USD 50 mn, the source told the outlet.

#2- A trade route running through India, Iran, and Armenia is set to be opened as soon as May 2024, Azernews reported, citing Armenia’s Economic Minister Vahan Kerobyan. The route will connect India to Iran’s Chabahar port before continuing north to Armenia and onwards to the Black Sea. Last month, Iranian and Indian diplomats in Armenia lobbied for the country to assume a role in the International North-South Transport Corridor extending from India to Europe.

#3- Multinational parcel delivery giant FedEx has rolled out a data-driven platform for end-to-end e-commerce solutions, dubbed fdx, according to a statement. The new tool is slated for launch in Fall 2024, but businesses can sign up for a preview today. The new platform brings to bear previously existing FedEx tools and new ones to help clients navigate the entire e-commerce process including demand generation, conversion, order fulfillment, and post-purchase.

#4-US lawmakers have called on Panama to crack down on Panamanian-flagged vessels contributing to Iran’s “ghost fleet,” which Iran has used to sidestep sanctions and sell 100 of mns of barrels of oil in the past few years, according to an open letter (pdf) dated 11 January and addressed to the Panama Maritime Authority (AMP). The letter, sent by Republican and Democratic senators including Bob Casey and Marco Rubio, says that of the 383 Iran ghost vessels identified by the non-profit organization United Against Nuclear Iran (UANI), 189 (49%) are Panama-flagged. Accordingly, the letter asks PMA to investigate the vessels mentioned, de-flag vessels deemed to be involved in evading US sanctions on Iranian oil, refuse to re-flag the vessels in the future, and extend the same scrutiny to other vessels carrying oil for other sanctioned countries.

MARKET WATCH-

#1- Oil fell more than 1% on Monday in spite of Middle East tensions, as traders sold to lock in gains from last week’s 2% rally, Reuters reported. Brent crude fell 1.5% to USD 77.15 a barrel and West Texas Intermediate (WTI) declined 1.6% to USD 71.53 a barrel. Tankers have been avoiding Red Sea transits since US-led strikes against the Houthis began, but disruptions have so far not affected oil stocks. “The realization that oil supply has not been adversely impacted is leading last week's bulls to take profit, with the move down somewhat exacerbated by a slightly stronger dollar,” PVM Oil’s Tamas Varga told the newswire.

#2-Iran saw the biggest oil production growth among OPEC members in 2023, Mehr reported, citing a US Energy Information Administration report. Iran’s total oil production reached an estimated 2.87 mn bpd in 2023, growing 330k bpd y-o-y from 2.54 mn bpd in 2022.

#3-Equatorial + TFG + Sinopec lead marine bunker supplies in Singapore in 2023:Equatorial Marine Fuel Management Services maintained top spot, Trafigura’s TFG Marine came in as the second largest supplier, and Sinopec Fuel Oil leaped 16 spots to settle as the third largest supplier, Reuters reported yesterday citing Singapore’s Maritime and Port Authority data. Singapore is the world’s largest bunkering hub, the newswire said. The UAE’s Fujairah follows as the world’s second-largest bunkering hub.

DATA POINT-

#1- Iran and the EU exchanged over EUR 3.7 bn worth of products in the first 10 months of 2023, a 13% y-o-y decline, Tasnim News Agency reports, citing a report from the statistical office of the European Union. Germany had the lion's share of trade with Iran, accounting for 31% of Iran’s total trade volume with Europe, as it imported EUR 191 mn worth of non-oil products from Iran and exported EUR 977 mn worth of products to the country. Exports from the EU to Iran fell by 10% y-o-y, while the 27 member states imported some EUR 647 mn worth of products, a 27% decrease y-o-y.

#2- E-commerce sales in Saudi Arabia tripled to some USD 13.71 bn in 4Q 2023, according to a statement from e-commerce platform Flexstock. The annual growth rate of the sector is expected to reach 14.37%, bringing the value of the Saudi e-commerce market to USD 23.46 bn by 2027. The kingdom accounts for 45% of the MENA region's digital economy and is expected to reach 20 mn users by 2030, the release adds.

