{"id":72216,"date":"2023-07-24T00:00:00","date_gmt":"2023-07-24T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2023\/07\/24\/today-russias-exit-from-the-black-sea-grain-pact-is-already-harming-global-trade-will-the-uae-snag-a-contract-for-another-terminal-at-pakistans-karachi-port\/"},"modified":"2023-07-24T00:00:00","modified_gmt":"2023-07-24T00:00:00","slug":"today-russias-exit-from-the-black-sea-grain-pact-is-already-harming-global-trade-will-the-uae-snag-a-contract-for-another-terminal-at-pakistans-karachi-port","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2023\/07\/24\/today-russias-exit-from-the-black-sea-grain-pact-is-already-harming-global-trade-will-the-uae-snag-a-contract-for-another-terminal-at-pakistans-karachi-port\/","title":{"rendered":"TODAY: Russia\u2019s exit from the Black Sea grain pact is already harming global trade + Will the UAE snag a contract for another terminal at Pakistan\u2019s Karachi Port?"},"content":{"rendered":"

Good morning, friends, and welcome back.<\/span> We have a packed issue for you this morning, as we return from a long weekend that saw plenty of updates on the diplo and freezones fronts in the region.<\/span><\/p>\n

THE BIG LOGISTICS STORIES- Iraq and Iran are planning to establish a joint freezone on their shared border by March 2024. <\/span>Meanwhile, AD Ports Group has partnered up with Emirati and Japanese firms to establish a green iron supply chain hub in its Kezad Musaffah freezone. <\/span><\/p>\n

<\/a> <\/span>THE BIG LOGISTICS STORY ABROAD- The aftermath of Russia\u2019s exit from the <\/span>Black Sea grain pact has dominated headlines: <\/span>Ships picking up grain cargoes for the Black Sea grain pact fell 35% last week, compared to the week before, following Russia\u2019s <\/span>exit<\/a><\/span> from the UN-brokered agreement, <\/span>Reuters<\/a><\/span> reports, citing data from Shipfix. Ukraine\u2019s ports were subject to consistent attacks from Russia over the past week, which it said came in retaliation following Ukraine\u2019s attack on the Crimea bridge. Russia also said it will now deem all ships heading to Ukraine as targets potentially carrying arms, <\/span>Reuters<\/a><\/span> added. Adding salt to the wound, ins. firms have suspended cover for shipments from Ukraine following Russia\u2019s exit, ins. industry sources told Reuters. <\/span><\/p>\n

But there\u2019s still hope for the restoration of the pact: <\/span>Russian Foreign Ministry spokesperson <\/span>Maria Zakharova said the onus was on the United Nations to comply with Russia\u2019s demands over the next three months, which is the duration of Russia\u2019s notice period for its exit from the pact, <\/span>Reuters<\/a><\/span> reported. Russia\u2019s main demand and the reason for pulling out of the pact is concerns that promises to facilitate its own shipments of food and fertilizers had not been kept under the pact, the newswire added. Turkish President Recep Tayyip Erdogan also said his planned talks with Russian President Vladimir Putin could lead to restoration of the initiative, while calling on Western countries to take Russia's demands into consideration, <\/span>Reuters<\/a><\/span> reported, without clarifying when the talks will take place. <\/span><\/p>\n

HAPPENING TODAY-<\/span><\/p>\n

<\/a> <\/span>Iran\u2019s proposal to host a shipping event in Tehran in conjunction with the UN <\/span>International Maritime Organization\u2019s (IMO) annual maritime day<\/span> in October has been rejected, following a US-led proposal to rescind their bid, <\/span>Reuters<\/a><\/span> cites an agency spokesperson as saying. The IMO\u2019s executive council had accepted Iran\u2019s bid to host the shipping event back in 2015, but the US put forward a proposal to rescind the decision, according to the outlet. <\/span><\/p>\n

The rationale: <\/span>The majority of the IMO\u2019s 40 council members voted in favor of rescinding the offer, citing Iran\u2019s actions towards vessels in recent years, which they say includes attacks, harassment, and detention and seizures, according to Reuters. Iran recently attempted to <\/span>seize <\/span>two commercial oil tankers<\/a><\/span> in the Gulf of Oman, which was met with US Navy intervention.<\/span><\/p>\n

<\/a> <\/span>WATCH THIS SPACE #1- The UAE could develop another terminal at Karachi port:<\/span> <\/span>Pakistan has put together a committee tasked with negotiating a draft framework G2G agreement with the UAE to develop a bulk and general cargo terminal at Karachi Port\u2019s East Wharf, according to a Finance Ministry <\/span>statement<\/a><\/span>. <\/span><\/p>\n

Background: <\/span>AD Ports Group was granted <\/span>last month<\/a><\/span>a 50-year concession to \u201cmanage, operate, and develop\u201d Karachi Gateway Terminal Limited (KGTL) at Karachi Port\u2019s East Wharf. AD Ports Group has been on an expansion spree, recently signing other agreements to operate ports in the <\/span>Congo<\/a><\/span> and <\/span>Egypt<\/a><\/span>.<\/span><\/p>\n

