DHL snaps up remaining stakes in Danzas

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TODAY: DHL takes full ownership of Danzas + Iran’s exports rise

Good morning, ladies and gentlemen. The weekend is nearly upon us, which appears to have given the news cycle somewhat of a second wind.

THE BIG LOGISTICS STORY- DHL Global Forwarding has inked an agreement to acquire ITG’s 60% stake in Danzas, giving DHL full ownership of the company.

^^ We have everything on this story and more in the news well, below.

DATA POINT #1- Exports up 35% at Iran’s Sumar Border Terminal: The Sumar Border Terminal in Iran’s Qasr-e Shirin county recorded some USD 362 m worth of exported goods during the first six months of the current Iranian year, a 35% y-o-y increase in value and 27% y-o-y increase in tonnage, Mehr News Agency reports, citing local official Omid Borji. The first six months of the Iranian year run from 21 March until 22 September. The exports included ribbed rebar, tiles, dairy products, eggs, construction stones, and empty cartons, according to Mehr.

DATA POINT #2- Iran’s exports to countries in West Asia topped USD 10.3 bn in the first half of the Iranian calendar year, rising 6% y-o-y, Tasnim reported, citing official data. In terms of tonnage, the products exported during the period weighed over 30 mn tons, 25% higher than the same period last year. Iraq, which imported USD 4.5 bn in products, was the largest import destination, followed by the UAE at USD 3 and Turkey at USD 2.4 bn, the breakdown showed.

DATA POINT #3- Africa’s total exports are set to reach USD 1 tn by 2035, Zawya reports, citing a Standard Chartered report. The African Continental FreeTrade Area (AfCFTA), once fully operational, could potentially increase exports by 29%, representing an annual growth rate of 3% from now till 2035. Intra-Africa trade is anticipated to achieve USD 140 bn by 2035, equating to 15% of Africa’s total exports. The East Africa-South Asia corridor could potentially become the fastest-growing corridor, increasing 7.1% annually up to 2035. The Middle East-North Africa and the Middle East-East Africa corridors’ combined trade volume is set to reach USD 200 bn by 2035.

DATA POINT #4- The value of the Saudi e-commerce market currently stands at USD 11 bn, according to a Transport and Logistics Services Ministry statement. Online sales as a percentage of overall commerce activity surged to 23% from 6% over the past year, the ministry said.

Azerbaijan + Russia discuss implementation of INSTC: Azerbaijan’s Deputy Prime Minister Shahin Mustafayev met with First Deputy Prime Minister of the Russian Federation Andrey Belousov in Baku, Azerbaijan, where the pair discussed collaboration on transport and logistics initiatives, the implementation of the International North-South Transport Corridor (INSTC), and collaboration on shipbuilding, Azernews reported.

REMEMBER- The INTSC is a 7.2k kilometer multi modal ship, road, and rail route that is intended to boost trade connectivity between partner countries and move freight between India, Iran, Azerbaijan, Russia, Central Asia, and Europe, Azernews said. Cargo moved via the INTSC is expected to reach 30 mn metric tons per annum, according to Russian officials.

MARKET WATCH-

Russian oil export see-saw in early October: Russia’s diesel exports hit a three-year low in early October amid a ban on some shipments, but recovered as the ban was partially lifted, Bloomberg reported. The first week of October also saw a rally in naphtha and fuel oil shipments. Meanwhile, seaborne crude shipments declined between the start of the month and 8 October, Bloomberg tracking data showed, while fuel exports fell in the same period as seasonal maintenance cut refinery outputs.

Putin praises OPEC+ cooperation in meeting with Iraqi PM: Russian President Vladimir Putin met with Iraqi Prime Minister Mohammed Shia Al Sudani and praised cooperation between their two countries at OPEC+, which Putin says has helped stabilize energy markets, Reuters reports. “We coordinate work within the framework of OPEC+ and do this very successfully with the aim of stabilizing the situation on world markets,” Putin told Al-Sudani at their first ever meeting, hosted at the Kremlin. Oil sales account for a third of Russia’s state income and Moscow is keen to coordinate with OPEC — of which Iraq is the second-largest producer following KSA — on policies, the newswire wrote. Last month saw Saudi Arabia and Russia announce their intention to extend voluntary oil cuts, measured at 1.3 mn barrels per day, to year’s end.

