Lots of aviation news from Bahrain’s Routes World forum

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TODAY: Everything that happened at the Routes World forum in Bahrain + Equipment updates from Milaha

Good morning, friends. It’s an aviation bonanza this morning after the Routes World forum wrapped in Bahrain yesterday, with news from nearly all our regional players. We also have a troubling update from the US gulf coast as hurricane season ramps up.

THE BIG LOGISTICS STORY- US Gulf Coast faces yet another hurricane: Florida Ports have imposed restrictions on its vessel navigation ahead of the fast approaching Category 5 Hurricane Milton which is expected to make landfall today. At least one oil and gas production facility in the Gulf of Mexico was shuttered on Monday, and the closure of terminals is expected to disrupt import and export activities. Most Gulf Coast energy infrastructure is not expected to be in the storm’s path. Multiple airports in Florida including Tampa International Airport and Sarasota Bradenton International Airport closed yesterday, Orlando International Airport and Orlando Sanford International Airport plan to close this morning along with other international airports. Some airports plan to resume operations on Thursday or Friday.

Another intense Hurricane: Hurricane Milton intensified into a Category 5 storm on Monday, creating an urgent threat to Mexico's Yucatan Peninsula as it barrels toward Florida. The state has ordered widespread evacuations while still dealing with the aftermath of Hurricane Helene.

This story grabbed a lot of ink in the int’l press: Reuters | Bloomberg | The New York Times | BBC

WATCH THIS SPACE-

#1- Red Sea disruptions cast a shadow over Jordan’s trade: Several Mediterranean ports in Turkey, Greece, and Egypt have increasingly been feeding Jordan’s Aqaba port with Far East cargo that could have arrived along mainstream routes through Bab El Mandeb, chairman of the Jordan Shipping Association Duried Mahasneh told The National. Although there have been no shortages, goods in Jordan have become more expensive. “We have been seeing a high rise in costs, delays, and less business. A big shipping line that we represent is no longer coming to Aqaba directly,” Mahasneh added.

In numbers: The number of cargo ships fell 61% to 4.5k ships in the first eight months of the year, while oil tanker traffic was down 64% to 2.2k. Despite the shortage in tankers, imports and exports handled by Aqaba port remained steady at 14.1 mn tonnes in the first eight months of the year. The increased activity at Aqaba saw it handling 296 container fitted vessels by the end of August, up 23% y-o-y. General cargo vessels handled by Aqaba fell 46% to 27%, and ships carrying cars and ro-ro vehicles decreased 61% to 49% during the same period. Container traffic was down 10% to 272k TEUs.

The solution? “There is no remedy other than building up feeder vessels to bring in the cargo and relying on Jebel Ali,” he added.

#2- Bahri sells old VLCC, snaps up new ultramax bulker: Saudi Arabia’s national shipping carrier Bahri sold a 303k dwt VLCC Safwa, built in 2002, for USD 31.7 mn, and is buying a 2018-built 62k dwt ultramax bulker Amis Miracle from Wisdom Marine, Trade Winds reports, citing brokers with knowledge of the transaction. Safwa’s price is slightly above VesselsValue’s estimate of USD 30.3 mn and above the Maritime Safety Information’s (MSI) USD 24.7-29.7 mn range.

This comes a few weeks after Bahri acquired nine oil tankers for USD 1 bn, from Capital Maritime and Trading Corporation. The company is also looking to expand its LNG fleet, adding 20 to 30 new tankers to boost Saudi Arabia’s fuel supplies and meet global demand.

#3- DHL expects increased airfreight demand in 1Q 2025: DHL is expecting an uptick in airfreight demand in 1Q 2025, continuing an anticipated upward trend in 4Q 2025, CEO DHL Global Forwarding Tim Robertson told Air Cargo News last week. “In 3Q we saw some mid-single digit increases in airfreight over 3Q of 2023. We do anticipate that post Golden Week we’re going to see a nice run up in volumes, so we should anticipate to see the volume increase. The environment is such that that trend should continue in the first quarter of next year,” Robertson said. The logistics giant is also anticipating an increase in airfreight from shippers on the back of the disruptions from the US port strikes.

