US + UK launch strikes on Yemen as conflict intensifies and disruptions drag on

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What we're tracking today

TODAY: Coalition strikes hit Yemen to weaken Houthi power + DP World invests USD 3 bn in India

Good morning, friends. We have a bumper issue for you this morning with the full run-down on what’s happening in the Red Sea and beyond. But first…

It’s launch morning for EnterpriseAM UAE. Think of it as the UAE analogue to your morning read in Egypt — your essential report on business, finance, the economy, and regulation in one of the world’s most vibrant and exciting economies.

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WATCH THIS SPACE-

#1- Egypt’s Red Sea Ports Authority is set to invest some EGP 2 bn to construct sixtugboats with a pulling power of 70 tons by the end of this year,Al Mal reports, citing sources it says have knowledge of the matter. The authority will also invest some EGP 430 mn to develop Port Tawfik port, which is slated for completion by the end of 2024. It is not yet clear who will manage and operate the dock.

AND- Safaga Port could get a USD 50 mn logistics zone: Egypt plans to build a USD 50 mn logistics area behind Safaga Port to load and unload goods hauled by a high speed electric railway linking the Red Sea to the Mediterranean, Asharq Business reported on Friday, citing two government sources. Development of the proposed zone will be financed by Egypt’s government and will cover 100 acres, the sources said. The railway — which is set to link Ain Sokhna, Alexandria and Marsa Matrouh — will be constructed by a consortium including Siemens Mobility, Orascom Construction, and Arab Contractors.

REMEMBER- AD Ports previously inked a definitive 30-year concession agreement with Egypt’s Red Sea Ports Authority (RSPA) for the development and operation of a multi-purpose terminal at Safaga Port. The Safaga 2 terminal is set to kick off operations in 2Q 2025.

#2- The UAE’s Ajman emirate has established a new freezone dubbed the Ajman Centre for New Projects, Wam reports. The freezone, established by decree from Ajman Ruler Humaid bin Rashid Al Nuaimi, is set to enhance the emirate’s position as a hub for global trade and help diversify its economy. The freezone aims to attract foreign investment and create a climate that is flexible and conducive to investment in innovative projects, the news agency said.

#3- Algeria bans transit + transhipment operations through Moroccan ports:Algeria’s Professional Association of Banks and Financial Institutions (ABEF) has banned transshipment and transit operations, through Moroccan ports, including the loading and unloading of cargo from one ship to another, Morocco World News reported on Friday, citing a note from ABEF. “Before any domiciliation, it is necessary to invite your concerned services to ensure, with economic operators, that transshipment/transit does not occur through Moroccan ports,” the outlet quotes the ABEF as saying. Algeria closed off its airspace to Morocco in 2021 shortly after cutting diplomatic relations.

ALSO IN MOROCCO-Italy approved financing of a study on a planned green hydrogen corridor extending from Morocco, to the port of Trieste in Italy, and then extending to Central and Eastern Europe, Morocco World News reported on Saturday. Details on the size of the cabinet’s funding package and a targeted timeline on completion were not disclosed.

REMEMBER-It’s not the first we’ve heard of a Morocco-EU green corridor: In June, Italy and Morocco said they are partnering together with Spain on a green fuels transport corridor which is planned to go through the entire EU region. The trio have decided to exclude Algeria from the project due to diplomatic tensions it holds with Madrid. Last year, the European Hydrogen Backbone initiative submitted an updated version of its vision for the infrastructure map where hydrogen is set to be transported on the project.

#4- Middle Eastern airlines are expected to see a 12.3% rise in air cargo demand in 2024, Airlines reported last week, citing International Air Transport Association data. Air cargo volumes for Middle Eastern carriers witnessed the strongest global performance y-o-y in November 2023, growing by 13.5%, according to IATA 2023 data. Overall, global air cargo is projected to increase by 4.5% y-o-y in 2024.

#5- Boeing is getting audited: The US Federal Aviation Administration (FAA) will audit Boeing’s production line after the incident that forced an Alaska Airlines flight to make an emergency landing earlier this month, CNBC reported on Friday. More than 170 Boeing 737 Max 9s were grounded following the incident. The audit will assess Boeing’s compliance with quality standards for the 737 Max 9’s production line and its suppliers. The FAA is also looking into the possibility of an independent third party to oversee Boeing inspections.