Russian companies are also big investors in Iraq’s oil fields: Boosted cooperation in the oil sector was also present in the talks’ agenda, with Putin noting that Russia’s investments in Iraq total USD 19 bn, according to televised statements cited by Reuters. Rosneft, Russia’s largest oil company, has invested USD bns in oil producing and shipping infrastructure in Iraq’s northern region of Kurdistan, while Lukoil and Gazprom Neft also have significant operations in the country, the newswire wrote. The bilateral talks also saw Moscow express support for Iraq’s Development Road infrastructure project, Iraq’s INA reported.

KUDOS-

Yanmu Logistics Park — a joint venture between Hassan Allam Holding subsidiary Hassan Allam Utilities and Kuwaiti warehousing and industrial developer Agility — was a finalist for the 2023 API Awards’ Best Industrial, Logistics, Data Center & Healthcare Project, according to a statement.

CIRCLE YOUR CALENDAR-

The Supply Chain and Logistics Conference 2023 will take place on 22-23 October at the Four Seasons in Riyadh, Saudi Arabia. The conference will bring together supply chain decision makers to discuss ways that Saudi Arabia can strengthen its economy and make itself a global logistics center and hub connecting three continents in line with the Kingdom’s Vision 2030.

The GCC-Türkiye Economic Forum is set to take place on 11-13 November in Çırağan Palace Kempinski Hotel, Istanbul, Turkey. The event will cover trade, investment and finance, energy, infrastructure, transportation and logistics, industry, tourism, agriculture and food, and sports sectors.

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

DHL fully acquires Danzas

DHL buys out Investment Trading Group’s (ITG) remaining stake in Danzas: DHL Global Forwarding has inked an agreement to acquire ITG’s 60% stake in Danzas, giving DHL full ownership of the company, according to a press release. The value of the transaction, which is still subject to regulatory clearance, was not disclosed.

The details: Danzas, a logistics and transport services provider for Dubai and the Northern Emirates, had been managed via a DHL and ITG joint venture since its founding in 1995. The outfit will now be integrated into DHL and will carry out its operations under the DHL brand.

What they said: “As DHL continues on its expansion trajectory across the region, a merger of both organizations will create a winning proposition for customers in the region, driving efficiency and sustainability,” DHL Global Forwarding CEO Tim Scharwath said in statements cited by the release.

Gulf airlines resume flights to Israel + Israel’s major port terminals running as normal

Major Gulf airlines resume Israel operations: The UAE’s Emirates, flydubai, and Etihad Airways are all resuming flights to Israel amid its ongoing war with Palestine, Zawya reports. Emirates, which operates three-weekly flights to Tel Aviv, is operating as normal after canceling some flights to the Israeli capital earlier this week. The airline is also allowing customers to rebook or cancel flights to and from Tel Aviv and Amman through to 31 October without charge. Emirates’ flydubai is also running its flights as scheduled. Abu Dhabi’s Etihad Airways is set to resume operations after temporarily halting flights. Qatar Airways has not made any public announcements regarding changes to its flight schedule since the violence broke out.

One exception: Bahraini airline Gulf Air has canceled all flights to Tel Aviv until this Saturday, 14 October. It remains unclear whether the suspension of operations could be extended beyond that date.

Israel’s airlines are doing overtime: Israel’s El Al Airlines — which runs daily flights to Dubai — added 12 additional flights yesterday and today between Athens, Rome, Madrid, Bucharest, New York, Paris, Larnaca and Istanbul to evacuate tourists and citizens from Israel. The airline’s low cost unit, Sun Dor, will operate evacuation flights from Istanbul.

And as for the rest of the world: United Airlines, Turkish AIrlines, Wizz Air, Air Canada, and Air France are among the global airlines that have halted operations to Tel Aviv until further notice. American airline Delta has so far canceled its flights to Israel until 31 October. Air France will, however, operate a “special flight” from Tel Aviv to Paris today. Lufthansa — which also said earlier this week it is suspending operations indefinitely due to the conflict — is planning evacuation flights today and tomorrow.

