AD Ports refinances USD 2.25 bn loan and KSA’s Folk Maritime plans a fleet expansion

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What we're tracking today

AD Ports refinances USD 2.25 bn loan + KSA’s Folk Maritime plans a multi-mn USD in fleet expansion

Good morning, nice people. We have a bumper issue this morning with updates cutting across the logistics industry both at home and abroad, leading with financing updates from AD Ports and a sizable expansion ramp up from KSA’s Folk Maritime. First, a quick look at how Middle East escalations are affecting the skies…

THE BIG LOGISTICS STORY- Disruption in the air: Several international airlines have suspended hundreds of flights to and from Tel Aviv — as well as to Jordan and Lebanon — on the back of the ongoing war in the Middle East. Delta Air Lines said on Thursday it will pause its flights between JFK and Tel Aviv through December 31, due to escalating security concerns in the Middle East. Other airlines have also been rerouting to avoid Iranian and Lebanese airspace amid rising tensions between Israel and Lebanon’s Hezbollah militant group. Reuters has the master list of suspensions and cancellations + the story grabbed headlines in AP and CNN.

It's another case of Déjà vu? Global aviation saw severe disruption after Iran’s counter attack on Israel back in April that caused a dozen airlines to cancel or divert their flights. Major MENA airlines including Emirates Airlines, Qatar Airways and Etihad Airways said they would be resuming operations in the region back in April after canceling or rerouting some flights. EgyptAir also said it would resume flights to Jordan, Iraq, and Lebanon, after suspending the routes temporarily.

HAPPENING THIS WEEK-

#1- The UAE Finance Ministry will hold its first dialogue with state-owned companies across the GCC tomorrow in Dubai, aiming to boost economic integration across the region and address key challenges in the GCC Common Market, Wam reports. With over 80 firms participating, the event will feature government presentations on the GCC customs union and the common market, while the private sector will present a working paper outlining strategies to boost exports.

#2- The World Freezones Organization’s Annual International Conference and Exhibition will kick off today and run until Wednesday in Dubai. The event will discuss zones and the shifting dynamics of global economic structures to open up new avenues for investment.

#3- The Freight Summit Global Conference will take place from today to Thursday in Dubai. The conference is slated to bring together over 400 international freight forwarders to network and boost partnerships globally.

#4- The Global Aerospace Summit will start on Wednesday and run through to Thursday in Abu Dhabi. The event will gather key players in the global aerospace supply chain industry and government officials to discuss industry services, legal structure and resource sharing.

#5- Logistics & Transport Awards 2024 nominees revealed: The Logistics & Transport Awards will take place on Friday in Dubai. The industry event awards leading companies in the logistics sector, and recognizes groundbreaking projects and achievements. UAE’s DP World is nominated in five different categories this year, and Aramex has snapped up six nominations. Click here to see a list of the nominees.

WATCH THIS SPACE-

#1- Qatar is the top contender to supply liquified natural gas (LNG) to South Africa, as Sasol and power utility Eskom work to secure fuel from new sources before the country’s main supply falls off in 2027, Bloomberg reported on Friday. Qatar “is top of the food chain” to supply LNG to Eskom and the chemical and fuel manufacturer because of its abundant gas reserves, Bloomberg quoted Electricity and Energy Minister Kgosientsho Ramokgopa as saying. Qatar, which aims to increase its LNG shipments by over 80% by 2030, has shown interest in collaborating with South African President Cyril Ramaphosa, Ramokgopa said.

The background: South Africa is urgently seeking alternative gas supplies as it anticipates reduced output in 2027 from Sasol-operated fields in Mozambique, which provide gas via pipeline to South African businesses supporting hundreds of thousands of jobs.

#2- Etihad Cargo + SF Airlines enter new JV: The UAE’s Etihad Cargo is establishing a new joint venture (JV) with Chinese air cargo carrier SF Airlines to boost global logistics and connectivity, according to a statement published on Thursday. The partnership aims to provide a comprehensive suite of logistics services to customers worldwide, including increasing aircraft capacity, enhancing transit times, and expanding interconnection networks. The collaboration will be finalized in the next phase of the partnership, with updates and definitive agreements set to be inked soon, the statement said.