MARKET WATCH-

Bulgaria is moving away from Russian oil imports in January, turning to alternatives including Kazakhstan, Iraq, and Tunisia, Reuters reported on Thursday, citing traders and LSEG data. While Bulgaria has a waiver on the EU embargo on Russian oil, the country is restricting its import of refined products from Russian crude. Russia’s Lukoil, which operates Bulgaria’s Burgas refinery, will no longer be able to supply the refinery with its own Urals oil, and so the company is considering selling its Bulgarian assets.

Baltic index at lowest in two months: The Baltic Exchange’s dry bulk sea freight index dropped for a third straight session last week, reaching its lowest in nearly two months, Reuters reported on Thursday. The overall index — which factors rates for capesize, panamax, and supramax vessels — fell 11.3%, to settle at 1664, the index’ lowest since 13 November. Weak rates due to the slowdown leading up to the Chinese New Year drove the decline, with recovery projected to take place towards the end of February, the newswire wrote, citing BIMCO shipping market analyst Filipe Gouveia.

DATA POINTS-

#1- Qatar’s Hamad International Airport (HIA) handled 2.3 mn tons of cargo in 2023, according to a statement on X posted last week. Aircraft movements saw a 22% y-o-y boost to 252k aircraft, and passenger numbers spiked 31% over the same period to 45.9 mn. HIA served 52 airlines, connecting 255 destinations, the statement said.

#2- Qatar Chamber completed 92.5 k transactions in 2023, including some 47k certificates of origin, according to a statement published last week. The chamber also inked 10 MOUs with other chambers and counterparts and closed around 49 arbitration, mediation, and conciliation cases. It also oversaw 175 events, hosted 70 trade delegations, and partook in 26 external activities among other undertakings, the statement said.

#3- Jordan’s Zarqa and Mafraq governments exported USD 1.31 bn worth of goods in 2023, Petra reported last week citing statements by the head of the Zarqa Chamber of Industry. Exports to Arab countries in 2023 saw a 4% y-o-y increase to USD 513.5 mn, with Iraq leading the category at USD 154 mn in exports, followed by KSA (USD 136.4 mn), and Palestine (USD 55.1 mn). Meanwhile exports to North America saw a 5% decline during the period to USD 606.1 mn, the statement said.

#4-Iran allocated USD 230 mn for the completion of provincial and national transportation projects over the last Iranian calendar month, including connecting Chabahar Port to the national rail network, MEHR reports. The projects include railway, highway, and freeway development in rural and urban areas. The investment will go towards renovating and maintaining the country’s existing railway fleet and lines as well as fixing potential hazard points or bottlenecks in the line.

#5- Port of Antwerp-Bruges 2023 figures reflect geopolitical tensions: The Port of Antwerp-Bruges saw a 5.5% y-o-y decrease with a total throughput of some 271 mn tonnes of cargo in 2023, according to a statement. The port’s container throughput decreased by some 5.9% y-o-y in tonnes and 7.2% in TEUs amid weakened global economic growth and low demand for commodities, which weighed down global demand for container transport. The port’s liquid bulk throughput decreased by 2.1% y-o-y in 2023 and chemical throughput fell 8.1% on the back of pressure on the European chemical sector. LNG throughput fell below last year, while LPG throughput remained the same, according to the statement. Conventional break bulk throughput volumes normalized to pre-Covid-19 levels, while total roll-on/roll-off traffic handled decreased by 2.1% y-o-y, with 3.56 mn new cars handled. The dry bulk segment also fell by some 13.9% y-o-y on the back of a sharp fall in demand for coal, the statement adds.

CIRCLE YOUR CALENDAR-

The UAE will host Transport Middle East from Tuesday, 23 January through to Thursday, 25 January in Abu Dhabi. The event will see more than 30 speakers come together to tackle the current challenges in global transportation and logistics.

The UAE will host the MiddleEast Bunkering Convention from Monday, 5 February through to Wednesday, 7 February in Dubai. The event will bring together industry experts to tap into issues affecting the global marine fuel sector, including supply chains, decarbonization, and new fuels.

The UAE will host Sustainable Aviation Futures MENA from Monday, 12 February through to Wednesday, 14 February in Dubai. The event will see 80 expert speakers and upwards of 200 high level attendants and will handle topics pertaining to regulation, financing, and investments in Sustainable Aviation Fuels (SAF) in MENA.

The UAE will host the Future Warehouse & Logistics2024 Conference from Monday, 12 February to Wednesday, 14 February in Dubai. The event will handle means for supply chain leaders to boost resilience and overcome challenges, with discussions on disruptions, sustainability, Internet of Things (IoT), automation, workplace management and other topics.

