Sign in
Good morning, friends. We have a short issue for you this morning, but with key updates on Iraq’s Grand Faw port and a boost for Oman’s supply chain. Plus: Some updates on the trade front from Egypt and the GCC…
BUT FIRST- Head over to EnterpriseAM Egypt for an interesting read on the automation of Egypt’s ports sector. The country is taking its first steps toward integrating smart technologies across its ports, with Ain Sokhna, Damietta, Alexandria, and Port Said all exploring automated port services including ship docking systems, digital registries for goods and containers, and systems that facilitate unloading and the circulation of transport vehicles. The goal? Transforming Egypt into an integrated logistics zone, increasing port efficiency, and positioning the country as the region’s transport hub of choice.
HAPPENING TODAY-
The Bahrain International Air Show is kicking off today and will run through Friday, 15 November in Bahrain. The event gathers key regional industry leaders and experts to network and showcase technological advancements in the aviation industry to buyers around the world.
WATCH THIS SPACE-
#1- Dutch marine contractor Van Oord has finished dredging work on two new port basins in Egypt’s Ain Sokhna Port as part of a larger port expansion project, according to a statement. Van Oord was contracted to dredge some 21 mn cubic meters of soil to create the basins over the last 14 months. The project looks to boost capacity at the port as well as boost maritime activity in the Suez Canal Economic Zone.
#2- A GCC-UK trade agreement could be signed later this year as talks enter the final stages, Bloomberg reports, citing sources it says are in the know. The GCC nations have been working on the draft agreement since 2022, which has seen seven rounds of talks so far. If finalized, the agreement could be followed by individual trade pacts between the UK and GCC countries.
More FTAs on the way: GCC-Japan freetrade talks are set to kick off this month, after the two parties agreed on terms of reference in October. Terms of reference for a trade agreement with Malaysia have also been agreed on, but talks are still pending the Malaysian government’s approval to kick off.
MARKET WATCH-
Opec slashes demand forecasts again: The group of oil producing nations cut growth forecasts for global oil demand for the fourth month in a row, according to its latest monthly report (pdf). Opec now sees demand rising 1.8 mn bbl / d y-o-y in 2024, down 107k bbl / d from previous estimates as data from China, India, and Africa came in below expectations.
The group cut its demand growth projections by almost a fifth since July, as crude prices plummet, Bloomberg said. Nevertheless, the group’s estimates are higher than those issued by other market analysts, including Saudi Aramco. Aramco’s projected growth rate is twice the number cited by rival International Energy Agency, Bloomberg explained.
Oil prices have fallen 18% since July, hitting USD 72 a barrel, as sluggish growth in China outweighs concerns about conflict-related disruptions in the Middle East, the business information service said. However, Donald Trump’s return to the White House may lead to shakeups in market outlook.
On the upside: Opec’s report notes that troublesome members have taken steps to improve compliance, with Kazakhstan folding in additional cuts below its quota to compensate for previous overproduction.
The next checkpoint: The group will hold its next meeting on Sunday, 1 December where it is expected to review plans for phasing out production cuts. Opec+ put off a planned output hike for December earlier this month, with the delay marking the second postponement for production restarts that were originally penciled in for October.
Market reax: Oil prices settled near a two-week low, with both Brent crude and US West Texas Intermediate up 0.4%.
#2- Baltic index continues to rise: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — rose 4.9% yesterday to its highest since 16 October. The capesize index gained 236 points, while the panamax index rose 12 points and the smaller supramax shed 13 points.
DATA POINT-
Egypt’s increased commodity exports narrowed the country’s trade deficit by 4.4% to USD 27.6 bn in 9M 2024, Asharq Business reports, citing a document it has seen. Egypt’s merchandise exports grew 11.1% to USD 29.7 bn, while imports rose 3% to USD 57.2 bn. The country has plans to boost annual exports to USD 100 bn.
Get Enterprise daily
The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox.
***YOU’RE READING EnterpriseAM Logistics, the essential MENA publication for senior execs who care about the industry that connects producers and retailers to global markets. We’re out Monday through Thursday by 9:15am in Cairo and Riyadh and 11:15am in the UAE.
EnterpriseAM Logistics is available without charge thanks to the generous support of our friends at Hassan Allam Utilities, Transmar, and AK-Ships.
Were you forwarded this email? Tap or click here to get your own copy of Enterprise Logistics.
Want to send us a story idea, request coverage, ask for a correction, or otherwise get in touch? Reach out to us on logistics@enterprisemea.com.
DID YOU KNOW that we also cover Egypt, Saudi Arabia, the UAE, and the MENA climate industry ?
***
CIRCLE YOUR CALENDAR-
Egypt will host the Autotech Exhibition on Sunday, 17 November until Tuesday, 19 November in Cairo. The event will bring together prominent local and international companies to discuss and evaluate the latest developments and trends in the automotive aftermarket and feeder industries.
Check out our full calendar at the bottom of this email for a comprehensive listing of upcoming news events and news triggers.
