Good morning, nice people. It’s a busy morning on the regional logistics front with a pile of updates coming in from Damac, Egypt, Algeria and Tunisia cutting across nearly every subsector. But before we dive into the news…

A HAT TIP TO DP WORLD- The UAE port operator’s total container handling capacity has grown 33% over the last decade surpassing a milestone of 100 mn TEUs handling capacity recently, according to a statement. The firm attributes the increase to over USD 11 bn in investments. DP World’s container handling capacity jumped 5% y-o-y in 2024, bringing its share of the global container market to 9.2%.

WATCH THIS SPACE-

#1- Oman to set up ship recycling yards: Oman’s Ministry of Transport, Communications, and Information Technology (MTCIT) has plans to establish advanced green ship recycling and dismantling yards, Muscat Daily reports. The initiative aims to extract reusable parts and raw materials such as scrap metal while supporting Oman’s sustainability goals.

There’s more bubbling in Oman’s maritime sector: Public auctions will also be held to court private sector engagement in operating and developing Shannah and Masirah ports. Concession agreements have been signed with leading international port management firms, and licenses have been granted for marine dock operations outside main ports.

#2- Morocco to import rice to make up for production drop amid drought: Morocco has authorized the import of 55k tons of rice to address a severe shortfall in domestic production caused by ongoing drought, Morocco World News reports. The first shipments are expected to arrive in January. The Moroccan Trade Ministry suspended customs duties and value-added tax on rice imports effective 1 January to stabilize market prices and protect citizens’ purchasing power.

A rough drought: Domestic rice production has plummeted from 55k tons in 2023 to 7k tons in 2024, a drastic decline from the 74k-ton average recorded in 2021 and 2022. The six-year-long drought, exacerbated by climate change, has devastated cereal farming, including wheat, maize, and barley.

#3- The US temporarily lifts some sanctions on Syria: The US Treasury Department has issued temporary exemptions to allow transactions with government institutions, the oil sector, and personal transfers in Syria, Asharq Business reports, citing an official statement. The license, valid for six months, expands authorizations for activities and transactions in Syria following the end of Bashar al-Assad’s rule.

Syria needs capital to keep its transport sector running: Syria needs USD 100-200 mn to maintain its current state of transport and logistics operations, Transport Minister Bahaa Eddin Sharm told CNBC Arabia in an interview. Sharm highlighted the challenge in estimating the ministry’s revenues for the next two or three months despite plans to transport goods from Asia to Europe, as well as from Turkey to Jordan and the Gulf.

Where would the funds go? Syria has plans to develop train tracks with speeds of 120 km/hour in the first phase, Sharm says, followed by 300 km/hour. There is also a need for new ports with a depth of 17 meters to accommodate large ships, he added. Efforts are underway to set up a freezone for used cars at the port of Latakia within the next few days, adding that the zone will have capacity for 5k cars, with the potential for expansion. Syria is also planning to reduce transport tariffs by 20% on certain routes.

#4- Airbus facing financial impact following year-end delivery rush: Airbus is assessing the financial impact of last-minute concessions made to airlines to address a series of minor quality issues, following the rush to deliver a total of 123 jets in December, Reuters reports, citing industry sources. Weak supply chains are forcing planemakers to compensate airlines for cosmetic defects or fork out for extra maintenance if airlines are willing to take on aircrafts before deadlines, insiders said. Airbus has reportedly made financial pledges or offered commercial incentives, dubbed concession letters, to make several December deliveries, they added. Airbus has declined to comment.

Hitting its targets: As it stands, the manufacturing giant’s end-of-year rush increased its preliminary 2024 deliveries by 4% y-o-y to reach 766 jets. This figure is yet to face internal audits, which could cut the aircraft by one or two jets before the final data is disclosed tomorrow, sources told the newswire.

REMEMBER- Although Airbus started the year on a high — ending 2023 with a record 2k orders for new aircraft and a total order backlog of 8.5k — it had to cut its end-of-year target back in June from 800 to 770 and postponed its target of producing 75 A320 jets a month from 2026 to 2027. The firm was rushing to speed up deliveries in December as it hoped to meet promised delivery targets despite persistent production delays and supply chain disruptions.

MARKET WATCH-

#1- Oil prices rose in early morning trade on the back of tightened supply from Opec members and Russia, compounded by an unexpected expansion in US economic activity, Reuters reports. Brent crude futures gained USD 0.28 to USD 77.33 a barrel by GMT 04.15, while US West Texas Intermediate (WTI) rose USD 0.40 to USD 74.65 a barrel.

Behind the numbers: Opec’s crude output dropped in December by 120k bbl / d to 27.05 mn bbl / d, primarily on the back of supply cuts from the UAE, according to a Bloomberg survey. The UAE slashed its production to about 3.2 mn bbl / d and trimmed oil exports to an 18-month low. The decline in these allocations is expected to continue throughout January and February, companies set to receive the shipments told Bloomberg.