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

US + UK launch strikes on Yemen as conflict intensifies and disruptions drag on

US and British aircraft, warships, and submarines carried out dozens of strikes against Houthi targets across Yemen on Thursday, Reuters reported last week. The strikes — targeting military bases near airports in Sanaa and Taiz, a naval facility at Yemen’s Hodeidah Port, and military positions in Yemen’s Hajjah Governorate — come in response to months of attacks on international shipping by the Houthis and look to curtail their abilities to endanger shipping.

The Houthis have vowed retaliation: Retaliation will be “imminent,” senior Houthi leader Mohammed Ali Al Houthi told tens of thousands of people gathered in Yemen’s capital Sanaa to protest the bombings, Bloomberg reported on Friday.

Was this the tipping point? Last week US and British warships repelled the ‘largest ever’ Houthi attack to date, downing some 21 drones and missiles fired by the Iranian-backed militia towards the southern Red Sea, Reuters reported. A Houthi spokesperson said that the attack was in retaliation for a previous incident that had seen 10 Houthi gunmen killed and that it targeted a US vessel that was “providing support” to Israel, the newswire wrote. US Central Command reported no loss of life or damage to property as a result of the attack, in what it counted as the 26th Houthi attack against shipping lanes since their campaign began mid-November, the newswire wrote.

Saudi Arabia is calling for restraint: “The Kingdom of Saudi Arabia is following with great concern the military operations in the Red Sea region and the airstrikes that targeted a number of sites in the Republic of Yemen,” KSA’s foreign ministry said in a statement released on X on Friday. The Kingdom reaffirmed the right to freedom of navigation in international waters while calling on actors to practice “self-restraint and avoid escalation”, the statement added.

IMPACT TO TRADE-

Oil tankers are now steering clear of the Red Sea as the latest American-led strikes increase security risks, Reuters reported on Friday, citing shipping data. The US-led Combined Maritime Forces has warned vessels to avoid the Bab El Mandeb strait and several vessels were seen making turnarounds on Friday to avoid the Red Sea area, LSEG and Kpler tracking data showed. The recent development marks an abrupt reversal to a recent trend which had seen Red Sea tanker traffic remain unexpectedly strong in the midst of the Houthi crisis.

Retailers are scurrying to alternatives for seasonal stock up: Global retailers are turning to air freight and railway alternatives to Red Sea shipping routes as they rush to stock up before factories in China close for the Lunar New Year, Reuters reported last week, citing executives and experts. Another European retailer told the newswire that it was putting off marketing campaigns for some goods until it had secured stocks. China’s Lunar New Year holiday on 10 February will see factories there close for up to one month, leading exporters to scramble to ship as many goods as possible beforehand. However, reroutes due to Red Sea disruptions mean delays and lower freight capacity to China, entailing delays for products Western retailers wish to make available in early Spring.

And Europe’s manufacturing sector is starting to feel the pinch: Tesla and Volvo are halting operations at some of their factories in Europe due to component shortages, Reuters reported on Friday. The development represents the first indication that disruptions in the Red Sea are beginning to affect manufacturing in Europe. The disruptions represent the worst challenge to supply chains since the pandemic and threaten upending global economic recovery, the newswire added.

Firms are also feeling grated by the higher rates and surcharges carriers are levying due to the reroutes, the Wall Street Journal reported last week. “What every shipper is trying to figure out is if the current proposals are in line with the carrier’s added costs, and not simply a move to offset softer rates in other lanes or raise rates across the board,” a retail executive told WSJ.

Will it lead to an uptick in air freight? Continued upheaval in the Red Sea could see a surge in demand for air freight in “two to three weeks,” German logistics giant Schenker told Reuters on Friday, adding that it has secured added air freight capacity to manage the anticipated surge. Multimodal transport could provide the best solution, whereby goods are shipped by sea from China and unloaded before choke points to be hauled by air freight, Schenker said.

SUEZ CANAL REVENUES PLUMMET-

Suez Canal revenues since the beginning of the year are down 40% y-o-y, Egypt’s Suez Canal Authority (SCA) head Osama Rabie told Kol Youm on Thursday (watch, runtime: 24:33). The number of vessels transiting the canal dropped 30% y-o-y during the first 11 days of the year, with 544 vessels making the transit during the period compared to 777 in 2023. Cargo loads also declined 41% y-o-y during the same period, Rabie said.

