Marsa Maroc inks MoU to explore modernizing Liberian ports

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What we're tracking today

TODAY: Marsa Maroc eyes Liberian port development + Bahrain ramps up BAH’s facilities

Good morning, ladies and gents. We have a bumper issue this morning with a pile of updates filing in from around the region, cutting across every inch of the regional logistics landscape. Let’s jump right in.

WATCH THIS SPACE-

#1- Adnoc L&S to invest USD 3 bn over five years: Abu Dhabi National Oil Company (Adnoc) Logistics and Services plans to invest USD 3 bn from 2024 to 2029 to expand its global logistics presence, focusing on acquisitions and fleet expansion, including global shipping and oil drilling fleets, the company’s CEO Abdulkareem Al Masabi told Asharq Business (watch, runtime: 4:54). The company has invested USD 5 bn since listing on the ADX, including acquiring Navig8 for USD 1 bn earlier in June.

#2- Oman’s Salalah Port ready to receive Gemini Network by 1Q 2025: Oman’s Salalah Port will join Maersk and Hapag-Lloyd’s vessel-sharing agreement, the Gemini Network, to boost its container throughput at the port, the Oman Observer reported last week. Salalah recorded a 13% y-o-y dip in cargo volumes to 2.5 mn TEUs from January to September this year, and hopes the launch of Gemini will counteract this downward trend. “The decrease in volume is mainly attributed to the Red Sea issue,” Salalah Port Services BOD Chairman Braik Musallam al Amri said in a report cited by the news outlet.

REMEMBER- Hapag Lloyd and Maersk are adding the East-West Service Network 2025 to their Gemini cooperation to connect cargo across key trade routes. The two firms are also phasing in the Cape of Good Hope Network in February 2025.

What is Gemini? The Gemini Cooperation is an alliance by Hapag Lloyd and Maersk that aims to offer a flexible ocean network with schedule reliability above 90% for services under the Gemini umbrella. We first caught wind of this partnership back in January, but the US Federal Maritime Commission (FMC) held up the launch in July pending the divulgence of additional information needed to determine the venture’s competitive impact.

IN OTHER OMAN NEWS- Oman opens bids for MRO facility management at MIA: Oman’s Civil Aviation Authority (CAA) will receive bids for the operation and management of Muscat International Airport’s maintenance, repair, and overhaul (MRO) facility, with a deadline set at 27 November, according to a statement released last week. The project will support the maintenance of various aircraft, including large models like the A380, one of the biggest aircraft in the world, the statement said.

#3- Updates on the Borg El Arab port development project: Egyptian company Ocean Express Shipping is expected to sign a final contract to develop Egypt’s Borg El Arab dry port and adjacent logistics zone in December, Al Borsa reports, citing sources it says has matter of matter. The company is currently studying how to finance the project with the Transport Ministry and are considering a number of different means of financing the project, having already entered negotiations with local banks in recent months.

REMEMBER- Ocean Express Shipping signed an MoU with the General Authority for Land and Dry Ports for the project back in August of 2023. The project is set to take place over two phases; The first phase — previously estimated to be valued at EGP 780 mn — is set to be completed in one year, with the second phase set to take another year to complete. Al Borsa’s sources put the total project value at EGP 1 bn.

IN OTHER EGYPT NEWS- Egyptian infrastructure firms get an investment boost: The Cairo-headquartered African Export-Import Bank (Afreximbank) is considering investing some USD 1.5 bn in Egyptian firms over the next year to develop infrastructure projects in African countries including Libya, Afreximbank director of trade and corporate finance Ayman El Zoghby told Asharq Business. The bank’s total loan portfolio is valued at USD 37 bn as of November, El Zoghby added.

Adding to an existing portfolio: Afreximbank said back in July that it is set on increasing its authorized capital to USD 25 bn, up from USD 5 bn, after the lender’s shareholders greenlit the move. Arab Contractors said in June that it was in talks with Afreximbank over a USD 50 mn loan to fund its logistics services area near the Suez Canal.

