TODAY: Qatar Airways ? Boeing + Odys Aviation heads to Oman

Good morning, nice people. It’s a busy morning for aviation as Qatar Airways throws a bit of confidence in Boeing’s direction with a sizable order, along with some updates in the VTOL sector and earnings releases begin to trickle in. First, a look at some congestion shaping up at the Syrian border…

WATCH THIS SPACE-

#1- Pileup at the Syrian border: Around 600 Lebanon-bound Jordanian trucks loaded with foodstuffs, vehicles, and electronics are idling in yards in the Jordanian-Syrian Freezone as they await approval to transit, Jordan’s Clearance and Goods Transport Company syndicate head Dhaif Abu Aqoula told Roya. Newly imposed regulations from Syria’s customs department have stalled procedures, requiring all goods to receive prior approval from Syrian customs before passing through the zone. The delay has increased costs and threatens the quality of perishable goods, Aqoula said, adding that Jordan and Syria are in talks to resolve the issue.

#2- Will Embraer manufacture in KSA? Saudi Industry and Mineral Resources Minister Bandar Al Khorayef discussed with senior executives at Brazilian airplane maker Embraer the localization of aircraft manufacturing and assembly in the Kingdom, SPA reports. Al Khorayef is leading a Saudi delegation in Brazil and then Chile to drum up investments in priority areas in the industrial sector, including mining, food production and others.

ON A RELATED NOTE- Embraer bumped up its estimate for passenger air traffic to a 4% annual increase over the next two decades, a jump from the previous forecast of 3.2%, Reuters reports. China and Asia are expected to contribute growth with a 5% annual increase in the next two decades, while Latin America, North America, and Europe will grow 4.9%, 2.4%, and 3.3% respectively. “The market sizes and demand patterns are simply too varied to support a fleet strategy focused solely on larger aircraft. We believe an optimal mix of sub-150-seat jets and larger narrowbodies is more conducive to the new environment,” Embraer Commercial Aviation CEO Arjan Meijer told the newswire.

#3- Hodeida Port has resumed regular ship traffic after Israel’s attack earlier this week, Yemeni port authorities said in a statement, adding that conditions at the port are “stable.” A fire that broke out following the attack has been contained with damage sustained mainly to bridge cranes, according to a separate statement.

Background: A blaze erupted in Yemen’s Hodeida Port on Sunday following an Israeli strike on the harbor that killed at least three people. Israel said the attack was in response to a Houthi drone strike on Tel Aviv last Friday.

#4- Construction on a Kuwait-Saudi rail link will commence in 2026 with the design phase set to launch soon, Al Qabas reported, quoting an identified government source. The 650 km railway will stretch from Kuwait’s Al Shaddadiya to Riyadh, and is expected to be completed in four years. The Kuwait-Saudi High Steering Committee gave the green light for a feasibility study back in June.

#5- Red Sea disruptions spell earnings for DSV: Denmark-based freight-forwarder DSV forecasts a boost in its earnings in the next few months due to a spike in volumes on the back of Red Sea shipping disruptions, CEO Jens Lund told Reuters. “It looks like the destocking, where customers brought down their inventory, has come to an end. Now I think there is a greater connection between what is consumed and what is produced,” Lund said. The increase in freight rates caused by the disruptions in the Red Sea is also expected to have a slightly positive impact on DSV’s financials in the rest of the year.

MARKET WATCH-

#1- Oil prices eased in early morning trading in response to concerns regarding weakened Chinese demand and a prospective ceasefire agreement to end Israel’s war on Gaza, Reuters reports. Brent crude futures for September fell USD 0.63 to USD 81.08 a barrel by 03.55 GMT, while US West Texas Intermediate (WTI) futures dipped USD 0.63 to USD 76.96 a barrel. "If Middle East ceasefire talks progress, US equities continue to slide, and China's economy remains sluggish, oil prices could fall to early June levels," Rakuten Securities commodity analyst Satoru Yoshida told the newswire.

#2- Baltic index hits another one-month low: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — was down 1.4% to 1,896 points on Wednesday, weighed down by low capesize vessel rates, Reuters reports. Capesize dipped 3.5% to 2,854 points, while the panamax index inched up 0.9% to 1,728 points. The smaller supramax segment increased 0.4% to 1,380 points.

CIRCLE YOUR CALENDAR-

Saudi Arabia will host the Saudi Warehousing and Logistics Expo on Monday, 2 September to Wednesday, 4 September in Riyadh. The event will bring together leaders in the supply chain, warehousing, and logistics industry from across the Kingdom to discuss investments, trade, geopolitical risks, and localized manufacturing.

Egypt will host the Egypt International Airshow on Tuesday, 3 September to Thursday, 5 September in El Alamein. The event will host a range of discussions touching on industrialization, digitalization, and globalization in the regional commercial aviation sector. During the event, aircrafts and innovative aerospace products, and services will be showcased.

Saudi Arabia will host SkyMove MENA on Tuesday, 10 September and Wednesday, 11 September in Riyadh. The event will gather global industry stakeholders, experts, and service providers to discuss challenges in the regional aviation industry.

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