MARKET WATCH-

#1- Oil prices remained steady in early morning trading as traders assessed developments in the Middle East conflict against bearish expectations for demand, Reuters reports. Brent crude futures rose USD 0.22 to USD 77.40 a barrel at 03.49 GMT, while US West Texas Intermediate (WTI) futures gained USD 0.14 to USD 73.71 a barrel. Prices plunged over 4% in the previous session on the back of news of a possible Hezbollah-Israel ceasefire, but anticipations of a potential Israeli attack on Iran's oil infrastructure continue to affect trading.

#2- Baltic index continues its easing streak: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — fell 2.5% to 1,860 points for the seventh consecutive session on Tuesday, registering their lowest since late August. The capesize index dropped over 5% to an over one-month low of 2,989 points, while the panamax index gained 26 points to 1,441 points. The smaller supramax notched up 7 points to 1,264 points.

DATA POINT-

#1- Iran’s foreign trade rose 9.4% y-o-y to USD 30.6 bn in the three months to 21 September, Iranian outlet Press TV reports, citing data by the House of Industry, Mine, and Trade. Iran’s exports increased 6.2% y-o-y to USD 12.3 bn during the same period, while imports increased 11.6% to USD 18.3 bn.

#2- Cargo handling at Saudi ports was up 7.8% y-o-y to 28.1 mn tons in September, according to figures released by the Ports Authority (Mawani). The number of export containers grew 9% y-o-y to 255.6k TEUs, while imported containers climbed 18% to 258k TEUs last month. Meanwhile, general cargo reached 975.k tons, solid bulk cargo totaled 4.47 mn tons, and liquid bulk cargo hit 15.3 mn tons. Transshipment containers dropped 43% to 159.5k, and total container volume dipped 8.1%.

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CIRCLE YOUR CALENDAR-

Saudi Arabia will 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.

Saudi Arabia will host the Global Airport & Aviation Forum from Wednesday, 16 October to Thursday, 17 October in Jeddah. The forum will bring together aviation leaders and experts to discuss future projects in the aviation industry, including new airport developments, capacity upgrades and expansions, new aircraft orders, and important airport services.

Saudi Arabia will host the Smart Ports & Logistics Transformation Summit on Monday, 21 October and Tuesday, 22 October in Riyadh. The two-day conference aims to discuss strategies, innovation, and technologies in line with Saudi Arabia’s Vision 2030, which aims to position KSA as a logistics hub in the MENA region.

The UAE will host the International Conference on Tourism, Transport, andLogistics on Saturday, 26 October and Sunday, 27 October in Dubai. The event will gather scientists, scholars, and engineers from around the world to discuss new ideas and research development projects in the industry.

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

Aviation updates from Bahrain’s Routes World forum

We have a deluge of updates emerging from regional aviation players this morning as the Routes World forum in Bahrain wrapped yesterday. The forum — hosted by Bahrain International Airport — saw regional and international announcements including airport expansions, increased connectivity, and new partnerships.

#1- Oman Air set to launch its first new route in five years: Oman’s flagship carrier Oman Air is launching a new route to Rome, its first new route in five years, as part of a strategy to maximize the use of its narrowbody fleet and network, CEO Con Korfiatis told Aviation Week. The airline is set to partner with Oneworld alliance to boost its global connectivity and extend its network to broader European and Far Eastern markets, as well as add new destinations across Africa and the US. Oman Air is also expecting to expand its fleet, operating Boeing 787-9 aircraft for widebody services by next year and transitioning to a 737-9 fleet for narrowbody operations by mid-2026.

#2- Air Arabia is expecting new deliveries: The UAE’s budget carrier Air Arabia is expecting the delivery of 120 Airbus A320 aircraft in the second half of 2025, followed by A321XLRs in 2027, CEO Adel Ali told Aviation Week. Although the integration of XLRs will offer Air Arabia an 8.5-hour range that is sufficient to operate transatlantic flights, the carrier will instead extend its operations in the Middle East and further afield from Morocco, with the possibility of reaching South Africa. “We've been leasing quite a lot of airplanes from the market to grow the business,” Ali added.