#4- QFZ + Luyi partner up on Qatar industrial park: Qatar’s Freezones Authority (QFZA) has inked an agreement with China’s Luyi Holding Group to establish a 282k sqm industrial park in Qatar’s Umm Alhoul Free Zone, according to a statement released on Friday. The park aims to attract international firms operating in various sectors, including plastic and metal products, performance materials, and solar panels.

#5- Kuwait evaluates bids for rail project study: Kuwait’s Central Agency for Public Tenders (CAPT) is evaluating bids for a tender for the study, design, and preparation for the first phase of its portion of the GCC railway, Al Qabas reported last week, citing a document it has seen. Turkish firm Proyapi offered the lowest bid of KD 2.47 mn (c. USD 8 mn), while Turkish consulting outfit Systra submitted the highest bid at KD 9.73 mn. Two other submissions came in by Chinese firm China Railway at KD 6.77 mn and Spanish company Sener at KD 8.82 mn.

REMEMBER- CAPT received the bids last week for the first phase for its portion of the GCC railway. The consulting study tender will be implemented over 12 months, while the implementation will take 30 months.

#6- Lenovo setting up shop in KSA: Lenovo is planning to set up new facilities in Saudi Arabia as part of a broader push to expand its global manufacturing footprint, Chairman Yang Yuanqing told Reuters last week. Leshines — Lenovo’s supply chain arm — received a USD 50 mn package just last week from Riyadh-based investment platform Ewpartners to localize its production in the Kingdom.

MARKET WATCH-

#1- Oil prices rebound… slightly: Oil prices edged up in early morning trading on the back of increased tensions between Russia and Ukraine despite worries on fuel demand from China weighing the market, Reuters reports. Brent crude futures gained USD 0.28 trading at USD 71.33 a barrel by GMT 05.02, while US West Texas Intermediate crude (WTI) futures increased USD 0.18 to sell at USD 67.20 a barrel. Both contracts lost over 3% last week after the International Energy Agency forecasted global oil markets could face a surplus of 1 mn barrels a day next year on the back of lower demand in China and a spike in supply. Supply is expected to increase further if Opec+ follows through with a plan to phase out supply cuts, which it has pushed to January at the earliest.

#2- Baltic index maintains upward trajectory: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — rose 5.5% on Friday, buoyed by the bigger size segment. The capesize index surged 293 points, while the panamax index eased 1 point and the smaller supramax shed 10 points.

#3- The Drewry World Container Index held steady at USD 3,440 per 40-ft container on Thursday, according to the latest index readings. Spot rates for 40-ft containers are now 67% below the previous pandemic peak, but remain 142% above the pre-pandemic rate of USD 1.4k. The average composite index YTD is USD 3,992 per 40ft container, which is USD 1,147 higher than the 10-year average rate of USD 2,845.

DATA POINT-

Dubai’s freezones got 16.2k new companies in the first 10 months of 2024, with 111.5k licenses registered by the end of October, Mubasher reported on Thursday.. The number of businesses in freezones across the UAE increased by 19% y-o-y to 205k licenses in 2024, with Dubai holding the largest number of licensed businesses at 43.5k licenses, or 21.2%. Sharjah has 39k licenses, while Abu Dhabi has 10.3k licenses across five zones.

PSA-

CMA CGM rolls out new PSS… : French liner group CMA CGM will add a USD 1.5k per unit peak season surcharge (PSS) on all shipments originating from the Indian subcontinent, Middle East gulf, Red Sea, and Egypt to the US East Coast and Gulf of Mexico from 5 December until further notice, according to a statement released last week.

… and revises BAF prices: The group also revised its North Africa to Europe Bunker Adjustment Factor (BAF) prices to account for the latest surcharge adjustment, according to a statement published last week. Effective 1 December, CMA CGM’s Intra-Europe RoRo South service, which connects Algeria, Tunisia, and Morocco with France, will see adjustments to its Bunker Adjustment Factor (BAF) prices. For full cargo shipments, the new BAF rates will be EUR 1,102 per unit for Algeria, EUR 462 per unit for Tunisia, and EUR 596 per unit for Morocco. For empty cargo roll services, the BAF rates will be EUR 694 per unit for Algeria, EUR 307 per unit for Tunisia, and EUR 395 per unit for Morocco.