Building on an existing friendship: SF Airlines and Etihad Cargo launched new air cargo routes last year linking China’s Ezhou City to Abu Dhabi as part of a wider partnership to boost cargo volumes in light of increased demand in the UAE, China, and around the world. They also signed a reciprocal capacity agreement that allows Etihad to expand its reach to China by leveraging SF Airlines’ network, and created networks connecting Etihad Cargo’s hub in Abu Dhabi with SF Airlines’ Wuhan hub in April.’

#3- Egypt allocating land for Safaga port: Egypt is reallocating state-owned land in the Red Sea Governorate for the Safaga Grand Port project and its multi-purpose container terminal, according to a statement released last week. The move is part of a comprehensive plan to develop the port, which aligns with the state's efforts to maximize its strategic location between the Red and Mediterranean Seas and on global shipping routes, the statement said.

AND- Israeli gas imports are in the press again: Egypt will reportedly increase its imports of Israeli gas by 20% to 1.2 bn cf a day starting next month in a bid to cut down on LNG imports for the winter period, Asharq Business reports, citing a government official with knowledge of the matter. Egypt’s daily imports of gas from Israel rose to 1 bn cf/d at the beginning of September, up 18% from the 850 mn cf/d during July.

More than expected? Earlier reports this month by Al Arabiya said Egypt’s Oil Ministry is looking to increase its Israeli gas imports by the equivalent of 150 mn cf/d to reach 1.1 bn by October.

#4- Ins. costs for ships traveling the Red Sea have more than doubled amid increased risk from Houthi attacks, Reuters reported on Thursday. Vessels sailing through the Red Sea were quoted premiums of up to 2% of the value of the vessel, compared to 0.7% in early September. “A lot of the smaller [ins. firms] are no longer prepared to underwrite Red Sea war coverage,” head of marine with ins. broker McGill and Partners David Smith said. “It’s the first time I've seen underwriters just say no.”

Background: Yemen’s Iran backed Houthi movement threatened to escalate ship attacks late last year, saying it will target any ships in the Red Sea headed for Israel regardless of its nationality. An oil tanker was recently towed after being attacked and set on fire by Houthi militants last month.

#5- Iraq to export gas by 2030: Iraq will have enough gas to meet its own needs and to export by 2030, as several projects are underway to utilize the country’s gas resources and generate electricity, INA reported last week citing Oil Minister Basim Khudair. The minister said in May that the state-owned Midland Oil Company entered into a contract with a consortium made up of Jereh Group, a Chinese oilfield services and equipment manufacturer, and Petro Iraq to work on the development of the Mansouriya gas field in Diyala governorate.

The details: Production at the Mansouriya field will reach 100 mn cupid feet within 18 months, and production will reach 300 mn cubic feet within the next four to five years, Director General of state-owned Midland Oil Company Mohammed Yassin Al-Obaidi told INA.

#6- Airbus’ A321XLR debut pushed back: The first delivery of Airbus’ A321XLR is set for the second half of October, missing the planemaker’s delivery target by several weeks, an Iberia spokesperson told Reuters on Friday. Airbus says it had sold more than 500 of the A321XLR model, but did not give a breakdown by airline, the newswire reports. The debut of the aircraft was originally planned for Iberia’s sister airline Aer Lingus, but was transferred to the Spanish network by parent group IAG earlier this year.

The context: The debut of the aircraft — originally slated for the end of summer — aims to help airlines open new routes without the need to resort to filling up on larger wide-body aircraft. It also comes amid fierce competition between Airbus and Boeing to meet strong demand for lounger routes with workhorse narrowbody jets.

#7- Trafigura taps new CEO: Singapore-based commodities company Trafigura is planning on naming Richard Holtum (LinkedIn) as its new chief executive officer (CEO) as soon as this week, the Financial Times reported on Friday, citing sources familiar with the matter. Holtum has served at Trafigura since 2014, and currently runs the firm’s gas, power, and renewables division. Prior to serving at Trafigura, Holtum served in the British army for five years, then spent two years trading oil at rival firm Glencore.