But the canal is definitely still open for business: Rabie rebuffed rumors circling in maritime communities that the Suez Canal might see a shutdown due to Red Sea disruptions, according to a statement released on Friday. “Navigation is going as per normal in both directions,” Rabie said.

Looks like things are set to get worse before they get better: Efforts to alleviate the security concerns of international shipping companies — via fee reductions and other incentives — have failed, Rabie added to Kol Youm. Traffic via the canal is set to see further declines after a warning by the US and UK militaries to avoid the conflict-stricken route, Reuters reported. A further deterioration in the situation could see the canal “effectively close for all ships,” Bimco analyst Niels Rasmussen told Bloomberg.

MARKET REAX-

Oil rallied 1% on Friday as American-led strikes on Houthi targets saw tankers reroute away from the region, Reuters reported on Friday. Brent crude futures rose 1.1% to USD 78.29 a barrel while West Texas Intermediate crude climbed 0.9% to USD 72.68. Despite the fact that the diversions have hiked prices and boosted transit times, supplies have so far been unaffected, softening some of the gains in prices, the newswire wrote citing industry experts and analysts.

Container shipping rates surged as American-led strikes stoked fears of prolonged disruptions to regional trade routes, Reuters reported on Friday. The benchmark Shanghai Containerized Freight Index jumped 16% w-o-w on Friday, with the index having climbed 114% as of mid-December. Meanwhile shipping rates for 20-foot containers on the Shanghai to Europe route hiked 8.1% w-o-w to USD 3.1k on Friday, and 40-foot container rates to the US West Coast leaped 43.2% w-o-w to USD 4k, the newswire said citing Friday numbers by Clarksons.

The attacks have had a measurable impact on global trade: Global trade fell 1.3% from November to December 2023 as attacks in the Red Sea disrupted merchant vessel passage across the critical trade artery, Reuters reported last week, citing German economic institute IfW Kiel. 200k containers are being transported via the Red Sea per day, down from 500k in November, and reroutes have seen journeys between European and Asian markets stretched by some 20 days. European exports and imports for December were down 2% and 3.1% m-o-m, while US exports and imports saw declines of 1.5% and 1% for the period. China bucked the trend, with its exports and imports rising 1.3% and 3.1%, but this was likely due to ramp ups due to the upcoming Chinese New Year, IfW Kiel said.

DP World to invest USD 3 bn in ports + logistics infrastructure in Gujarat, India

Dubai-based port operator and the Indian state of Gujarat have inked agreements to invest some USD 3 bn in ports and logistics infrastructure, according to a statement released last week. The funds will be funneled towards building new ports, terminals and economic zones in a bid to boost Gujarat’s trade while leveraging existing infrastructure, the statement notes.

The details: The investments will cover the development multi-purpose deep-draft ports in South Gujarat and around the western coast of the state towards Kutch, the establishment of special economic zones in Jamnagar and Kutch, and the development of Gati Shakti Cargo Terminals (GCT) and Private Freight Stations at Dahej, Vadodara, Rajkot, Bedi, and Morbi. DP World has also concluded an agreement with Gujarat Maritime Board to collaborate on identifying locations for additional ports in the state, the statement notes.

DP World already has a presence in Gujarat: The company’s operations in the state include a container terminal in Mundra, railway-connected private freight terminals at Ahmedabad and Hazira, cold storage facilities in Surat and Bharuch, freight forwarding offices in Ahmedabad and Gandhidham, and an express cargo service covering the state. DP World’s Unifeeder Group runs a weekly service connecting the state to international ports and the company recently kicked off a scheduled rail freight service — dubbed SARAL — connecting traders in South Gujarat to markets in the North Capital Region, the statement notes.

And there’s more to come: “We are very committed to India, where we have been operating for nearly 20 years. In that time, we invested almost USD 2.5 bn and we are going to invest more in the next 3 years in these projects,” DP World CEO Sultan Ahmed bin Sulayem said.

ICYMI- DP World and India’s Deendayal Port Authority (DPA) inked a concession agreement for a new mega container terminal at Kandla, Gujarat back in August 2023. The agreement — valued at USD 510 mn — involves the operation, development, and maintenance of the new terminal through a 30-year public-private partnership (PPP).

KSA earmarks USD 1 bn to double North Train Freight Line to support mining efforts

Saudi Arabia has approved the doubling of the Saudi Arabia Railways (SAR) North Train Freight Line with an investment of some SAR 4 bn (USD 1 bn), Arab News reported last week, citing comments made by Saudi Transport Minister Saleh Al-Jasser at the Future Minerals Forum. The investment will enhance transport infrastructure in a bid to boost the kingdom’s mining sector, Al-Jasser said.

