{"id":76221,"date":"2024-01-22T00:00:00","date_gmt":"2024-01-22T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2024\/01\/22\/today-red-sea-reroutes-continue-qatars-flag-logistics-set-to-establish-oman-hub\/"},"modified":"2024-01-22T00:00:00","modified_gmt":"2024-01-22T00:00:00","slug":"today-red-sea-reroutes-continue-qatars-flag-logistics-set-to-establish-oman-hub","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2024\/01\/22\/today-red-sea-reroutes-continue-qatars-flag-logistics-set-to-establish-oman-hub\/","title":{"rendered":"TODAY: Red Sea reroutes continue + Qatar\u2019s Flag Logistics set to establish Oman hub"},"content":{"rendered":"

Good morning, nice people. <\/strong>We have all the latest on disruptions to shipping in the Red Sea and the ramifications this morning, as well as all the details on Oman\u2019s newest logistics hub.<\/p>\n

<\/a> <\/p>\n

PSA- <\/p>\n

#1- <\/strong>Oman<\/strong> opened <\/strong>the OMR 3.2 mn Wadi Afful Bridge in Rakhyut, Dhofar yesterday<\/strong>, according to a statement<\/a>. The project involved paving 1.3k kilometers of asphalt, including a 300-meter concrete bridge.<\/p>\n

#2- <\/strong>Saudi Ports Authority (<\/strong>Mawani<\/a><\/strong>) will run a virtual workshop for <\/strong>Prominent Vessel <\/strong>Owners <\/strong>in Saudi Arabia on Tuesday, 30 January<\/strong>, according to a statement<\/a>. The workshop will look into the challenges faced in KSA vessel registry and discuss incentives for the adoption of international standards to boost the appeal of flagging under KSA. Participants can register here<\/a>. <\/p>\n

WATCH THIS SPACE-<\/p>\n

#1- <\/strong>The rehabilitation of Iraq's Khor Al-Zubair Port in Basra is 97% complete and is <\/strong>set to <\/strong>be finalized by 2025<\/strong>, according to a statement<\/a>. The project \u2014 which is funded by ODA loans from the Japan International Cooperation Agency (JICA) \u2014 involves setting up a power station, a firefighting system, a 340-meter oil berth, and a 50k square-meter truck yard. The second phase of the project will involve adding marine tugs, boats, and a drydock in the future.<\/p>\n

<\/a>AND-<\/strong>Iraq is making moves to join the WTO<\/strong>:<\/strong> Iraq is taking \u201cserious steps\u201d to join the World Trade Organization (WTO) to further the country\u2019s aspirations to boost transparent cooperation and strategic commercial trade partnerships globally, head of Iraq\u2019s team focusing on WTO accession Saqr Abduallah Al-Muqbel told INA<\/a> on Thursday. <\/p>\n

<\/a>#2- The US<\/strong> rolls out its first price cap-related sanctions for 2024<\/strong>:<\/strong> The US Department of the Treasury\u2019s Office of Foreign Assets Control<\/a> (OFAC) has sanctioned UAE-based shipowner Hennesea Holdings for violating price caps on Russian oil while employing US-based services, according to a statement<\/a> released on Thursday. The move sees the outfit\u2019s assets in the US blocked, with severe restrictions on its transactions.<\/p>\n

ICYMI:<\/strong>December<\/a> saw OFAC tighten its sanctions guidelines and hit out at a UAE-based subsidiary of Russia\u2019s state-owned fleet operator Sovcomflot<\/a>, in addition to a UAE-based and two Hong Kong based \u201cunder-the-radar\u201d traders. <\/p>\n

#3- Boeing\u2019s woes continue:<\/strong> A Boeing 747 freighter operated by US air freight giant Atlas Air<\/a> was forced to make an emergency landing at Miami International Airport late Thursday after suffering an engine fire shortly after take off, Reuters<\/a> reported on Friday. The US Federal Aviation Administration<\/a> (FAA) and National Transportation Safety Board<\/a> are looking into the incident, with a post-flight check revealing a \u201ca softball-size hole above the engine,\u201d the newswire cited the FAA as saying. No injuries were reported as a result of the incident.<\/p>\n

ICYMI:<\/strong>Aircraft maker Boeing<\/a> is facing mounting scrutiny following an incident with an Alaska Airlines<\/a> 737 MAX 9 flight that saw a panel fly off mid flight<\/a> and subsequent investigations by the airline revealed manufacturing flaws<\/a> in its Boeing 737 MAX 9 fleet.<\/p>\n