#3- Riyadh Air making expansion moves: Saudi Arabia’s Riyadh Air is expecting to finalize its air operator certificate (AOC) by the end of the year, and has 39 Boeing 787-9s on order that will fly long-haul and operate through Riyadh to regional destinations, Aviation Week reports, citing comments made by CEO Tony Douglas at the forum. Riyadh Air also aims to add a narrowbody order to its fleet to begin narrowbody operations within a year of launching, and has started on an order campaign for larger widebodies. The carrier is also looking to serve 100 destinations within five years and is not seeking any global alliance, but is eyeing one more Western European partner and one partner from the Indian subcontinent. The airline’s initial network plans will be released in early 2025.

#4- Big expansion moves expected from Etihad: Etihad Airways is planning to reveal a significant network expansion in late November and early next year as it prepares to receive its first Airbus A321LR, according to Aviation Week. “The date to watch out for is November 25, when we will announce 11 new cities. And then, next year — around January or February — we're going to announce 20 more cities. So we have a lot of growth coming,” Etihad Airways Chief Revenue and Commercial Officer Arik De told delegates at the summit.

#5- King Salman Airport is aiming high: Riyadh’s King Salman International Airport is poised to be among the world’s biggest airports when it opens in 2030, covering 57 sq km and accommodating over 100 mn passengers, Aviation Week reports. The airport will integrate several modes of transport to boost regional connectivity. “The connectivity from passenger terminals to cargo areas is also being prioritized to reflect the importance of belly cargo in our operations and to improve the kingdom’s logistic performance index to be among the top 10 globally,” VP Investment & Partnership Mammen Tharakan said at the forum.

#6- Bahrain airport wants to boost its connectivity: Bahrain International Airport is looking to bolster its global connectivity, with plans to increase its reach to over 100 destinations within the next four to five years, according to Aviation Week. The airport is looking to strengthen partnerships with Gulf Air, the Bahrain Tourism and Exhibition Authority, as well as other stakeholders to enhance air connectivity, improve passenger experience, and foster economic growth. “We are targeting major markets in North America, Europe, Africa and Asia, and we believe that our coordinated efforts will lead to much better performance in both air traffic movements and passenger traffic,” Bahrain Airport Company CEO Mohamed Yousif Al Binfalah said at the forum. The airport will also bolster its cargo operations with the development of the Express Cargo Village — with a 12.5k sqm first phase that is already operational and has FedEx as a first tenant.

Milaha + NOC ink QAR 792 mn charter to operate Milaha Al Shaheen barge

Milaha + NOC ink 10-year agreement for jack-up barge: Qatar Navigation’s (Milaha) subsidiary Halul Offshore Service Company has signed a QAR 792 mn (c. USD 217.6 mn) 10-year charter with Iraq’s North Oil Company to operate Milaha Al Shaheen, Qatar’s first flagship jack-up barge, according to a press release. The Milaha Al Shaheen will be instrumental in future offshore projects, supporting Milaha’s long-term goal of positioning Qatar as a major contender in the global maritime sector, the statement said.

The specs: Milaha Al Shaheen is a four-legged jack-up barge designed to support a wide range of offshore operations in tandem with the highest environmental sustainability standards. The barge has a 104-meter leg length and is equipped with a 300-ton crane.

Milaha has been doubling down on partnerships: The Saudi Port Authority (Mawani) and DP World Mundra recently added Milaha Gulf Express 2 by Milaha to boost their connectivity with ports. The shipping service will help Mawani connect King Abdul Aziz Port in Dammam with seven regional and international ports, while it will help boost India’s connectivity with routes along several ports, including Shanghai, Ningbo, Shekou, Nhava Sheva, Mundra, Sohar, Hamad, and Dammam. Milaha added a new shipping service — Milaha Gulf Express (MGX) — back in May that connects three Chinese ports in Shanghai, Ningbo, and Shekou with the UAE’s Jebel Ali. The outfit also inked a five-year agreement with Qatar Steel back in July to provide logistics services at Mesaieed Industrial City to boost the import and export of Qatar Steel-manufactured products.

Updates on trade, warehouses, and zones from Turkey, Qatar, and Egypt

INVESTMENT WATCH-

Tunisia + EIB discuss investment for transport projects: Tunisia’s Transport Minister Rachid Amri and a delegation from the European Investment Bank (EIB) discussed potential investment for projects related to clean transport, maritime transport, mass public transportation, and the blue economy, Babnet reports.

EIB has supported Tunisia before: The country received a EUR 123 mn loan from the EIB in April for the construction of the Bizerte Bridge project. The African Bank of Development also loaned Tunisia EUR 122 mn for the project.