IN THE SHIPPING + MARITIME WORLD

Maersk says that Israel’s major port terminals are operating normally despite the ongoing conflict, Reuters reports. The company said it is continuing to accept container bookings in and out of the country, adding that inland road and rail services are also running at full capacity. “At this time, port operations across Israel’s major terminals are continuing to function normally and we are currently not expecting a substantial impact at our key hubs in Ashdod and Haifa,” Reuters quotes Maersk as saying in a note to customers.

Air freight, however, has been impacted due to canceled flights. Maersk said its offices are still open in Tel Aviv and Haifa, but circumstances could suddenly change.

MARKET REAX-

The oil market is “nervous, not terrified” amid the war, head of Pickering Energy Partners Dan Pickering is quoted as saying by the Financial Times. The impact on the oil market is muted with prices for Brent crude jumping by 4% on the first day of conflict, before returning to USD 87.56 per barrel, where it has remained below September’s USD 97 / bbl. The jump in prices reflected the market’s evaluation of the risks in the region, rather than concerns of supply, a Eurasia Group director tells the salmon-colored paper. There are also no immediate disruption threats to Israel’s supply as it does not produce significant volumes of oil, the outlet writes.

Chevron adjusts natgas deliveries: Chevron has rerouted shipments of its natural gas produced from Israel’s offshore Tamar field, and is sending natural gas to Egypt through the Arab Gas Pipeline that links Israel, Jordan and Egypt, the company said in an email, according to Bloomberg. Israel’s Energy Ministry had earlier this week instructed Chevron to shut down operations at the Tamar field.

UAE plans to sign six CEPAs by year-end + wants to boost trade ties with Vietnam

UAE + Vietnam to boost trade ties: The UAE’s Foreign Trade Minister Thani bin Ahmed Al Zeyoudi met with Vietnamese Industry and Trade Minister Nguyen Hong Dien at the fifth UAE-Vietnam Joint Committee in Hanoi to discuss strengthening trade and transport cooperation, Wam reports.

REMEMBER- The UAE is set to finalize a CEPA with Vietnam this year. It signed in April a joint declaration of intent to begin talks on the agreement before launching negotiations in June.

The UAE is in the process of finalizing six comprehensive economic partnership agreements (CEPAs) with South Korea, Thailand, Chile, Costa Rica, Colombia, and Ukraine, with plans to sign them by year-end, Wam reports.

The CEPA between the UAE and Georgia was inked earlier this week is expected to nearly triple non-oil bilateral trade between the two countries to USD 1.5 bn from USD 481 mn in five years, Wam reports. In 1H 2023, bilateral trade grew 28% y-o-y to USD 225 mn. The agreement, which will come into effect by 1Q 2024, is expected to add USD 4 bn to the Gulf country’s GDP by 2031, The National reports.

ALSO WORTH KNOWING-

The Romanian Business Council has launched in the UAE. The council aims to increase bilateral trade to USD 100 bn, boost cooperation between the two countries’ business communities and bolster investment, according to President of the Romanian Council Marius Marinoff. (Wam)

Cargo shipping is losing its antitrust exemptions next year + Boeing’s 737 Max deliveries plummet in September

EU to end antitrust exemption for cargo shipping starting 2024: Cargo shipping companies will no longer benefit from the Consortia Block Exemption Regulation (CBER) starting April 2024, Hellenic Shipping News reports, citing EU antitrust regulators. The exemption allowed shipping companies with a combined market share below 30% to join together to offer cargo transport services, provided they did not set prices or divide markets among themselves. “Given the small number and profile of consortia falling within the scope of the CBER, the CBER brings limited compliance cost savings to carriers and plays a secondary role in carriers’ decision to cooperate,” the outlet quoted an EU executive as saying.

