Good morning, friends. It’s a hefty issue with lots of investment updates flowing in from around the region. We have a clearer picture of DP World’s 2024 investment plan, an update on Mubadala squabble with Turkish delivery outfit Getir, and other bits and pieces from KSA and Abu Dhabi. Let’s jump right in.

WATCH THIS SPACE-

#1- A Saudi delegation is at the Global Logistics Forum, which kicked off yesterday in Shanghai and wraps tomorrow. The delegation includes representatives from the transport and logistics services and investment ministries, the Transport General Authority, Mawani, and Saudi Arabia Railways, among several others. The forum brings together over 680 visitors from 67 countries delving into multiple facets of the logistics industry, including such as logistics services, air cargo, ports & shipping logistics, road & railway transportation, logistics real estate, fresh foods logistics, smart logistics, logistics equipment, and special purpose vehicles.

#2- Airbus has downgraded its expectations for the number of aircraft deliveries in 2024 on the back of supply chain issues, according to a press release (pdf). The company said it is anticipating to deliver 770 commercial aircrafts, down from a previous forecast of 800 deliveries. The aerospace firm expects its updated earnings before interest and tax (EBIT) to settle at EUR 5.5 bn (USD 5.9 bn), down from a previous estimate of EUR 6.5 to EUR 7 bn in April 2024. Airbus’ shares shed 11% on Tuesday after the profit warning, Reuters reported.

#3- Blue World tests green methanol maritime fuel cell system: Danish cell manufacturer Blue World has successfully completed testing of the first ever 20 kW high temperature polymer electrolyte membrane (PEM) maritime fuel cell system that runs on green methanol, according to a press release. The module will allow 20-30% in fuel savings with its 55% electrical efficiency, and 100% of the system can be used for carbon capture. It is set to be installed on one of Maersk’s large dual fuel-enabled methanol vessels in 1H 2026. The trial comes after Maersk’s venture arm Maersk Growth had participated in an EUR 11 mn pre-C round venture investment alongside other shareholders at the end of last year.

Why is this important? These new large fuel systems provide a promising alternative to the shipping industry that is notoriously hard to decarbonize with its strong dependence on fossil-based technologies. Blue World will first supply the systems for auxiliary power at a commercial level in 2027, before working on expanding to multi MW propulsion systems for global shipping.

MARKET WATCH-

#1- Oil prices inched up in early morning trading driven by sustained regional geopolitical risks and 3Q peak demand season, Reuters reports. Brent crude futures for August rose to USD 85.41 per barrel by 04.06 GMT, while US West Texas Intermediate for August inched up to USD 81.26 per barrel.

#2- Baltic index takes a dip: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segment — has fallen 1.2% to 1,973, weighed down by low rates in capesize and panamax segments, Reuters reports. The capesize subindex fell 1.6% to 3,093 points, while the panamax index was down 1.9% to 1,792. The smaller supramax index edged up 0.5% to 1,405 points.

#3- Russian oil exports saw their steepest drop in over three months this week as key port maintenance took a toll on shipment levels, Bloomberg reports. The gross value of Russian crude shipments dipped 14% in the week to 23 June, followed by an 18% fall in shipments. Development at the Baltic Sea’s Primorsk Port and Pacific coast’s Kozmino Port — Russia’s two busiest oil terminals — have capped shipments, with no departures recorded from either during four days last week. However, flows are forecasted to recover this week, with loadings already recommencing at both ports.

PSA-

French shipping conglomerate CMA CGM has rolled out an Overweight Surcharge (OWS) for dry cargo from the Middle East to Europe, effective 6 July and until further notice, according to an update. The surcharge is USD 200 per 20 ft dry container with a container gross weight of, or exceeding, 15 tons.

CIRCLE YOUR CALENDAR-

Lebanon will host the East Med Maritime Conference on Thursday, 27 June in Beirut. The event will gather industry leaders to discuss the latest developments in shipping, maritime, and offshore industries to discuss industry innovations, alternative fuels, and decarbonizing emissions in the maritime sector and ports.

Turkey will host the ACI Europe Annual Congress on Tuesday, 2 July to Thursday, 4 July in Istanbul. The event will bring together 500 C-level airport executives, as well representatives from businesses engaged with airports, airlines, aircraft manufacturers, and other stakeholders. The event will highlight discussions on the current state of the airport industry, geopolitics, the Turkish market, resilience, sustainability, and the diversification of revenues.

Check out our full calendar for a comprehensive listing of upcoming news events and news triggers.