MARKET WATCH-

#1 Oil prices rose in early morning trading buoyed by concerns regarding Middle East tensions cutting regional supply andUS interest rate cuts supporting demand, Reuters reports. Brent crude futures for November climbed USD 0.60 to USD 75.09 a barrel at GMT 04.15, while West Texas Intermediate crude futures for November rose USD 0.64 to USD 71.64 a barrel.

#2- Russian oil exports possibly on the rise: Russia’s domestic oil production and its western ports’ oil exports might increase next month, this is after cargoes entered Russia last week, Reuters reported last week. The rise in October is expected to be minimal, however, as repairs in several plants will not be completed on time, Reuters quoted one source as saying. In September, exports are expected to rise by 4.5% from August to 2.04 mn barrels per day. Oil loadings from ports of Primorsk, Ust-Luga, and Novorossiysk are expected to fall in October compared to September.

#3-Saudi Arabia’s crude oil exports fell to their lowest point in a year this July, with crude oil exports down by 5.1% to 5.74 mn barrels per day (bpd), Reuters reported on Thursday, citing the Joint Organization Data Initiative (JODI). Meanwhile, the Kingdom’s production rose by 1.3% to 8.94 mn bpd, while their refineries’ crude throughput fell by 0.026 mn bpd to 2.397 bpd. This is after Opec+ revealed intentions earlier this month to delay a planned 180k bpd output hike for October and November due to crude prices hitting their lowest point in nine months.

#4- Baltic index sees slight bump: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — increased 0.1% to 1,977 points on Friday, its highest point since mid-July. The capesize index dropped 0.6% to 3,235 points. The panamax index rose nearly 10 to 1,538 points, reaching a one-month high. The smaller supramax index gained 13 points to 1,289 points.

#5- The Drewry World Container Index decreased 5% to USD 3,970 per 40-ft container on Thursday, according to the latest index readings. Spot rates for 40-ft containers are now 62% below the previous pandemic peak of USD 10.4k in September 2021, but remains 180% above the pre-pandemic rate of USD 1.4k. The average composite index YTD is USD 4.1k per 40ft container, which is USD 1.3k higher than the 10-year average rate of USD 2.8k

DATA POINTS-

#1- Mawani’s total cargo delivered grew by 23.9% to 17k tons m-o-m in August 2024, according to a statement. The figures also show a 24.1% increase in fuel delivered to 3.6 mn liters as well as a total of 13 rig moves completed.

#2- Oman’s non-oil merchandise exports increased by 8.1% y-o-y to OMR 3.6 bn in 1H 2024, and a recorded fall in trade surplus by 1.2% y-o-y to OMR 3.7 bn, Zaywa reports, citing the National Center for Statistics and Information. Mineral product exports increased by 21.5% to OMR 1.3 bn y-o-y in 1H 2024, the highest value of Oman’s non-oil merchandise exports, followed by base metals and their derivatives with an increase of 7.3% to OMR 671 mn.

Total merchandise imports increased by 6.7%, to OMR 11.7 bn y-o-y in the first six months of 2024, with imports of chemical products declining by 1.7% to OMR 750 mn. Transport equipment imports increased by 4.9% to 684 mn during the same time period.

#3- Egypt’s agricultural exports increased by 9% to 6.4 mn tons y-o-y from 1 January till 18 September 2024, according to a statement. The largest agricultural exports were of citrus fruit reaching 2.2 mn tons, followed by 965k tons of potatoes, 261.5k tons of onions, 193k tons of beans, 175k tons of grapes, 121k tons of sweet potatoes, 76k tons of mangoes, 39.2k tons of pomegranates, 37.1k tons of tomatoes, 23.4k tons of garlic, 21.3k tons of strawberries, and 11.3 tons of guava.

PSA-

Hapag-Lloyd tacks on surcharge from Turkey to Northern Europe: Shipping giant Hapag-Lloyd will add an equipment imbalance surcharge (EIC) on all dry equipment traveling from ports in Turkey to Northern Europe, effective 7 October until further notice, according to a statement published last week. The EIS will be applied to all carriers with dry standard equipment at a rate of EUR 300 per 20ft and 40ft container.