About North Train Freight Line: The 1.5k km freight line, previously called the North-South Railway, is Saudi Arabia’s longest railway and supports mining operations. The railway connects phosphate and bauxite mines in the Kingdom’s far north to Al-Baitha junction, from which it splits south to Riyadh and east to fertilizer and alumina refining hubs at Ras Al-Khair. The SAR North freight fleet consists of 61 locomotives, 523 wagons for the transport of phosphate, 240 for bauxite transportation, 562 wagons for molten sulfur, and 589 wagons for phosphoric acid, according to SAR’s website.

KSA’s transport and logistics strategy sees some SAR 1.3 tn in investments in the sector, with the majority of that sum financed by private firms, the news outlet cites Al-Jasser as saying. “Infrastructure projects, including transportation projects, are capital-intensive and require huge investment. No matter how much government money we have, it is not enough. So, we have to partner with the local and international private sector to build these infrastructures,” he explained. The strategy looks to develop the kingdom into a global logistics hub.

UAE’s Cargoz closed seed funding round to expand into KSA this quarter

UAE-based logistics solutions startup Cargoz has closed a seed funding round for an undisclosed amount, according to a statement published last week. The round was led by Saudi-based VC fund Nama Ventures and saw the participation of RAZ Holding, Innovest Properties, regional family offices, and angel investors, the statement said.

Where will the funds go? The raised funds will go towards kicking off the startup’s operations in KSA in 1Q 2024.

About Cargoz: Established in January 2022 by CEO Premlal Pullisserry (LinkedIn) and CTO Lijo Antony (LinkedIn), the outfit connects SMEs looking for warehouse space with warehousing companies that have unused capacity. The company has a large network in the UAE and connects clients with providers of various warehousing services including cold storage, dry storage, chemicals, dangerous goods, food grade storage and other categories, according to the company’s website.

Dig deeper: Cargoz’s expansion to KSA comes at an opportune period, as national warehouse occupancy rates in KSA reached a record high of around 96% in H1 2023, according to Knight Frank ’s H1 2023 KSA report. The influx of new industrial licenses being issued in the country, at 557 in 2023 alone, is expected to result in an increased demand for warehouse space.

Lots of trade diplomacy updates from UAE, KSA, Egypt, and Qatar

UAE + Kazakhstan ink MoU for new data center: The UAE’s Investment Minister Hassan Alsuwaidi has signed an MoU with Kazakhstan’s Digital Development, Innovation, and Aerospace Industry Minister Bagdat Mussin and National Welfare Fund Samruk-Kazyna Management Board Chairman Nurlan Zhakupov to develop a framework for investment collaboration in data centers and AI projects in Kazakhstan, Wam reported on Friday. “The strategic development of data centers not only enhances [Kazakhstan’s] domestic capabilities but also acts as a magnet for foreign investments,” Zhakupov said. Kazakhstan’s data center market is projected to rise at 6.8% to a market volume of USD 416 mn between 2024 and 2028.

Qatar + Czech Republic eye stronger trade ties: Qatar Chamber Acting General Manager Ali Saeed Bu Sherbak Al Mansouri met with CEO of the Czech Trade Promotion Agency (CzechTrade) Radomil Dolezal to discuss means to boost trade and investment between the two countries, Qatar News Agency reports. Trade between Qatar and the Czech Republic hit QAR 666 mn in 2022, up 10% y-o-y, Al Mansouri said. Al Mansouri suggested increased business visits as a means to boost bilateral trade and Dolezal urged his Qatari counterpart to explore avenues for investments in the Czech Republic.

Saudi Arabia is set to exchange trade delegations with Canada after a five-year hiatus, the Saudi Gazette reported on Friday. The Federation of Saudi Chambers has agreed to set up the Saudi-Canadian Business Council in a bid to strengthen commercial cooperation between the two countries. President of the Federation of Saudi Chambers Hassan Al-Huwaizi met with Canadian Ambassador to Saudi Arabia Jean-Philippe Lento as well as Chairman of the Canadian-Saudi Business Council Jeffrey Steiner in Riyadh on Thursday to discuss boosting bilateral trade and investment ties.

