{"id":78317,"date":"2024-05-02T00:00:00","date_gmt":"2024-05-02T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2024\/05\/02\/today-dammam-port-will-get-a-new-logistics-hub-dps-unifeeder-expands-in-latin-america\/"},"modified":"2024-05-02T00:00:00","modified_gmt":"2024-05-02T00:00:00","slug":"today-dammam-port-will-get-a-new-logistics-hub-dps-unifeeder-expands-in-latin-america","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2024\/05\/02\/today-dammam-port-will-get-a-new-logistics-hub-dps-unifeeder-expands-in-latin-america\/","title":{"rendered":"TODAY: Dammam Port will get a new logistics hub + DP\u2019s Unifeeder expands in Latin America"},"content":{"rendered":"

Good morning, friends. <\/strong>It\u2019s quiet on the regional logistics news front, but we have a key update from Dammam and updates on Unifeeder\u2019s Latin American expansion. First\u2026<\/p>\n

A quick programming note:<\/strong> Enterprise Logistics will be taking a publication holiday on Monday in observance of the Egyptian national holiday of Sham El Nessim. We\u2019ll be back in your inboxes on Tuesday morning at our regularly scheduled time.<\/p>\n

PSA-<\/p>\n

Fuel prices climbed for the fourth consecutive month in the UAE<\/strong>, marking a seven-month high for May, the Emirates General Petroleum Company (Emarat) said in a post on X<\/a>. Diesel prices will be lower for the month.<\/p>\n

The breakdown:<\/strong> Super 98 is now AED 3.34 per liter, Special 95 is now AED 3.22, and E-Plus 91 now costs AED 3.15. Diesel is now AED 3.07 per liter, down from AED 3.09 last month.<\/p>\n

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WATCH THIS SPACE-<\/p>\n

<\/a>#1- <\/strong>A joint Egypt-Libya <\/strong>free<\/strong>zone near the southeastern Libyan town of Al Jawf might be <\/strong>in the works<\/strong>, <\/strong>Al Arabiya<\/a> reports, citing statements by Director General of the Libyan-Egyptian Joint Economic Chamber Mohamed Rafi. The chamber is studying the launch of the joint zone in collaboration with other industrial and commercial chambers, Rafi said. A delegation representing Egyptian industry is also set to visit Libya next month to hold talks on partnerships in trade and investment, reconstruction works, and to explore prospects for exports to Libya and the neighboring states of Chad and Niger, the news outlet writes. <\/p>\n

There\u2019s more on the agenda:<\/strong> Libyan officials have also highlighted a need for closer cooperation with Egypt on customs, standards and measures applied to imported Egyptian goods, shipping, and banking, Al Arabiya said. <\/p>\n

#2- <\/strong>Oman has awarded tenders for development projects worth OMR 87.7 mn<\/strong> (USD 228 mn) <\/strong>including upgrades to the country's roads and bridges<\/strong>, ONA<\/a> reports. Oman\u2019s transport, communications and information technology ministry have inked a framework contract for a OMR 9.1 mn project to construct Dhofar\u2019s Al Mughsayl Road and Bridge, the news outlet said.<\/p>\n

<\/a>#3- Saudi Arabia\u2019s GDP fell 1.8% y-o-y in the first quarter of the year<\/strong>, marking the third consecutive quarter that the economy has been in contraction, according to preliminary figures from state statistics agency Gastat (pdf)<\/a>. The downturn was again due to a 10.6% decline in oil activity, which accounts for c. 40% of GDP (and about 75% of government revenues). Non-oil activity was up 2.8% y-o-y, with government activity also growing at a 2% clip. <\/p>\n

REMEMBER-<\/strong> The Kingdom cut oil production by 500k barrels per day in April 2023 in a bid to arrest falling oil prices. That figure became a 1 mn bpd voluntary cut by June. Though originally seen ending in December 2023, the government extended the 1 mn bpd cut through 1Q 2024 and now seems poised to continue it through June 2024<\/a>, maintaining production at 9 mn bpd.<\/p>\n

