Good morning, friends. We have a packed issue with industry updates from around the region cutting across investments, storage, and cargo handling — but first, let’s say hello to a new shipping line on the Red Sea…

WATCH THIS SPACE-

#1- A new shipping line in the Red Sea: Feeder and short-sea shipping company Folk Maritime has launched in Saudi Arabia, expanding the kingdom’s connection with other Red Sea ports, Splash 247 reports. The new shipping line will operate two Red Sea services, using two 2.5k TEU feeders, connecting Jeddah with Neom, Yanbu and Ain Sokhna, Egypt. A smaller 700 TEU ship linked with Sudan will operate every two weeks.

#2- Emirati logistics giant DP World is eyeing potential investments in building logistics hubs and an industrial park in the Philippines, according to a Philippines Trade and Industry Department statement. The Philippines will collaborate with DP World on developing their logistics sector, including industrial parks, economic zones, and digital solutions, Philippines Trade and Industry Department secretary Fred Pascual said. The country has launched a program to prioritize infrastructure investments for developing seaports, airports, and railways to enhance accessibility in a bid to become Asia’s next logistics hub, the statement says.

#3- The Black Sea shipping corridor — which enables mns of tons of grain to be exported from Ukraine — could be put at risk if US military aid is not renewed,Reuters reports, citing comments made by Ukrainian President Volodymyr Zelensky. If the US Congress does not approve USD 60 bn in security aid for the corridor, the future “would be in doubt,” Zelensky told CNN in an interview. The aid would enable ammunition, air defense, and some other systems to defend the corridor, Zelensky added. Ukraine has been making use of the maritime corridor to restart seaborne exports after Russia quit a UN-brokered agreement in July.

#4- The UAE and Malaysia are set to finalize a trade agreement by the end of Juneleading to an uptick in investments by UAE sovereign wealth funds, Malaysian Trade Minister Tengku Zafrul Aziz told Reuters. Negotiations on the Comprehensive Economic Partnership Agreement are nearing completion and Malaysia has expressed hopes that the UAE will invest in its energy, digital economy, electric vehicle, and chip sectors.

ALSO-The UAE is slated to engage in talks with Peru on a trade agreement within months, Arab News reports, citing an announcement made at the World Trade Organization meeting in Abu Dhabi. The agreement would mark the UAE’s first pact of its kind in the Americas and Peru’s first with a MENA country. Peru’s government aims to boost exports through the agreement. The two countries inked an aviation agreement last June.

DISRUPTION WATCH-

Danish shipping giant Maersk warns customers to “be prepared” that Red Sea disruptions to container shipping could drag into the second half of 2024, North America head Charles van der Steene said in a statement. "Many customers factor a cost per unit into their budgeting, and if that fundamentally changes due to all of this volatility, it could have a big impact on overall costs," van der Steene said. The company has added around 6% in vessel capacity to offset delays caused by reroutes around Cape of Good Hope, Reuters reports.

Spain’s ports saw an increase in volumes of up to 25% in January amid the disruptions, Reuters reported earlier this week. The Canary Islands’ Las Palmas port saw a 25.4% increase in merchandise volumes in January while Barcelona port witnessed a 7.6% increase. Overall traffic including merchandise, bulk liquids, and dry bulk goods increased by some 3.4% in January 2024 compared to a 3.3% decline last year, the newswire added, citing official figures.

A subsea cable connecting Europe to India has been damaged off the Yemeni coast some 150 to 170 meters deep in waters where Houthi attacks are taking place, Bloomberg reported earlier this week. The fault in the cable, which belongs to South African submarine cable system firm Seacom, was detected on Saturday, chief digital officer Prenesh Padaychee told Bloomberg. The internet traffic has been rerouted to alternative cables and the company is working on a fix with Emirati cable repair company Telecommunications Group.

MARKET WATCH-

#1- Baltic index sees multi-week high:The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — reached a seven-week high at 1,871 points, a 0.3% increase, on Monday, Reuters reports. Strong capesize rates buoyed the index, gaining 0.6% to 3,163 points, while the smaller supramax segment rose 9 points to 1,198. The panamax sub index fell 1.1% to 1,578, falling to a two-week low, the newswire said.

#2- Oil prices were mostly steady on Tuesday amid signals of a Gaza ceasefire, Reuters reports. Brent crude futures fell 0.12% to USD 82.4 per barrel on Tuesday, while US West Texas Intermediate crude futures (WTI) were down 0.09% to USD 77.51 per barrel. Concerns over Red Sea shipping disruptions supported a rebound in crude oil prices overnight, offsetting a hawkish Fed, Sydney-based IG analyst Tony Sycamore is quoted as saying by the outlet. Oil prices have been supported by improved crude demand from Chinese consumers, the newswire writes. US President Biden has said that Israel will halt military activities in Gaza in Ramadan.