ZONES-

Egypt lines up solar panel manufacturing: The first USD 1.8 mn phase of a solar panel mounting and installation factory is set to kick off in Egypt’s Ain Sokhna industrial zone within two months, according to a statement. The factory is being built under a contract inked between industrial developer Main Development Company and project owner Pyramids Alu — a JV between Egypt’s Alu Africa and China’s Alu Pro and should eventually reach a monthly capacity of 1.8k tons and only local components in its production.

TRADE-

Turkey + Brazil biggest buyers of Russian diesel after EU embargo: Turkey and Brazil have been the biggest importers of Russia’s searborne diesel and gasoil since the EU placed an embargo on the import of Russian oil products in 2023, Reuters reports, citing data from market sources and finance firm LSEG.

Russia’s exports to Turkey increased to 1.07 mn metric tons of low-sulfur diesel and gasoil in September, up from 1.04 in August. Russian diesel exports to Africa — where Libya, Tunisia, Senegal, and Egypt were the top importers — fell to 0.44 mn tons from 0.73 the month prior.

STORAGE + WAREHOUSES-

Alijarah opens new warehouses: Doha-based firm Alijarah Holding has opened new warehouses in Wadi Aba Saleel, Qatar, according to a disclosure. The new warehouses — each covering an area of 300 to 450 sqm — feature round-the-clock security, firefighting systems, surveillance equipment, and various service amenities, the statement said. Additionally, they are equipped with energy-efficient lighting to promote environmental sustainability.

OTHER STORIES WORTH KNOWING THIS MORNING-

Emirates resumes flights to Iraq: Emirates Airlines resumed flights on Tuesday to Iraq’s Basra and Baghdad, while flights to Iran’s Tehran and Lebanon’s Beirut will remain suspended till 15 October 2024. (Statement)
Sharjah Airport onboards UPS: Global logistics giant UPS has been added among the cargo companies operating at the UAE’s Sharjah International Airport, with four weekly cargo flights. (Wam)

Italian sub-contractors accused of supplying Boeing with faulty parts

More Boeing drama from Italy: Recent investigations by prosecutors in southern Italy revealed that two Italian sub-contractors used cheaper and non-compliant forms of titanium and aluminum to manufacture certain parts for Boeing’s 787 Dreamliner, which compromised plane safety, Reuters reports. The sub-contractors used pure titanium instead of the prescribed titanium alloy as well as non-prescribed aluminum alloys to make structural components of the aircraft, which saved significant sums of money. The US planemaker has launched an extraordinary maintenance campaign on the affected aircraft.

Who’s involved? The Italian prosecutors accused seven unnamed people and two-subcontracts of fraud and breach of airplane safety rules. Possible suspects include family-owned Manufacturing Process Specification (MPS) and its predecessor company Processi Speciali, Reuters said, citing two sources. The suspects reportedly supplied parts for section 44 and 46 of the Boeing 787 Dreamliner’s fuselage, built by Leonaordo in southern Italy. Court documents reveal that MPS and Processi Speciali used to supply Leonardo with a fitting that secured the floor beam in one fuselage section, as well as spacers, brackets, and clips for a cargo door flame. Both Leonardo and Boeing dropped MPS from their suppliers list after the probe started.

It’s not clear if charges are coming: The individuals and businesses accused by the prosecutors will have the opportunity to present any new evidence in their defense before the prosecutors determine if they will ask a judge to schedule a trial.

Somalia getting a new USD 70 mn port: Somalia’s coastal town of Hobyo will start construction on a new USD 70 mn port in December, which is slated for operations in three years, Bloomberg reports. Turkish firm Metag Holding will oversee the construction of the port, which will be situated 435 miles northeast of the capital Mogadishu, company representative Mohammed Ali Warsame said. Hobyo is located in the semi-autonomous Galmudug region of the Horn of Africa. Warsame noted that this facility will be the nearest seaport for landlocked Ethiopia, potentially opening up business opportunities with neighboring nations.

The context: This year, diplomatic relations between Somalia and Ethiopia have worsened after Ethiopian Prime Minister Abiy Ahmed signed an Mou with the breakaway region of Somaliland in January, seeking access to a port. This action upset Somalia’s federal government in Mogadishu.

Calendar

OCTOBER

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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