On a quarterly basis: <\/strong>GDP climbed 1.3% compared to the previous quarter, driven primarily by a 2.4% increase in oil activity, as well as 0.5% growth in non-oil activities. Government activity slowed by 1% q-o-q. <\/p>\n

#4- Aircraft leasing company Dubai Aerospace Enterprise (DAE) is reportedly receiving <\/strong>only half the number of aircraft previously agreed upon from Boeing<\/strong>, Reuters<\/a> reports. So far, DAE has received only one aircraft from Boeing in 1Q 2024, according to DAE CEO Firoz Tarapore. \u201cThe only thing we can reliably expect from Boeing these days is a delivery delay notification as opposed to aircraft so we hope that they get their act together,\u201d Tarapore said.<\/p>\n

<\/a>#5- The EU cracks down on airline greenwashing: <\/strong>The European Commission has launched an investigation into 20 unnamed airlines over allegations of greenwashing after the firms made vague claims of engaging in carbon offsetting or using sustainable aviation fuels, The Financial Times<\/a> writes. The inquiry \u2014 involving regulators from Belgium, the Netherlands, Norway, and Spain \u2014 questions the validity of the airlines' assertions that investments in eco-friendly projects or the use of alternative fuels can mitigate the CO2 emissions produced by flying, and gave the airlines a 30-day deadline to submit plans addressing the claims.\u201cThe airlines are yet to clarify whether such claims can be substantiated based on sound scientific evidence,\u201d the commission said.<\/p>\n

The industry is falling behind on the green transition: <\/strong>The Science-Based Targets initiative<\/a> (SBTi) reports that no major European airline has submitted a climate goal stringent enough to restrict global warming to 1.5 \u00b0C above pre-industrial levels, FT adds. SBTi removed EasyJet, Gol, Iberia, Lufthansa and Wizz Air from the climate plans validation process as they didn't didn't pledge ambitious enough targets. <\/p>\n

IN OTHER SAF NEWS-<\/strong>US\u2019 SAF program opens the door for ethanol: <\/strong>The Biden administration has released guidance on its sustainable aviation fuel (SAF) subsidy program, allowing corn-based ethanol to qualify if sourced from farms using climate-friendly techniques, Reuters<\/a> reports. The program also extends eligibility to soy-based biodiesel if farms implement no-till<\/a> and cover cropping<\/a>. Refiners that can reduce emissions by 50% compared to petroleum jet fuel will be eligible for a USD 1.25 per gallon subsidy, while those that exceed this threshold can access an even higher subsidy of USD 1.75 per gallon.The scheme is effective for fuels produced in 2023 and 2024 but may be adjusted or expanded on a later date.<\/p>\n

A mixed bag for the ethanol industry:<\/strong> While the Renewable Fuels Association<\/a> welcomed the announcement, they had hoped for lower threshold qualifications to increase access to the subsidy. \u201cHowever, RFA believes less prescription on agricultural practices, more flexibility, and additional low-carbon technologies and practices should be added to the modeling framework to better reflect the innovation occurring throughout the supply chain,\u201d the association's president and CEO, Geoff Cooper told Reuters.<\/p>\n

Not everyone is confident in the decision:<\/strong> Some environmental groups and researchers question the efficacy of the SAF strategy, citing uncertainty about farm techniques' benefits and the need for additional low-carbon technologies. <\/p>\n

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DISRUPTION WATCH- <\/p>\n

Earnings boosts for shipping giants may not materialize: <\/strong>European shipping giants including Hapag-Lloyd and Maersk are unlikely to see significant boosts to their earnings in 1Q 2024 despite a surge in freight rates on the back of Red Sea disruptions, Reuters<\/a> reports. Spot rates soared to USD 3.5k a container as carriers began to reroute away from the Red Sea, but have since slipped back to USD 2.4k, the newswire says, citing Freightos Baltic Index data. Longer reroutes have occupied overcapacity built up in the wake of the pandemic, with an end to disruptions signaling a recurrence of the problem. \u201cEverybody believes that the Red Sea crisis will end at some point. Once the crisis ends, vessels will go through the Suez Canal and then we will have overcapacity again,\u201d Stifel analyst Marc Zeck told the newswire. <\/p>\n

