Good morning, friends, and happy new year. We ring in 2024 with a packed issue, with our biggest story of the day being the updates on the tumultuous events in the Red Sea. Let’s dive in.

THE BIG LOGISTICS STORY- Maersk has paused Red Sea sailing for 48 hours after one of its vessels came under attack by the Houthis, culminating in a battle between US naval forces that saw some 10 militants killed.

^^ We have everything on this story and more in the news well, below.

Saudi Arabia, the UAE, Egypt, Iran, and Ethiopia are officially Brics members, Bloomberg reports, citing South Africa’s envoy to the bloc. The bloc’s current members — Brazil, Russia, India, China and South Africa — had opened membership to the five countries in addition to Argentina, which rejected the invite. The five countries sent senior-level representatives to a Brics sherpa meeting in Durban, South Africa, earlier in December, which was “a clear indication that they have accepted the invitation” to join, Pretoria’s ambassador to the bloc Anil Sooklal said in an interview.

The memberships are expected to help boost trade and investments between the countries in the bloc, a finance assistant professor told The National.

More countries are eyeing membership: Some 30 countries are also looking to create ties with the bloc.

And Iran + Russia officially let go of the greenback: The heads of the central banks of both countries have concluded an agreement to ditch the USD in trade, semi-official news agency Tasnim reports. The agreement will see banks and entrepreneurs use alternative financial and banking channels as well as create bilateral brokerage relations in national currencies.

PSA #1-KSA’s Zakat, Tax, and Customs Authority (ZATCA) has published regulatory guidelines to clarify customs procedures, according to a statement. The published guides include detailed explanations on documents required for imports, customs data, pre-clearance, and other regulatory procedures governing the import, export, and transit of goods via the Kingdom. You can find the guidelines on Saudi Gazette, which cites the Saudi government’s Umm Al Qura gazette.

PSA #2-Maersk rolls out peak season surcharge (PSS) for Far East Asia to Middle East container shipments: Shipping giant Maersk is implementing a PSS for all dry and reefer containers shipped from Far East Asian ports to destinations in the Middle East, according to an announcement. The surcharges have come into effect on 1 January for containers shipped from Far East Asia, excluding Vietnam, Taiwan, and China.

Later down the line: Surcharges on shipments from Vietnam come into effect on 10 January, and surcharges on shipments from Taiwan and China come into effect on 25 January. Although the additional charges vary depending on the origin, size, and type of containers, they generally vary between USD 750 and USD 1500.

An Israeli airstrike hit Damascus International Airport on Thursday, reportedly killing 11 members of Iran’s Islamic Revolutionary Guard Corps (IRGC), Al Arabiya quotes sources as saying. The IRGC members were allegedly in charge of overseeing Iran-backed forces in eastern Syria. The IRGC, however, has denied the report. Syria’s Defense Ministry had reported Israeli airstrikes near Damascus. The airport has been subject to several Israeli airstrikes since the war in Gaza began in October.

All is not well in the Black Sea either:A Panama-flagged bulk carrier heading to the River Danube port to load grain was hit by a Russian mine in the Black Sea last Wednesday, Reuters reported. The mine hit the stern of the vessel, causing equipment and machinery failure and injuries to the captain and a sailor on board the vessel. Yesterday, a Russian drone attack targeted Odessa port infrastructure, causing a fire at one of the port terminals, Reuters quoted the Ukrainian military as saying. No casualties were reported.

WATCH THIS SPACE- Is AD Ports eyeing investments in Bangladesh? AD Ports is reportedly looking to invest USD 1 bn to construct one of four multipurpose terminals in Bay Terminal in Bangladesh, in a joint venture with Bangladesh’s Chittagong Port Authority (CPA), the Daily Star cites CPA Chairman Mohammad Sohail as saying. The public-private partnership (PPP) agreement is reportedly set to be inked by June 2024, the Sohail reportedly said. South Korean joint venture between Kunhwa Engineering and Consulting and Daeyoung Engineering are reportedly preparing the feasibility study and master plan, the outlet writes. A local private firm has also expressed interest to invest some USD 3.5 bn for the terminal, the outlet adds.

AD Ports is not the only one eyeing Chittagong: DP World is also reportedly in “agreement” with the authority to construct and operate one of the container terminals in Bay under a PPP framework, the outlet reports. Saudi terminal operator Red Sea Gateway Terminal International (RSGT) has also inked a 22 year concession agreement for the Patenga Container Terminal in Chittagong last month.

WATCH THIS SPACE #2-Iran’s Eastern Chabahar-Zahedan Railway to be completed in 2024: Construction on Iran’s Chabahar-Zahedan Railway project is set to be completed in the next Iranian calendar year, which starts in March, Tasnim quotes Road and Urban Development Minister Mehrdad Bazpash as saying. Over 65% of the 631 km railway project has been completed.

Background: The railway project, located in eastern Iran along the International North-South Transport Corridor, starts in Chabahar and passes through Iranshahr, Khash, Zahedan, Nehbandan, Birjand, Qaen, and Gonabad, and connects to the Bafaq-Mashhad Railway through Kaleshur Station in Torbat Heydarieh. The railway aims to connect Central Asian countries with the Indian Ocean.

DATA POINT- Qatar’s Mwani Ports recorded a 45% m-o-m increase in cargo handling in December 2023, Mwani Qatar said on X. The country’s ports processed 223 vessels, with some 107k TEU of containers, 137.5k tons of general and bulk cargo, 8.3k roro units, and 49.1k tons of building materials handled. The handling of building materials increased by 110% m-o-m, while roro units saw a 47% m-o-m increase.

MARKET WATCH-

Crude futures have shed some 10% in 2023 amid increasing concerns over Red Sea disruptions and oil output level concerns, reaching their lowest levels since 2020, Reuters reports. Brent crude settled at USD 77.4 a barrel, down 0.14%, while West Texas Intermediate crude fell 0.17% to USD 71.65 a barrel. The volatility in oil markets can be attributed to weak demand — to which OPEC has responded by pledging supply cuts throughout 2023 — and supply disruption jitters associated with Red Sea disruptions.

2024 isn’t expected to be much better: “We are going to see continued volatility as we go into 2024 with the geopolitical events and the fear that the conflict could spread throughout the region,” one expert told Reuters.

CIRCLE YOUR CALENDAR-

The UAE will host The Dubai International Pharma and Technologies Conference and Exhibition from Tuesday, 9 January through to Thursday, 11 January in Dubai.The event will bring together the entire pharma value chain, from suppliers, manufacturers, distributors to pharmacists.

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

Check out our full calendar at the bottom of this email for a comprehensive listing of upcoming news events and news triggers.

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