{"id":79840,"date":"2024-07-22T00:00:00","date_gmt":"2024-07-22T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2024\/07\/22\/today-lots-of-port-business-a-blockbuster-gas-supply-agreement-for-iran\/"},"modified":"2024-07-22T00:00:00","modified_gmt":"2024-07-22T00:00:00","slug":"today-lots-of-port-business-a-blockbuster-gas-supply-agreement-for-iran","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2024\/07\/22\/today-lots-of-port-business-a-blockbuster-gas-supply-agreement-for-iran\/","title":{"rendered":"TODAY: Lots of port business + A blockbuster gas supply agreement for Iran"},"content":{"rendered":"

Good morning, ladies and gents. <\/strong>It\u2019s a fairly busy morning with some developments in port business across the region, as well as a few updates in the aviation and trade sectors. Elsewhere, the dust is settling after a major IT glitch caused major outages globally in the aviation industry this past weekend, we have all the details below.<\/span><\/p>\n

<\/a>THE BIG LOGISTICS STORY- <\/strong>A global IT outage caused <\/strong>substantial disruptions to <\/strong>logistics networks and supply chains over the weekend.<\/strong> A glitch in a software update from global cybersecurity firm CrowdStrike<\/a> caused failures that impacted \u201cshipping lines, customer systems, and transport businesses\u201d around the world on Friday, UK-based logistics firm Woodland Group said in a statement<\/a>.<\/p>\n

What happened? <\/strong>A routine software update pushed by global cybersecurity firm CrowdStrike<\/a> to its Falcon Sensor software threw some 8.5 mn machines running Microsoft Windows into boot loops. Airlines and some other companies were hit particularly hard, with airports and airlines around the world grounding flights and reverting to manual paperwork.<\/p>\n

Flights were <\/strong>grounded around the world<\/a><\/strong>, with delays, cancellations, and check-in issues reported globally. Edinburgh Airport, Hong Kong International, and Singapore\u2019s Changi were among the major airports that reported technical issues.<\/p>\n

The status now: <\/strong>Things are starting to unsnarl as technicians push out fixes while Windows users who have been impacted reboot their machines and manually delete CrowdStrike\u2019s botched update \u2014 a process that requires hands-on access to each device. It\u2019s a process that could take days for businesses with large fleets of impacted devices and not enough IT staff<\/p>\n

The story grabbed a lot of ink in the int\u2019l press over the weekend:<\/strong> Reuters<\/a> | AP<\/a> | Bloomberg<\/a> | New York Times<\/a> | The Washington Post<\/a> | The Financial Times<\/a> | CNN<\/a> <\/p>\n

WATCH THIS SPACE-<\/p>\n

<\/strong><\/a>#1- <\/strong>A blaze erupted in Yemen\u2019s <\/strong>Hodeida<\/strong> Port following a deadly Israeli strike on the <\/strong>harbor on Saturday resulting in the deaths of at least three people<\/strong>, Reuters<\/a> reports. Fuel storage tanks and a power plant caught fire at the port, a Hodeida port employee said, adding that the blaze could take days to contain. The attack could potentially affect fuel stocks in Yemen and increase prices of fuel and goods carried by trucks, the outlet added. The Houthi-controlled Hodeida port is a key entry point for fuel imports and international aid for Houthi-held areas of Yemen. <\/p>\n

Background<\/strong>: <\/strong>The attack by Israel comes in response to a Houthi drone strike on Tel Aviv last Friday, Israel has said. \u201cResponse to the Israeli aggression against our country is invariably coming and will be huge,\u201d Houthi spokesperson Yahya Saree said in a statement. The Israeli military also said that it intercepted a missile fired from Yemen towards Eilat before it entered Israeli territory. <\/p>\n

Brace for fallout: <\/strong>Continued escalation could further disrupt major oil shipping routes and heighten geopolitical tension risks in our neck of the woods, potentially leading to volatility in global oil markets and intensified inflationary pressures.<\/p>\n

<\/strong><\/a>#2-<\/strong> Bahri drops out of DB Schenker bid race:<\/strong> Saudi shipping firm Bahri dropped out of an acquisition race to snap up German logistics giant DB Schenker, Gulf Business<\/a> reported on Friday. Bahri\u2019s offer \u2014 USD EUR 15 bn (USD 16.4 bn) \u2014 was the highest among other bidders. The two contenders left in the race are a consortium between the CVC and the Abu Dhabi Investment Authority (ADIA) and GIC, and DSV, after Danish shopping firm Maersk dropped out<\/a> of the race earlier this month. Final bids are to be submitted by the end of August. <\/p>\n

REMEMBER- <\/strong>Deutsche Bahn tapped Maersk, DSV, Bahri, and the CVC-ADIA-GIC consortium for the final round of bidding for its logistics subsidiary DB Schenker last month<\/a>.<\/p>\n

#3- Airlines expect passenger numbers to double over the next two decades, driven <\/strong>by emerging markets like Asia Pacific and the Middle East,<\/strong> AFP<\/a> reported on Friday, citing updated data by global airline coalition International Air Transport Association. The Asia Pacific region is projected to lead with 4.8% annual growth by 2043, while Africa and the Middle East will see a 3.6% increase in the same period. Sustainable aviation fuels, which currently make up just 0.53% of fuel consumption, are expected to play a key role in decarbonizing the sector, though significant investments are still needed to scale production.<\/p>\n