Boeing's 737 MAX aircraft deliveries plummeted to their lowest level in over two years in Septemberdue to a string of issues at a major supplier, The Wall Street Journal reports. Production of the company's best-selling jet is operating at 50% of the company’s target due to several production disruptions. The most recent issue is the discovery of misdrilled holes on the 737 MAX 8 aft pressure bulkheads. The USD 100 mn jet accounts for the lion’s share of the company’s production.

Despite Boeing's earlier projection of producing an average of 38 new 737s monthly, only 22 were made in September, according to data from research firm Aero Analysis Partners/AIR. Earlier this week, Boeing announced that it shipped 15 new 737 aircraft to global airlines in September, marking the lowest monthly figure since sending out 11 planes in May 2021. The delays have affected several airline customers’ ability to expand their services amid the post-pandemic travel rebound. Boeing and Airbus are grappling with supply and worker shortages and order backlogs. Airbus, however, has maintained its lead in aircraft deliveries with 55 jets delivered in September.

Flynas introducing seven new routes + Air Astana launches biweekly Almaty-Jeddah service + Noatum developing logistics hub in Kezad

AVIATION-

Flynas to introduce seven new routes from Madinah Airport: Saudi low-cost carrier Flynas will inaugurate on 1 December two domestic routes connecting Madinah to Abha and Tabuk and five international routes to Dubai, Amman, Baghdad, Istanbul, and Ankara, according to a press release. These new routes are an addition to the existing four connections from Madinah to Riyadh, Jeddah, Dammam, and Cairo, increasing Flynas' total routes from Madinah to 11. “The launch of these routes from our latest operations base coincides with taking delivery of new aircraft to further upscale flynas fleet,” said Bander Almohanna, the carrier’s CEO and Managing Director.

Kazakh national carrier Air Astana has launched a biweekly Almaty-Jeddah service, Simple Flying reports, with a company post confirming the first flight. There were no direct flights between Kazakhstan and Saudi Arabia prior to the pandemic, but incentives by the Kingdom’s Air Connectivity Program (ACP) have led three carriers to kickstart direct services, the report said.

ICYMI- ACP recently oversaw efforts which doubled the number of airline routes between KSA and China. The initiative, founded in 2021, looks to boost the Kingdom’s air connectivity by developing existing and prospective routes between KSA and the rest of the world.

ZONES-

Noatum + NWTN Motors to develop logistics hub in Kezad: AD Ports’ recently acquired logistics arm Noatum has inked an agreement with green energy company NWTN Motors to develop a logistics hub for electric vehicles in Khalifa Economic Zones Abu Dhabi (Kezad), according to a statement. Under the agreement, NWTN, which focuses on providing electric vehicle products and green energy solutions, will also become Noatum’s global supply chain partner, according to the release.

ALSO WORTH KNOWING-

Oman’s Transport, Communications, and Information Technology Ministryis holding workshops to attract investment to the country’s transport and logistics sectors. The workshops will focus on ports and maritime affairs as well as road, land, and air transport and logistics services. (Al Watan)

CMA CGM cancels Chittagong call

CMA CGM has canceled the Chittagong leg of its BIGEX (Bangladesh-India-Gulf Express) service, citing “operational constraints,” according to a company notice. Although the decision means that Chittagong will no longer be offered as a direct call, it will still be open for transhipment services via other lines, the announcement said.

Sluggish exports + operational challenges are behind the latest reshuffle: The Chittagong call was intended to leverage opportunities as clothing importers sought to diversify away from Chinese suppliers, but Bangladesh’s export market has slowed amid global economic headwinds. Accordingly, CMA CGM has struggled to find the volumes necessary to make the call viable, the Loadstar reported. Operational challenges due to inherent draught and vessel size restrictions at Chittagong were also factors in the decision.

Maersk + One looking for newbuild ship orders: Danish shipping firm A.P.Moller Maersk (Maersk) has reportedly put out a request for proposals to build up to 15 3.5k TEU boxships, according to shipping analyst Alphaliner, Splash reports. Maersk has also ordered a series of 9k TEU ships and a total of 25 methanol-duel fuel ships to join its fleet by 2027, not including the rumored 15 extra mentioned by Alphaliner. Alphaliner has also reportedly claimed that Japan’s Ocean Network Express (One) is looking for up to 10 more 13k TEU container vessels. One is also looking for shipyards with conventional tonnage and for variants with methanol duel-fuel propulsion, according to the outlet.

