Good morning, nice people. While the regional logistics news front appears calm, there’s some cause for alarm on the international trade front as Canada puts China in its crosshairs and Libya’s oil production faces a near complete halt. Let’s dive right in across the Atlantic.

THE BIG LOGISTICS STORY ABOARD- The trade war with China widens to Canada: Canada will slap a 100% tariff on Chinese EVs and a 25% tariff on Chinese steel and aluminum from 1 October, mirroring a similar move by the US and the EU. Tariffs will apply to all EVs shipped from China including Tesla vehicles. Canadian Prime Minister Justin Trudeau stated that these measures are intended to protect Canadian industries in response to China’s state-directed policy of over-capacity. “Actors like China have chosen to give themselves an unfair advantage in the global marketplace,” Trudeau said.

What’s happening with Tesla? Import volumes in Vancouver port spiked 460% y-o-y in 2023 when Tesla began shipping Shanghai-made EVs to Canada. Company shares closed down 3.2% in response to the decision, with analysts speculating there might be a financial impact if the company is forced to export vehicles to Canada from its higher-cost production base in the US.

The story made headlines in the international press: Reuters | AP | Bloomberg | CNBC | The NewYork Times | ABC | Wall Street Journal

ON A RELATED NOTE- It’s a decisive trade decision week for the Chinese EV tariff hike in the US. Green industry manufacturers are bracing for final implementation plans by the Biden-Harris administration for tariff hikes this week, Reuters reports. The proposed tariffs — which include quadrupling duties on Chinese EVs to 100% and doubling tariffs on semiconductors and solar cells to 50% — have raised alarm among US manufacturers who fear the move could stifle the US’s green transition. US companies have urged the administration to postpone implementation of the tariffs, scrap them, or reconsider the increase.

Fighting on both fronts: The US placed 63 Russian and 42 Chinese firms on its trade restriction Bureau of Industry and Security (BIS) list due to their alleged support of Russia’s military, Reuters reports. US suppliers must now obtain a license before shipping goods to the targeted companies and the US looks to further “restrict the supply of both US-origin and US branded items to Russia and Belarus,” according to a statement.

China’s Ministry of Commerce has said it strongly opposes the move, saying the decision undermines the international trade order and impedes normal economic exchange and it will take the necessary action to safeguard the “legitimate rights and interests” of Chinese firms.

Tensions have been building: The US launched a probe into China’s maritime, logistics, and shipbuilding sectors back in April, alleging “unfair, non-market policies and practices,” according to a statement. The investigation was launched after five national US labor unions petitioned the government to look into China’s policies and practices in the sectors.

The story also grabbed ink in The New York Times.

WATCH THIS SPACE-

#1- UK airlines halt flights to Tel Aviv: British Airways has canceled flights between the UK and Tel Aviv’s Ben Gurion International Airport until at least Thursday amid rising tensions between Israel and Lebanon’s Hezbollah militant group, The National reports, citing a statement from an airline spokesperson. UK airline Virgin Atlantic has extended its Tel Aviv flight suspension until 25 September after a security and safety assessment.

It doesn’t stop there: Jordan’s flag carrier Royal Jordanian suspended flights to Beirut on Sunday “due to the current situation,” without saying when flights will resume, Reuters reports. German airline Lufthansa extended its suspension of flights to Lebanon until 30 September, NNA reports. The airline also extended its flight suspension to Tel Aviv and Tehran until 2 September. Lufthansa is set to resume flights today to Jordan’s Queen Alia International Airport and Iraq’s Erbil International Airport, after suspending flights last week.

#2- Libya’s eastern government says that all oil fields are shutting down and production and exports will be suspended, Reuters reports. The country produced 1.18 mn barrels per day in July, the newswire reports, citing figures by the Organization of the Petroleum Exporting Countries. The closure of eastern oil fields would leave one functioning oilfield in southwestern Libya with a capacity of 130k bpd. No timeline for the oil field closures has been provided.

Background: Libyan factions are engaged in a struggle to control the country’s central bank and oil revenues, Reuters explains. Recent tensions escalated following attempts by political groups to remove Sadiq al-Kabir, the head of the Central Bank of Libya (CBL), leading to mobilization by opposing armed factions. On Monday, the Tripoli-based CBL announced it had halted its operations both domestically and internationally “due to extraordinary disruptions.” The central bank is the sole internationally recognized repository for Libya’s oil revenues, which are crucial for the country’s economy.

MARKET REAX- Oil prices surged 7% on Monday in response to the production halt and widening tensions in the Middle East before easing in early morning trading today, Reuters reports. Brent crude futures fell USD 0.32 this morning trading at USD 81.11 a barrel by GMT 01.54, while US West Texas Intermediate fell USD 0.36 trading at USD 77.06 a barrel.

HAPPENING THIS WEEK-

UK-Egypt trade and investment in the spotlight: Our friends at HSBC, together with the Egyptian-British Chamber of Commerce (EBCC) and UK Export Finance (UKEF), will host a webinar this week to discuss how to support infrastructure reforms, potential partnerships in Egypt, and ways to support and connect companies around the world. The webinar takes place Thursday (29 August) from 12-1pm CLT / 1-2pm UAE.

Want to attend? You can sign up here.

The webinar is a scene-setter for the Egypt-UK Investment and Opportunities Forum in London on Monday, 16 September.

Infrastructure is a key part of the forum. The gathering — which follows on from a June infrastructure mission — will focus on promoting trade and investment in infrastructure, with an emphasis on green hydrogen and renewables as well as sectors including the auto industry, food processing, and tech.

Networking: The forum will include both open panels and pre-arranged business-to-business networking. It will also give attendees the chance to meet with government officials and industry leaders. GAFI will be on hand to deliver an economic update.

Want to join them in London? Register your interest in attending the event here.

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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.

The UAE will host the Intelligent Transport Systems World Congress from Monday, 16 September to Friday, 20 September in Dubai. The Congress is expected to welcome 20k participants to explore innovations in smart mobility and transportation technology.

Saudi Arabia will host the Saudi Maritime and Logistics Congress on Wednesday, 18 September and Thursday, 19 September in Dammam. The event will gather international industry leaders in the maritime sector to discuss a range of topics including interconnected logistics, supply chains, digitalization, decarbonization and workforce development.

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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