{"id":81348,"date":"2024-10-01T00:00:00","date_gmt":"2024-10-01T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2024\/10\/01\/today-egypt-gets-a-new-data-center-port-strike-kicks-off-in-the-us\/"},"modified":"2024-10-01T00:00:00","modified_gmt":"2024-10-01T00:00:00","slug":"today-egypt-gets-a-new-data-center-port-strike-kicks-off-in-the-us","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2024\/10\/01\/today-egypt-gets-a-new-data-center-port-strike-kicks-off-in-the-us\/","title":{"rendered":"TODAY: Egypt gets a new data center + Port strike kicks off in the US"},"content":{"rendered":"

Good morning, ladies and gents. <\/strong>It\u2019s a brisk read this morning with some data center updates emerging from the US and a new IATA decarbonization report to unpack. We also have the latest breaking news on trouble breaking on the US eastern seaboard, but first, a happy announcement\u2026<\/p>\n

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EnterpriseAM Logistics is available to thousands of readers every day without charge <\/strong>thanks to the generous support of Transmar. Hassan Allam Utilities, and AK-Ships.<\/p>\n

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<\/strong>THE BIG LOGISTICS STORY ABROAD- <\/strong>US East Coast and Gulf of Mexico port workers <\/strong>began a strike<\/strong> halting movement on half of the US\u2019s shipping traffic.<\/strong> \u201cMoments ago, the first large-scale eastern dockworker strike in 47 years began at ports from Maine to Texas, including at the Port Authority of New York and New Jersey,\u201d New York Governor Kathy Hochul said in a statement. The strike will likely flare US inflation rates, stopping the flow of container goods and automobile shipments across dozens of US ports from Maine to Texas and costing the US economy between USD 3.8 bn to USD 4.5 bn a day, according to JPMorgan analysts.<\/p>\n

Background: <\/strong>The United States Maritime Alliance (USMX) and the International Longshoremen\u2019s Association (ILA) \u2014 representing nearly 50k dock workers at over 30 ports stretching from Maine to Texas \u2014 have locked horns in negotiations over a six-year contract that ended at midnight yesterday. The ILA are pushing for higher wages and a rollback of the language on automation, while the USMX argues it increased its offer to wage increases of more than 50%. <\/p>\n

Shippers are crying for help:<\/strong> Several US firms started importing early last week<\/a>, shipping goods to the West Coast, and loading cargo on air freight in anticipation of the strike. The cost of shipping a 40-ft container from Shanghai to New York jumped to USD 10k in July, and although they have since retreated, rates could spike again with the possibility of a strike. <\/p>\n

The story grabbed widespread headlines in the int\u2019l press:<\/strong> Reuters<\/a> | AP<\/a> | The New York Times<\/a> | The Washington Post<\/a> | Bloomberg<\/a> | CNN<\/a> <\/p>\n

WATCH THIS SPACE-<\/p>\n

<\/a> #1- <\/strong>Damietta Port has received the first batch of 40-yard electric RTG cranes at its new <\/strong>Tahya Misr 1<\/strong> container terminal<\/strong>, according to a statement<\/a>. The electric cranes are set to cut down on carbon emissions from port operations, the statement says, adding that the port is also set to receive dock cranes. <\/p>\n

Background:<\/strong> Egypt\u2019s Tahya Misr 1 container terminal \u2014 one of three terminals planned in the Damietta port development project \u2014 will kick off operations in April 2025<\/a>. The remaining two container terminals are slated for completion by 2027.<\/p>\n

REMEMBER- <\/strong>Damietta Alliance Container Terminal (DACT) and Modern Engineering Pioneers (MEP) inked an agreement in May<\/a> to implement the superstructure of Tahya Misr 1 container terminal in Damietta. The terminal has a capacity of 3.5 mn containers and a berth that is 1.97k meters long and 18 meters deep.<\/p>\n

IN OTHER EGYPT NEWS- <\/strong>Egypt has big export plans: <\/strong>Egyptian President Abdel Fattah El Sisi has approved the disbursal of some EGP 20 bn (c. USD 414 mn) into the export support fund in the upcoming year, according to a statement by Industry and Transport Minister Kamel El Wazir (watch, runtime 0:24<\/a>).<\/p>\n

We\u2019ve been expecting this: <\/strong>The government said in September it would announce amendments to the export support fund<\/a>. President El Sisi expressed his support for a proposal by Investment Minister Hassan El Khatib El Khatib to ramp up allocation to the fund, saying \u201cI am with you\u201d as long as the amendments boost the country\u2019s exports.<\/p>\n

<\/a> #2- A <\/strong>US-sanctioned Russian-linked LNG tanker, the Pioneer, passed through the Suez <\/strong>Canal yesterday<\/strong>, Reuters<\/a> reports, citing LSEG shipping data. Neither the source of the LNG aboard the tanker nor its destination are clear.<\/p>\n

What do we know:<\/strong> The Palau-flagged vessel is registered to Dubai and Mumbai-based Zara Shipholding Co. Satellite images from back in August<\/a> appeared to show the Pioneer transferring its Russian LNG cargo to another ship some 30 km northeast of Egypt\u2019s Port Said. The US placed sanctions on the Pioneer, along with two firms and another vessel, which it linked to Russia\u2019s Arctic LNG 2 project, the same month. <\/p>\n

ON A RELATED NOTE- D<\/strong>isruptions to Red Sea container shipping and reroutes around the Cape of Good <\/strong>Hope will likely persist \u201cwell into 2025,<\/strong>\u201d<\/strong> Platts<\/a> reports, citing comments by shipping giant Ocean Network Express CEO Jeremy Nixon at Singapore\u2019s Marine Money conference last week. \u201cThere seems to be no political breakthrough\u201d to indicate that disruptions will be easing anytime soon, Nixon said. Instead, the supply chain has adapted, forcing a new \u201cbusiness as normal.\u201d War risk premiums for cargo traveling through the Red Sea have jumped from 0.5% to 1.0% of the value of the ship\u2019s hull and machinery. <\/p>\n

The context:<\/strong> Since the end of 2023, ships have been diverting from the Suez Canal to evade Houthi attacks. This longer route around the Cape adds approximately two weeks to travel times, resulting in increased freight and insurance expenses.<\/p>\n

MARKET WATCH- <\/p>\n

#1- <\/strong>Oil prices stayed steady in early morning trading as a solid supply outlook and global <\/strong>demand offset fears of escalating tension in the Middle East<\/strong>, Reuters<\/a> reports. Brent crude futures for December inched up USD 0.07 to USD 71.77 a barrel by 03.35 GMT, while US West Texas Intermediate crude futures for November gained USD 0.08 trading at USD 68.25 a barrel.<\/p>\n

#2- Baltic breaks its streak of Ws: <\/strong>The Baltic Exchange\u2019s dry bulk sea freight index \u2014 which tracks rates for the capesize, panamax, and supramax vessel segments \u2014 fell 1.2% to 2,084 points<\/a> on Monday, breaking a seven-day streak that pushed it to a near three-month high. The capesize index dropped 40 points to 3,649 points, while the panamax index lost 32 points to 1,414 points. The smaller supramax index dropped 10 points to 1,296 points. <\/p>\n

PSA-<\/p>\n

UAE drivers will be paying less at the pump this month:<\/strong> UAE\u2019s Fuel Price Committee reduced fuel prices for October by about 8%, following a 6% price decrease last month<\/a>, according to an X post<\/a> by the Emirates General Petroleum Company. The breakdown<\/strong> for one liter:<\/p>\n