Good morning, friends. We’re inching closer to the weekend with a brisk read, dominated by investments and earnings updates from the UAE and Saudi. Let’s dive right in.

WATCH THIS SPACE-

#1- Suez Canal reduces transit costs: The Suez Canal Authority has introduced a 15% reduction on transit fees for container vessels with a net load over 130k tonnes for 90 days — effective from tomorrow, according to a statement. The move comes “in response to requests from the SCA's clientele of container ships owners and operators, and to encourage major shipping lines to return to transiting through the Suez Canal once more; especially in light of the conducive security conditions in the Red Sea region.”

Would this entice wary shippers? Some major shippers may lack the financial incentive to accelerate their return to the Red Sea route. For example, Maersk forecasts a net income of USD 3 bn if the route’s disruption continues until the end of the year, whereas an earlier return — by the start of 2H — would leave the company barely breaking even.

REMEMBER- Authority head Osama Rabie earlier this week urged global shipping lines to reassess their routes and consider a gradual return to the canal amid improving security conditions in the region.

The route is important to Egypt: Suez Canal transit receipts — a major source of foreign currency for Egypt — dropped 62.3% y-o-y to USD 1.8 bn in FY 2024-25 on the back of Houthi attacks on Red Sea shipping vessels, which have disrupted the passage and pushed ships to reroute away from the canal. Net tonnage fell 69.2% and vessel transits were down 52.2%.

#2- Trump kickstarted his Middle East tour with a pledge to lift the longstanding — and crippling — sanctions in place against Syria, the Associated Press reports, citing a speech he delivered in Riyadh. Trump is also set to “say hello” today to Syria’s new leader Ahmed Al Sharaa, while Secretary of State Mark Rubio will meet his Syrian counterpart in Turkey soon.

Background: The move rewards Saudi Arabia’s lobbying efforts in the West to curb unilateral sanctions on Syria to aid reconstruction efforts, and follows earlier temporary sanctions exemptions that the US issued in January to allow transactions with government institutions, the oil sector, and personal transfers in Syria. The exemptions are set to expire on 7 July.

IN OTHER RELATED NEWS- Another sanctions round lands against Iran: The US Treasury Department has added an Iranian firm and three individuals to its expanding sanctions list over the country’s nuclear program, according to a statement. The sanctions target Fuya Pars Prospective Technologists (Ideal Vacuum) for its alleged attempts to help Iran’s Organization of Defensive Innovation and Research (SPND) procure equipment that could be used in nuclear weapons research and development.

On a sanction spree: The Trump administration has raised the heat on Iran as part of a “maximum pressure” campaign aimed at stifling the country’s nuclear program. The campaign saw the US impose a series of sanctions on Iran’s oil trade operation, the latest of which included sanctions on China-based teapot refineries and port terminal operators.

#3- The Chinese government has reportedly rescinded a month-long ban on domestic airlines purchasing and receiving already ordered Boeing-made aircraft, Bloomberg reports, citing unnamed sources. The move comes after the two countries agreed to slash their bilateral tariffs as part of a 90-day trade war ceasefire.

ICYMI-. Chinese airlines sent back at least two Boeing 737 MAX jets that were due to delivery late last month. Fifty Boeing jets are slated for delivery to China in 2025.

Bad news for some: Several regional and global airlines were hoping that the short-lived Boeing ban could open up earlier delivery slots. Riyadh Air — whose first air flight has been delayed due to delivery delays — said last month it was ready to clinch Boeing jets turned away by China. Moscow also offered to acquire Boeing aircraft once a ceasefire with Ukraine came through, whereas airlines from Taiwan and Vietnam were said to be eyeing US-made planes to sweeten the pot during bilateral talks with Washington.

MARKET WATCH-

#1- Oil prices dipped this morning in anticipation of rising US stockpiles, Reuters reports. Brent crude futures dropped by USD 0.39 to reach USD 66.24 a barrel, while the US West Texas Intermediate (WTI) decreased by USD 0.36 to reach USD 63.31 a barrel by 04.00 GMT. Despite the drop, the rates are at nearly a two-week high.

Meanwhile, Saudi Aramco is set to supply nearly 48 mn barrels of crude oil to China in June, the same as this month’s deliveries, Reuters reports, citing trade sources. The deliveries tally May’s — which represented a 35.5% m-o-m increase from April per our calculations — the highest since 2024 and the first allocation increase to China since the beginning of this year.

#2- Baltic index dips once again: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — fell 1.8% to 1,280 points on Tuesday. The capesize dipped 3.5% to 1,671 points, while the panamax index was down 1.9% to 1,316 points. The smaller supramax index gained seven points to 977.

DATA POINTS-

#1- Jordan’s Aqaba Port saw a 26.3% y-o-y rise in the total number of containers handled to 295k in 1Q 2025, according to the Jordan Shipping Association released last week. The number of full inbound shipments increased by 22.4% y-o-y, while full outbound shipments increased 13% y-o-y.

#2- Revenues across Iraqi ports, including Umm Qasr, Khor Al Zubair, and Abu Flus exceeded IQD 314 bn (c. USD 239.8 mn) in 1Q 2025, according to a statement. The growth in revenues is attributable to development policies implemented across its ports that boosted commercial and economic activities.

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CIRCLE YOUR CALENDAR-

The UAE will host the Seamless Middle East from Tuesday, 20 May to Thursday, 22 May in Dubai. The event will cover topics including digital marketing, e-commerce, and retail and merchant payments.

Saudi Arabia will host the Saudi Warehousing & Logistics Expo from Tuesday, 27 May to Thursday, 29 May in Riyadh. The expo will host over 18k supply chain industry professionals and more than 400 exhibitors. It will also explore over 3.5k solutions.

Morocco will host the International Conference on Logistics and Supply Chain Management from Wednesday, 28 May to Friday, 30 May in Casablanca. The conference will cover scientific research, technologies, and environmentally friendly digital solutions in the logistics, transport, and supply chain sectors.

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