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DP World adds 100+ offices to its global freight forwarding network

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What we're tracking today

TODAY: DP World expands global freight forwarding + wants more paperless trade

Good morning, friends. It’s a relatively quiet morning as the first week of Ramadan draws to a close, but we have a couple of key updates from DP World to dig into this AM.

WATCH THIS SPACE-

#1-Oman’s integrated logistics solutions provider Asyad Group has issued a tender for infrastructure development at phase 1 of Muscat International Airport Freezone (MIAFZ), according to a press release. MIAFZ will be air freight-focused, contributing to supply chains for pharmaceuticals, perishables, and e-commerce. Asyad is looking to engage with private sector firms that can provide construction services, the statement notes. The tender has a 25 March deadline.

#2- Transport sector investments buoyed the UAE’s construction market: The value of UAE’s construction market in 2023 hit USD 94 bn and is projected to achieve over a 3% average annual growth rate (AAGR) between 2025 and 2028, Wam reports, citing figures from London-based GlobalData. Growth in the UAE’s construction market was driven by new investments in transport and renewable energy infrastructure, together with better performance in the EV market, GlobalData said.

#3- OPEC continues to forecast relatively strong growth in global demand for oil in 2024 and 2025, while boosting its economic forecast for the year, Reuters reports. The cartel sees global demand for oil increasing by 2.25 mn barrels per day (bpd) in 2024, and by 1.85 mn bpd in 2025, with both figures unchanged from last month’s projections, the newswire said. OPEC also boosted its outlook for economic growth in 2024 by 0.1% to 2.8%, citing an expectation that a “robust dynamic” in global economic growth seen towards the end of 2023 would spill over into 1H 2024, while keeping 2025’s forecast for economic growth unchanged at 2.9%, the newswire also said.

IEA disagrees: The International Energy Agency’s (IEA) most recent forecast saw a more conservative 1.22 mn bpd bump to oil demand this year, with the agency due to update its forecast this Thursday, Reuters said. OPEC also expects that demand for oil will continue to increase over the next 20 years, while the IEA sees demand plateauing by 2030, as economies transition to green energy.

DISRUPTION WATCH-

Yemen’s Houthis fired two anti-ship ballistic missiles at a Liberian-flagged container ship dubbed the Pinocchio on Monday, Reuters reports, citing US Central Command (Centcom). The Iranian-backed group described the targeted vessel as “American,” the newswire said, citing the group’s military spokesperson Yahya Sarea.

Somali pirates hijack UAE-bound bulk carrier:A Bangladeshi bulk carrier, dubbed Abdullah, was boarded by 20 armed men some 600 miles off of Somalia’s coast yesterday, Bloomberg reports, citing British security firm Ambrey. The SR Shipping-owned vessel was enroute from Mozambique to the UAE hauling a cargo of coal. Following the forced boarding, the vessel stopped, before changing its heading towards Somalia, ship tracking data showed. “We’re waiting for communications with the pirates. The ship is being controlled by the pirates near the Somali coast,” SR Shipping CEO Mehrul Karim told Bloomberg.

Europe-bound tankers hauling jet fuel and diesel from Indian refiner Reliance are rerouting around the Cape of Good Hope, Reuters reports, citing shipping sources and ship tracking data. Reliance’s charter contracts with tanker owners allow them the flexibility to sail through the Red Sea or divert via the Cape of Good Hope, with most tanker owners opting for the longer but safer route around the Cape of Good Hope, shipping sources told the newswire. Reliance’s refining complex in Gujarat, India is the world’s largest, with capacity to process some 1.4 mn barrels of oil per day, the newswire also said.

Iraq’s Islamic Resistance targeted Israel’s Ben Gurion Airport with unmanned aerial vehicles yesterday, Lebanon’s Iran-aligned Al Mayadeen reports. The attacks come as part of the second phase of the group’s campaign against Israel, which looks to block Israel’s access to Mediterranean shipping and stop operations at Israel’s ports, the outlet said citing the Iraq-based militia.

MARKET WATCH-

#1- Oil prices were largely unchanged on Tuesday as OPEC stuck by its projections for 2024 and 2025 demand, Reuters reports. Brent crude futures for May deliveries rose USD 0.24 to USD 82.45 a barrel by 14.20 GMT, while West Texas Intermediate (WTI) April contracts gained USD 0.31 to USD 78.24 a barrel, the newswire said. Crude imports for China, the world’s largest importer, were up y-o-y for the first two months of 2024, but were below previous months, continuing a downward trend, the newswire added citing recent Chinese market data.