CIRCLE YOUR CALENDAR-

The UAE will host Transport Middle East from Tuesday, 23 January through to Thursday, 25 January in Abu Dhabi. The event will see more than 30 speakers come together to tackle the current challenges in global transportation and logistics.

The UAE will host the Middle East Bunkering Convention from Monday, 5 February through to Wednesday, 7 February in Dubai. The event will bring together industry experts to tap into issues affecting the global marine fuel sector, including supply chains, decarbonization, and new fuels.

The UAE will host Sustainable Aviation Futures MENA from Monday, 12 February through to Wednesday, 14 February in Dubai. The event will see 80 expert speakers and upwards of 200 high level attendants and will handle topics pertaining to regulation, financing, and investments in Sustainable Aviation Fuels (SAF) in MENA.

The UAE will host the Future Warehouse & Logistics 2024 Conference from Monday, 12 February to Wednesday, 14 February in Dubai. The event will handle means for supply chain leaders to boost resilience and overcome challenges, with discussions on disruptions, sustainability, Internet of Things (IoT), automation, workplace management and other topics.

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

This publication is proudly sponsored by

2

Disruption Watch

Qatar pauses LNG shipments through the Red Sea as disruptions linger

Qatar has halted LNG shipments through the Bab El Mandeb Strait as US-led strikes increased risks, Bloomberg reports, citing ship-tracking data. Some five LNG carriers that were enroute to the passage have paused their journeys. Qatar is Europe’s second largest supplier of natural gas after the US and accounted for 13% of Europe’s consumption last year. Around 209 oil tankers — or 4% of the world’s oil fleet — have started rerouting away from the Red Sea over the weekend in the clearest example of disruption to the oil market since Israel’s war on Gaza began, according to Asharq Business, citing a note from Oil Brokerage.

This includes Qatar’s state-owned LNG carrier QatarEnergy, which is pausing Red Sea transits pending a security update, Reuters reports. “It is a pause to get security advice, if passing [through the] Red Sea remains unsafe we will go via the Cape … It is not a halt of production,” a senior source that the newswire says has direct knowledge of the matter said.

The bigger picture: While the Houthi group hasn’t purposely targeted any oil tankers since the onset of attacks in November, Qatar — the second largest exporter of LNG to Europe — likely views US and UK strikes in Yemen as the beginning of graver tensions in the Red Sea. The American and British navies jointly advised merchant vessels to avoid Red Sea transit following their attacks on Houthi positions.

Yemen’s Houthis targeted a US vessel with an anti-ship ballistic missile, US Central Command (Centcom) said yesterday on X. The missile struck a Marshall-Islands flagged, US operated container vessel dubbed the Gibraltar Eagle, with the ship continuing its journey without reporting injuries to crew or serious damage, Centcom said. The latest attack indicates that the Iranian-backed group seems set to continue its campaign against shipping in the Red Sea despite recent US-led strikes that were intended to fend off such attacks, Reuters said.

The latest attack came on the heels of another against a US warship, whereby the US Navy shot down a cruise missile fired by the Iranian-backed group against an American destroyer operating in the Southern Red Sea, Reuters reported on Sunday. The projectile was shot down by a US Navy fighter and no damage to life or property resulted from the incident, the newswire said citing Centcom.

South Korea is considering “support measures”: South Korea is looking into ways to safeguard its cargo vessels in the Red Sea amid increased tension in the area, South Korean news agency Yonhap reports. "The defense ministry is making all efforts to ensure Korean vessels' safe shipping in the Red Sea. Various support measures are under consideration, taking into account various factors," ministry spokesperson Jeon Ha-kyu said. South Korea, along with nine other countries, issued a statement last month voicing support for precision attacks by the US and the UK against the Houthis.

And recent disruptions in Red Sea shipping have not triggered a shift to air freight for FedEx,Reuters reports. "Shipping over the ocean makes up 90% of global commerce so even a small change would have an impact, but we haven't seen much yet," CEO of FedEx Raj Subramaniam said. Houthi-led attacks on container ships transiting the Red Sea have pushed retailers to seek transport alternatives, including air and rail.

3

Aviation

KSA’s Matarat, NPC eye investors for new Abha airport

Matarat, NPC poll for investor interest in a new Abha Airport: The Saudi Civil Aviation Holding (Matarat) and the National Centre for Privatization & PPP (NCP) have called for expressions of interest for the new Abha International Airport project, they said in separate statements here and here. A request for qualification tender is expected to be released by 19 February 2024.