The industry has a deadline to decarbonise:<\/strong> The aviation industry \u2014 which accounts for almost 3% of global CO2 emissions \u2014 has a critical deadline to introduce cleaner planes by the mid-2030s, Bloomberg<\/a> reported last week, citing a recent study (pdf)<\/a> by the International Council on Clean Transportation (ICCT). The study emphasizes the need for new aircraft models that emit zero CO2 throughout their operational lifetimes, given the long service life of commercial planes, which typically span about 25 years. The ICCT warns that the current fleet will consume half of the 2050 carbon budget, urging plane makers to accelerate the development of zero-emissions aircraft, particularly those powered by hydrogen.<\/p>\n

It\u2019s not an easy path: <\/strong>While Airbus and Boeing are working on more efficient models and sustainable aviation fuel (SAF) blends, with Airbus aiming to introduce a hydrogen-powered aircraft by 2035, the adoption of SAF and other technologies is progressing slowly, and startups in the electric and hydrogen-powered aircraft sectors face financial hurdles, the study found. The ICCT estimates a market for at least 10k new aircraft powered by hydrogen, electricity, or 100% sustainable fuels through 2042, and is calling for increased investments and stricter emissions limits for new planes<\/p>\n

MARKET WATCH- <\/p>\n

Oil prices rose in early morning trading as investors keep their eyes peeled for signs of <\/strong>interest rate cuts as soon as September<\/strong>, Reuters<\/a> reports. Brent crude futures were up by USD 0.48 to USD 83.10 a barrel by 00.25 GMT, while US West Texas Intermediate (WTI) gained USD 0.42 hitting USD 80.55 a barrel. \u201cInflation and labor market data have signaled that disinflation and labor market rebalancing are in place, which we expect will allow the Fed to begin its interest rate cutting cycle in September,\" the newswire reported, citing an ANZ Research note.<\/p>\n

Baltic index down as capesize continues decline:<\/strong> The Baltic Exchange\u2019s dry bulk sea freight index \u2014 which tracks rates for the capesize, panamax, and supramax vessel segments \u2014 was down 0.5% to 1,902 on Friday, weighed down by low capesize rates, Reuters<\/a> reports. Capesize fell 1.1% to 2,973 points, while panamax remained unchanged at 1,714 points. The smaller supramax index jumped 0.3% to 1,374 points. <\/p>\n

PSA-<\/p>\n

Shipping giant Maersk is raising its emergency contingency surcharge (ECS)<\/strong> starting from 1 August<\/strong>, according to a statement<\/a>. The ECS update is due to ongoing industry-wide disruptions resulting in delays and congestion at ports, as well as shortages in equipment and capacity, the liner said.<\/p>\n

Details:<\/strong> Routes from KSA\u2019s Jeddah and King Abdullah Ports to North Europe, the Mediterranean, and West Africa will see their ECS rising from USD 400\/500 per container to USD 600 or USD 700 per container. Routes from the Middle East and Indian subcontinent to West Africa will see an ECS spike from USD 500\/600 per container to USD 1.5k\/1.6k per container. Routes from the UAE, Qatar, and Oman to West Africa will see rates jump up from USD 500\/1.1k per container to around USD 2.1k per container. <\/p>\n

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

Saudi Arabia will host the <\/strong>Saudi Warehousing and Logistics Expo<\/a><\/strong> on Monday, 2 <\/strong>September to Wednesday, 4 September <\/strong>in Riyadh. The event will bring together leaders in the supply chain, warehousing, and logistics industry from across the Kingdom to discuss investments, trade, geopolitical risks, and localized manufacturing.<\/p>\n

Egypt will host the <\/strong>Egypt International Airshow<\/a><\/strong> on Tuesday, 3 September to Thursday, <\/strong>5 September <\/strong>in El Alamein. The event will host a range of discussions touching on industrialization, digitalization, and globalization in the regional commercial aviation sector. During the event, aircrafts and innovative aerospace products, and services will be showcased.<\/p>\n

Saudi Arabia will host <\/strong>SkyMove MENA<\/a><\/strong> on Tuesday, 10 September and Wednesday, 11 <\/strong>September<\/strong> in Riyadh. The event will gather global industry stakeholders, experts, and service providers to discuss challenges in the regional aviation industry. <\/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":79841,"comment_status":"","ping_status":"open","sticky":false,"template":"","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":[269,31,16,125],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-79840","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-what-were-tracking-today","tag-houthi","tag-saudi-arabia","tag-what-were-tracking-today","tag-yemen","wpautop","entry"],"acf":{"mongo_id":"ebb2e95f-cc24-4e08-a0cd-0c849e6601b5","order":"2","is_powered_by":false,"story_type":"4","photo_url":"https:\/\/ent.news\/2024\/4\/456.jpg","photo_position":"above","homepage_title":"","full_issue_title":"TODAY: 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