Good morning, nice people. We’re heading into the weekend with a packed issue, with investment, M&A, zones, aviation, and trade updates from all across the region. But first, an update on US court order blocking Trump’s tariffs…

THE BIG LOGISTICS STORY- Trump tariffs blocked: A US federal trade court blocked US President Donald Trump’s Liberation Day tariffs in a move expected to destabilize the president’s trade policies and ongoing bilateral trade negotiations with trade foes, including the EU, Canada, and China.

What’s included: The court order halts Liberation Day’s expansive tariffs, as well as country-specific moves on Canada, Mexico, and China. Steel and aluminum duties were, however, not covered by the court order.

The argument: “The court does not pass upon the wisdom or likely effectiveness of the President's use of tariffs as leverage. That use is impermissible not because it is unwise or ineffective, but because [federal law] does not allow it,” the judge panel said. The court said that an emergency law used by Trump to justify the tariffs was misused, adding that regulating trade is a Congress prerogative.

What’s next? The court gave the US administration 10 days to formally halt the tariffs, but the administration is expected to appeal the ruling

The story made some headlines in the int’l press: Reuters | AP | Bloomberg | The Financial Times | Axios | CNN | BBC | The Guardian

HAPPENING TODAY-

The Saudi Warehousing & Logistics Expo is on its last day in Riyadh. The second edition of the expo will host over 18k supply chain industry professionals and more than 400 exhibitors to explore over 3.5k solutions.

The International Conference on Logistics and Supply Chain Management is on its second day and will run until 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.

WATCH THIS SPACE-

#1- The Egyptian government has earmarked EGP 7 bn to boost local exports as part of its wider export subsidy program, according to a statement. Prime Minister Mustafa Madbouly and Investment Minister Hassan El Khatib made the announcement during a meeting with Samsung Electronics Egypt Chairman Siham Atta and Regional Financial Director Jehan Yoon.

REMEMBER- The government is gearing up to unveil a revamped export subsidy program. The program is set to roughly double support rates across all sectors, introduce new incentives for branded exports, and prioritize higher value-added sectors, two sources with knowledge of the matter told EnterpriseAM earlier this month. The framework — with a significantly larger allocation of EGP 44.5 bn — is expected to be formally announced soon, come into effect at the start of the new fiscal year on 1 July, and run through 2028.

#2- Adnoc Distribution is planning to produce marine motor oil in Egypt in partnership with TotalEnergies by 4Q this year, specialty products VP Saber Al Amari told Asharq Business. The company’s production capacity is expected to hit 90k tons annually, with a sales target of 1.5 - 2 mn liters of oil in Egypt by year-end, Al Amari added.

REMEMBER- Adnoc has other plans for Egypt, including expanding its aviation fuel services, as part of a wider strategy to invest USD 250-300 mn across its markets this year.

#3- A slew of UAE-based firms have inked a letter of interest (LOI) to explore areas of investment in Al Rawda Special Economic Zone, Al Khaleej reported, stating DP World CEO Sultan Ahmed bin Sulaymen. Interested companies include logistics sector players Indo Kishore Logistics, Oriental General Trading, and Palmon Group, as well as manufacturers, such as Al Bayader, Camtech Manufacturing, Conares, Apparel Group, New East, and Spinneys.

ICYMI- DP World and Oman’s Public Authority for Special Economic Zones signed anagreement to develop and operate the first phase of the Al Rawdah Special Economic Zone in Mahadha in Oman earlier this week. The zone — whose first phase is set to see USD 2 bn of investments — will focus on vehicle sector manufacturing, textiles, clothing, steel, and logistics.

#4-Bahrain’s Bapco to exploit LNG supply glut: Bahrain’s state-owned oil company Bapco Energies is looking to import more LNG shipments — including via long-term supply contracts — amid strong market supply, the firm’s CEO Mark Thomas told Bloomberg.

The LNG supply pipeline: Bapco obtained an LNG cargo in May, and is expecting another cargo in June, with more supply tenders awarded for June and July. The company is also eyeing tenders for 2026 and 2027 deliveries, as well as long-term supply agreements.

REMEMBER- Bahrain received its first LNG cargo after a five-year hiatus earlier this month as warming weather and a decline in production pushed several regional players to import more LNG. The gulf nation is also reportedly in talks with Russia over a three-year supply agreement for 1.5 mn tons of LNG annually.

MARKET WATCH-

#1- Oil prices surged this morning in the wake of US’ federal court order to block US President Trump’s expansive tariffs, Reuters reports. Brent crude futures rose by USD 0.78 to reach USD 65.68 a barrel, while the US West Texas Intermediate (WTI) increased also by USD 0.78 to hit USD 62.62 a barrel by 04.05 GMT.

However, pressure from rising Opec+ supply is casting its shadow on Saudi Arabia, with the Kingdom reportedly mulling a cut of July rates for Asian buyers to a six-month low, refiners told Reuters. The official selling price for flagship Arab Light crude could fall by USD 0.40-0.50 from June to USD 0.90-1 a barrel, according to refiners. Prices for other Saudi grades — Arab Extra Light, Arab Medium, and Arab Heavy — are also expected to drop by USD 0.30-0.45 per barrel from the previous month.

REMEMBER- The Kingdom hiked its crude oil selling price for buyers in Asia by USD 0.20 a barrel for June, undercutting previous forecasts.

#2- Baltic index snaps out of losing streak: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — rose 0.3% to 1,303 points on Wednesday. The capesize index rose 3.6% to 1,874 points, while the panamax index decreased 3% to 1,169 points. The smaller supramax index slipped nine points to 964.

DATA POINT-

Turkey’s Istanbul Airport recorded a 39.6% y-o-y increase in cargo volume handled to 1.97 mn tons in FY 2024, snagging the title as Europe's top cargo hub, TRT reports, citing data from the German Aviation Association (BDL). The Turkish airport has dethroned Frankfurt Airport, which saw a slight 1.2% y-o-y increase to 1.95 mn tons handled during the same period.

PSA-

Hapag-Lloyd rolls out new GRI: Shipping giant Hapag-Lloyd will implement a general rate increase (GRI) to USD 2k per container for all cargo transported in 20 ft and 40 ft for dry, reefer, and special containers as well as high cube equipment from the Indian Subcontinent and the Middle East to North Africa, according to a statement. The GRI is applicable starting 1 July 2025 and is valid until further notice.

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CIRCLE YOUR CALENDAR-

Egypt will host the Propak MENA from Monday, 2 June to Wednesday, 4 June in Cairo. The event will feature solutions, talks and workshops for F&B and consumer goods manufacturers to source global packaging, processing and logistic solutions.

Turkey will host the Eurasia Rail from Wednesday, 18 June to Thursday, 19 June in Istanbul. The event will host 7.7k visitors interested in Turkey’s railway sector or are railway technology buyers, and will feature engineering, products and services from both private and public sectors.

The UAE will host Middle East Rail from Tuesday, 24 June to Thursday, 25 June in Dubai. The conference at Dubai World Trade Center will host over 250 speakers and a multi-brand exhibition for transport solutions.

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

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