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CIRCLE YOUR CALENDAR-

Bahrain to host the Routes World forum from Sunday, 6 October to Tuesday, 8 October. The event will bring together VPs and network planning heads from some 250 carriers to discuss global air route networks.

Saudi Arabia to host the Global Logistics Forum from Saturday, 12 October to Monday, 14 October in Riyadh. The forum will gather key industry players, government officials, and industry experts to discuss optimizing operations and driving growth in the logistics sector. The event will take a specific look at how the sector can adapt with regards to global climate change and incorporate sustainability into their supply-chain operations.

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

AD Ports refinances USD 2.25 bn loan to benefit from lower interest rates

AD Ports Group inked agreements with two UAE banks to refinance its USD 2.25 bn syndicated loan, according to an ADX disclosure (pdf). The new terms are expected to shave off up to USD 12 mn (AED 44 mn) in finance costs over the next year.

The agreement swaps out the USD 2.25 bn loan for two new facilities: a USD 2.5 bn (AED 9.2 bn) medium-term bond with a 2.5-year maturity, as well as a USD 273 mn (AED 1.0 bn) short-term bond with a 1.5-year tenor.

Background: The company had secured the multi-currency facility last year, with an initial tenor of up to 2.5 years. First Abu Dhabi Bank and Citigroup were the coordinators and bookrunners on the facility, which saw participation from 13 banks.

The move comes as Fed kicked off its interest rate easing cycle last Wednesday: The Central Bank of the UAE followed in the US Federal Reserve’s footsteps last week and cut the overnight deposit rate by 50 basis points, from 5.40% to 4.90%, while leaving the interest rate applicable to borrowing short-term liquidity at 50 basis points above the base rate. The move to refinance the debt allows AD Ports to “optimally take advantage of the easing interest rates cycle” and secure longer tenors at more competitive rates, the company said.

The group aims to use bonds as its “predominant long-term funding vehicle,” capitalizing on their flexibility to strategically time returns to the debt capital markets, the disclosure reads.

The firm has a good credit rep: AD Ports is rated A+ and gcAAA by S&P, and AA- with a stable outlook by Fitch.

KSA’s Folk Maritime to invest multi-mn USD in fleet expansion over the next five years

PIF-backed shipping firm Folk Maritime is lining up a multi-mn USD fleet expansion over the next five years, CEO Poul Hestbaek told Bloomberg. The shipping firm will buy or charter 15 to 18 container ships in the next three to five years to increase access for KSA’s smaller ports and alleviate demand for road transportation.

The breakdown: The firm aims to purchase about two-thirds of the ships it plans to add to its fleet and will charter the rest, Hestbaek says. The firm acquired its first vessel this year and leased two additional ships. “We are working on a long-term strategy … first and foremost, the geographical scope is the Red Sea, all the countries surrounding the Red Sea,” Hestbaek added.

We saw this coming: Folk Maritime looks to order its own fleet of vessels with a tonnage capacity customized for trade around the Middle East over the next three to four years, Hestbaek told Seatrade Maritime back in August. “We believe that by having some unique designs and some unique features on the feeder and short sea vessels that we will be operating, we can gain on cost competitiveness,” he said.

Folk has been ramping up on services: Folk Maritime said it is launching a new liner service this month that connects Jeddah Islamic Port to India’s Mundra and Nhava Sheva, as well as new services connecting India with the Red Sea and the Arabian Gulf in 4Q 2024. French shipping giant CMA CGM partnered with Folk Maritime back in March to launch an upgraded service connecting ports in the Red Sea. The Saudi Port Authority (Mawani) has added a new shipping service by Folk Maritime connecting Jeddah Islamic Port with Port Sudan.

And wants to add more: The shipping outfit also plans on introducing three new routes next year to connect India to the Red Sea region, the Gulf, and Eastern Africa — adding on to the two routes it currently operates in the northern Red Sea.

The key takeaways from Egypt’s trade mission to the UK

Egypt’s business mission to the UK bears fruit: The British Egyptian Business Association’s (BEBA) three-day Invest in Egypt: Your Gateway to Growth business mission to the UK saw a number of Egyptian cabinet members and higher ups discuss a wide array of potential investments with UK-based firms and other entities, as part of a larger push towards boosting foreign direct investment, according to statements here, here, and here.