Why this matters: Abha Airport — the fifth largest airport in KSA — is operatingbeyond its designated capacity of 1.5 mn passengers with 4.4 mn passengers annually.

The new project will see to the development of:

  • A new passenger terminal building, with a capacity to welcome over 13 mn passengers per year — target date: 2028;
  • A new rapid exit taxiway on the airport’s current runway;
  • A new apron for the new terminal;
  • Access roads to the new terminal building;
  • A new parking area
  • Some supporting facilities, including an electrical substation expansion and a new sewage treatment plan, among other facilities.

REMEMBER- The master plan for Abha airport project was unveiled in October 2023 by Crown Prince Mohammed bin Salman.

IN OTHER MATARAT NEWS- Matarat is unrolling its new bagless passenger services in the Kingdom: The service allows passengers to pre-ship their luggage to their destination to simplify travel-related-procedures, it said last week. The service will launch in the first quarter of this year.

4

Ports

Iran and India inch closer to finalizing Chabahar Port agreement

Iran and India have agreed to finalize agreements to develop Iran’s Chabahar Port, Tasnim reported. Iran’s Roads and Urban Development Minister Mehrdad Bazrpash and India’s External Affairs Minister Subrahmanyam Jaishankar met in Tehran yesterday to establish “a long-term cooperation framework with respect to Chabahar port,” Jaishankar said. No further details regarding financials or timelines were disclosed.

Background: India and Iran have mostly settled issues regarding the terms of the contract for the port development, with only one paragraph remaining under negotiation. Both sides were expected to finalize the long-term agreement by early October. Iran and India have so far relied on one-year agreements for the development and running of the terminal at Chabahar Port, and 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 at the port.

There are concerns: India has so far shelled out some USD 25 mn for developments at Chabahar, with the lion’s share of investments going towards gantry and coastal cranes. India’s state-owned India Ports Global has been on the lookout for cranes and other container handling equipment for use at Chabahar Port from suppliers in the GCC, but multiple attempts to acquire necessary equipment have been scrapped as contractors are wary of engaging with Iran due to sanctions.

What else is on the table? Iran and India also shared views on collaboration on the International North-South Transport Corridor (INSTC) whereby Bazrpash proposed the establishment of a joint transport committee to apply transit capacities and benefit from the INTSC. Jaishankar also expressed India’s willingness to launch new transportation and transit-related investments at Chabahar Port, Tasnim said.

Tags:
5

Diplomacy

Egypt and Tanzania discuss maritime cooperation + KSA and Thailand talk logistics

Egypt + Tanzania to cooperate on maritime transport: Egypt’s Maritime Transport Sector head Reda Ismail met with Tanzania’s Ambassador to Cairo Richard Makanzo to discuss enhanced bilateral collaboration in maritime transport, according to a statement. The meeting looked at ways to boost cooperation via the transfer of expertise and knowledge from Egyptians to their Tanzanian counterparts under the purview of the Standards of Training, Certification, and Watchkeeping for Seafarers (STCW) convention. Talks also considered collaboration on ship repairs and exports whereby Tanzania can grant Egyptian exports transit to landlocked countries in Africa. Going forward, the pair look to ink an MOU on maritime transport and to devise a roadmap for its implementation, the statement said.

OTHER STORIES WORTH KNOWING THIS MORNING-

  • KSA + Thailand talk transport and logistics: Saudi’s Transport and Logistics Minister Saleh Al Jasser met with Thailand’s ambassador to the Saudi Dame Pontam to discuss enhancing cooperation between the two countries in transport and logistics services. (Statement)
6

Moves

Alstom appoints new regional CEO for GCC

Alstom has tapped Dalya Al Muthanna (LinkedIn) to serve as Gulf Managing Director and CEO, according to a statement.Al Muthanna will oversee the company’s operations in the UAE, Qatar, Kuwait, Oman, and Bahrain after previously serving as General Electric UAE President and Global Strategy and Operations Chief.

Tags:
7

Logistics in the News

US retailers face the challenge of increased fraudulent returns

American retailers are contending with higher rates of bogus returns, with fraudsters sending back brick-filled boxes in some cases, the Wall Street Journal reported last week. 2023 saw some USD 100 bn in goods returned fraudulently in the US, accounting for 13.7% of all returned goods that year and more than twice the rate seen in 2020, according to figures tracked by the National Retail Federation (NRF). Retailers expect to receive returns valued at USD 148 bn for purchases made during the holiday season — accounting for 15% of total purchases — with 17% of those returns expected to be fraudulent, the NRF says. Fraudsters are making use of hasslefree online returns and other policies rolled out by retailers to draw in buyers as e-commerce surged during the pandemic, with those strategies leading to a sharp uptick in return rates, the WSJ said.

What's the solution? Retailers are trying to rein in bogus rates by encouraging shoppers to bring back returns to stores where they can be examined on the spot. In-store returns result in “much, much, much lower fraud,” that mail-in returns, WSJ cites Inmar Intelligence general manager of supply chain solutions Thomas Borders as saying.

8

Also on Our Radar

E-commerce sales in KSA triple in 4Q 2023 + Hamad International Airport welcomes first DHL Freighter flight

AVIATION-

Qatar’s Hamad International Airport (DOH) received its first DHL Boeing 767-300 freighter trip on Friday,according to a statement. The new collaboration is set to advance the airport’s expansion plans and boost DOH’s role as a global trade facilitator, Senior Vice President of Operations and Facilities Management at Hamad International Airport Michael Mcmillan said. DOH handled 2.3 mn tons of cargo in 2023, up 1% y-o-y, the statement added.

PROJECTS-

Telecom Egypt + Zain Omantel International are partnering on a new digital corridor linking Oman to Egypt, according to a statement (pdf). The infrastructure for the new network, which will have terrestrial and subsea segments, will extend through Kuwait, Bahrain, Iraq, and Jordan. The collaboration will also offer cost-effective solutions for subsea cable owners as well as enhance connectivity from the Indian Ocean to Europe. A high-capacity subsea cable will also directly connect Saudi Arabia and Egypt via the Red Sea.

STARTUP WATCH-

Saudi + Newlab partner up to establish logistics and tech startup HQ in Riyadh: KSA’s National Industrial Development and Logistics Program (NIDLP) inked an agreement with startup incubator Newlab to create a regional headquarters in the Kingdom, dubbed “Nwelapksa”, SPA reports. The partnership comes in a bid to support entrepreneurship and boost investment in the energy, mining, industrial, and logistics sectors.

9

Around the World

Elbdeich Reederei expands its methanol-fuelled fleet

Elbdeich Reederei moves forward to add two additional methanol dual-fuel container ship newbuilds to its order from China’s Wenchong shipyard, Splash reports. DP World -owned feeder Unifeeder had inked a long-term time-charter agreement with Elbdeich Reederei for two methanol-powered container feeder vessels in October, with an option for two more of the same type, to be operated on Unifeeder’s European network. Elbdeich Reederei has exercised that option, with the additional pair of vessels slated for delivery in September and December 2026, Splash reports, citing brokers.

UK’s dependance on EU trade hits 14-year high: Britain’s trade with the European Union constituted more than 53% of its overall trade in the three months through November, the highest level in 14 years, Bloomberg reports, citing data from the Office for National Statistics. This performance is explained by poor trade activity with the rest of the world rather than a boost in business with Europe. The kingdom’s trade with the EU has dropped since the beginning of 2021, the news outlet adds. The underwhelming performance has been driven by shifts in global supply chains due to the Ukraine war.

10

On Your Way Out

AD Ports, CMA CGM, and Ecocean join forces to safeguard marine environment at Khalifa Port

AD Ports, CMA CGM, and Ecocean partner up to preserve biodiversity:The UAE’s ADPorts Group, French global shipping conglomerate CMA CGM, and French aquatic biodiversity company Ecocean have inked a scientific cooperation framework agreement to install 48 biohuts in Abu Dhabi’s Khalifa Port, according to a statement. The biohuts will be installed in 1Q 2024 at CMA CGM’s terminal that is currently under construction. The pilot phase will last five years.