#2- Baltic index rallies, buoyed by larger segments: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — was up 1.4% to 2,377 points, its highest in nearly three months, as gains in the larger capesize and panamax segments propped up the index, Reuters reports. The capesize subindex bumped up 1.6%, to 4,314, its highest in three months, while panamax gained 1.7% to 1,893 points. The smaller supramax segment fell 2 points to 1,316 points, the newswire said.

DATA POINT-

King Abdulaziz Port in Dammam, Saudi Arabia handled a record high 235.8k containers in February 2024 — a 25.4% y-o-y increase — Saudi Ports Authority (Mawani) said in a news release. Additionally, the number of incoming containers surged 49% y-o-y to 142.7k last month, while outgoing containers rose 25% y-o-y to 86.3k containers.

CIRCLE YOUR CALENDAR-

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.

Iran will host the second Iran-Africa International Summitfrom Wednesday, 24 April through to Friday, 26 April in Tehran. The event will see Iran receive trade ministers from more than 40 African countries.

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.

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Aviation

Etihad + GCAA partner with Thales to optimize flight routes and slash emissions

Etihad, GCAA roll out aviation emission reduction framework: The General CivilAviation Authority (GCAA) inked an MoU with Etihad Airways and French aerospace tech provider Thales to implement Thales’ orchestrator for eco-friendly trajectories solutions aimed at advancing environmental sustainability in the aviation sector, according to a press release. Thales’ service allows passengers to optimize their flight plans by choosing more efficient plans and adjusting their flight profiles.

The details: The agreement sees the trio trial solutions developed by Thales’ Orchestrator for Eco-Friendly Trajectories, which implements digital tools to allow better coordination between flights and Air Navigation Service Providers (ANSPs), the statement said. The mechanism enables flights to determine more direct routes and alter their flight plans in real time, thereby limiting carbon emissions from flights.

The MoU falls in line with the UAE’s sustainability drive, in particular commitments made within the International Civil Aviation Organization (ICAO) framework to curb emissions from aviation by 5% by 2030, GCAA Director General Saif Mohammed Al Suwaidi said.

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Freight Forwarding

DP World adds 100+ offices to its global freight forwarding network

DP World expands global freight forwarding network: UAE-based port operator DP World has added upwards of 100 offices to its global freight forwarding network as the outfit looks to offer flexible and resilient supply chain solutions to clients worldwide, according to a statement. The freight forwarding network expansion comes against a backdrop of increased trade disruptions from climate change, geopolitical turmoil, and macroeconomic shocks with the company aiming to build a network to cover over 90% of global trade, DP Logistics division CCO Beat Simon said in the statement.

DP World’s network offers the full suite of end-to-end supply chain services, including order and origin management, port handling, sea and air freight management, as well as at-destination services including customs, drayage, logistics, last-mile delivery, deconsolidation and bonded warehousing services, with the full range of services accessible via a single digital window, the statement notes.

A more hands-on approach: The latest expansion spree comes as businesses look to take a more hands-on approach to their supply chains, with the classic asset-light freight forwarding model that saw supply chain management outsourced to third parties falling out of vogue due to vulnerabilities to disruptions, with knock-on effects on firms’ inventory and fulfillment planning, the statement notes. DP World’s expanded network leverages a ‘toolbox’ of assets and capabilities, including DP World-managed ports, terminals, warehouses, trucking, railway, and shipping assets, as well as digital technology and partnerships, to boost client oversight and supply chain resilience.

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DIGITALIZATION

DP World report calls on countries to adopt paperless trade and SWs

Digitalization and paperless trade boost efficiency and cut costs in cross-border trade and stand to transform the global movement of goods, a new report (pdf) by DP World says. Single Window (SW) initiatives — mediated via the World Trade Organisation’s (WTO) Trade Facilitation Agreement (TFA) — have also demonstrated substantial benefits in terms of boosting trade and cutting delays and costs, the report also said.