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CIRCLE YOUR CALENDAR-

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.

Marsa Maroc inks MoU to explore modernizing Liberian ports

Morocco’s port terminal manager Marsa Maroc signed an MoU with the National Port Authority (NPA) of Liberia to explore modernizing the country’s main ports, the company said in a shared statement. The pair intend to assess the state of port operations, share expertise, and finalize agreement details over the next 18 months.

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What we know: The final agreement will include the construction of a new multipurpose terminal at Liberia’s Port of Monrovia under a private-public partnership and modernize the Port of Buchanan via the development of a multifunctional terminal to improve efficiency and port throughput, the statement notes.

Marsa Maroc has been busy: French logistics provider CMA CGM inked a 25-year agreement last month with the firm to form a joint venture to equip and operate half of Nador West Med container terminal. Marsa Maroc will hold a 51% share in the JV, while CMA CGM will have a 49% share. Marsa Maroc also entered an agreement in September to start managing and operating Terminals 1 and 5 at Benin’s Cotonou Port. The firm also took on a delegated management contract to operate the port’s terminals back in July.

Bahrain International Airport is lining up several new facilities

BAC signs a slew of agreements: The Bahrain Airport Company (BAC) inked a number of agreements with key logistics players, including DHL, Ryanair, Ajex and Asia Cargo at the Bahrain International Airshow in a bid to boost facilities and services at Bahrain International Airport (BAH).

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Here’s what we know:

BAC + DHL to establish MRO facility: BAC inked a 25-year Heads of Terms agreement with logistics solutions provider DHL Express. Under the agreement, the pair are slated to develop the region’s largest Maintenance, Repair and Overhaul (MRO) facility at Bahrain International Airport. (Statement)
Ryanair inks MRO land lease agreement: BAC signed a land lease LOI with budget airline Ryanair to develop an area for MRO activities at Bahrain International Airport. (Statement)
AJEX nabs storage warehouse: Saudi Arabia-based express distribution and freight solutions provider AJEX Logistics Services inked an LOI with BCA to rent storage space at Bahrain’s Air Express Cargo Village. (Statement)
Asia Cargo + Parcel Courier Services eye warehouse space: BAC inked an MOU to explore potential for logistics providers Asia Cargo and Parcel Courier Services to set up warehouse operations in Bahrain's Air Express Cargo Village. (Statement)
Leonardo to boost air navigation services: Bahrain’s Transportation and Telecommunications Ministry inked a contract with Italian aerospace, defense, and security firm Leonardo to upgrade surveillance and radar systems at Bahrain International Airport. (BNA)

Adnoc Gas secures 10-year LNG agreement with India’s Gail

Adnoc Gas signed a 10-year sales and purchase agreement (SPA) with Indian state-owned natural gas company Gail, finalizing the preliminary agreement signed earlier this year, according to a press release (pdf). The agreement will see Adnoc Gas supply Gail with 0.52 mn metric tonnes of liquefied natural gas (LNG) a year, with deliveries to start in 2026. The LNG will be sourced from Adnoc Gas’ Das Island liquefaction facility, which operates with an annual production capacity of 6 mn metric tonnes of LNG.

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Background: Adnoc Gas and Gail inked a heads of agreement in January for the supply of 500k tons of LNG. In 2022, the two companies signed an MoU to explore joint investments and potential LNG sale transactions between the two companies.

ICYMI- We will soon see Adnoc Gas finalizing more offtake agreements: The company is planning to reach “many more HOAs being converted into final [offtake] agreements,” CFO Peter Van Driel said earlier this week.

The agreement will help India ramp up its LNG portfolio: The country is looking to raise the share of natural gas in its energy mix from 6% to 15% by 2030. The agreement with Adnoc is “a crucial step in this direction, enabling Gail to augment its existing LNG portfolio to better serve its diverse consumer base,” Gail’s marketing director Sanjay Kumar said.