A star-studded line up: The mission included Egypt’s Finance Minister Ahmed Kouchouk, Egyptian Investment Minister Hassan El Khatib, SCZone head Walid Gamal El Din, and Financial Regulatory Authority boss Mohamed Farid. Some important figures from HSBC also joined the mission, including HSC Egypt CEO Todd Willcox.

Firms are already interested: Air cargo service provider Wynne Aviation is looking into making the Suez Canal its business hub in Egypt and Africa and London-based Africa-focused energy company Globeleq unveiled its plans to increase its investments in renewables in the local market. Meanwhile, pharma giant GSK expressed interest in increasing its investments in Egypt’s pharma sector by boosting its local R&D capabilities.

That’s not all: Egyptian officials also met with representatives from fruit producer Blue Skies, railway signaling part manufacturer Park Signaling, who expressed interest in investing in Egypt’s domestic market.

Front and center: Egypt is paying great attention to a number of sectors that include energy, infrastructure, manufacturing, and information and communication technology, El Khatib said.

The road to boosting investments: The government is working to enhance competitiveness, simplify procedures, and increase PPPs in an effort to attract more FDI, El Khatib added.

A message of reassurance: Kouchouk indicated that Egypt’s current economic situation is “reassuring,” citing financial performance indicators for the fiscal year 2023-2024 where Egypt achieved a primary surplus of 6.1% and the budget deficit fell to 3.6% of GDP. Egypt is currently aiming to maintain annual primary surpluses that would bring our debt-to-GDP ratio below 85% by the end of the next fiscal year, he added.

UAE’s MGX, Blackrock, GIP, Microsoft plan major data center investment

Microsoft + Blackrock + MGX to launch USD 30 bn AI infrastructure fund: Mubadala’s Abu Dhabi-based AI investment company MGX, Investment firm BlackRock, private equity firm Global Infrastructure Partners (GIP), and tech-giant Microsoft are launching the Global AI infrastructure investment partnership (GAIIP) to boost data center capacity, according to a statement released last week. The move looks to expand global data center capacity in response to the rising demand for computing power.

What we know: Under the partnership, the group looks to unlock USD 30 bn in private equity capital from investors, asset owners, and corporates, the statement said. The partnership will in turn generate, including debt financing, up to USD 100 mn in total investment potential. The partnership will also be plugging investments into energy infrastructure, primarily in the US, and new sources of power for these facilities. Multinational software firm Nvidia is slated to provide its expertise in AI data centers and AI factories to the partnership, to propel efficient scaling of data centers.

What they said: “Mobilizing private capital to build AI infrastructure like data centers and power will unlock a multi-trillion-dollar long-term investment opportunity,” BlackRock CEO and Chairman Larry Fink said in the statement. The group will be “committed to ensuring AI helps advance innovation and drives growth across every sector of the economy,” Microsoft CEO Satya Nadella added.

Not the first move: MGX reportedly joined a consortium last month led by IFM Investors, DigitalBridge, Silver Lake Management, and GIP to bid for Australian data center operator AirTrunk. The sale of AirTunk is expected to be one of the largest digital infrastructure transactions in Asia Pacific this year. AirTrunk kicked off the sale process in March, seeking around USD 20 bn, with at least two bidders in the fray.

REMEMBER- MGX, formed last March by the Artificial Intelligence and Advanced Technology Council, is targeting more than USD 100 bn in assets under management in a few years. The company was reportedly also looking to invest in OpenAI’s new AI chip and power production venture, which is estimated to require some USD 7 tn.

Faisal Saad AlBedah resigns as SAL CEO

SAL Saudi Logistics CEO steps down: KSA-based logistics provider SAL Saudi Logistics Services’ managing director and CEO Faisal Saad AlBedah (LinkedIn) is resigning effective 1 November, according to a disclosure issued on the Saudi Exchange (Tadawul) last week. AlBedah has served as MD and CEO for SAL since 2022, and previously served as Secretary General for Saudi Export Development Authority, Secretary General for the national Logistics Services Committee, and as an advisor to the minister of municipal and rural affairs, according to his LinkedIn.

