Good morning, friends. We have a tight issue for you to start the week, with lots of investments coming in from Kuwait, the UAE, and Egypt. Let’s dive in.

THE BIG LOGISTICS STORY ABROAD- No end in sight for Boeing strike: Boeing’s machinist strike has entered its sixth-week after factory workers voted to reject a wage offer on Thursday, Reuters reports. The vote came in at 64% in opposition to the offer, a major setback for CEO Kelly Ortberg, who took the reins in August. Boeing’s offer included a 35% pay hike over four years, a one-time USD 7k ratification bonus, a reinstated incentive plan, and enhanced contributions to workers' retirement plans. The offer still falls short of the union’s targeted 40% pay bump and does not include the reinstitution of defined benefit pensions.

ICYMI- The strike is taking place at Boeing’s 737 Max Jets production hub, worsening the company’s already existing supply chain issues and delivery delays. Purchase orders for the company’s 737, 767 and 777 jets have been halted to preserve the company’s credit rating.

Pressure is mounting: As the strike persists, Boeing’s suppliers are feeling the growing pressure, with five suppliers saying that a further continuation of the strike would force the companies to freeze investments, furlough workers, or even consider halting production, Reuters reported last week. The White House is continuing to “encourage parties to continue working to achieve an agreement that works, certainly for all parties," White House press secretary Karine Jean-Pierre told reporters on Thursday, Reuters reported.

The story grabbed a lot on ink in the int’l press over the weekend: AP | Bloomberg | Financial Times | Wall Street Journal | The New York Times | Washington Post | CNN | BBC

HAPPENING TODAY-

Egypt’s Internal Trade Development Authority is inking agreements for three commercial and logistics zones in Beni Suef and Sharqia governorates with two firms including Emaar, Al Mal quotes ITDA Head Heba El Sayed as saying.

PSAs-

#1- More flights suspended: Regional and international carriers suspended or rerouted flights to Iran, Iraq, Jordan, and Lebanon on the back of escalating tensions in the region and following Israel’s attacks on Iran over the weekend in retaliation of Iran’s 1 October attack. Here are the updates:

• Qatar Airways temporarily suspended flights to and from Iraq, Iran, and Lebanon until further notice, and will operate flights to Amman during daylight hours only, according to a travel notice.
• German carrier Lufthansa is extending its suspension of flights to Tehran and Beirut until early 2025, according to a travel update.
• SWISS will be halting flights to Beirut up to and including 18 January 2025,
• Egypt’s flagship carrier EgyptAir canceled flights to Baghdad and Erbil in Iraq and Amman, Jordan on Saturday on the back of regional tensions, according to a statement.
• Iraq’s Transport Ministry suspended flights on Saturday across all airports until further notice, following the Israeli airstrikes against Iranian military targets on Saturday, Reuters reports, citing INA.
• Flydubai suspended or rerouted its flights to Jordan, Iraq, Iran, and Israel on Saturday following Israel’s airstrikes on Tehran, a spokesperson for the budget airline told Khaleej Times.
• Abu Dhabi’s Etihad Airways redirected several of its flights on Saturday, anticipating that disruptions would last for the next 48 hours, a spokesperson told Khaleej Times.

#2- Vessels can start booking anchorage services as of 1 November at Jebel Ali’s new anchorage area, according to a statement. Services will include bunkering, crew changes, repairs, and special technical services, according to a separate circular (pdf).

WATCH THIS SPACE-

[wwtt1] #1- Tender issued for Oman’s Al Mudhaibi Industrial City: Oman’s Public Establishment for Industrial Estates (Madayn) has issued a tender for the establishment of Al Mudhaibi Industrial City in North Al Sharqiyah governorate, Oman Observer reported on Saturday. The first steps for the project — which include soil testing, traffic analysis, and topographical studies — have been completed.

The details: The first phase will cover 2.5 mn sqm and include essential services, including roads, water, and sewage systems. The city — situated near Oman’s primary road networks — will be connected to major ports and border crossings and will boast a 100k sqm area for logistics. The city will also have designated zones for agricultural investments.

#2- The design of the railway and topographic survey for Iraq’s Development Road Project is complete, according to a statement released on Thursday. Phase one of Iraq’s Grand Faw Port, a key part of the project, will be completed in 2025, with five berths already constructed.

Background: The UAE, Iraq, Turkey, and Qatar signed a preliminary agreement in April to work together on the Development Road project, which aims to connect the Grand Faw Port to Turkey's border via a rail and road network. The Iraqi Transport Ministry inked an agreement in July with consulting firm Oliver Wyman to help market the project, supervise investments, and provide economic advisory services for strategic government projects.

#4- Strong demand and higher freight rates have led shipping giant Hapag-Lloyd to boost its outlook, Reuters reported on Thursday. Despite increased expenses due to shipping diversions around the Cape of Good Hope to avoid the Red Sea, the firm expects its earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2024 to be between USD 4.6 bn to USD 5 bn, up from prior forecasts of USD 3.5 bn to USD 4.6 bn. However, the forecast could still be impacted by unpredictable geopolitical challenges and shifting freight rates.

A boost from increased rates: Since late last year, attacks on international shipping in the Red Sea by Iran-aligned Houthi militants from Yemen have compelled shipping companies to divert traffic from the Suez Canal to the longer route around Africa. “The transport times are much longer, which is why we needed significantly more capacity and bought capacity. Despite this, demand was relatively high and capacity was scarce or is still scarce," the spokesperson added. “When capacity is relatively tight, rates simply go up. This was particularly the case on the Far East to Europe route,” a Hapag-Llloyd spokesperson told the newswire.