This is the latest in a series of offtake agreements signed by Adnoc Gas: The most recent was a 15-year SPA with Sefe Marketing & Trading Singapore for 1 mn tonnes of LNG from Adnoc’s Ruwais LNG project. Other signed offtake agreements include a 15-year agreement with China's ENN Natural Gas to deliver 1 mn tons of LNG annually from Ruwais, along with another 15-year agreement with German energy giant Energie Baden-Württemberg to supply it with 0.6 mn tonnes of LNG per year. Adnoc also signed long-term LNG supply agreements to deliver 1.6 mn tonnes per year from the new plant, with 1 mn metric tonnes to Shell and 0.6 mn tons to Mitsui.

KSA’s Kaden expands its logistics portfolio in Saudi

Kaden ramps up Saudi offerings: Riyadh-based real estate development company Kaden signed agreements with Almqr Development, Al Wabel, Miyar Capital, and Tilal Real Estate to launch logistics projects in Jeddah, Dammam, and Medinah, Aleqtisadiah reported on Thursday.

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The details: Kaden signed an MoU with Almqr Development to develop the Imdad industrial logistics project on a 1mn sqm area in Madinah for an undisclosed cost. An agreement was also signed with Al Wabel to establish a SAR 550 mn fund for the Logistics Park Dammam project. Kaden also signed an agreement with Miyar Capital and Tilal Real Estate to establish a real estate fund with a value up to SAR 400 mn to develop the Logistics Park Jeddah on an area of 300k sqm. No timeline for projects has been revealed.

Kaden making moves: Kaden signed an agreement in July with German logistics giant DB Schenker to expand logistics services across the Saudi market to develop logistics facilities and custom warehouses to meet DB Schenker’s operational needs.

Etihad Airways sees 66% y-o-y jump in net income in 9M 2024

ETIHAD AIRWAYS-

Etihad Airways saw its income after tax climb 66% y-o-y to AED 1.3 mn (c. 386 mn) in 9M 2024, according to an earnings release published last week. The Abu Dhabi-based carrier’s revenues rose 21.4% y-o-y to AED 18.4 bn during the same period. Passenger revenues increased 21% y-o-y to AED 15.2 bn as a result of strategic network expansion and high flight frequencies, Etihad said, adding that it carried almost 14 mn passengers in 9M 2024, a 35% y-o-y increase.

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Etihad Cargo also had a good 3Q: Etihad Cargo’s revenues increased 21% y-o-y to AED 3.0 bn, with overall cargo volumes up by 14% on the back of increased capacity in 3Q 2024, according to a statement.The cargo carrier’s partnership with SF Airlines has enhanced capacity, transit times, and connectivity, the statement said.

Expansions on the horizon: Etihad’s operating fleet continues to expand, with all six A321NEOs scheduled for delivery in 2024 now operating. The airline’s fleet has increased to 95 aircraft, an increase of 16 aircraft from last year. The carrier has also extended its network to 83 destinations as of September, a 72% y-o-y rise, with further growth expected by year-end.

What’s next? Etihad Airways is planning to invest some USD 1 bn to modify its older Boeing 777 and 787 Dreamliner aircraft, part of the carrier’s plans to pour USD 7 bn into new aircraft and other expenditures by 2030, CEO Antonoaldo Neves told The National. The Abu Dhabi carrier plans on retrofitting the older Boeing wide-bodies starting 2026 with the aim of leveraging strong air travel demand amid a shortage of new jets. Etihad is also seeking to triple passenger numbers to 33 mn and double its fleet to 150 aircraft by the end of the decade, with a possible listing as part of its growth plans.

ABU DHABI SHIP BUILDING-

Abu Dhabi Ship Building sails into stronger profits: Abu Dhabi Ship Building reported a net income of AED 16.6 mn in 3Q 2024, up from AED 2.3 mn in the same period last year, according to its financial statements (pdf). Revenues surged 99% y-o-y, reaching AED 339 mn. For the first nine months of 2024, net income rose 73.2% y-o-y to AED 40.5 mn, while revenues climbed 41.7% y-o-y to hit AED 1 bn.

Supply chain tech startup Qara secures USD 2.6 mn in funding to drive expansion

Egyptian supply chain tech startup Qara successfully closed a USD 2.6 mn funding round led by strategic investors, CEO and co-founder Hassan Abouzeed told EnterpriseAM. The funding will go towards the startup's expansion plans which include expanding its footprint in Saudi Arabia, he said.