A basket of updates from KSA, Morocco, and Oman

SUPPLY CHAINS-

J&T Express + RCYJ partner up on supply chain development: Global logistics firm J&T Express has inked an MoU with Saudi Arabia’s Royal Commission for Jubail and Yanbu (RCJY) to collaborate on supply chain and logistics development within RCJY’s economic zones, Gulf Tech reports. RCYC will leverage J&T’s experience to attract e-commerce and logistics-related partnerships to the economic zones.

DECARBONIZATION-

Saudi Arabia’s NTSC + SBT + Electromin ink decarbonization roadmap agreement: Saudi Arabia’s National Transportation Solutions Company (NTSC), Saudi Bulk Transport (SBT), and Electromin are launching a joint operation to drive the shift towards cleaner and more innovative transport solutions in the Kingdom, according to a statement released on Thursday. The group has inked a decarbonization roadmap agreement that outlines a framework for developing and executing advanced transportation solutions, emphasizing the creation of detailed decarbonization strategies and the reduction of carbon emissions across various modes of transport. The agreement involves replacing traditional diesel trucks with electric light duty trucks, and has already secured an order for the first batch of trucks.

ZONES-

RAK Ports + Jianhua partner up on concrete manufacturing facility: Dubai-based maritime port operator Ras Al Khaimah (RAK) Ports and China’s concret firm Jianhua Holdings Group signed an agreement to build the first phase of a manufacturing facility for prestressed high-strength concrete piles in RAK Maritime City Freezone, according to a statement published last week. The investment ticket is over AED 100 mn (c. USD 27 mn), according to the statement, which did not reveal a timeline for construction.

Strategizing production and exports: The facility will meet the increasing demand for high-quality materials in the GCC and Asia markets. “This new manufacturing facility will not only enable us to meet the growing demand for construction materials in the region but also solidify our position as a key contributor to the UAE’s industrial sector,” RAK Ports CEO Roy Cummins said in the statement.

TRADE-

Saudi Exports + Al Nahdi to promote KSA products: The Saudi Export Development Authority (Saudi Exports) has signed an MoU with Al Nahdi Medical company to support Saudi products and boost their presence on Al Nahdi pharmacy shelves, their Made in Saudi program and network in Saudi Arabia’s Pharmaceutical retail sector, SPA reported last week. The products hosted on the shelves will be locally manufactured health and medical supplies.

STORAGE + WAREHOUSES-

Logisolutions opens high-rise logistics platform in Morocco: Morocco-based logistics firm Logisolutions has inaugurated Morocco’s first high-rise warehouse in Ain Sbaa-Sidi Bernoussi’s industrial zone in Casablanca, MAP reported last week. The facility — which spans 15k sqm — features 25k pallet slots across 18 meters of high-rack shelving and is equipped with 16 loading docks.

AVIATION-

EMMA to install new management system Muscat airport: Oman Airports Management Company has partnered with Doha-based airport management firm EMMA Systems to install its advanced airport management platform A-CDM at Muscat International Airport, according to a statement published last week. The collaboration — implemented through EMMA System’s local partner Shanfari Special Projects LLC — aims to boost operations at Oman’s airports by enhancing resource management, strengthening collaborations, and improving operational efficiency, the statement said.

OTHER STORIES WORTH KNOWING THIS MORNING-

Menzies + Cathay Cargo continue their cargo cooperation: Ground handling firm Menzies Aviation, a subsidiary of Kuwait’s Agility, has renewed a five-year contract with Hong Kong cargo carrier Cathay Cargo to provide cargo and freighter ramp services — managing 85k tonnes annually — in Australia and New Zealand. (Statement)

Cathay Pacific’s engine failure probe yields results + AirAsia and Airbus partner up on SAF in ASEAN

The Cathay Pacific Airbus A350’s in-flight engine failure earlier this month was caused by a damaged fuel hose that also showed signs of a fire, Reuters reported on Thursday, citing the results of a probe by Hong Kong’s aviation accident investigation agency. The investigation also found a ruptured fuel hose in the second engine on the aircraft, and five other secondary fuel hoses with evidence of wear and tear. The agency warned that “if not promptly detected and addressed, this situation, along with further failures, could escalate into a more serious engine fire, potentially causing extensive damage to the aircraft.”