IN OTHER MAERSK NEWS- The shipping giant’s first large methanol boxship was launched from a dock at Hyundai Heavy Industries (HHI): This vessel is the second of Maersk’s order of 25 dual-fuel ships, developed to be capable of running on green methanol. It's the first box ship from an order of twelve 16.2k TEU ships Maersk ordered from HHI, Seatrade Maritime reports. The company placed an additional order of six 17k TEU ships in November 2022. The delivery of all 18 ships is expected between 2024 and 2025. In June, Maersk ordered six mid-sized containerships with a capacity of 9k TEU from Yangzijiang Shipbuilding in China. These ships are expected to be delivered in 2026 and 2027. The company’s approach involves purchasing only new ships capable of running on green fuel, in line with its commitment to eco-friendly fuels and sustainability.

China has saved USD 10 bn by importing oil from sanctioned nations, Reuters reports, citing calculations based on data from traders and ship trackers. Sanctions imposed by the United States and other countries on Iran, Russia, and Venezuela have helped reduce oil import costs for Chinese refineries, increasing the amount of oil they process. China imported some 2.77 mn barrels of crude oil per day from Iran, Russia, and Venezuela during the first nine months of 2023, Reuters adds, citing data by tanker trackers Vortexa and Kpler. The three countries accounted for 25% of China’s imports during 1H 2023, resulting in lower imports from the Middle East, West Africa, and South America.

Calendar

OCTOBER

Egypt’s Suez Canal Economic Zone (SCZone) goes on a roadshow to South Korea.

9-15 October (Monday-Sunday): 2023 World Bank Group - IMF Annual Meetings, Marrakech, Morocco.

10-12 October (Tuesday-Thursday): Intermodal Europe 2023, RAI Amsterdam, Netherlands.

10-12 October (Tuesday-Thursday): Cool Logistics Global 2023, Genoa Stock Exchange, Genoa, Italy.

16-17 October (Monday-Tuesday): Duqm Economic Forum, Crowne Plaza, Duqm, Oman.

17- 19 October (Tuesday-Thursday): MRO Europe, Amsterdam, Netherlands.

19 October (Thursday): Perishable Logistics Africa, Nairobi, Kenya.

22-23 October( Sunday-Monday): Supply Chain and Logistics Conference 2023, Four Seasons, Riyadh, Saudi Arabia.

24-25 October (Tuesday-Wednesday): Future Fuels Europe, Amsterdam, Netherlands.

26-29 October (Thursday-Sunday): ICASM 2023, Conrad, Etihad Towers, Abu Dhabi, UAE.

30 Oct-2 Nov (Monday-Thursday): XLP AGM 2023, Barcelona, Spain.

30-31 October (Monday-Tuesday): Gartner Supply Chain Planning Summit, London, UK.

31 Oct-2 Nov (Tuesday-Thursday): IAPH World Ports Conference, Abu Dhabi, UAE.

September-November: Emirates Postal Group’s “Logistics Unleashed” competition, UAE.

NOVEMBER

November: Abu Dhabi Airports Terminal A set to become operational.

1 November (Wednesday): Smart Maritime Network Dubai Conference, Conrad Dubai, UAE.

11-13 November (Saturday-Monday): GCC-Türkiye Economic Forum, Çırağan Palace Kempinski Hotel, Istanbul, Turkey.

9-15 November (Thursday-Wednesday): Intra-African Trade Fair, Cairo, Egypt.

15-17 November (Wednesday-Friday): Global Freight Summit 2023, Coca Cola Arena, Dubai, UAE.

13-17 November (Monday-Friday): Dubai Airshow, Dubai World Center, UAE.

17-18 November (Friday-Saturday): 17th Iran-Turkmenistan Joint Economic Commission, Ashgabat, Turkmenistan.

