Good morning, folks. We have a brisk read this morning as the news cycle slows down mid-week, but there’s a significant aviation agreement between Uganda and UAE in the news well below. Once again, the ongoing tension between the EU and China is still grabbing the business headlines outside our region…

THE BIG LOGISTICS STORY ABROAD- China calls for an end to EU’s EV tariffs: China wants the EU to put a stop to provisional tariffs on EV imports by 4 July. The duties of up to 38.1% on Chinese EVs is set to be put into effect by 2 November as the EU’s investigation of unfair tax credits on the imports continues. China has also threatened retaliation should the protectionist measures go through and hinted at slapping tariffs up to 25% on European cars with 2.5 or above liter engines, lead analyst at Merics Jacob Gunter told Reuters.

China is trying to cozy up to Germany: China has pitched lowering the 15% existing tariffs on large-engine cars from the EU — benefitting German luxury car manufacturers — if Germany convinces the bloc to drop the levies, according to sources close to the matter, according to comments made during a meeting between China’s Commerce Minister Wang Wentao and German counterpart Robert Habeck. The alternative could see Beijing hitting large European cars with a 25% fee that would particularly hurt Germany, a country already opposed to the tariffs on Chinese EV imports. The story grabbed ink in Reuters, AP, and CNBC.

WATCH THIS SPACE-

#1- Dubai firm’s tanker first to sail through Red Sea since January amid attacks: A liquefied natural gas (LNG) tanker owned by Dubai-based Lule One Services and managed by Dubai-based Nur Global Shipping traveled through the Red Sea last Tuesday, marking the first tanker to sail through the Bab al-Mandab strait since January after the Houthi attacks began in November, Reuters reports, citing ship tracking data from LSEG and Kpler.

The tanker — named Asya Energy — crossed the strait during the same week a vessel was sunk and “may soon become the first vessel to take the Red Sea passage since 12 January after waiting around the coast of Oman since mid-January,” Ana Subasic, natural gas and LNG analyst at data and analytics firm Kpler told the news outlet.

ALSO FROM UAE- Around AED 1 bn is spent on developing Al Maktoum International Airport’s infrastructure annually, Dubai South CEO Khalifa Al Zaffin told CNBC Arabia in an interview. Total investments in Dubai South amount to at least AED 27 bn, with a 50%-60% contribution from the private sector, according to Zaffin. FlyDubai is expected to transfer approximately 8 to 18 aircrafts to Al Maktoum International Airport by 2026, Al Zaffin announced.

#2- Iraqi Prime Minister Muhammed Al Sudani has been briefed on the measures taken to fulfill ICAO and IATA requirements to lift an EU ban on Iraqi Airways, INA reports. “These measures include developing the work of Iraqi Airways, automating all its sections, repairing and maintaining aircraft, continuing efforts to develop the capabilities of the company's staff and facilities, and enhancing the level of services provided to passengers,” the office of the prime minister said in a statement. The European Union imposed a ban on Iraqi Airways in 2015 over safety concerns.

#3- EU announces a new round of sanctions against Russia: The EU has adopted the 14th package of sanctions against Russia, including new restrictions on LNG exports, in efforts to clamp down on potential loopholes, Reuters reports. The package bans Russian trans-shipments off EU ports — with a clause which permits Sweden and Finland to void some pre-existing LNG contracts — and includes a ban on new investments and services for unfinished LNG projects in Russia.

The sanction list is growing: The number of entities and individuals now on the sanctions list is over 2.2k, as the newest round has added 116 new players to the list. The move aims to limit Russia’s revenues from LNG exports without imposing an outright ban. Russian LNG exports to Europe have increased since the beginning of the war.

WORTH READING-

Supply chains under strain: The New York Times has taken a deep dive to unpack how an uptick in Houthi attacks on Red Sea shipping, drought in central America, and worker strikes in the United States, Canada, and Germany have “intensified upheaval in shipping.”

Uber-style surge pricing is the parallel Reuters is drawing in their explainer of how ocean freight congestion is worsening since the start of the Red Sea crisis.

MARKET WATCH-

Oil prices remained steady after edging up on the back of increased summer demand and a strong greenback, Reuters reports. Brent crude futures for August rose to USD 86.06 per barrel by 04.40 GMT, while US West Texas Intermediate for August inched up to USD 81.69 per barrel. "The surge in oil prices was triggered by an optimistic demand outlook and reduced US inventories … The Northern Hemisphere entering a hot summer and the upcoming hurricane season, demand is expected to continue increasing in the coming months," market analyst Tina Teng told the newswire.

DATA POINT-

KSA’s non-oil exports grew 1.6% y-o-y in April, according to the latest data from the General Authority for Statistics (pdf). Total non-oil exports, including re-exports — which rose in value by 56.4% y-o-y — climbed 12.4% in April compared to the same month last year. Meanwhile, import volumes fell 1.3% y-o-y during the period.

The ratio of non-oil exports — including re-exports — to imports clocked in at 37.1% in April 2024, up from 32.6% during the corresponding month a year earlier. This came on the back of the growth of total non-oil exports and a drop in imports during the period.

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 at the bottom of this email for a comprehensive listing of upcoming news events and news triggers.