Egypt + Rwanda touch on key transport projects: Egyptian Transport Minister Kamel Al Wazir met with Rwanda’s Ambassador in Cairo Dan Muñoza to discuss two transport initiatives to boost trade between African countries, according to a statement released last week. The first is the Cairo-Cape Town project, spanning 10.2k km long across nine African countries and the second is the Victoria-Mediterranean waterway initiative to connect Lake Victoria with the Mediterranean. The waterway project requires the rehabilitation of the course of the Nile River as well as specialized training centers in river transport, the statement said.

Two railway lines in the works: Qalaa Holdings is also looking to invest in two railway lines in the East African region, the statement notes. The meeting also saw discussions on strengthening maritime cooperation between the two countries to boost trade and tap into new markets.

And discusses cooperation with Lithuania: Al-Wazir also met with Lithuanian Ambassador to Cairo Arturas Gailiunas to explore cooperation in the transport sector, according to a statement released last week. The pair discussed expanding cooperation between Lithuania’s Klaipeda Port and Egypt’s Alexandria Port and Port Said to strengthen maritime trade, with an emphasis on investigating ways to reduce the cost of maritime transport between the two countries and boosting bilateral trade via railway lines or ports in neighboring countries.

OTHER DIPLO STORIES WORTH KNOWING THIS MORNING-

UAE + India discuss cooperation: UAE President Mohamed bin Zayed Al Nahyan and Indian Prime Minister Narendra Modi met to discuss furthering cooperation in trade, maritime security, energy, commercial investment, and health. (Wam)
Rwanda + Algeria to strengthen trade ties: Rwanda’s senate president François Xavier Kalinda met with Algerian Ambassador Mohamed Mellah to discuss signing bilateral trade cooperation agreements. (KT Press)
KSA + Republic of Kosovo discuss logistics cooperation: KSA Transport and Logistics Services Minister Saleh Al-Jasser met with Republic of Kosovo’s Deputy Foreign and Expatriate Affairs Minister Krashnik Ahmadi to discuss cooperation in transport and logistics. (Statement)
Morocco joins regional coalition: Morocco has joined the region’s Integrated Industrial Coalition for Sustainable Economic Development, joining existing members the UAE, Jordan, Egypt, and Bahrain. The coalition aims to support and develop regional sustainable economic growth. (Statement)

Kezad inks agreement with USPACE + QatarEnergy orders new tankers

ZONES-

AD Ports + USPACE to develop 3 mn sqm space hub in Kezad:AD Ports’ Khalifa Economic Zones (Kezad Group) has inked a non-binding term sheet with Hong-Kong based aerospace enterprise USPACE Technology Group to explore the development of a space eco city hub in Abu Dhabi, according to a statement released last week. Under the agreement, AD Ports will provide USPACE some 3 mn sqm in Kezad for the project, with its first phase expected to cover 1 mn sqm. Construction is expected to kick off in mid-2024, the statement notes. The hub aims to bring together some 1k aerospace companies to jointly develop a global aerospace ecological chain of technology innovation and provide commercial aerospace services from the Abu Dhabi base.

SHIPPING + MARITIME-

QatarEnergy and Chinese shipbuilder Hudong-Zhonghua have signed a USD 2.4 bn agreement for the construction of eight Q-Max LNG carriers, each with a carrying capacity of 271k cubic meters, Offshore Energy reported on Friday, citing broker reports. The vessels — which are set to be delivered in 2028 and 2029 — will be the largest of their kind in terms of capacity.

QatarEnergy has been on a vessel acquisition spree: September 2023 saw the company ink a USD 3.9 bn agreement with South Korean shipbuilder HD Hyundai Heavy Industries (HHI) for 17 “ultra-modern” LNG carriers as the outfit kicked off the second phase of its vessel acquisition program.

WEC Lines launches service between Morocco and UK: Dutch shipping operator WEC Lines has launched a direct service between Agadir Port in Morocco and Peel Port, Liverpool, according to a statement released last week. The move aims to establish a more efficient service for fresh produce and increase service sustainability by relying less on trucking routes. The service will operate using WEC’s 850 to 1k TEU vessel fleet. WEC will support the new route by adding around 50 additional refrigerated units to its existing stock and plans to expand the number of units further. Some of these vessels are already being used to ship refrigerated goods from the UK to the Canary Islands, and will expand their route via Agadir, with an option to load produce in Spain and Portugal, before returning to the UK.

TRANSPORT-

ZIM to implement smart tracking solutions across its dry-van fleet: Israeli shipping company ZIM is deploying tracking devices by systems specialist Hoopo Systems across its dry van container fleet, according to a statement released last week. Hoopo’s devices provide comprehensive tracking information that includes geofence alerts and open/close door notifications. “Our unwavering mission has been to engineer a tracking solution for the maritime industry that delivers the most reliable data and boasts an extended lifespan to equal a container lifetime,” Hoopo CEO Ittay Hayut said in the statement.