And forecasts are all over the place:<\/strong> Hapag Lloyd foresees earnings before interest and tax (EBIT) landing anywhere between a USD 1.1 bn loss and a USD 1.1 bn gain. Maersk forecasts an EBIT between a zero to USD 5 bn loss. Both major carriers have cited uncertainty on rates due to Red Sea disruptions behind the wide expectation margins, Reuters said. <\/p>\n

ON THE SECURITY SIDE- <\/strong>An Italian navy ship, dubbed Fasan, neutralized a Houthi drone targeting a <\/strong>European cargo ship Monday morning near the Bab-el-Mandeb strait<\/strong>, Reuters<\/a> reports, citing an Italian defense ministry statement. The drone was intercepted some 5 km away from the ship, with another missile hitting the water nearby the vessel and causing superficial damage, the newswire says. The Italian frigate, part of the EU\u2019s Aspides Red Sea task force<\/a>, then escorted the cargo ship on its planned route exiting the Red Sea.<\/p>\n

Aspides is overstretched:<\/strong> A German air defense frigate, dubbed Hessen, departed from Aspides last week without replacement<\/a>, leaving the force with only three warships. Aspides\u2019 commander, Greek navy Rear Admiral Vasilios Gryparis, had indicated earlier this month that he needed more warships<\/a> to carry out his mission, with the four frigates that he had on hand at the time too few to cover the assigned area.<\/p>\n

MARKET WATCH- <\/p>\n

#1- Oil prices rose this morning, bouncing back from a three-day streak of losses<\/strong>, on the expectation the US will begin replenishing its strategic reserve putting a floor under prices, Reuters<\/a> reports. Brent futures for July were up 0.6% to USD 83.92 a barrel by 04.00 GMT while US West Texas Intermediate (WTI) crude prices for June rose 0.6% to USD 79.46 a barrel.<\/p>\n

P<\/strong>rices hit a seven-week low yesterday on the back of an unexpected ramp up in <\/strong>US crude inventories<\/strong>, hopes for a Gaza ceasefire, and sticky inflation decreasing the likelihood of demand-stimulating rate cuts, an earlier Reuters<\/a> report wrote. US energy players added some 7.3 mn barrels to their stockpiles for the week ending 23 April, the US Energy Information Administration (EIA) said, far exceeding a 1.1 mn barrel drawdown predicted by a Reuters poll. Meanwhile, a renewed diplomatic push by Egypt is renewing hopes for a ceasefire in Gaza, the newswire also said. <\/p>\n

#2- <\/strong>Baltic index holds steady: <\/strong>The Baltic Exchange\u2019s dry bulk sea freight index \u2014 which tracks rates for the capesize, panamax, and supramax vessel segments \u2014 saw a slight gain at 1,685 points on Tuesday, Reuters<\/a> reports. The larger capesize sub index edged up 1% to 2,100, while panamax fell 0.7% to 1,845, hitting its lowest since 17 April. The smaller supramax segment also shed 7 points to 1,485, the newswire says.<\/p>\n

DATA POINT- <\/p>\n

#1- <\/strong>Air Cargo demand \u2014 measured in cargo tonne-kilometers (CTKs) \u2014 grew 10.3% <\/strong>y-o-y in March 2024 marking the fourth month in a row of double digit annual growth<\/strong>, according to an IATA press release<\/a>. Middle Eastern markets saw 19.9% y-o-y growth during the period, the strongest among all world regions, on the back of robust growth figures in the Middle East-Europe air freight market. Global air cargo capacity \u2014 measured in available cargo tonne-kilometers (ACTK) \u2014 grew 7.3% y-o-y in March, with the Middle East seeing a 10.2% boost to capacity, IATA added. \u201cWith global cross-border trade and industrial production continuing to show a moderate upward trend, 2024 is shaping up to be a solid year for air cargo,\u201d IATA\u2019s Director General Willie Walsh said in the statement.<\/p>\n

