Good morning, nice people. We have a slew of updates to get through this morning, leading with a major exports agreement between Iraq and the UK along with a raft of investment updates from Egypt and the UAE. Let’s dive right in.
WATCH THIS SPACE-
#1- Trucking costs in KSA and the UAE are set to rise sharply on the back of a two-year old ban on vehicles older than 20 years, Gulf News reports. Since the ban came into effect in 2023, shippers either did not upgrade their fleet in time or don’t have enough trucks available to carry the level of loads required via road. Saudi businesses and consumers may bear additional costs with the impact of implementation appearing in a truck shortage.
In numbers: The Kingdom is now facing a surge in truck rates, reaching AED 8k to AED 9k, up from the previous AED 4k to AED 6k. “Shipping companies will pass increased costs to clients, potentially hiking freight charges. This will likely increase consumer goods pricing due to rising transportation and production expenses,” VP of Freight Forwarding Rosh Manoli told the news outlet.
#2- Russia + Iran to sign comprehensive strategic agreement: Russia and Iran are set to ink a comprehensive strategic partnership pact following a meeting between Russian President Vladimir Putin and Iranian President Masoud Pezeshkian on 17 January, Reuters reports, citing a Kremlin statement. The two leaders will also discuss boosting ties in trade, investment, and transport and logistics.
Projects in the works: Iran and Russia inked a EUR 1.6 bn agreement in May 2023 to build the Rasht-Astara railway to complete the International North-South Transport Corridor.
#3- Morocco to regulate natural gas sector: Morocco has drafted a law to regulate the import, storage, transportation, distribution, and supply of natural gas, Al3omk reports. The law, which will apply to stakeholders, gas supply companies, and network operators, is yet to be submitted to the government for approval.
What we know: The draft law includes several provisions designed to regulate the sector in response to price fluctuations and supply-demand instability in the global energy market, as well as the growing local demand for energy. Financial penalties will be issued against gas suppliers, individuals, or entities involved in importing, transporting, distributing, or storing natural gas without a license.
#4- KSA’s budget carrier Flyadeal is gearing up to finalize its order of 10 Airbus A330neo jets in its first major expansion, with the first delivery likely in 2027, Reuters reports, citing industry sources as saying. The Saudia subsidiary will likely unveil the order for the upgraded A330-900 variant within the coming weeks after comparing it with Boeing’s smaller 787-9, the sources said.
#5- Turkey’s Pasifik Holding is planning to increase its investments in port and terminal operations, Reuters reports, citing comments made by Chairman Fatih Erdogan at a press conference. The company is also mulling listing 20% of its shares on the Borsa Istanbul in 1Q 2025.
About the company: Pasifik Holding is a conglomerate of 55 companies active in the sectors of international logistics, real estate, energy, and technology. The company’s logistics arm Pasifik Eurasia is active in railway, air, and sea cargo transportation, as well as terminal services.
MARKET WATCH-
#1- Oil prices remained steady in early morning trading after a decline yesterday on the back of falling US crude stockpiles and expected supply disruptions, Reuters reports. Brent crude futures were up USD 0.02 at USD 79.94 a barrel by GMT 02.05, while US West Texas Intermediate (WTI) gained USD 0.12 to USD 77.62 a barrel. Both benchmarks lost 1.4% and 1.6% respectively yesterday after the US Energy Information Administration said oil will face the pressure of supply outpacing demand for the next two years.
#2- Baltic index snaps winning streak: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — fell 13 points to 1,080 on Tuesday. The capesize index dipped 11 points to 1,604, while the panamax index decreased 20 points to 906. The smaller supramax index shed 11 points to 798.
#4- Oil freight rates jump as refiners scramble for alternatives to Russian supply: Oil shipping charges have risen drastically as Chinese and Indian refiners seek alternatives to sanctioned Russian tankers, Reuters reports. The rate for the Middle East-China route rose 39% since Friday to USD 37.8k, the highest it’s been since October 2024, according to shipbrokers. Rates for a Russia-China route more than doubled to USD 3.5 mn, according to S&P Global Commodity Insights data.
The role of Russia’s shadow fleet: New vessels are expected to now join Russia’s shadow fleet, straining the supply of ships available in the non-sanctioned market, according to market intelligence firm Kpler. After the US’ latest move against Russia, 35% of the 669 dark fleet tankers shipping Russian, Venezuelan, and Iranian oil are now sanctioned, according to analysis by Lloyd’s List Intelligence.
DATA POINTS-
#1- Jordan’s Aqaba port saw a decline in the total number of containers despite experiencing increased activity during the second half of 2024, Petra reports. Arriving and departing containers declined 4% and 13% y-o-y, respectively, despite major monthly increases at the end of 2024. The drop is being blamed on regional conditions, unstable Red Sea maritime traffic, and Israel’s genocide in Palestine, Jordan’s Logistics Association President Nabil Khatib said.
#2- The Saudi Port Authority (Mawani) inaugurated eight logistics zones and centers in 2024, with an investment cost north of SAR 2.9 bn, according to a post on X. Among the logistics projects are collaborations at Jeddah Islamic Port with Maersk at SAR 1.3 bn, Medlog at SAR 175 mn, and DP World at SAR 900 mn.
Get Enterprise daily
The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox.
***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.