How it works: The biohuts come in the shape of modular cages made from eco-friendly, non-toxic materials and provide refuge for marine species to restore biodiversity in coastal and harbor areas, the statement notes. The huts act as an artificial habitat allowing for reproduction and nursery functions, helping young fish reach the sufficient size to contribute to the growth of local populations, according to Ecocean website.

CMA is no stranger to climate-friendly initiatives: The shipping group is involved in the biodiversity protection and restoration projects in the Middle East, including coral reef restoration in the UAE. The group also redesigned shipping routes so as not to disrupt breeding and migration areas, setting maximum travel speed of 10 knots in known whale breeding areas, the statement notes.


JANUARY

23-25 January (Tuesday-Thursday): Transport Middle East 2024, Intercontinental Abu Dhabi, UAE.

FEBRUARY

5-7 February (Monday-Wednesday): Middle East Bunkering Convention, Dubai, UAE.

6-7 February (Tuesday-Wednesday): The Middle East ProcureTech Summit, Dubai, UAE.

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

12-14 February (Monday-Wednesday): Sustainable Aviation Futures MENA, Dubai, UAE.

12-15 February (Monday-Thursday): Future Warehouse & Logistics, Dubai, UAE.

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

22-24 February (Thursday-Saturday): International Freight Forwarders Conference, Dubai, UAE.

26-29 February (Monday-Thursday): World Trade Organization's 13th Ministerial Conference, Abu Dhabi, UAE.

28 February (Wednesday): Industrial and BuildingTechnology event, Dubai, UAE.

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

MARCH

3-5 March (Sunday-Tuesday): Sustainable Green Blue Infrastructure Conference 2024 (Marlog), Green Plaza Mall, Egypt.

4-8 March (Monday-Friday): Logistics & Transport Management 2024, Dubai, UAE.

5-6 March (Tuesday-Wednesday): ShipTek International Conference & Awards 2024, The Address Dubai, UAE.

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

6 March (Wednesday):The Gulf Ship Finance Forum, Waldorf Astoria Dubai International Financial Centre, UAE.

7 March (Thursday): Truck and Fleet Conference 2024, 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

27 April- 1 May (Saturday-Wednesday): Iran Expo 2024, Tehran International Permanent Fairground, Iran.

29 April- 2 May(Monday-Thursday): GLA Global Logistics Conference, Dubai, UAE.

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

April: Driftx. Abu Dhabi, UAE.

MAY

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

2-4 May(Thursday-Saturday): The International Conference on Logistics Operations Management: smart, sustainable and green logistics (GOL), Marrakesh, Morocco.

3-5 May (Friday-Sunday):2024 IEEE 15th international conference on Logistics and Supply Chain Management, University of Sousse, Tunisia, Tunis.

7-9 May (Tuesday-Thursday): Annual Investment Meeting (AIM) Congress, Abu Dhabi, UAE.

14-15 May (Tuesday-Wednesday): Seamless Middle East, Dubai World Trade Centre, UAE.

14-16 May (Tuesday-Thursday): Airport Show, DWTC, Dubai, UAE.

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

JUNE

2-4 June (Sunday-Tuesday):IATA Annual General Meeting (AGM) and World Air Transport Summit, Dubai, UAE.

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

OCTOBER

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

7-9 October (Monday-Wednesday): AFSIC – Investing in Africa, London.

22-24 October (Tuesday-Thursday): Asean Ports and Logistics 2024, Johor, Malaysia.

NOVEMBER

11-14 November (Sunday-Thursday): ADIPEC Maritime and Logistics Exhibition and Conference, Abu Dhabi.

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

DECEMBER

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

20 December (Wednesday): The 5th Iran-Senegal Joint Economic Cooperation Commission, Dakar.

EVENTS WITH NO SET DATE

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.

2H 2024: Bahri’s barges for Saline Water Conversion Corporation (SWCC) to begin initial and commercial operation.

King Salman Energy Park is set to become operational.

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.

AD Ports-operated Safaga Port’s multi-purpose terminal will become operational.

Phase 3 of APM Terminals Tangier MedPort to be complete and operational.

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

1Q 2025: Phase twoof Jafza Logistics Park to be completed.

2027

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

Now Playing
Now Playing
00:00
00:00