ICYMI- Cathay Pacific announced it was inspecting all the Rolls-Royce-made engines on its Airbus A350 jets after the in-flight engine component failure. The problem surfaced on a Zurich-bound flight several minutes after take-off from Hong Kong, forcing the plane to turn back and land 75 minutes after departure.

AirAsia and Airbus partner up for SAF in ASEAN: Malaysian airline AirAsia inked an MoU with Airbus to explore the production and expand the use of Sustainable Aviation Fuel (SAF) in the Association of Southeast Asian Nations (ASEAN) region, according to a statement released on Thursday.

The focus: The partnership will explore the decentralized production of SAF using alternative feedstock and tech, according to the statement. The endeavor seeks to determine chances to support the continued commercial growth of promising projects to increase SAF supply in the area.

Formula 1 invests in SAF with DHL: The Formula 1, the motorsport championship, has made an investment in sustainable aviation fuel (SAF) by entering a "book and claim" agreement with air cargo partner DHL, according to a press release issued on Friday. By the time of the Singapore Grand Prix, around 20% of the Formula 1 cargo flights to races outside Europe this year are planned to utilize DHL’s GoGreen Plus service with SAF, the statement said.

Book and claim? This system enables the separation of specific environmental attributes, like reduced greenhouse gas emissions, from physical products and allows them to be transferred to another party via a registry, the statement explains. Buyers and sellers can engage without direct involvement in the physical fuel supply chain. When making a purchase, buyers “book” a certain amount of sustainable fuel and “claim” the associated emissions reductions to support their sustainability goals.

Consortium conducts ship-to-ship ammonia transfer in Australia: Japan's Mitsui Lines, Norway's Yara, and Singapore's Global Centre for Maritime Decarbonisation have completed the world's first ship-to-ship ammonia transfer at anchorage in Australia's Dampier port, Reuters reported last week. The operation simulated real bunkering conditions and involved two transfers of 4k cubic meters of ammonia between a Mitsui gas carrier and a Navigator Gas carrier. The Pilbara region, known for its ammonia production, is expected to become a hub for ammonia bunkering.

US suing cargo ship owners over Baltimore bridge collapse: The US Justice Department has filed a lawsuit seeking more than USD 100 mn from the two Singapore firms that operated the ship, the Dali, that ran into Baltimore’s Francis Scott Key Bridge back in March, Reuters reported last week. The department is seeking compensation from Grace Ocean Private Limited and Synergy Marine Private Limited for the money spent to recover from the incident, including to remove over 50k tons of debris.

Was there negligence? Justice Department official Benjamin Mizer says that the ship’s owners were aware of longstanding issues with the Dali’s electrical and mechanical systems and failed to correct them “out of negligence, mismanagement, and at times, a desire to cut costs… as a result, when the Dali lost power, a cascading set of failures led to disaster.” The lawsuit was brought as part of a legal action initiated by Grace Ocean and Synergy to limit their liability for the crash to USD 44 mn, which department officials described as “woefully inadequate.”

REMEMBER- Baltimore Port’s main shipping channel fully reopened back in June, nearly 11 weeks after it was closed when a cargo vessel crashed into and destroyed the Francis Scott Key Bridge. The Dali was exiting Baltimore’s port when it reported a problem with power and signaled a “ mayday ” before striking the bridge. Footage of the incident shows the vessel hitting one of the bridge’s columns, causing it to collapse into the water in seconds, with some parts of the bridge falling onto the Dali and resulting in a fireball.

