TODAY: Shanghai-New York container shipping rates are frustrating shippers

Good morning, wonderful people. Today’s news cycle is predominantly led by aviation, particularly as Dubai’s flagship carrier Emirates’ cargo arm put in a USD 1 bn order for five Boeing 777 freighters.

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

WATCH THIS SPACE-

#1- The EU and UK are making a “call to action” to target oil tankers that Russia uses to skirt international sanctions, Bloomberg reports, citing sources familiar with the matter. The measures could potentially include enforcing more checks and sanctions on Russian shadow vessels. Several governments plan to share information about the Russian fleet “to coordinate our responses to the risks posed by its ships and facilitators, and to work with the private sector and other maritime stakeholders to address the threat,” the outlet reports, citing a draft statement by UK Prime Minister Keir Starmer.

REFRESHER- The EU slapped the 12th package of sanctions against Russia last December, including notification rules for the sale of tankers to any third country. The aim of the sanctions is increased transparency of secondhand carrier sale and export, tightening compliance rules implemented to reduce attempts to circumvent the pre-existing G7 price cap on Russian oil. The US cracked down on oil shippers for violating Russia sanctions last October. The G7 cap bans Western corporations from supplying maritime services for Russian seaborne oil exports sold above USD 60 / bbl.

#2- US importers are frustrated by the rise in container shipping rates from Shanghai to New York to USD 10k per 40 ft container, Reuters reports. Drewry’s World Container Index (WCI) for shipping hit USD 9.3k on 11 July per 40 ft container, which is more than double the rate from February. Industry insiders attribute the rise to the diversions away from the Suez Canal as a result of the Houthi attacks, which cause shipment delays and shortages that drive up the cost of maritime transport.

MARKET WATCH-

Baltic index takes a dip: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — was down 0.2% to 1,993 on Monday, weighed down by low capesize rates, Reuters reports. Capesize declined 1% to 3,263 points, while panamax index inched up 1.4% to 1,702 points. The smaller supramax index increased 0.3% to 1,368 points.

Oil prices dipped on Tuesday amid growing concerns over a demand slump in China, Reuters reports. Brent crude futures dipped 1.3% to USD 83.74 / bbl, while US West Texas Intermediate (WTI) fell 1.4% to USD 80.76 / bbl.

DATA POINT-

Khalifa Port’s CSP Abu Dhabi Terminal has surpassed 5 mn TEUs in cumulative throughput since its opening in 2018, according to a statement. Cosco Shipping Ports Limited launched six new routes in 2024, seeing a 35% y-o-y increase in volume and achieving 6.5 mn safe man-hours. The terminal has launched over 20 routes and connected to 60 ports since its launch.

Sharjah Airport recorded over 8.3 mn passengers passing through in 1H 2024, up 12.4% y-o-y compared to 1H 2023, Wam reports. Flight movement rose 12% y-o-y, reaching more than 52k flights between January and June. Cargo handling operations jumped 41% y-o-y to 97.2k tons, while sea-cargo operations amounted to 7.4k tons, increasing 17.5% y-o-y from last year.

CIRCLE YOUR CALENDAR-

Saudi Arabia will host the Saudi Warehousing and Logistics Expo on Monday, 2 September to Wednesday, 4 September 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.

Egypt will host the Egypt International Airshow on Tuesday, 3 September to Thursday, 5 September 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.

Saudi Arabia will host SkyMove MENA on Tuesday, 10 September and Wednesday, 11 September in Riyadh. The event will gather global industry stakeholders, experts, and service providers to discuss challenges in the regional aviation industry.

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