#3- Russia plans to ban gasoline exports for six months effective 1 March, Reuters reports, citing two sources published by RBC daily. The ban does not apply to agreed upon supplies to Eurasian Union countries, Mongolia, Uzbekistan, Abkhazia, and South Ossetia, said the newswire. From September to November, Russia imposed a ban on fuel exports, excluding those to Belarus, Kazakhstan, Armenia and Kyrgyzstan, in order to combat high domestic prices and shortages.

DATA POINTS-

#1-Morocco is forecasted to boost exports by 12% y-o-y in 2024, Moroccan Industry and Trade Minister Ryad Mezzour told Wam on the sidelines of the World Trade Organization Ministerial Conference in Abu Dhabi. The country is expected to see around 3.7% y-o-y in total economic growth in 2024, Mezzour added.

#2- Jordan’s exports to the Greater Arab Free Trade Area (GAFTA) rose by 12.4% y-o-y to JOD 3 bn in 2023, Petra reports. The value of imports from GAFTA countries witnessed a drop of 18.5% y-o-y to JOD 4.7 bn from JOD 5.77 bn the year prior. Jordan’s oil imports fell by 16.9% y-o-y to JOD 2.9 bn in 2023, Petra reports. The reduction in Jordan’s oil imports, including crude oil, derivatives, and mineral oils, contributed to the 6% y-o-y fall in the value of its total imports and caused a fall in the country’s trade deficit, which dipped by 10% y-o-y.

#3- Bahrain’s total value of exports witnessed a 2% y-o-y drop to BHD 350 mn in January, BNA reports. The countries receiving the largest percentage of Bahraini exports were Saudi Arabia at BHD 99 mn, the UAE at BHD 53 mn, and the US at BHD 26 mn. The value of re-exports rose by 15% y-o-y to BHD 67 mn in January. The total value of imports grew by 15% y-o-y to BHD 535 mn. Bahrain’s total trade balance recorded a deficit of BHD 118 mn in January, compared to BHD 51 mn in January 2023.

CIRCLE YOUR CALENDAR-

Iran will host the 17th Iran-Russia Joint Economic Committee meeting on Wednesday, 28 February in Tehran. The meeting will see experts from both countries engage in discussions on means to boost bilateral cooperation in trade, energy, banking, logistics, customs, and other fields, preparing the groundwork for a comprehensive MoU. The event will be co-chaired by Iran’s Oil Minister Javad Owji and Russia’s Deputy Prime Minister Alexander Novak.

The UAE will host the Gulf Aviation Networking Event (GANE) on Thursday, 29 Februaryin Dubai. The event brings together aviation industry leaders to network, gain insights on prevailing trends, learn about new technologies, and take part in panel discussions and presentations run by industry experts.

The UAE will host the Future-Proof Technology Event on Thursday, 29 February in Dubai. The one-day event gathers industry leaders to discuss how emerging technologies, digitalization, and cross-sector collaboration, could be leveraged to bolster supply chains. The event will see presentations by a panel of experts and major logistics executives.

The UAE will host the TradeTech Forum on Tuesday, 27 February in Abu Dhabi. The forum will see some 180 trade leaders and experts discuss the technologically advanced trade environment and a showcase of trade tech solutions.

The UAE will host the Future-Proof Technologies Conference on Thursday, 29 FebruaryDubai. The event will unite industry experts to discuss strategies for adopting sustainable supply chain operations through cross-sector collaboration, advanced technologies, and integrated logistics.

The UAE will host the MRO Middle East on Tuesday, 5 March and Wednesday, 6 March in Dubai. The two-day event will bring together key decision makers from airlines, MROs, OEMs, lessors, and suppliers spanning all aspects of the airline supply chain.

The UAE will host The Logistics Middle East Award on Wednesday, 6 March in Dubai. The awards ceremony brings together industry experts to celebrate the sector’s biggest accomplishments over the previous 12 months.The deadline for submitting nominations is Friday, 19 January.

The UAE will host Abu Dhabi Mobility Week from Wednesday, 24 April to Wednesday, 1 May in Abu Dhabi. The event, organized by The Department of Municipalities and Transport – Abu Dhabi (DMT), will feature announcements, forums, and introduce a mobility strategy for the emirate.

Saudi Arabia will host a special World Economic Forum event from Sunday, 28 April through to Monday, 29 April in Riyadh. The event will focus on global collaboration and energy.

The UAE will host the 23rd edition of the Airport Show from Tuesday, 14 May through to Thursday, 16 May in Dubai. The 23rd Airport Show will see representation from airport suppliers, airport service providers, aviation executives, and regional decision makers. The event will highlight current innovations and new technologies, while emphasizing this year’s "Sustainability and Innovation," theme.

The UAE will host The Electric Vehicle Innovation Summit from Monday, 20 May to Wednesday, 22 May in Abu Dhabi. The event will see industry leaders come together to discuss sustainable mobility and tapping into groundbreaking advancements in electric vehicles while engaging with key decision-makers.

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