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Already established in the Kingdom: Qara entered the Saudi market six months ago and has active clients there after it was one of 15 global companies selected for relocation incentives from the Saudi National Technology Development Program’s (NTDP) Relocate Initiative, but “we can grow and totally disrupt the market in Saudi Arabia,” Abouzeed added.

Qara has its eyes on the rest of the region and beyond once it makes its mark on the kingdom: “The obsession right now is success in KSA — hands down,” but the priority after this is the UAE, the entire region, and then Europe and Africa, he said. The company’s SaaS model makes the product scalable across different geographies without having to be there in person.

No slowing down: Qara plans to launch a new funding round in spring 2025 to further its product development and fuel international growth, Abouzeed said.

About Qara: The startup offers a platform enabling manufacturers to verify product authenticity, streamline supply chain operations, and make data-driven decisions. Its flagship app, Asly, allows users to scan unique QR codes to verify the authenticity of products, combat counterfeiting, and access warranties and detailed product information. Qara has authenticated over 28 mn product units across Egypt, Saudi Arabia, and Kenya, connecting manufacturers with over 50k business users.

Turkey, Qatar sign eight agreements + Nigeria pursues USD 5 bn trade facility from Saudi Arabia

Turkey + Qatar boost trade relations: Turkey inked eight agreements with Qatar to facilitate trade as well as enhance military and technical cooperation during a Turkey-Qatar Supreme Strategic Committee meeting in Ankara, Kuwait News Agency (Kuna) reported on Thursday. The agreements include two MoUs on collaboration in document and archive management, media, and communication. The two parties also reviewed bilateral partnerships in trade, investment, energy, and industry.

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ICYMI- Turkey, Qatar, the UAE and Iraq signed a preliminary agreement in April to work together on the Development Road project, which aims to connect Iraq's Grand Faw Port to Turkey's border via a rail and road network.

IN OTHER TURKEY UPDATES- Brics taps Turkey for partner membership: Turkey has been offered partner country status by the Brics group of nations, though there is no word as to whether Ankara has accepted the proposal, Al Arabiya reported last week, citing comments by Turkish Trade Minister Omer Bolat. Ankara views the BRICS group as a chance to enhance economic cooperation with its member countries, rather than as a substitute for its Western relationships or NATO membership, Turkish President Recep Tayyip Erdogan stated at a BRICS summit last month.

What is a partner membership? The latest Brics summit yielded an agreement to create a new category of Brics partner countries — with 13 nations reported to have been offered this status. Although there are no official confirmations, some of the countries named include Malaysia, Nigeria, Algeria, Turkey, Uzbekistan, and Vietnam.

Nigeria is pursuing a USD 5 bn trade facility from Saudi Arabia to aid its economic reform plans, Bloomberg reported last week. President Bola Tinubu discussed the proposal with Crown Prince Mohammed bin Salman at the Arab-Islamic Summit in Riyadh. The pair explored potential areas of cooperation, including oil and gas, infrastructure, and agriculture. The two countries strengthened ties last year by forming the Nigeria-Saudi Arabia Business Council to boost the flow of investment and trade.

DHL Express taps new MENA region CEO

DHL Express taps new MENA CEO: DHL Express has appointed Abdulaziz Busbate (LinkedIn) as its new CEO of DHL Express MENA, starting 1 January 2025, according to a press release (pdf). Busbate brings with him over 24 years of experience in management at DHL Express, having served as Bahrain’s Country Manager from 2014 and moving to Saudi Arabia's Managing Director in 2021. Busbate will be based in Bahrain and will report directly to CEO John Pearson.

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Noatum Logistics appoints new CEO: AD Ports-acquired Noatum Logistics has appointed Samir Chaturvedi (LinkedIn) as its CEO, according to an AD Ports Group LinkedIn post published on Thursday. Chaturvedi will also continue to serve as AD Ports’ Chief International Business Officer, a position he has held since February 2022.