Akasa and Delta Airlines have orders on the books:<\/strong> Indian budget carrier Akasa Air<\/a> has ordered 150 Boeing 737 Max aircrafts, with the order not including the MAX 9 variant that is undergoing scrutiny, Reuters<\/a> reported on Thursday, citing a company statement<\/a>. US Delta Airlines<\/a> also plans to follow-through with an order of 100 Boeing 737 MAX 10 aircraft, CNBC<\/a> reported on Friday, citing statements by CEO Ed Bastian. The order\u2019s first deliveries are slated for next year, but the airline does not intend to take them aboard until they have \u201c1,000% confidence\u201d that they are safe, Bastain said.<\/p>\n

#4- Australian minister blames <\/strong>DP World for ongoing labor dispute:<\/strong> Australian Workplace Relations Minister Tony Burke is refusing to intervene in the dispute between DP World and the Maritime Union of Australia (MUA), accusing the former of running a political and media campaign rather than resolving matters with its workers, The Guardian<\/a> reported on Thursday, citing comments by Burke following a meeting with both parties on Thursday. Burke said that if DP World had invested into reaching an agreement instead of a media campaign, then a resolution could have been reached. Union workers have been fighting for better pay since October<\/a>, and Australia\u2019s Fair Work Commission<\/a> (FWC) workplace tribunal recently told workers that their work stoppages could continue at DP World\u2019s Sydney, Brisbane, and Fremantle terminals. Burke told reporters that he has made it clear that both parties are expected to be at the table to negotiate and resolve this matter, and that they can rely on the FWC to facilitate, the newswire reports.<\/p>\n

\n

MARKET WATCH- <\/p>\n

<\/a>#1- <\/strong>Qatar Energy is set to ink a long-term agreement with India<\/strong>to provide LNG at a <\/strong>cheaper price and more flexible terms<\/strong>, Reuters<\/a> reports, citing sources with knowledge of the matter. Qatar Energy and Indian companies are set to sign the agreement \u2014 which would extend to 2050 \u2014 by early February. The agreement would extend beyond 2028 contracts for the supply of 8.5 mn tonnes per year (tpy) of LNG to Indian buyers, supporting India\u2019s aim to boost the share of natural gas in its energy mix to 15% by 2030. Qatar aims to increase liquefaction capacity to 126 mn tpy by 2027, up from 77 mn, to strengthen its presence in Asia and Europe amid increased competition from US supplies. <\/p>\n

REMEMBER - <\/strong>Qatar Energy and Shell previously signed<\/a> two long-term liquified natural gas (LNG) sale and purchase agreements (SPA) for the supply of up to 3.5 mn tons per year of LNG to the Netherlands for 27 years. Qatar Energy also inked two LNG SPAs with TotalEnergies to supply France with gas. <\/p>\n

#2- Oil prices saw an increase on Thursday as OPEC forecasted a <\/strong>robust demand growth in 2024 and 2025<\/strong>, and as a cold snap disrupted US production and tensions remained high in the Middle East, Reuters<\/a> reported on Thursday. Brent crude rallied 0.6% to USD 78.37 while West Texas Intermediate (WTI) crude rose 1.0% to USD 73.26 a barrel. OPEC expects global demand for oil to increase 2.25 mn barrels per day (bp) for 2024, and by 1.85 mn bpd for 2025, the newswire said citing an OPEC report.<\/p>\n

#3- <\/strong>Severe weather conditions hitting Texas and Louisiana have disrupted US <\/strong>LNG exports<\/strong>, Bloomberg<\/a> reported on Thursday. The cold snap has led to cancellations and delays in shipments from facilities in the two states, including Cameron LNG and Cheniere Energy. The extreme weather also saw some ports closed. Disruptions are expected to resolve by next week as temperatures get warmer. Global markets are not expected to be impacted as LNG stocks in Asia and Europe remain high, with European gas futures falling to their lowest in five months on Wednesday, the outlet said.<\/p>\n

<\/a>#4- <\/strong>The Baltic Exchange's dry bulk sea freight index is at its<\/strong> lowest in four months<\/strong>, after dipping for an eighth consecutive session on Wednesday, Reuters<\/a> reported. Losses were mitigated however by an uptick in panamax rates. The overall index \u2014 which factors rates for capesize, panamax, and supramax vessels \u2014 fell 1.2% to settle at 1308 points on Wednesday, its smallest decline over the previous eight sessions.<\/p>\n