<\/a> <\/span>WATCH THIS SPACE #2- Iraq to provide Lebanon with fuel to power its electric <\/span>stations:<\/span> Iraq has inked an MoU with Lebanon to supply the country with fuel and crude oil to support its electricity sector, state-owned <\/span>Iraq News Agency (INA)<\/a><\/span> said. The agreement is renewable for another year with an option to up quantities involved, Iraq\u2019s Oil Minister Hayan Abdul Ghani said in statements cited by INA. Technical committees from both countries will work to develop mechanisms to implement the agreement, including details involving the logistical obligations of each side, prior to ratification by the countries\u2019 governments, Abdul Ghani said.<\/span><\/p>\n

DATA POINT- Iraq\u2019s state owned <\/span>General Company for Ports of Iraq<\/a><\/span> raked in <\/span>next to IQD 500 bn of revenues in 1H 2023<\/span>, surpassing proceeds from the same period last year, according to a <\/span>statement<\/a><\/span>. The country has been working on improving port infrastructure, fleets, and the development of local skills, the statement added.<\/span><\/p>\n

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The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox.<\/p>\n

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MARKET WATCH-<\/span>The Baltic Exchange's main sea freight index recorded a 10% <\/span>weekly drop last week<\/span>, due to reduced demand for larger shipping vessels, <\/span>Reuters<\/a><\/span>reports. The capesize index gained 1.5% on Friday, but still fell nearly 13% for the week. The Panamax index fell 2.2% on Friday, its sixth consecutive drop, registering a weekly decrease of 15.6%. <\/span><\/p>\n

The Drewry World Container Index (WCI) inched up 3.3% this week<\/span>, reaching USD 1,536.86 <\/span>per 40-foot container, according to <\/span>Drewry<\/a><\/span>. The index was still down 77.5% y-o-y and 85% below its peak in September 2021. The WCI is now 43% lower than the ten-year average, reflecting a return to more normal prices, but is still 8% higher than pre-pandemic rates in 2019. <\/span><\/p>\n

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CIRCLE YOUR CALENDARS-<\/span> The Enterprise Finance Forum is taking place on 18-19 September at the St. Regis Hotel in Cairo. This flagship forum is the latest in our must-attend series of invitation-only, C-suite-level gatherings that allow senior members of our community to openly and frankly discuss critical issues in key sectors of the economy. <\/span><\/p>\n

TAP OR CLICK HERE<\/a><\/span> if you want to express interest in attending. We\u2019ll be sending out the first batch of invitations soon. <\/span><\/p>\n

Do you want to become a commercial partner?<\/span> Ping a note to <\/span>Moustafa Taalab, our head of commercial<\/a><\/span>, or fill out <\/span>this form<\/a><\/span> and we\u2019ll be in touch. <\/span><\/p>\n

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DID YOU MISS THE ENTERPRISE EXPORTS AND FDI FORUM? <\/span>Tune in to the Enterprise Podcast and listen for yourself<\/a><\/span>:<\/span> The Enterprise Podcast is back with another installment of our forum series, where we bring you audio recordings of what was said on stage at the Enterprise Exports and FDI Forum,<\/span>which took place in May.<\/span><\/p>\n

WANT TO LISTEN? Head to: <\/span>Apple Podcast<\/a><\/span> | <\/span>Spotify<\/a><\/span> | <\/span>Google Podcast<\/a><\/span> | <\/span>Anghami<\/a><\/span>. We\u2019re releasing a new episode every Sunday morning.<\/span><\/p>\n

IN THIS WEEK\u2019S EPISODE- <\/span>We ask some of the biggest multinationals and suppliers operating here \u2014 namely, in logistics, e-commerce, and FMCG \u2014 what it is they\u2019re looking for in a local partner, product or service and what are some of the pain points they\u2019ve had to deal with. We were joined on that panel by <\/span>Khaled Morsy<\/span>, CEO of DB Schenker Egypt,<\/span> Omar Elsahy<\/span>, General Manager at Amazon Egypt, <\/span>Tarek Kame<\/span>l, Chairman and CEO of Nestl\u00e9 Egypt and Sudan.<\/span><\/p>\n

CIRCLE YOUR CALENDAR-<\/span><\/p>\n

The UAE\u2019s Finance Ministry is holding a digital public consultation on its website <\/span>that began last Wednesday and runs until <\/span>2 August<\/span>,<\/span>as part of the UAE\u2019s corporate tax freezone regulations,<\/span>Emirati news agency <\/span>WAM<\/a><\/span> reports.<\/span>The consultation aims<\/span> to gather feedback from freezone-based companies, WAM added.<\/span><\/p>\n

Kuwaiti Foreign Minister Sheikh Salem Al Sabah will <\/span>visit Iraq<\/span> by the end of the <\/span>month<\/span>,<\/span>state-owned <\/span>Iraqi News Agency<\/a><\/span> reports, citing statements from the Kuwaiti ambassador to Iraq, Tariq Al Faraj. Al Faraj met with Iraqi President Abdul Latif Rashid yesterday to discuss ways to enhance bilateral cooperation and resolve outstanding issues.<\/span><\/p>\n

The <\/span>Second Summit Russia-Africa Economic and Humanitarian Forum<\/a><\/span> will take <\/span>place in Saint Petersburg, Russia on Thursday 27 and Friday 28 July.<\/span> The event will build on discussions in the last iteration of the summit, which took place in Sochi in 2019. It will also look to develop ties between Russia and partner countries in Africa, as well as African organizations such as the African Union. <\/span><\/p>\n

Check out our full calendar<\/span> at the bottom of this email for a comprehensive listing of upcoming news events and news triggers.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

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