Pipetec putting AED 100 mn into Kezad plant + Dubai Chamber, CANACO to support Mexican investors in Dubai

ZONES-

Pipetec putting AED 100 mn into Kezad plant: UAE-based Pipetec Solutions Manufacturing has inked a 50-year land lease agreement for the development of a pipe bending plant in AD Ports Group’s Khalifa Economic Zone Abu Dhabi (Kezad) Area A in Al Mamourah, according to a statement released on Thursday.

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Details: Pipetec is investing AED 100 mn into establishing the manufacturing plant, which will cover some 18k sqm in Kezad. The facility will utilize advanced induction-bending technology to provide precision engineered pipe bending solutions for a range of sectors, including oil, gas, automotive, aerospace, shipbuilding, construction, and petrochemicals. The timeline for the project has not been disclosed.

REMEMBER- Industrial and logistics demand in Dubai rose 185% y-o-y in 1H 2024, logging almost 18 mn sqft of new requirements for industrial and logistics assets in the emirates. A shortage of new warehouses in Dubai has sent demand spilling over to Abu Dhabi, with Kezad Group — representing 55% of UAE’s industrial supply — recording 88% occupancy in 1Q 2024. The zone also witnessed longer lease commitments, with the average lease length increasing to almost six years from four years in 2022.

TRADE-

Dubai Chambers + CANACO support Mexican investors: Dubai Chambers has signed an MoU with the National Chamber of Commerce, Services, and Tourism (CANACO) in Mexico City and El Gran Bajío, a business promotion agency in Mexico, to support the growth of Mexican investors in Dubai, Wam reports. The MoU also aims to help Dubai-based companies enter the Mexican market. The agreement also promotes bilateral trade and investments between Dubai and the Bajío region of Mexico.

LOGISTICS HANDLING-

Saudi Post and the Export Development Authority will provide logistical solutions to non-oil exporters, including air and land freight services, under an MoU they signed, state news agency SPA reports. The two parties will organize workshops to inform exporters about the services they will offer.

AVIATION-

Gulf Air + Joramco partner up on bolstering MRO services: Bahrain’s flagship carrier Gulf Air has inked an MoU with Dubai Aerospace Enterprise’s aircraft MRO and engineering arm Jordan Aircraft Maintenance Limited (Joramco) to expand their joint MRO services, according to a press release. The agreement aims to explore the development of Gulf Air MRO services in Bahrain, including hangar facilities.

OTHER STORIES WORTH KNOWING THIS MORNING-

Mawani adds new KSA-UAE-Kuwait service: The Saudi Ports Authority (Mawani) has launched a new shipping service, dubbed EJBS, operated by maritime solutions provider Emirates Shipping Line. The new service, with a capacity of 1.8k standard containers, links Saudi Arabia’s Jubail Commercial Port to the UAE’s Jebel Ali Port and Kuwait’s Shuwaikh Port. (Statement)
Zayed International Airport gets new US preclearance facility: The UAE’s Abu Dhabi Airports has launched a new US Customs and Border Protection preclearance facility at Zayed International Airport in partnership with the US CBP, Etihad Airways, and Etihad Airport Services. (Statement)
Over 25 Qatari companies to join trade mission to the UAE: Qatar Development Bank is organizing a trade mission to the UAE with the participation of over 25 companies from different sectors. The mission aims to explore potential in the UAE market and develop new partnerships between the Qatari and UAE companies. (Statement)

China enacts countermeasures in the wake of a looming US-led trade war

China readies itself for trade war: China has lined up countermeasures to retaliate against US companies in the case that President-elect Donald Trump decides to ratchet up the trade war with increased tariffs, Beijing advisers and international risk analysts told the Financial Times on Thursday.

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REMEMBER- The world is gearing up for US President-elect Donald Trump’s potential trade war, which could see a 10 to 20% tariff on imports from all foreign countries and an additional 60 to 100% tariff on imports specifically from China, with several logistics players urged to front load their shipments ahead of any changes in tariff policy.