Despite having the potential for large gains, less than half of the world’s governments have implemented paperless cross border trade, the report notes. Only 47% of the world’s governments have put paperless trade into effect, choosing instead to rely on paper-based methods that are “inefficient and error-prone,” and limiting efforts to promote digital transfers and achieve legal recognition for digital trade data and documents that are transferred cross border.

Big savings on time and money: Countries that have revamped and digitized their customs procedures to align with the Revised Kyoto Convention have seen a 64% fall in import and export times and costs. Fully integrating cross-border paperless trade is forecasted to boost global exchanges by as much as USD 1 tn per year and reduce global trade costs by 14%.

What does digitization look like? To digitize custom procedures, software is used to collect, organize and manage customs data, documents, and duties, Danish shipping giant Maersk reports. Governments are encouraged to launch SWs, which represent unified portals that connect customs agencies, service providers, and traders, enabling data exchange, clearance, and payments via a single platform.

SWs boost bilateral trade between countries by 37% by streamlining transactions, curbing costs and delays, and boosting transparency, the report said citing a 2020 study. However, the report also highlights the importance of “interoperability within and between SWs,” which can be achieved via globalized standards and technology-neutral laws. Ethiopia saw clear gains from adopting a TFA-aligned SW framework with assistance from the WTO, seeing costs halved and clearance times falling from 44 days to 13 days, and boosting the country’s trade competitiveness through early adoption, the report said. Digital trade and SW initiatives in North Macedonia also saw the country realize gains in competitiveness, the report also said.

SWs are gaining traction in the region: Yemen launched a maritime SWservice at Hodeidah Port to streamline and simplify information exchange in January. Omani logistics player Asyad inked a concession last year with Oman’s Public Authority for Special Economic Zones and Freezones to develop a SW for licensing, permits, and approvals. Dubai Maritime Authority issued a directive last May requiring all service providers to declare container charges through a secure trade SW portal in a bid to boost transparency. Abu Dhabi-based AD Ports, kicked off a SW to digitally facilitate Abu Dhabi trade in 2022.

The UAE is positioning itself as a leader in the region’s trade digitization push: The UAE inked an agreement with the World Economic Forum to launch the initial three-year phase of a Global TradeTech Sandbox in late January to drive innovation in the trade technology space. The sandbox looks to drive innovation by implementing versatile regulations and establishing best practices while streamlining collaboration between exporters, logistics companies, ports, regulators, and customs officials to enable smoother trade. Apart from the regulatory sandbox, the Trade Tech initiative will also deliver annual research reports, and implement an incubator for tradetech startups.

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Also on Our Radar

NeoNautica + UAE partner to launch Blue Pass platform, Falcon + Archer partner on UAE flying car network, ONE opens Dubai HQ

TECH-

UAE to launch Blue Pass platform for maritime sector: The Energy and Infrastructure Ministry has inked an agreement with technology and digital services company NeoNautica to develop and operate the UAE Blue Pass platform, which provides facilities for the maritime sector, Wam reports.

What will the platform do? The platform aims to connect maritime professionals, enhance cooperation between stakeholders in the maritime sector, promote communication and transparency, and expand coverage to include all modes of transportation, boosting the UAE’s position as a leading logistics player, Wam writes.

AVIATION-

Falcon + Archer partner on UAE eVTOL vertiport network: UAE aviation service operator Falcon Aviation is partnering with US-based, Mubadala-Capital backed aircraft maker Archer Aviation to develop a vertiport network in key locations across Dubai and Abu Dhabi, according to a press release. Under this partnership, the two firms aim to jointly develop a network which, using Archer’s Midnight flying car, will allow for flights between the two cities as early as 2025. The pair will develop state-of-the-art vertiport infrastructure at Atlantis' Falcon Heliport, Dubai’s Palm, and the Abu Dhabi corniche’s Marina Mall heliport. Falcon Aviation inked an MoU last year to operate Archer’s Midnight flying cars, according to the statement.

Part of Archer and Falcon’s air taxi network? The Abu Dhabi Investment Office signed an agreement with Archer last October to explore the possibility of establishing an air taxi network in the Emirates by 2026. The company, alongside Falcon Aviation and Gal-Ammroc, will collaborate with Abu Dhabi to launch their eVTOL-based air taxi services in the country, and Archer said it would partner with Emirati aircraft makers and maintenance, repair, and overhaul (MRO) providers in Abu Dhabi to spearhead the domestic production of eVTOLs in the country under Abu Dhabi’s Smart and Autonomous Vehicle Industry (SAVI) cluster.

