Good morning, friends. We have a packed issue this morning with lots of updates from Egypt and a smattering of M&A, debt and investment updates from around the region and beyond, but first…

HAPPY EID, EVERYONE- Enterprise Logistics will be taking a break for Eid Al Fitr starting tomorrow, but we will be back in your inbox at our usual time with all the latest regional logistics industry updates on Monday, 15 April.

THE BIG LOGISTICS STORY ABROAD- Baltimore continues to capture the industry’s attention: Limited access to commercial shipping at Baltimore is set to come online by the end of the month with full capacity expected to be restored by the end of May. A “limited access channel 280 feet wide and 35 feet deep” is set to open by month’s end permitting access to RoRo vessels transporting cars and farm equipment. Two auxiliary channels which have been opened so far at the accident site of the Baltimore Francis Scott Key Bridge after a Maersk-chartered container ship collided with the bridge two weeks ago. The channels have allowed emergency vessels, tugs, and barges to move around wreckage, but do not have the capacity for cargo ships.

The story continued to grab a lot of ink in the international press over the weekend: Reuters | The New York Times | Bloomberg | The Washington Post | BBC

WATCH THIS SPACE-

#1- Morocco denies playing favorites on Ryanair vs RAM: Morocco’s tourism ministry has denied offering subsidies or other financial aid to Ireland-based budget carrier Ryanair for its domestic flight operations in the country, MAP reported on Friday, citing a ministry statement. The ministry sought to address concerns that Ryanair’s new domestic network will affect the competitiveness of national carrier Royal Air Maroc (RAM), indicating that Ryanair’s routes in the country do not overlap with those serviced by RAM and that the new partnership with Ryanair aims to boost “complementarity rather than direct competition,” while also promoting tourism by extending tourists’ access, MAP said.

ICYMI- Ryanair will kick off 11 new domestic routes in Morocco this summer, after receiving the greenlight from Morocco’s government in December.

#2- Egyptian grain ships held up in Russia: Two Egyptian ships loaded with wheat have been denied permission to set sail by Russian authorities, who say they do not hold the correct documentation, Egyptian Supply Minister Ali El Moselhi told Bloomberg on Thursday. The two ships, which were meant to depart at the end of March, are currently held at Russian ports while Egypt is in communication with Russian embassy officials regarding the issue, El Moselhi said.

The why: The ships are carrying wheat from Grainflower DMCC, an export partner of Russian trader TD Rif, which has seen its exports blocked and is under investigation by a Russian industry watchdog on the basis of grain safety and quality inconsistencies. The feud is part of the Kremlin’s efforts to increase its control over exports following its invasion of Ukraine in 2022 and enforce an unofficial minimum price for its grain, according to an earlier report.

DISRUPTION WATCH-

Houthis claim recent attacks against shipping: The Iranian backed group targeted a British ship and US frigates in the Red Sea, as well as two Israeli vessels in the Arabian Sea and Indian Ocean that were en route to Israeli ports, Reuters reports, citing televised statements by Houthi military spokesperson Yahya Saree. A German frigate, dubbed Hessen, shot down a Houthi-launched missile in the southern Red Sea over the weekend, Reuters reported on Saturday. Hessen’s deployment comes as part of the EU’s Aspides mission to the Red Sea.

Is the US warming up to a diplomatic solution after airstrikes fail to stop attacks? Washington is leaning towards a non-military solution to Red Sea disruptions according to statements by President Joe Biden’s special envoy for Yemen Tim Lenderking, Bloomberg reported last week. “Diplomatic off-ramps” to de-escalate the situation are on the table including the possibility of a “quid pro quo” arrangement to withdraw the labeling of Houthis as a terrorist entity in exchange for a cessation of attacks, Lenderking told reporters last Wednesday. The Houthis could back moves to de-escalate and “show good faith” by releasing 25 crewmen captured during the Galaxy Leader’s hijacking early in the campaign, Lenderking added.

Tel Aviv braces for an Iranian attack: Navigational signals in Tel Aviv were scrambled on Thursday as Israel braced for a GPS-guided drone or missile attack by Iran or its proxies, Bloomberg reported on Thursday. The interference caused deliveries delays and traffic due to disruption on apps including Google Maps, Waze, Gett Taxi, Moovit, and Wolt. Apps showed Tel Aviv residents as being located in Beirut, Lebanon, the outlet said. The move comes as tensions between the regional rivals escalated following a Monday airstrike that saw top Iranian generals killed in Syria, with Iran vowing to hit back. Despite Israel’s military not publicly stating that it was behind scrambling navigational signals at Tel Aviv, it nonetheless has “good intelligence and good early warnings,” that an Iranian attack may come, former director of Israeli military intelligence Amos Yadlin told reporters.