AVIATION-

Airbus slashes massive Iran Air order from its backlog: European aircraft maker Airbus has omitted from its order backlog an Iran Air order, made in 2016, for almost 100 aircraft, Flight Global reported, citing Airbus 2023 year-end backlog numbers on Thursday. The order was placed after an agreement on Iran’s nuclear program with the Obama administration saw US sanctions on the country eased, with the order consisting of various aircraft types with cargo and passenger capacity. Only 3 aircraft were delivered however, as the Trump administration canceled previous arrangements with Iran and re-imposed sanctions, blocking Airbus’ sales to the country.

OTHER STORIES WORTH KNOWING THIS MORNING-

NIDLP + Newlab plan KSA expansion: KSA’s National Industrial Development and Logistics Program has inked an agreement with technology, innovation, and sustainable logistics solutions developer Newlab for the latter to establish a regional headquarters in KSA. (SPA)
Alexandria Port to receive its largest ship yet: Alexandria Port will receive at Tahya Misr Station the largest container ship in its history, NEVADA CMA, which has a capacity of 140k tons and 12.9k TEU. The vessel has a length of 366 m, a width of 48 m, and a draft of up to 15 m (Statement)
Suez Canal inks waste management contract: Egypt’s Suez Canal Authority subsidiary Antipollution Egypt has signed a contract with the Red Sea Ports Authority and Transport Ministry affiliate Egyptian Marine Supply and Contracting Co. to conduct waste management services in the Suez Canal zone. (Statement)
Jazeera office opens in KSA: Kuwaiti budget airline Jazeera Airways has launched a new sales office in Riyadh, Saudi Arabia. (Statement)

Fire breaks out at Russian warehouse + Jumping the queue at the Panama Canal just got cheaper

Fire engulfs Russian e-commerce warehouse: A warehouse belonging to Russia’s biggest e-commerce platform Wildberriers caught on fire on Saturday in St. Petersburg, Reuters reported on Saturday. Around 300 firefighters and dozens of fire engines were deployed to the scene to extinguish the blaze, which spanned over 70k square meters and was rated as category five, which is the most serious. The warehouse was evacuated and no casualties or injuries have been reported. It is not yet clear how the fire started.

Jumping the queue at the Panama Canal just got cheaper: The cost for shipping firms to bypass the traffic congestion at the Panama Canal has dropped from a recent all-time high as the backlog of ships waiting to cross has shrunk, Bloomberg reported on Friday. The average auction cost for Neopanamax slots — which enable the passage of the largest tankers through the canal — dropped to USD 269k on 11 January, the news outlet adds, citing a Panama Canal Authority (ACP) spokesman. The ACP previously held auctions for vessels looking to jump the queue, with the base price for the first auction set at USD 55k and the awarded bid worth USD 1.1 mn.

Background: The Panama Canal has placed significant limits on vessels transiting the waterway due to a drought decreasing its water levels, which has caused major congestion at the waterway. The sale of slots to transit the canal netted USD 235 mn from shipping companies in 2023.

ALSO- Danish shipping company Maersk will no longer use the Panama Canal for its OC1 service which connects Australia and New Zealand with the US East Coast, Reuters reported on Thursday. The company instead plans to use “rail to transport cargo across 80km of Panama to the other side,” which will form two separate loops, one in the Atlantic and the other in the and the Pacific. Maersk will be omitting Cartagena, Colombia in the new service, as it will be served by alternative vessels.

ALSO WORTH KNOWING-

DP World adds EU shipping route: The UAE’s DP World -owned shipping company P&O Ferries will launch a new RoRo freight route between London and Rotterdam, effective March 2024. (Statement)
Malaysia + Singapore to develop a SEZ: Malaysian Economy Minister Rafizi Ramli and Singapore's Trade and Industry Minister have inked an agreement to develop a special economic zone (SEZ) in Johor, Malaysia. (Reuters)
SF Airlines links China + Pakistan: Chinese air cargo carrier SF Airlines has launched a new route from Ezhou Huahu Airport, China to Lahore, Pakistan. (Aawsat)

Calendar

JANUARY

12-14 (Friday-Sunday): International Conference on Supply Chain Management, Singapore.

23-25 January (Tuesday-Thursday): Transport Middle East 2024, Intercontinental Abu Dhabi, UAE.

