Good morning, nice people. We have a brisk issue this morning with all the latest from the Red Sea and a smattering of regional updates across the sector.

PSA-

KSA’s Transport General Authority (TGA) is set to roll out automated surveillance to log violations by trucks and buses, starting 21 April in several regions throughout the kingdom, according to a statement. Vehicles under surveillance will include cargo trucks and rental trucks, among other heavy vehicles, the statement said. Violations monitored will include trucks operating without licensing cards or using expired cards.

WATCH THIS SPACE-

Maritime emissions are estimated to surge 44% by 2050 if efforts to curb emissions are not put in place,according to management consulting firm Arthur D. Little’s insight report. Greenhouse gas (GHG) emissions attributed to the global maritime fleet saw a 23% increase between 2012 and 2022, and increased another 4.7% between 2020 and 2021, the report said citing global forecasts. Strict regulations and mandates for the use of renewable fuels are boosting sustainability in maritime operations in the EU and other areas. The report emphasizes the need for stakeholders in the industry to adhere to more stringent sustainability requirements and develop an “ecosystem” based approach that sees ports and operators contributing to emissions cutbacks.

What they said: “By adopting a collaborative and ecosystem-based approach and recognizing the indispensable role of ports and maritime operators, we can chart a course towards a sustainable future for the blue economy,” Arthur D little Partner Carlo Carlomagno said in statements cited by a press release.

MARKET WATCH-

#1- A slow start of the year for OPEC+ oil cuts: Steady oil exports by OPEC+ members in January are indicating that voluntary output cuts are taking their time to kick in, Bloomberg reported, citing data from Vienna-based market intelligence firm Kpler. Exports from several members involved in the cuts have totalled c. 15.4 mn barrels a day so far in January, a figure that is unchanged from a month earlier, according to the firm. Overall exports from the group barely changed at c. 28.1 mn bpd.

#2- Oil prices dropped on Sunday due to several factors including challenges in China’s property sector as well as the recent drone attack on US forces in Jordan, Reuters reports. Brent crude futures dipped to USD 83.32 and US West Texas Intermediate crude futures dropped to USD 77.74. China Evergrande Group’s liquidation order also added worries about crude demand, and ongoing tensions in the Red Sea have fueled worries of potential supply disruptions.

#3- Business groups from the US, Europe and Japan are urging the Biden administration to reconsider a pause on licenses for new LNG exporters, Bloomberg reported. More LNG supplies will be needed to meet a forecasted rise in LNG demand well into the next decade, and this can be managed in a manner that does not hamper emissions reductions, the US Chamber of Commerce, BusinessEurope, and Japan’s Keidanren said in a joint letter to Biden.

Background: The US administration froze licensing for new LNG export facilities earlier this week, citing environmental concerns. 2023 saw the US become the world’s leading LNG exporter, overtaking Qatar and Australia, as boosted demand from the EU, due to the bloc looking to switch out Russian supplies, saw the country’s LNG exports surge.

#4- Asia’s LSFO market is set to remain “lackluster” in 2024, as high regional stocks and competition from cheaper HSFO dent demand, S&P Global reports. Kuwait’s new Al Zour refinery is expected to have less of an effect on Asian’s LSFO stocks than was previously anticipated, however new exports from Nigeria’s Dangote refinery may lead to a glut in LSFO fuel stocks in Asia, S&P said citing analysts and trade sources. Sales of the IMO-compliant grade at the world’s largest bunkering hub in Singapore increased 3.6% y-o-y to 31.2 mn metric tons in 2023. LSFO’s share of overall bunker sales at Singapore dipped from 62.9% in 2022 to 60.2% in 2023, S&P Global said, citing the most recent data from the Maritime and Port Authority of Singapore.

DATA POINTS-

#1-The UAE was MENA’s fourth-largest LNG exporter in 2023: The Emirates exported nearly 5 mn tons of liquefied natural gas (LNG) in 2023, making it the fourth-biggest LNG exporter in the MENA region despite volumes dipping 6.6% y-o-y, according to the Organization of Arab Petroleum Exporting Countries’ (OAPEC) annual report. Most of the LNG went to buyers in Asia, including India, South Korea, Japan and China.

#2- Kuwait International Airport saw cargo traffic volumes reach 210 mn kg in 2023, with inbound cargo amounting to 170 mn kg and outbound cargo 40.3 mn kg, Kuna reports, citing the national Directorate General of Civil Aviation’s acting Director-General Emad Al-Jalawai. The number of flights transiting the airport increased by 23% y-o-y, reaching 128.6k, compared to 104k the prior year. Passenger transit was up by 26% y-o-y, reaching 15.6 mn passengers in 2023.

#3- Qatar’s merchandise trade surplus dropped 33.7% y-o-y to QAR 18.7 bn (USD 5.1 bn) in December 2023, according to data from the national Planning and Statistics Authority. The country’s merchandise exports declined 23.7% over the same period to around QAR 29.2 bn, while imports boosted 4.2% y-o-y to QAR 10.5 bn. The decline in exports was mainly attributable to a 31.1% y-o-y drop in petroleum gasses and gaseous hydrocarbon exports, including LNG, which dropped to next to QAR 18.1 bn, compared to 26.2 bn the previous year, the report 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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