Good morning, ladies and gents. It’s one of those mornings where half the job is just watching ships turn around mid-ocean. The Houthis have put the entire industry on notice, and Riyadh doesn’t have a good move. The group’s Sanaa-based body — the HOCC — told shipping companies to stay out of Saudi ports entirely, warning that any vessel that loads or discharges there could be hit “in any location” within reach. Nobody’s entirely sure how a ship even gets flagged as Saudi — ownership, cargo, and port history all seem to count more than the flag on the mast — which means changing your paperwork won't necessarily save you.

Hormuz isn’t faring any better: Kuwait Oil Tanker Co.’s products tanker Kaifan was hit by a projectile northeast of Oman’s Limah on Tuesday, Bloomberg reports. Crossings averaged just seven a day in the week ending 19 July, down from 16 the week before, and no vessels transited at all on Tuesday. Separate Kpler data showed only four commodity vessels crossed on Monday — none of them VLCCs or LNG carriers

Emirates says no thanks to Boeing

Emirates has told Boeing it won’t accept the first 10 aircraft from its 777x order, arguing that the early 2019 models have been so heavily modified that upgrading them to match the final certified design is no longer feasible, President Tim Clark said at the Farnborough Airshow, The Telegraph reports.

BACKGROUND- Emirates ordered 270 777X aircraft from Boeing at roughly USD 440 mn apiece and has been waiting on the jets since a 2019 static-test failure set the program back. The airline now expects its first 777-9 deliveries in 2Q 2027 — about seven years behind schedule — while US regulators aren’t expected to certify the aircraft until late 2026 or early 2027, Reuters reports.

REMEMBER- Emirates is building out its fleet: The airline ordered 65 additional 777-9s for USD 38 bn last November, taking its total aircraft orderbook to 375 units, including 323 widebodies. While it waits, the carrier has committed USD 5 bn to retrofitting its existing A380s and 777X to extend their service lives.

Paying up for gas security

Egypt is negotiating with Shell, TotalEnergies, BP, and Hartree Partners to secure 15-18 LNG cargoes per month for at least three years, Reuters reports, citing three unnamed sources. The transactions could cost Egypt between USD 8-11 bn per year, with prices set at roughly USD 1.5 above the European gas price benchmark, according to calculations by the newswire. The agreements are yet to be finalized.

A trend continues: Egypt is increasingly dependent on gas imports, as domestic production plummeted by nearly 37% between 2023 and 2026, forcing a sharp shift toward expensive LNG imports to meet rising demand. By the same token, Egypt’s natural gas imports surged 36% y-o-y in 1Q 2026.

Why it matters: Attempts to secure medium-term LNG supply reflect a strategy to minimize reliance on unpredictable spot market purchases during ongoing instability — maintained by conflict in Iran and Ukraine, S&P Global Energy’s head of Atlantic LNG Aly Blakeway told the newswire. This is also being coupled with expanding pipeline gas efforts.

ALCN taps team for logistics zone

ALCN moves toward logistics zone financing: EGX-listed Alexandria Container and Cargo Handling Company (ALCN) has tasked a technical committee with preparing a comprehensive financing study for its planned logistics zone near Alexandria Port — which would primarily handle container storage and repair services, sources told Al Mal. The committee will also lead negotiations, secure the necessary regulatory approvals, and weigh whether to bring strategic investors into the project.

The board previously granted in-principle approval for the logistics zone, following a preliminary concept and feasibility study. ALCN said last month that implementation remained subject to completing the project’s technical, financial, and regulatory studies, with its location, capacity, cost, and delivery timeline still undisclosed. The company was also weighing whether to develop the zone directly, through a special purpose vehicle, or alongside investors.

BACKGROUND- ALCN operates two terminals with a combined capacity of 1.5 mn TEUs across the Alexandria and El Dekheila ports, which handle about 60% of Egypt’s foreign trade. Together, its two terminals span approximately 1.6 km of quay length and connect directly to Egypt’s national rail network. In FY 2024/25, ALCN posted an EGP 8.37 bn top line, with an adjusted EBITDA margin of 64%.

Ownership structure: Abu Dhabi sovereign wealth fund ADQ holds an indirect 51.33% majority in ALCN through Alpha Oryx (32%) and AD Ports subsidiary Black Caspian Logistics (19.33%). A move to consolidate that holding under AD Ports — and potentially raise it to as much as 90% — ran into the Egyptian government’s refusal to sell its combined 43.9%, held through the Holding Company for Maritime and Land Transport (36.3%, after it upped its stake in April) and the Alexandria Port Authority (7.6%), while the remaining roughly 4.76% are freefloating on the EGX.

Market watch

Oil prices rose this morning as ongoing US strikes on Iran and Houthi threats in the Red Sea heightened supply disruption fear, Reuters reports. Brent crude futures increased USD 1 to USD 92.01 / bbl by 03.30 GMT, while West Texas Intermediate (WTI) gained USD 0.82 to USD 85.16 / bbl.

The Baltic Index slips once again: The Baltic Exchange’s dry bulk index — which tracks rates for the capesize, panamax, and supramax vessel segments — fell 1 point to 2,670 on Tuesday. The capesize index increased 1.1% to 3,930 points, while the panamax dipped 2.1% to 2,181 points. The smaller supramax shed 0.5% to 1,730 points.

***

YOU’RE READING EnterpriseAM Logistics, the essential MENA publication for senior execs who care about the industry that connects producers and retailers to global markets. We’re out Monday through Thursday by 10:15am in Cairo and Riyadh, and 11:15am in the UAE.

EnterpriseAM Logistics is available without charge thanks to the generous support of our friends at Hassan Allam Utilities and Transmar.

Were you forwarded this email? Tap or click here to get your own copy of EnterpriseAM Logistics.

Want to send us a story idea, request coverage, ask for a correction, or otherwise get in touch? Reach out to us on [email protected].

DID YOU KNOW that we also cover Egypt, Saudi Arabia, and the UAE? ***