SHIPPING + MARITIME-

Ocean Network Express (ONE) has opened its West Asia Regional Headquarters in Dubai, according to a press release. The new HQ, which has been moved from Singapore, will act as the primary center for operations in the Indian Subcontinent, the Middle East, and East Africa, overseeing key tasks including commercial operations, customer service, and digitization. The new office will also host a specialized team that will foster regional trade alliances and tap into new business ventures in the region. The move is in line with ONE’s growth strategy for the Middle East, Indian Subcontinent, and East Africa, which are becoming increasingly important for both its inter-regional and deep sea network customers.

ZONES-

Iran + ECO to set up logistics village: Iran and Economic Cooperation Organization (ECO) member states will ink an MoU for the construction of a logistics village in the Maku Freezone, Tasnim reported. Neither a timeframe for the project nor its value have been revealed. The logistics zone will be the first Iranian knowledge-based economy town, the news agency writes. It will be built on some 1.8k hectares, and will be connected to the International East-West Transport Corridor, according to Tasnim.

Who are the ECO members? ECO comprises Turkey, Iran, Pakistan, Afghanistan, Azerbaijan, Kazakhstan, the Kyrgyz Republic, Uzbekistan, Tajikistan and Turkmenistan, according to the organization’s website.

IN OTHER IRAN NEWS- Iran + Turkey have also signed an MoU to open a joint freetrade zone soon, Maku Freezone Organization head Hossein Garousi told IRNA. A new railway connecting Iran and Turkey, from Marand and Cheshmeh Soraya to Igdir and Kars, could significantly increase trade exchange between the two countries, Garousi said, according to IRNA.

OTHER STORIES WORTH KNOWING THIS MORNING-

  • Etihad Cargo is launching a new customer relations tool: The UAE’s Etihad Cargo, in partnership with aviation data optimization company Rotate, is launching Sales Cockpit, a digital sales optimization tool that will enhance customer relations across its global stations. (Statement)
  • Spain wants Moroccan truckers: Spain’s transport sector is looking to attract some 26k Moroccan truck drivers, with salaries ranging from EUR 1.6k to EUR 2k a month, to address an unprecedented labor shortage. (Morocco World News)

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Around the World

Panama Canal to add three daily slots, US steelmakers petition for probe into unfair Chinese industrial practices, Ukraine hits Russia’s refineries again

The Panama Canal is adding three daily slots for transit through its Panamax Locks, bringing the total to 27, according to an advisory note (pdf) by Panama Canal Authority. The addition of the slots, which are based on present and projected levels of Gatun Lake, will become available from 25 March, with applications for the slots open since 11 March, the note says. The Canal Authority may also increase the number of slots available on auction depending on Gatun Lake’s water levels. The canal increased its daily transits to 24 in January of this year at the end of the rainy season, according to a December statement by the authority.

Background: The Panama Canal has placed significant limits on vessels transiting the waterway due to a drought decreasing its water levels, which has caused major congestion. The sale of slots to transit the canal netted USD 235 mn from shipping companies in 2023.


US steel unions call for investigation into Chinese shipbuilding: US steel unions are urging Washington to look into alleged unfair economic practices by China in the maritime logistics and shipbuilding industry, The Financial Times (FT) reports. The united steelworkers union intends to file a petition with the US Trade Representative alleging that Chinese government policies, including preferential financing for Chinese companies, are allowing China to maintain a stronghold on the international shipbuilding sector, FT reports, citing unnamed insider sources. The petition is being filed under the same statute used by the former president Donald Trump to justify the institution of tariffs on Chinese imports in 2018. President Joe Biden’s administration will have 45 days to decide whether it will open a probe into the matter, the newswire explains.


Ukraine launched dozens of drones and rockets into Russia on Tuesday,causing serious damage to a major oil refinery, Reuters reported yesterday. This is the latest in a series of Ukrainian drone attacks on Russian energy facilities. Russian authorities have reported attacks including on Lukoil ’s Norsi refinery, and said that a drone was destroyed on the outskirts of Kirishi, home to the second largest oil refinery in Russia, the newswire reports. A main crude distillation unit (AVT-6) at Norsi was damaged, causing a partial halt in production, an anonymous source told Reuters. Norsi refines some 15.8 mn tonnes of Russian oil a year, 4.9 mn tonnes of gasoline, 5.6% of the country’s fuel oil, and 7.4% of its aviation fuel, industry sources told the outlet.