FEBRUARY

5-7 February (Monday-Wednesday): Middle East Bunkering Convention, Dubai, UAE.

6-7 February (Tuesday-Wednesday): The Middle East ProcureTech Summit, Dubai, UAE.

12-13 February (Monday-Tuesday): Breakbulk Middle East conference, Dubai, UAE.

12-14 February (Monday-Wednesday): Sustainable Aviation Futures MENA, Dubai, UAE.

12-15 February (Monday-Thursday): Future Warehouse & Logistics, Dubai, UAE.

12-15 February (Monday-Thursday): African Air Expo, Cape Town, South Africa.

22-24 February (Thursday-Saturday): International Freight Forwarders Conference, Dubai, UAE.

26-29 February (Monday-Thursday): World Trade Organization's 13th Ministerial Conference, Abu Dhabi, UAE.

28 February-1 March (Wednesday-Friday): MENA Transport Congress and Exhibition, Dubai, UAE.

MARCH

3-5 March (Sunday-Tuesday): Sustainable Green Blue Infrastructure Conference 2024 (Marlog), Green Plaza Mall, Egypt.

4-8 March (Monday-Friday): Logistics & Transport Management 2024, Dubai, UAE.

5-6 March (Tuesday-Wednesday): ShipTek International Conference & Awards 2024, The Address Dubai, UAE.

5-6 March (Tuesday-Wednesday): MRO Middle East, Dubai Trade Center, Dubai, UAE.

6 March (Wednesday):The Gulf Ship Finance Forum, Waldorf Astoria Dubai International Financial Centre, UAE.

7 March (Thursday): Truck and Fleet Conference 2024, Dubai, UAE.

12-14 March (Tuesday- Thursday): IATA World Cargo Symposium, Hong Kong International Airport, Hong Kong.

20 March (Wednesday): Construction work scheduled to begin on the 162 km Rasht-Astara Railway in Iran.

APRIL

27 April- 1 May (Saturday-Wednesday): Iran Expo 2024, Tehran International Permanent Fairground, Iran.

29 April- 2 May(Monday-Thursday): GLA Global Logistics Conference, Dubai, UAE.

30 April- 2 May(Tuesday-Thursday): Autonomous E-mobility Forum, Doha, Qatar.

April: Driftx. Abu Dhabi, UAE.

MAY

2-3 May (Thursday-Friday): Geneva Dry, Hotel President Wilson, Geneva, Switzerland.

2-4 May(Thursday-Saturday): The International Conference on Logistics Operations Management: smart, sustainable and green logistics (GOL), Marrakesh, Morocco.

3-5 May (Friday-Sunday):2024 IEEE 15th international conference on Logistics and Supply Chain Management, University of Sousse, Tunisia, Tunis.

7-9 May (Tuesday-Thursday): Annual Investment Meeting (AIM) Congress, Abu Dhabi, UAE.

14-15 May (Tuesday-Wednesday): Seamless Middle East, Dubai World Trade Centre, UAE.

14-16 May (Tuesday-Thursday): Airport Show, DWTC, Dubai, UAE.

21-23 May (Tuesday-Thursday): WAGA 2024, Riyadh, Saudi Arabia.

JUNE

2-4 June (Sunday-Tuesday):IATA Annual General Meeting (AGM) and World Air Transport Summit, Dubai, UAE.

19-21 June (Wednesday-Friday): World Freezones Organization’s Annual International Conference and Exhibition, Bari, Italy.

OCTOBER

6-8 October (Sunday-Tuesday): Routes World 2024, Bahrain.

7-9 October (Monday-Wednesday): AFSIC– Investing in Africa, London.

22-24 October (Tuesday-Thursday): Asean Ports and Logistics 2024, Johor, Malaysia.

NOVEMBER

11-14 November (Sunday-Thursday): ADIPEC Maritime and Logistics Exhibition and Conference, Abu Dhabi.

13-15 November (Wednesday-Friday): The Bahrain International Airshow, Sakhir Airbase, Bahrain.

DECEMBER

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

20 December (Wednesday): The 5th Iran-Senegal Joint Economic Cooperation Commission, Dakar.

EVENTS WITH NO SET DATE

1Q 2024: Construction of phase 3 of Agility’s logistic park in Abidjan, Côte d'Ivoire to be completed.

1Q 2024: Egypt’s Transport Ministry to launch pre-qualification tender for Cairo-Alex freight railway.

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.

2025

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.

2027

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

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