Good morning, friends. We have a brisk read this morning — led by the theme: strategic expansions. Sisco-backed GDI has fully bought out cold-chain specialist Transcorp, and MSC’s logistics arm is building a massive new hub in Jeddah’s industrial city.

We’re also looking at the cost of keeping the lights on in Egypt — with the government ready to take on a USD 11 bn bill to secure the needed LNG supplies through 3Q.

The big logistics story abroad

Hapag–Lloyd expands global market share via Zim merger: German shipping giant Hapag-Lloyd is set to acquire Israeli shipping firm Zim for USD 4.2 bn — a move that would scale Hapag-Lloyd’s global market share from 7% to 9%, according to a press release (pdf). The agreement is set to close by late 2026, pending a gauntlet of regulatory approvals from 10 Israeli security and regulatory bodies.

A carve-out complication: While Hapag-Lloyd takes control of Zim’s international routes, brand, and chartered vessels, a carve-out agreement will see Israeli private equity fund FIMI form a new entity, New Zim, to take over 16 Israeli-flagged vessels — allowing the country to maintain some control over its sea connectivity.

This is good news for Hapag-Lloyd and its Gemini Cooperation, as they gain access to Zim’s wide network of operations across 300 ports in over 90 countries, including the Mediterranean.

Watch this space

ENERGY — The government is wagering that a no-blackout summer is worth a sizable deficit hit, with the country looking to secure USD 11 bn in LNG across 130 shipments starting June while also ruling out any electricity price hikes until then, two government officials tell EnterpriseAM. In the current climate, it seems the state thinks that a predictable operating environment and social stability are more important than the need to continue clamping down on energy spending.

The news also illustrates continuity in the state’s approach to its LNG needs, as the planned shipments will stem from the renewal of expiring supply agreements with Saudi Aramco, Trafigura, Vitol, Hartree Partners, and BGN, a government source in the oil sector tells us. The contracts will also allow cargoes to be deferred if demand softens — a pressure valve we leaned on last year too — while foreign companies will have to prioritize domestic demand starting April.

Progress toward long-term energy independence will also support the state in keeping its commitment to have no power outages despite an expected demand rise of 6-7% in the hotter months of the year, a senior government source tells us. The official described a multi-pronged approach that will lean on boosting domestic fossil fuel production and building up renewable capacity.

LNG — Acwa 🤝 Vitol in South Africa: Acwa is part of a consortium backed by commodity player Vitol to build a USD 3 bn gas-fired power plant and LNG import facility at the Durban port on South Africa’s east coast, a Vitol spokesperson told Reuters. The consortium also includes Vitol’s Vivo Energy and terminal operator VTTI.

How much capacity are we talking? Somewhere between 1-1.8 GW, according to a document seen by Reuters. No decision has been made on where the LNG shipments will come from, Vitol’s spokesperson said.

Not just power generation: The project will reportedly deliver “regasified LNG distribution through the Lilly gas pipeline, which links Secunda to Durban, LNG trucking to off-grid industrial and mining operations as well as LNG bunkering for shipping,” an unnamed source told the newswire.

Market watch

Brent oil prices fell this morning as investors eyed supply risks ahead of US-Iran nuclear talks, Reuters reports. Brent crude futures were down USD 0.32 to trade at USD 68.33 / bbl as of 04:30 GMT, while US West Texas Intermediate (WTI) was up USD 0.62 to USD 63.51 / bbl.

The Baltic Index inches up again: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — was up 0.8% to 2,100 points on Monday, buoyed by increases across all segments. The capesize increased 0.9% to 3,209 points, while the panamax index inched 0.5% to 1,785. Meanwhile, the smaller supramax index rose 1% to 1,198.

Data point

573k tons — that’s how much cargo Saudia Cargo has moved across 4k flights in 2025. The carrier has also handled 15k tons in total exports and maintained on-time performance above 90%.

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