14-15 November (Tuesday-Wednesday): Supply Chain & Logistics Arabia, Narcissus, Riyadh, Saudi Arabia.

14-17 November (Tuesday-Friday): IATA Slot Conference, Dubai World Trade Centre, Dubai, UAE.

15 November (Wednesday): Leaders in Logistics UAE Summit, Dubai, UAE.

21-23 November (Tuesday-Thursday): Intermobility Expo 2023, Dubai World Trade Center, Dubai, UAE.

21-23 November (Tuesday-Thursday): Touchdown Middle East, Gulf Hotel, Bahrain.

21-23 November (Tuesday-Thursday): ARABAL 2023 Conference, Hilton Riyadh Hotel & Residences, Riyadh, Saudi Arabia.

23 November (Thursday): Global Supply Chain and Logistics Summit, Grand Millennium Hotel Business Bay, Dubai, UAE.

30 November-3 December (Saturday-Tuesday): Handling Expo, Egypt International Exhibition Center, Cairo, Egypt.

September-November: Emirates Postal Group’s “Logistics Unleashed” competition, UAE.

DECEMBER

10-11 December (Tuesday-Wednesday): Invest in Logistics, St.Regis Almasa Hotel, New Administrative Capital, Egypt.

EVENTS WITH NO SET DATE

2H 2023:Construction of Neom’s first hydrogen fueling station will kick off.

2H 2023: Expansion of Baghdad International Airport to begin.

3Q 2023: Design and supervision contract for Oman’s proposed Musandam Airport to be awarded.

Before the end of the year: The first phase of the Ain Sokhna port redevelopment will wrap.

2024

1Q 2024: Construction of phase 3 of Agility’s logistic park in Abidjan, Côte d'Ivoire to be completed.

1Q 2024: Egypt’s Transport Ministry to launch pre-qualification tender for Cairo-Alex freight railway.

1H 2024: Civil Construction subcontracts for construction firms in Oman for implementation of the Abu Dhabi - Suhar rail link to be announced.

King Salman Energy Park is set to become operational in 2024

FEBRUARY 2024

13th World Trade Organization Ministerial Conference, Abu Dhabi, UAE.

12-13 February (Monday-Tuesday): Breakbulk Middle East conference, Dubai Trade Centre, UAE.

12-15 February (Monday-Thursday): African Air Expo, Cape Town, South Africa.

28 February-1 March (Wednesday-Friday): MENA Transport Congress and Exhibition 2024, Dubai, UAE.

MARCH 2024

5-6 March (Tuesday-Wednesday): MRO Middle East, Dubai Trade Center, Dubai, UAE.

12-14 March (Tuesday- Thursday): IATA World Cargo Symposium, Hong Kong International Airport, Hong Kong.

20 March (Wednesday): Construction work scheduled to begin on the 162 km Rasht-Astara Railway in Iran.

APRIL 2024

30 April- 2 May(Tuesday-Thursday): Autonomous E-mobility Forum, Doha, Qatar.

MAY 2024

2-3 May (Thursday-Friday): Geneva Dry, Hotel President Wilson, Geneva, Switzerland.

21-23 May (Tuesday-Thursday): WAGA 2024, Riyadh, Saudi Arabia.

JUNE 2024

19-21 June (Wednesday-Friday): World Freezones Organization’s Annual International Conference and Exhibition, Bari, Italy.

NOVEMBER 2024

13-15 November (Wednesday-Friday): The Bahrain International Airshow, Sakhir Airbase, Bahrain.

DECEMBER 2024

10-12 December (Tuesday-Thursday): Middle East Business Aviation, DWC, Dubai, UAE.

2025

Mid-2025: Iraq will complete phase one of the construction of the Grand Faw Port.

DHL and Aramco’s logistics and procurement hub in Saudi Arabia will commence operations.

1Q 2025: Sadr Park’s Logistics Center in Riyadh to be completed.

2027

4Q 2027: Oman’s Musandam Airport construction to be completed.

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DHL snaps up remaining stakes in Danzas

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TODAY: DHL takes full ownership of Danzas + Iran’s exports rise