#2- Q<\/strong>atari port operator QTerminals handled <\/strong>92.4k<\/strong> freight tons of bulk cargo at <\/strong>Hamad Port in April, <\/strong>according to a statement<\/a>. The port operator also handled 122.7k freight tons of breakbulk and 10.4k RoRo units during the period, while processing 117 vessels and 85.7k TEUs, the statement also said. <\/p>\n

AND-<\/strong>Mawani Qatar handled upwards of 235k tons of general and bulk cargo in April, up <\/strong>69% <\/strong>m-o-m, <\/strong>according to a statement<\/a>. Roro units at the port saw a 75% boost to more than 10k units, with the month also seeing 87k TEUs handled and visits from 192 vessels, the statement also said. <\/p>\n

#3- <\/strong>Q<\/strong>atari maritime transport and logistics company <\/strong>Milaha<\/a><\/strong> saw its bottomline <\/strong>inch <\/strong>up 0.25% y-o-y to QAR 364.8 mn in 1Q 2024,<\/strong> according to a financial statement (pdf<\/a>). The company recorded an operating revenue of QAR 747 mn during the period, down 2.51% y-o-y.<\/p>\n

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

UAE will host the <\/strong>ReverseMi Logistics Network<\/a><\/strong> from Sunday, 5 May to Tuesday, 7 May<\/strong> in Abu Dhabi. The networking event brings together freight forwarders and logistics companies engaged in reverse logistics by providing clients with means to return goods for recycling, refurbishment, or other types of reuse as a means to promote a circular economy.<\/p>\n

Saudi Arabia will host the <\/strong>Saudi Smart Logistics<\/a><\/strong> exhibition and summit from Monday, 6 May to Thursday, 9 May<\/strong> in Riyadh. The trade fair brings together local and international suppliers, public officials, professionals, and logistics players, and provides a platform for networking, exchanging know-how, and showcasing new technologies, products, and services.<\/p>\n

The UAE will host the <\/strong>Airport Show<\/a><\/strong> from Tuesday, 14 May through to Thursday, 16 May<\/strong> in Dubai. The 23rd Airport Show will see representation from airport suppliers, airport service providers, aviation executives, and regional decision makers. The event will highlight current innovations and new technologies, while emphasizing this year\u2019s \"Sustainability and Innovation,\" theme.<\/p>\n

Iran will host the 11th <\/strong>International Exhibition of Rail Transportation and Related<\/a><\/strong>Industries<\/a><\/strong> from Saturday 18 May to Tuesday 21 May<\/strong>, <\/strong>in Tehran. The exhibition looks to attract domestic and international firms to showcase Iran\u2019s local rail manufacturing capabilities and to acquaint industry players with developments made in the industry worldwide.<\/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":78318,"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":[145,49,314,142,31,32,129,16],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-78317","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-what-were-tracking-today","tag-aviation","tag-egypt","tag-libya","tag-oman","tag-saudi-arabia","tag-trade","tag-uae","tag-what-were-tracking-today","wpautop","entry"],"acf":{"mongo_id":"f90325ce-e8af-40e3-84b0-8a7f9685ccbf","order":"2","is_powered_by":false,"story_type":"4","photo_url":"https:\/\/ent.news\/2024\/1\/1195.jpg","photo_position":"above","homepage_title":"","full_issue_title":"TODAY: Dammam Port will get a new logistics hub + DP\u2019s Unifeeder expands in Latin America","related_issue":[78315],"teaser":"What we\u2019re tracking this morning regionally and around the world","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/5\/.74b81cc8-8a84-43f6-96d2-2cdbb52553ed.mp3"},"yoast_head":"\nTODAY: Dammam Port will get a new logistics hub + DP\u2019s Unifeeder expands in Latin America - Logistics<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/logistics\/2024\/05\/02\/today-dammam-port-will-get-a-new-logistics-hub-dps-unifeeder-expands-in-latin-america\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"TODAY: Dammam Port will get a new logistics hub + DP\u2019s Unifeeder expands in Latin America\" \/>\n<meta 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