MARKET WATCH-

#1- The next few months could see oil hitting USD 100 a barrel for the first time in two years, Bloomberg reports. Saber rattling between Iran and Israel saw oil spike to above USD 90 at the end of last week, hitting its highest since October. However the changes driving up oil are less transient, with a combination of global supply shocks likely seeing these gains extend over the next few months, with JP Morgan Chase & Co. expecting prices to hit USD 100 a barrel by August or September, Bloomberg writes.

Behind the numbers: Continued Red Sea disruptions, sanctions on Russian oil trade, export cuts by Mexico, and recently extended OPEC+ production cuts are some of the most important factors which have tightened supplies and buoyed markets. Interruptions in North Sea pipelines, turmoil in Libya, and damage to an oil export pipeline in South Sudan have also shored up markets, Bloomberg said. These shocks also coincide with a ramp up in demand in US markets ahead of the summer.

Oil prices reached record highs as markets remained vigilant for signs of a direct confrontation between Iran and Israel, Reuters reported on Friday. Brent crude rallied 0.57% to USD 91.17 a barrel, while US West Texas Intermediate (WTI) rose 0.37% to USD 86.91 a barrel, the newswire said. Thursday trading saw both benchmarks hit their highest since October.

#2- Baltic index slumps for third week: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — was down 2.5% to 1,628 points on Friday, hitting a seven-week low and marking the third consecutive week of declines, as weaker rates across the board dragged down the index, Reuters reported on Friday. The measure was also down 10% w-o-w. The larger capesize subindex dropped 3.4% to 2,274 points, but rose 13% for the week, while panamax dipped 2.2%, to 1,695 points. Meanwhile, the smaller supramax segment fell 1%, to 1,261 points, the newswire also said.

DATA POINT-

Jordan’s trade position improved in January: The country’s total exports marked a 2.7% y-o-y increase in January 2024 to JOD 650 mn, while imports declined 19.7% during the same period to some JOD 1.3 bn, seeing a 33.7% reduction in Jordan’s trade deficit, Petra reported yesterday. The bump in exports was attributed to growth in fertilizer, garments, and pharma volumes, while diminished values of crude oil and derivatives, machinery, and electrical tools, contributed to the trimmed down import figures, Petra said.

CIRCLE YOUR CALENDAR-

The UAE will host the 7th edition of the Global Ports Forum on Sunday, 17 April and Monday, 18 April in Dubai. The event will host discussions on port strategy and development, automation, financing, and enhancing efficiency.

Egypt will host the 5th edition of the Egypt Facility Management Forum on Tuesday, 23 April and Wednesday, 24 April in Cairo. Business-owners, developers, service providers, technology leaders and suppliers will attend seminars and exhibitions on the facility management supply chain.

The UAE will host Abu Dhabi Mobility Week from Wednesday, 24 April to Wednesday, 1 May in Abu Dhabi. The event, organized by The Department of Municipalities and Transport – Abu Dhabi (DMT), will feature announcements, forums, and introduce a mobility strategy for the emirate.

Iran will host the second Iran-Africa International Summitfrom Wednesday, 24 April through to Friday, 26 April in Tehran. The event will see Iran receive trade ministers from more than 40 African countries.

Saudi Arabia will host a special World Economic Forum event from Sunday, 28 April through to Monday, 29 April in Riyadh. The event will focus on global collaboration and energy.

Qatar will host the Autonomous E-mobility Forum from Tuesday, 30 April to Thursday, 2 May in Doha. The event will gather industry experts, senior officials, policy and technology experts, as well as government, academic, and media representatives, providing a platform for stakeholders to exchange know-how and recommendations for the implementation of autonomous e-mobility in the real-world.

Saudi Arabia will host the Saudi Smart Logistics exhibition and summit from Monday, 6 May to Thursday, 9 May in Riyadh. The trade fair brings together local and international suppliers, public officials, professionals, and logistics players, and provides a platform for networking, exchanging know-how, and showcasing new technologies, products, and services.

The UAE will host the Airport Show from Tuesday, 14 May through to Thursday, 16 May in Dubai. The 23rd Airport Show will see representation from airport suppliers, airport service providers, aviation executives, and regional decision makers. The event will highlight current innovations and new technologies, while emphasizing this year’s “Sustainability and Innovation,” theme.

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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