Ukraine has been actively targeting Russian energy and industrial infrastructure, hitting Russia’s Mikhailovsky GOK iron ore plant last week. Two Ukrainian-launched drones also hit Russia’s Volgograd oil refinery, the largest plant in the country’s south, early last month.


Uber Freight wants to boost its freight under management in Europe to EUR 2 bn by 2028, Bloomberg reports. The expansion will be achieved through a digital platform through which companies’ entire supply chains can be managed. Uber’s freight segment accounted for 14% of revenues in 2023, although it was down 25% y-o-y due to weakening trucking rates driven by low demand. However, recent indications suggest a reversal as supply chain disruptions ease. Uber Freight's slice of the logistics market in Europe is valued at EUR 200 mn.

Boeing deliveries were down in February: US planemaker Boeing delivered 27 airplanes in February this year, one less than February 2023, as the planemaker faces curbs on production growth, Reuters reported yesterday. The US Federal Administration has temporarily capped Boeing's production of the MAX line of planes, one of which was involved in the Alaska Airlines incident in January, the newswire said. Boeing has delivered 54 planes, including 42 MAX jets, so far in 2024, down from 66 in the first two months of last year, Reuters also said. Meanwhile, European competitor Airbus posted 33 gross orders for the first two months and has delivered 79 aircraft since the start of the year.


MARCH

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

24 April- 1 May ( Wednesday-Wednesday): Abu Dhabi Mobility Week, Abu Dhabi.

24 April- 26 April (Wednesday-Friday): The second Iran-Africa International Summit, Tehran, Iran.

27 April- 1 May (Saturday-Wednesday): Iran Expo 2024, Tehran International Permanent Fairground, Iran.

28 April - 29 April (Sunday - Monday): World Economic Forum, Riyadh, Saudi Arabia.

29 April- 2 May(Monday-Thursday): GLA Global Logistics Conference, Dubai, UAE.

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

April: Driftx. Abu Dhabi, UAE.

MAY

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

2-4 May(Thursday-Saturday): The International Conference on Logistics Operations Management: smart, sustainable and green logistics (GOL), Marrakesh, Morocco.

3-5 May (Friday-Sunday):2024 IEEE 15th international conference on Logistics and Supply Chain Management, University of Sousse, Tunisia, Tunis.

7-9 May (Tuesday-Thursday): Annual Investment Meeting (AIM) Congress, Abu Dhabi, UAE.

14-15 May (Tuesday-Wednesday): Seamless Middle East, Dubai World Trade Centre, UAE.

14-16 May (Tuesday-Thursday): Airport Show, DWTC, Dubai, UAE.

20-22 May (Monday-Wednesday): The Electric Vehicle Innovation Summit (EVIS), Abu Dhabi, UAE.

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

JUNE

2-4 June (Sunday-Tuesday):IATA Annual General Meeting (AGM) and World Air Transport Summit, Dubai, UAE.

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

OCTOBER

6-8 October (Sunday-Tuesday): Routes World 2024, Bahrain.

7-9 October (Monday-Wednesday): AFSIC – Investing in Africa, London, UK.

22-24 October (Tuesday-Thursday): Asean Ports and Logistics 2024, Johor, Malaysia.

NOVEMBER

11-14 November (Sunday-Thursday): ADIPEC Maritime and Logistics Exhibition and Conference, Abu Dhabi.

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

DECEMBER

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

20 December (Wednesday): The 5th Iran-Senegal Joint Economic Cooperation Commission, Dakar, Senegal.

EVENTS WITH NO SET DATE

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.

2H 2024: Bahri’s barges for Saline Water Conversion Corporation (SWCC) to begin initial and commercial operation.

King Salman Energy Park is set to become operational.

The Cross-Border Digital Trade Forum, Dubai.

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.

AD Ports-operated Safaga Port’s multi-purpose terminal will become operational.

Phase 3 of APM Terminals Tangier MedPort to be complete and operational.

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

1Q 2025: Phase twoof Jafza Logistics Park to be completed.

2027

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

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