OTHER STORIES WORTH KNOWING THIS MORNING-

FedEx launches new digital platform: Delivery giant FedEx is launching its new data-driven platform fdx, with customizable end-to-end e-commerce for businesses across the US. (FedEx)
India eyes second-hand vessels for fleet expansion: India is looking to add second-hand vessels to its national fleet to expand its container shipping capacity. The new vessels are expected to cut down export times and boost the nation’s container capacity by 10% to 12%. (Reuters)
Pertamina to double its fleet by 2030: Indonesia’s state-owned energy firm Pertamina intends to double its fleet of 320 tankers within the next 10 years. The move aims to reduce the average age of the company’s fleet and will include adding vessels to transport LNG. (Reuters)
Brussels Airlines canceling most 1 October flights amid strike: Brussels Airlines will cancel most of its flights on 1 October because of Belgian security workers going on a national strike. The airlines will need to cancel 80% of the 203 flights scheduled for that day. (Reuters)
American Airlines seeks to delay resuming China flights: US carrier American Airlines has asked the US Transportation Department for permission to delay the resumption of two daily flights to China because of passenger demand that is still below its pre-pandemic level. (Reuters)
Lufthansa could cancel Frankfurt-Beijing route: German carrier Lufthansa is considering canceling its Frankfurt to Beijing flights because of increasing costs and competition from China. A final decision will be made in October. (Reuters)

Calendar

SEPTEMBER

23-25 September (Monday-Wednesday): WorldFreezonesOrganization’s Annual International Conference and Exhibition (AICE), Dubai, UAE.

23-26 September (Monday-Thursday): Freight Summit Global Conference, Dubai, UAE.

25-26 September (Wednesday-Thursday): Global Aerospace Summit, Abu Dhabi, UAE.

30 September - 2 October (Monday-Wednesday): African, Middle East & Islamic Finance Aviation 100 Awards, Dubai, UAE.

OCTOBER

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

8-10 October (Tuesday-Thursday): The Global Rail Transport Infrastructure Exhibition and Conference(Global Rail), Abu Dhabi, UAE.

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

8-10 October (Tuesday-Thursday): AntwerpXL Expo, Antwerp, Belgium.

12-14 October (Saturday-Monday): Global Logistics Forum, Riyadh, Saudi Arabia.

13 October (Sunday): International Transport Workers’ Federation (ITF) Congress, Marrakesh, Morocco.

16-17 October (Monday-Tuesday): Global Airport & Aviation Forum, Jeddah, Saudi Arabia.

21-22 October (Monday-Tuesday): Smart Ports & Logistics Transformation Summit, Riyadh, Saudi Arabia.

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

22-24 October (Tuesday-Thursday): Global Ports Forum, Singapore.

26-27 October (Saturday-Sunday): International Conference on Tourism, Transport, and Logistics, Dubai, UAE.

NOVEMBER

11-12 November (Monday-Tuesday): World Advanced Manufacturing Logistics Summit & Expo, Riyadh, Saudi Arabia.

11-12 November (Monday-Tuesday): Saudi Airport Exhibition, Riyadh, Saudi Arabia.

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

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

13-15 November (Wednesday-Friday): ITC North-South - New Horizons, Astrakhan, Russia

18-20 November (Monday-Wednesday): The Heavy Equipment and Truck Show, Damman, Saudi Arabia.

19-21 November (Tuesday-Thursday): Saudi International Maritime Forum, Dammam, Saudi Arabia.

18-19 November (Monday-Tuesday): G20 Summit, Rio de Janeiro, Brazil.

20-21 November (Wednesday-Thursday): Saudi Rail Exhibition, Riyadh, Saudi Arabia.

DECEMBER

2-3 December (Monday-Tuesday) Wings of Change Middle East, Riyadh, Saudi Arabia.

10-11 December (Tuesday-Wednesday): Rail Industry Summit, Casablanca, Morocco.

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

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

EVENTS WITH NO SET DATE

IATA Annual General Meeting (AGM) and World Air Transport Summit, New Delhi, India.

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.

The Cross-Border Digital Trade Forum, Dubai.

2025

FEBRUARY

4-5 February (Tuesday-Wednesday): Seatrade Maritime Qatar, Doha, Qatar.

APRIL

16-17 April: Global Ports Forum, Dubai, UAE.

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.

NOVEMBER

4-6 November: The International Air Cargo Association TIACA’s Air Cargo Forum 2025, Abu Dhabi, UAE.

2026

2026 UNCTAD Global Supply Chains Forum, Saudi Arabia.

2027

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

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