Striking back: China has incorporated new laws that allow it to blacklist foreign firms, through an “unreliable entity list,” and impose its own sanctions. An expanded export control law allows Beijing to leverage its global dominance in supplying key resources, such as rare earths and lithium, which are essential for modern technologies, as a strategic tool. “China will of course try to engage with President Trump [and] in whatever way, try to negotiate,” Peking University's Global Cooperation and Understanding Institute executive director Wang Dong told the news outlet. “But if, as happened in 2018, nothing can be achieved through talks and we have to fight, we will resolutely defend China’s rights and interests,” Dong added.

Raising the stakes: China imposed sanctions last month on US drone maker Skydio, a supplier to Ukraine’s military, which prevented Chinese groups from supplying the firm with critical parts. The country has also threatened to place clothing conglomerate PVH on its unreliable entity list, barring a slew of brands from access to the Chinese market.

China isn’t alone: The US's potential tariff hike threatens several Asian players other than China, including South Korea, Taiwan, Vietnam, Japan and India. The US bilateral trade deficit with China has somewhat decreased since the Trump administration; however, deficits with other Asian exporters have risen considerably and may face greater scrutiny.

Could this be in China’s favor? If Trump delivers on his pledged protectionist policies, countries may be swayed towards fostering greater ties with China. “Should other major economies begin to view the US as an unreliable trade partner they could seek to cultivate deeper trade ties with China in search of more favorable export markets,” Beijing-based consultancy group Trivium analyst Joe Mazur told FT.

Hapag-Lloyd had a good 3Q despite an overall dip in income this year

Hapag-Lloyd recorded a 257% y-o-y surge in its net income to USD 1 bn in 3Q 2024, according to an earnings release (pdf). The German shipping company’s revenues increased 29.2% y-o-y to USD 5.7 bn during the same period, which the firm has attributed to increased demand and high freight rates.

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On a 9M basis, Hapag-Lloyd’s bottom line decreased 46.5% y-o-y to USD 1.8 mn in 9M 2024, while revenues dipped 0.1% y-o-y to USD 15.2 bn during the same period.

The culprit: Hapag-Lloyd attributed its 9M earnings to lower freight rates in 1H 2024 and increased transport expenses due to the rerouting of ships around the Cape of Good Hope. Increased demand and higher freight rates in 3Q 2024 led to a significant rise in earnings compared to the year prior.

Shipping volumes expected to increase: Hapag-Lloyd's CEO stated on Thursday that he anticipates sustained strength in container shipping volumes, driven by global demand for goods transportation, which serves as an indicator of trade and a key gauge of the global economy's health, Reuters reported on Thursday. The company reported that the volume of TEU containers transported by its 292 vessels increased to 9.3 mn metric tons in the nine months from January to September, a 5% rise compared to 8.9 mn metric tons during the same period last year.

Calendar

NOVEMBER

18-20 November (Monday-Wednesday): The Heavy Equipment and Truck Show, Damman, Saudi Arabia.

19-21 November (Tuesday-Thursday): Saudi International Maritime Forum, Dammam, Saudi Arabia.

18-19 November (Monday-Tuesday): G20 Summit, Rio de Janeiro, Brazil.

20-21 November (Wednesday-Thursday): Saudi Rail Exhibition, Riyadh, Saudi Arabia.

29 November (Friday): Egypt and Italy to launch a ro-ro shipping line connecting Damietta Port with Port of Trieste.

DECEMBER

2-3 December (Monday-Tuesday) Wings of Change Middle East, Riyadh, Saudi Arabia.

10-11 December (Tuesday-Wednesday): Rail Industry Summit, Casablanca, Morocco.

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

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

EVENTS WITH NO SET DATE

IATA Annual General Meeting (AGM) and World Air Transport Summit, New Delhi, India.

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

2Q 2025: ICAO Facilitation Conference 2025 (FLAC 2025), Dohar, Qatar.

FEBRUARY

4-5 February (Tuesday-Wednesday): Seatrade Maritime Qatar, Doha, Qatar.

APRIL

16-17 April: Global Ports Forum, Dubai, UAE.

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.

NOVEMBER

4-6 November: The International Air Cargo Association TIACA’s Air Cargo Forum 2025, Abu Dhabi, UAE.

2026

2026 UNCTAD Global Supply Chains Forum, Saudi Arabia.

2027

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

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