#5- Qatar’s Hamad Port expects to receive over 2k ships by the end of this year, up from 1.6k vessel entries last year, Executive Director Nabil Al-Khaldi told Qatar Television during an interview (00.12) published on Thursday. Some 28 shipping lines are currently serving the port, with some 1.1k vessel entries recorded so far, Al-Khaldi said.

#6- Iran and Russia are set to finalize agreements for long-term collaboration, including the signing of gas and corridor contracts, semi-official Iranian news agency Mehr reports. Russian President Vladimir Putin invited Iranian President Masoud Pezeshkian to Russia for an official visit to sign the agreements between the two countries. The agreements set to be signed should also include the transfer of Russian gas to Iran and an agreement related to the North-South corridor, Iran’s ambassador to Russia Kazem Jalali told IRNA in an interview on the sidelines of the BRICS summit.

REMEMBER- Iran and Russia signed an agreement in May 2023 to construct the Rasht-Astara railway, completing the 7.2k km International North-South Transport Corridor (INSTC), which is a network of ship, rail, and road routes connecting South Asia to Europe.

#7- Ukraine MP calls for UK to reconsider ties with DP World: A Ukrainian MP is calling on UK ministers to re-evaluate the country’s financial ties to UAE-based logistics giant DP World due to its business operations with Russia, as the firm is a partner in Russia’s Northern Sea Route project, the Guardian reports. “Britain should not be doing business with a company doing [business] in Russia. We are in favor of the total isolation of Russia,” Ukrainian MP and Foreign Policy and Interparliamentary Cooperation Chairman Oleksandr Merezhko told Democracy for Sale in an interview on Saturday.

REMEMBER- DP World committed GBP 1 bn (c. USD 1.3 bn) in investments earlier this month for the DP World-operated London Gateway port following a temporary pause in plans. DP World executives were reportedly angered by comments by UK transport secretary Louise Haigh and UK Deputy Prime Minister Angela Rayner regarding working practices at DP World’s subsidiary P&O Ferries, with Haigh calling DP “rogue employers” and calling for a boycott. UK Prime Minister Keir Starmer clarified that Haigh’s comments were not “the view of the government” — and DP World had welcomed the PM’s intervention.

#8- Egypt, Italy to launch new ro-ro shipping line next month: A new ro-ro shipping line connecting Damietta Port with Italy’s Port of Trieste will begin operations by the end of November, Al Mal reports, citing Italy’s ambassador to Egypt Michele Quaroni. The route aims to facilitate the transport of perishable agricultural commodities to European markets and marks Italy’s first direct maritime link with Africa, Quaroni said.

Remember: Egypt’s Transport Ministry in January said that the new line would launch by the end of 1H 2024.

MARKET WATCH-

#1- Oil prices slumped early on the back of the ongoing conflict in the Middle East and the upcoming US elections taking place next month, Reuters reports. Brent crude gained USD 1.67 to USD 76.05 a barrel, while US West Texas Intermediate (WTI) rose USD 1.59 to USD 71.78 a barrel. The market seems to be “bouncing around in a holding pattern till we get an answer to some of these questions on Israel, the war and the [US] election,” Price Futures Group senior analyst Phil Flynn told the newswire.

Prices slipped 5% to start the week on the news that Israel’s retaliation against Iran spared Iran’s crude facilities, Bloomberg reports. Brent crude traded below USD 73 a barrel and WTI inched close to USD 68 after paring losses.

#2- Baltic index continues decline: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — dropped 0.5% on Friday to its lowest reading since January. The capesize index fell three points, while the panamax index lost another 15 points and the smaller supramax fell 5 points.

#3- The Drewry World Container Index fell by 4% to USD 3,095 per 40-ft container on Thursday, according to the latest index readings. Spot rates for 40-ft containers are now 70% below the previous pandemic peak of USD 10.4k in September 2021, but remain 118% above the pre-pandemic rate of USD 1.4k. The average composite index YTD is USD 4,036 per 40ft container, which is USD 1,200 higher than the 10-year average rate of USD 2,836.

DATA POINT-

The Dubai aviation sector is projected to contribute AED 196 bn (c. USD 53 bn) worth of gross value to the economy, equating to 32% of the emirate's GDP, by 2030, an increase from AED 137 bn reported in 2023, according to a report (pdf) from Emirates Group, Dubai Airports, and research firm Oxford Economics.The core impact of the sector is expected to grow to AED 132 bn, accounting for 22% of GDP, while supporting approximately 386k jobs. Overall, the total number of jobs in the aviation sector is forecasted to rise to 816k representing one-quarter of all jobs in Dubai by 2030.

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CIRCLE YOUR CALENDAR-

Saudi Arabia will host the Saudi Airport Exhibition on Monday, 11 November and Tuesday, 12 November in Riyadh. The two-day exhibition will bring together global industry leaders to discuss the latest technologies around the world in the aviation industry. It looks to encourage discussion between Saudi aviation leaders and the global supply chain industry.

The UAE will host the ADIPEC Maritime and Logistics Exhibition and Conference on Monday, 11 November and Thursday, 14 November in Abu Dhabi. The event looks to explore ways to reduce emissions through innovative solutions. It will bring together industry leaders, regulators and decision makers in the global maritime and logistics sector.

Bahrain will host The Bahrain International Airshow on Wednesday, 13 November and Friday, 15 November near Awali. The three-day event is bringing together over 180 participating companies from over 59 represented nations globally.

Egypt will host the Autotech Exhibition on Sunday, 17 November until Tuesday, 19 November in Cairo. The event will bring together prominent local and international companies to discuss and evaluate the latest developments and trends in the automotive aftermarket and feeder industries.

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