#5- <\/strong>Russia beats out Saudi Arabia as China\u2019s primary crude oil supplier in 2023<\/strong>,exporting some 107 mn tons and pulling far ahead of rivals KSA and Iraq, Reuters<\/a> reported on Saturday, citing Chinese customs data. Western sanction on Russian crude has led to it being sold at a discount to other products, boosting demand from refineries in India and China. Saudi Arabia\u2019s exports to China declined 1.8% for the year to just under 86 mn tons as the country ceded market share in China to cheaper Russian crude, the newswire said.<\/p>\n

DATA POINTS- <\/p>\n

#1- <\/strong>Dubai\u2019s Roads and Transport Authority (RTA) reduced travel time by 50% and <\/strong>increased vehicular capacity on a number of roads by up to 25% in 2023<\/strong>, according to a statement<\/a> on Sunday. The RTA, as part of its ongoing Quick Traffic Improvements Plan, upgraded intersections and expanded roads to reduce travel time and eliminate congestion. <\/p>\n

#2- <\/strong>Queen Alia International Airport (QAIA) handled some 67.4k tons of cargo in 20<\/strong>23<\/strong>, a 9.9% y-o-y increase, according to an Airport International Group<\/a> (AIG) press release<\/a>. QAIA also saw 77.7k aircraft movements in the same period, a 13.7% y-o-y increase. The airport recorded 6.4k tons of cargo in December 2023, a 30.4% y-o-y increase, and 5.6k aircraft movements in the same period, a 1.5% y-o-y decrease, according to the release. The annual figures are driven by AIG's partnerships with new airlines, with a total of 44 cargo and passenger airlines operating via QAIA in 2023, according to the release.<\/p>\n

#3- <\/strong>Global air cargo <\/strong>tonnages<\/strong> rebounded during the second week of 2024<\/strong>, increasing 24% from the previous week, Transport & Logistics Middle East<\/a> reports, citing WorldACD Market Data. This followed a 30% drop in the second half of December and a 3% fall in the first week of January. Despite a 24% y-o-y decrease in pricing, rates remain 31% above January 2019 levels. Last year, increased demand to Europe from Asia Pacific and the Middle East & South Asia showed a potential move to air cargo amid ongoing disruptions in the Red Sea. Cargo owners are also increasingly eyeing air transport due to longer ocean voyages.<\/p>\n

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Get Enterprise<\/b> daily <\/h4>\n<\/p><\/div>\n

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

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

The UAE will host the <\/strong>Middle East Bunkering Convention<\/a><\/strong> from Monday, 5 Febru<\/strong>ary through to Wednesday, 7 February<\/strong> 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.<\/p>\n

The UAE will host <\/strong>Sustainable Aviation Futures MENA<\/a><\/strong> from Monday, <\/strong>12 February through to Wednesday, 14 February<\/strong> 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.<\/p>\n

The UAE will host the <\/strong>Future Warehouse & Logistics 2024 Conference<\/a><\/strong> from<\/strong> Monday, 12 February to Wednesday, 14 February<\/strong> 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.<\/p>\n

The UAE will host the<\/strong>TradeTech Forum<\/a><\/strong>on Tuesday, 27 February<\/strong> in Abu Dhabi. The forum will see some 180 trade leaders and experts discuss the technologically advanced trade environment and a showcase of trade tech solutions. <\/p>\n

The UAE will host <\/strong>The Logistics Middle East Award<\/a><\/strong> on Wednesday, 6 March<\/strong> inDubai. The awards ceremony brings together industry experts to celebrate the sector\u2019s biggest accomplishments over the previous 12 months.The deadline for submitting nominations is Friday, 19 January. <\/p>\n

The UAE will host <\/strong>The Electric Vehicle Innovation Summit<\/a><\/strong> from Monday, 20 May to <\/strong>Wednesday, 22 May <\/strong>in Abu Dhabi. The event will see industry leaders come together to discuss sustainable mobility and tapping into groundbreaking advancements in electric vehicles while engaging with key decision-makers.<\/p>\n

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

What we\u2019re tracking this morning regionally and around the world<\/p>\n","protected":false},"author":1,"featured_media":76222,"comment_status":"","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[18],"tags":[35,37,32,16],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-76221","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-what-were-tracking-today","tag-iraq","tag-ports","tag-trade","tag-what-were-tracking-today","wpautop","entry"],"acf":{"mongo_id":"be277f82-e451-4761-8a50-5d744abe30f3","is_powered_by":false,"story_type":"4","photo_url":"https:\/\/ent.news\/2024\/1\/1246.jpg","photo_position":"above","homepage_title":"","full_issue_title":"TODAY: 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