Good morning, nice people. There are developments in cargo handling emerging from the UAE this morning and we have all the latest on how continued Red Sea disruptions will hit company earnings this year.

WATCH THIS SPACE-

#1- New shipping service comes to King Abdul Aziz Port: Qatar Navigation (Milaha) is adding a new shipping service — Upper Gulf Express (UGX) — to Saudi Arabia’s King Abdul Aziz Port in Dammam from tomorrow, according to a statement. The service will connect the port to Sohar, Jebel Ali, Hamad Port, Shuwaikh Port, and Umm Qasr Port, with two weekly 1k TEU trips.

#2- Bahrain International Airport is set to open its air cargo village soon,

Al Ayam reports, citing CEO of Bahrain Airport Company Mohammed Yousef Al-Binfalah. The project spans an area of 25k square meters north of the airport and includes 10 warehouses.

#3- United Airlines is calling on the US Department of Transportation (DOT) to block a codeshare agreement between Saudia and Kuwait Airways, Simpleflying reports, citing a document filed with the Department of Transportation (DOT). The airline is asking that the DOT’s approval be contingent on the KSA General Authority of Civil Aviation (GACA) approving United's own agreement with Emirates to operate flights between the US and KSA. United says GACA has ignored numerous requests submitted since May, according to the outlet. The codeshare agreement between United and Emirates would grant customers of either airline access to more than 100 destinations.

ON A RELATED NOTE- Iraqi airline Fly Baghdad was forced to cancel several of its flights from Baghdad International Airport earlier this week following sanctions imposed on the airline by the US Department of the Treasury, Shafaq News reports. The airline and its CEO Basheer Abdulkadhim Alwan al-Shabbani were subjected to sanctions for allegedly delivering weapons, fighters, and money to Iran-aligned militias in Iraq, Syria, and Lebanon, according to a US Treasury Department statement released on Monday.

The Iraqi carrier has denounced the sanctions, saying they are “not based on any material or moral evidence,” Reuters reported Fly Baghdad as saying in a statement Monday. “The company will resort to the legal method to demand material and moral compensation,” the airline said, adding that the decision was based on “misleading and unreal information.”

#4- Greek shipping company Empire Navigation looks to see progress on the release of sailors aboard the St Nikolas seized by Iran, following the release of a cadet and a meeting between the Filipino ambassador and the 18 remaining crewmen, according to a statement released last Friday.

The Marshall Islands-flagged tanker, loaded with Iraqi crude bound for Turkey, was seized by Iran on 11 January,Reuters reported last week. The move came in a tit-for-tat for the US seizure of the same vessel last year — dubbed Suez Rajan at the time — in a step to enforce sanctions, the newswire said.

#5- India is set to ask for concessions from the EU to allow it to align its forthcoming national carbon market scheme with the bloc’s emissions trading system, implemented in January, Bloomberg reports, citing sources with knowledge of the matter. India wants to integrate credits from a local fossil fuel tax with the EU's emissions allowance, meaning the bloc would recognize energy auditors approved by the Indian government. The move would result in a tax exemption for small and medium-sized Indian enterprises. India plans to raise the issue of the potential impact of the EU’s carbon border adjustment mechanism on Indian industries during the upcoming trade agreement negotiations on 19 February.

MARKET WATCH-

#1- Oil prices dropped on Tuesday, wiping off some gains from the previous day,as traders factored mixed signals from rising supply in Libya and Norway against geopolitical turmoil and outages in the US, Reuters reports. Brent crude dropped 0.74% to USD 79.47 a barrel, while West Texas Intermediate (WTI) fell 0.72% to USD 74.22 a barrel, with trading seeing Brent fall below the USD 80 threshold for the first time since 26 December, the newswire said.

#2- The Baltic Exchange’s dry bulk sea freight index rallied for a third consecutive session on Monday,supported by a boost in capesize and panamax vessels rates, Reuters reports. The overall measure — which factors rates for capesize, panamax, and supramax vessels — rose 1% to settle at 1518 points, the index’ highest since 11 January. The panamax subindex increased 1.7% to 1576 points, while capesize rose 1.25% to 2272 points, and supramax fell 3 points to 1027, the newswire said.

DATA POINT-

Iran’s exports to China increased 30% y-o-y in December 2023amounting to USD 1.25 bn, Mehr reports, citing China’s customs office. China also saw a 8.6% rise in trade to Iran in 2023, exporting USD 10.7 bn worth of products. Iran’s trade with China exceeded USD 14.6 bn worth of products, yet the two countries saw a 6.2% y-o-y drop in trade exchanges compared to USD 15.5 bn the previous year. Iran’s overall exports to China dropped by 27% in 2023 to USD 4.5 bn from USD 6.2 bn the prior year.

CIRCLE YOUR CALENDAR-

The UAE will host the Middle East Bunkering Convention from Monday, 5 February through to Wednesday, 7 February in Dubai. The event will bring together industry experts to tap into issues affecting the global marine fuel sector, including supply chains, decarbonization, and new fuels.

Cargo Facts EMEA 2024 will be held from Monday, 5 February through to Wednesday, 7 February, in Amsterdam. The event will bring together air freight industry leaders from Europe, the Middle East, and Africa to discuss the latest trends, forecasts, and technological innovations.

The UAE will host Sustainable Aviation Futures MENA from Monday, 12 February through to Wednesday, 14 February in Dubai. The event will see 80 expert speakers and upwards of 200 high level attendants and will handle topics pertaining to regulation, financing, and investments in Sustainable Aviation Fuels (SAF) in MENA.

The UAE will host the Future Warehouse & Logistics Conference from Monday, 12 February to Wednesday, 14 February in Dubai. The event will handle means for supply chain leaders to boost resilience and overcome challenges, with discussions on disruptions, sustainability, Internet of Things (IoT), automation, workplace management and other topics.

The UAE will host theTradeTech 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 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.

KSA 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 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.