REMEMBER- State-run Abu Dhabi National Oil Company (Adnoc) reportedly decreased crude oil cargo allocations for certain Asian customers, cutting volumes by up to 230k bbl / d across various grades, in a bid to adhere to Opec+’s strategy to stabilize market prices. A plan to hike the UAE’s quota by an additional 300k bbl/d was also postponed to April 2025, after Opec+ decided to delay a planned increase in production last month. The UAE has been hoping to increase its capacity, and is on track to hit its 5 mn barrels per day (bbl / d) oil capacity target — originally set for 2027 — by the end of 2025 or early 2026.

#2- Baltic index continues dipping: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — fell 2.7% to 1,015 points on Tuesday. The capesize index decreased 72 points to 1,218, while the panamax index stayed steady at 1,061 points. The smaller supramax index shed 11 points to 856.

#3-The volume of global crude exports dropped 2% y-o-y in 2024 on the back of weak demand growth and geopolitical tension in Ukraine and MENA, Reuters reports. Middle East oil exports to Europe dipped 22% y-o-y last year, while shipments of US and South American oil to Europe rose. Oil refineries in Europe halted operations due to the continued attacks on Red Sea shipping.

Shifting tides: Russian crude, which previously went to Europe, has been redirected to China and India. The US increased its share of the global oil trade to 9.5%, exporting some 4 mn bpd, falling just behind Saudi Arabia and Russia. China’s crude imports dipped some 3% y-o-y, driven by gains in EV and plug-in hybrid cars as well as the shift to LNG in its heavy trucking sector.

Moving forward: Fuel demand in major consumption hubs like China is expected to continue to fall in 2025 as countries shift away from oil towards gas and renewable energy usage increases. “In the past, you could always say there will be healthy long-term demand growth, and that solves a lot of problems over time. That can’t really be taken for granted anymore” due to reduced demand in China and Europe, ship brokering firm Poten & Partners consulting manager Erik Broekhuizen told the newswire.

DATA POINT-

#1- Egyptian exports reached USD 40 bn in 2024, according to a statement. The historic milestone is part of the Egyptian government’s objective to achieve USD 145 bn in exports by 2030. Egypt’s Investment and Foreign Trade Ministry also plans to expand the country’s presence in Africa by mitigating export risks and setting up logistical hubs in key African cities.

On the flipside: Egypt’s wheat imports surged by 40% in 2024, reaching 14 mn tons, Al-Arabiya reports. The country consumes around 20.6 mn tons of wheat annually, producing around 9 mn tons domestically. Private sector wheat imports jumped 63% last year, accounting for 7.5 mn tons of the total, exceeding the private sector’s five-year average by 50%.

#2- Turkish cargo and freight operations saw an 11% y-o-y increase in 2024 reaching nearly 5 mn tons, AGBI reports. International flights accounted for the majority of cargo, handling just over 4 mn tons, while domestic routes transported some 918k tons.

***YOU’RE READING EnterpriseAM Logistics, the essential MENA publication for senior execs who care about the industry that connects producers and retailers to global markets. We’re out Monday through Thursday by 9:15am in Cairo and Riyadh and 11:15am in the UAE.

EnterpriseAM Logistics is available without charge thanks to the generous support of our friends at Hassan Allam Utilities, Transmar, and AK-Ships.

Were you forwarded this email? Tap or click here to get your own copy of Enterprise Logistics.

Want to send us a story idea, request coverage, ask for a correction, or otherwise get in touch? Reach out to us on logistics@enterprisemea.com.

DID YOU KNOW that we also cover Egypt, Saudi Arabia, the UAE, and the MENAclimate industry ?
***

CIRCLE YOUR CALENDAR-

Belgium will host the World Cargo Summit from Monday, 27 January to Wednesday, 29 January in Ostend. The event will focus on air cargo economics, strategy, and market trends with a specific focus on how the industry will tackle disruptions and how firms can adapt their business models.

The UAE will host the ShipTek International Conference from Wednesday, 29 January to Thursday 30 January in Dubai. The two-day conference will gather industry experts, including managing director at Hapag-Lloyd Carolin Stumm, CEO Adani Ports Nicolai Friis, VP International Maritime Industries Justin Taylor, CEO Tristra Tim Coffin, and others to discuss new tech and developments in the maritime industry.

The UAE will host the Middle East Bunkering Convention from Monday, 3 February to Wednesday, 5 February in Dubai. The event will focus on the marine fuels sector to address the future of the industry in light of geopolitical issues, environmental regulation, and the future of artificial intelligence and digitalization.

Saudi Arabia will host the Airport Expansion Conference from Tuesday, 4 February to Wednesday, 5 February in Riyadh. The two-day conference will feature over 30 speakers to discuss challenges faced by Saudi Airports and highlight Saudi Arabia’s Vision 2030 with a clear focus on expansion, tech, and strategic partnerships.

The UAE will host the Middle East Breakbulk Conference from Monday, 10 February to Tuesday, 11 February in Dubai. The event gathers giant manufacturers, EPCs, and service providers to discuss the latest solutions in breakbulk and heavy-lift logistics across the Middle East and Africa. The two-day event features an artificial intelligence (AI) seminar, heavy lift workshop, chartering workshop, and a women in breakbulk panel.

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

Tags: