Good morning, friends. It’s a busy morning for the regional logistics sector with a deluge of updates across the sector. We have all the latest on Red Sea tensions and a few notable investment and M&A updates. Let’s dive right in.

PSA-

#1- Al Shiwayb Road in Al Ain is closed until Thursday 28 March, Abu Dhabi’s Integrated Transport Center said on X.

#2- Qatar-based maritime and logistics company Milaha has opened applications for their 2024 to 2026 board of directors, according to a statement. Applications will be accepted until 3pm on Thursday, 1 February.

WATCH THIS SPACE-

#1- Call for Aqaba Container Terminal to incentivize marine routes: A special group tasked with following up on the Red Sea crisis’ impact on Jordanian trade — which includes the Jordan and Amman Chambers of Commerce, the Jordanian Navigation Syndicate, and the Jordanian Logistics Association — has urged Aqaba Container Terminal to provide incentives for marine routes that continue to serve Aqaba Port despite ongoing tensions in the Red Sea, Petra reports. The group also proposed waiving storage fees for shipping providers and owners of empty containers prepared for export. It also sent letters to shipping firms recommending the prioritization of loadings for “key and vital” sectors, including foodstuffs and drugs. Statistics showed that some 19.5 k containers arrived in Aqaba from the beginning of the month until last Thursday, with the total forecasted to reach 22.5 k by the end of the month.

ICYMI—Last week saw the group reveal that container numbers at Aqaba were undergoing recovery, without disclosing figures.

#2- A direct shipping line between the KSA and Iran could be happening:Iran and KSA plan to establish a direct shipping line connecting Dammam with Kangan under efforts to boost bilateral trade ties, Iran’s Mehr news agency reports, citing statements made by local governor Ahmad Mohammadizadeh. Mohammadizadeh said that the shipping line was decided during a recent visit by Iran’s Deputy Foreign Minister for Economic Diplomacy Mehdi Safari to the province as Tehran looks to boost trade volume with its GCC counterparts. No further details were provided on the planned shipping line.

REMEMBER- The two countries have been working to advance ties in the past months since their restoring relations last year.

#3- Iraqi airline Fly Baghdadis suspending all flights from Baghdad International Airport, according to a statement released on Thursday. The suspension is pending investigations regarding accusations leveled against the airline by the US Treasury Department. The company will not be able to refund bookings or book alternative flights due to its inability to access funds in its bank accounts and has called on Iraq’s governments to help travelers booked with the airline find alternative arrangements, the statement said.

ALSO- Iraq has tasked US-based management consulting firm Oliver Wyman with the financial and economic analysis of its USD 17 Development Road project,Iraqi News reported last week. The project — which spans 1.2 km — is set to link Grand Faw Port in Iraq’s southern Basra province to Turkey in the north through rail and road infrastructure. The initiative will be split into two phases, with the Iraqi Transport Ministry set to invite bids for an expert consultant to oversee designs. Olivery Wyman has been hired to oversee the project’s economic aspects as engineering works continue, the report said.

#4- UAE-based energy giant Adnocis set to order LNG carrier newbuilds for its upcoming Ruwais terminal, LNG Prime reported on Thursday, citing people it says have knowledge of the matter. The company has reportedly invited bids from Chinese and South Korean shipyards for six firm and four optional standard-sized LNG carriers. The vessels — equipped with advanced technologies — are expected to operate at the company’s second LNG terminal in Al Ruwais.

#5- Government mandates on SAF is “not the way to do it,”Emirates’ President Tim Clark told Sky News Australia in an interview yesterday (watch: runtime: 4:11). Governments have “gone too far” to push airlines to use sustainable aviation fuels (SAF) by mandating requirements and fines which can backfire by pushing up costs, Clark stressed. An airline’s ability to use SAF is capped by limited production capacity due to a lack of investments, Clark added. Progress on SAF production is dependent on “science, the scalability and the investment” from governments and the private sector, he added.

REMEMBER-The UAE cabinet approved the national SAF production guidelines targeting the production of 700 mn liters annually by 2030 last month. The country plans to domestically produce 1% of UAE airlines’ SAF needs at Emirati airports by 2031.

#6- A.P. Moller Maersk (Maersk) has christened the first of 18 large methanol-enabled vessels, dubbed Ane Maersk, at a ceremony at Hyundai Heavy Industries shipyard in Korea, according to a press release released on Friday. Ane Maersk is set to enter service at the beginning of February and will be powered by green1 methanol. The vessel will operate the AE7 string connecting Asia and Europe, according to the statement. The remaining vessels are set to be delivered between 2024 and 2025, each with some 16k TEU capacity. The vessels are fitted with dual-fuel engines that can be powered by methanol, biodiesel, and conventional bunker fuel.

#7- Dutch government plans to cap the number of flights at Amsterdam Schiphol airport are unlikely to happen in 2024, Reuters reported on Thursday, citing a statement by Dutch infrastructure minister Mark Harbers. The delay is chalked up to the European Commission needing more time to review the policy, and comes on the heels of the Dutch government canceling plans in November that would have seen flights at the key European air transport hub capped at 425k, or 10% lower than pre-pandemic levels, the newswire said. The EU Commission has to weigh the requests of the Dutch government — which wants fewer flights to curb environmental and noise pollution and due to staffing concerns at Schipol — with obligations including the EU-US Open Skies agreement. A solution with a “balanced approach” is not likely by 1 November, Harbers said in statements cited by the newswire.

ICYMI- French shipping giant CMA CGM and French-Dutch carrier Air France-KLM said they will terminate their air freight alliance effective 31 March last week, citing regulatory hang ups following a dispute over flight slots at Amsterdam’s Schiphol airport.

MARKET WATCH-

Russia is willing to continue supplying gas to Europe through “various routes” beyond 2024, when a gas transit contract through Ukraine is set to expire, Russian News Agency TASS reported on Saturday, citing Deputy Prime Minister Alexander Novak. There has been no interest from European countries to discuss the matter, Novak said. Russia’s Gazprom and Ukraine’s Naftogaz extended a contract for the transit of Russian gas via Ukraine to 2024 back in December 2019. Kiev has stated that it does not intend to renew the framework when it expires at the end of this year, TASS said.

CIRCLE YOUR CALENDAR-

The UAE will host the Middle East Bunkering Convention from Monday, 5 February through to Wednesday, 7 February 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.

Holland will host theCargo Facts EMEA from Monday, 5 February through to Wednesday, 7 February in Amsterdam. The event will bring together air freight industry leaders from Europe, the Middle East, and Africa to discuss the latest trends, forecasts, and technological innovations.

The UAE will host Sustainable Aviation Futures MENA from Monday, 12 February through to Wednesday, 14 February 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.

The UAE will host the Future Warehouse & Logistics Conference from Monday, 12 February to Wednesday, 14 February 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.

The UAE will host the TradeTech Forum on Tuesday, 27 February 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.

The UAE will host The Logistics Middle East Award on Wednesday, 6 March in Dubai. The awards ceremony brings together industry experts to celebrate the sector’s biggest accomplishments over the previous 12 months.The deadline for submitting nominations is Friday, 19 January.

KSA will host a special World Economic Forum event from Sunday, 28 April through to Monday, 29 April in Riyadh. The event will focus on global collaboration and energy.

The UAE will host The Electric Vehicle Innovation Summit from Monday, 20 May to Wednesday, 22 May 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.

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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