Good morning, ladies and gents. It’s a brisk read this morning with some data center updates emerging from the US and a new IATA decarbonization report to unpack. We also have the latest breaking news on trouble breaking on the US eastern seaboard, but first, a happy announcement…
We are excited to welcome on board AK-Ships, an emerging regional provider of ship management and marine advisory services, as our latest pillar advertiser of EnterpriseAM Logistics. Headquartered in Alexandria since 2023, AK-Ships is a tech-based company that offers innovative ship management solutions with a current focus on ship management, maintenance, repairs and complete operations of container ships in the Mediterranean and the region. Via AK’s innovative software, logistics companies can minimize fuel consumption levels, reduce costs, optimize routes to overcome geopolitical challenges and much more.
EnterpriseAM Logistics is available to thousands of readers every day without charge thanks to the generous support of Transmar. Hassan Allam Utilities, and AK-Ships.
THE BIG LOGISTICS STORY ABROAD- US East Coast and Gulf of Mexico port workers began a strike halting movement on half of the US’s shipping traffic. “Moments ago, the first large-scale eastern dockworker strike in 47 years began at ports from Maine to Texas, including at the Port Authority of New York and New Jersey,” New York Governor Kathy Hochul said in a statement. The strike will likely flare US inflation rates, stopping the flow of container goods and automobile shipments across dozens of US ports from Maine to Texas and costing the US economy between USD 3.8 bn to USD 4.5 bn a day, according to JPMorgan analysts.
Background: The United States Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA) — representing nearly 50k dock workers at over 30 ports stretching from Maine to Texas — have locked horns in negotiations over a six-year contract that ended at midnight yesterday. The ILA are pushing for higher wages and a rollback of the language on automation, while the USMX argues it increased its offer to wage increases of more than 50%.
Shippers are crying for help: Several US firms started importing early last week, shipping goods to the West Coast, and loading cargo on air freight in anticipation of the strike. The cost of shipping a 40-ft container from Shanghai to New York jumped to USD 10k in July, and although they have since retreated, rates could spike again with the possibility of a strike.
The story grabbed widespread headlines in the int’l press: Reuters | AP | The New York Times | The Washington Post | Bloomberg | CNN
WATCH THIS SPACE-
#1- Damietta Port has received the first batch of 40-yard electric RTG cranes at its new Tahya Misr 1 container terminal, according to a statement. The electric cranes are set to cut down on carbon emissions from port operations, the statement says, adding that the port is also set to receive dock cranes.
Background: Egypt’s Tahya Misr 1 container terminal — one of three terminals planned in the Damietta port development project — will kick off operations in April 2025. The remaining two container terminals are slated for completion by 2027.
REMEMBER- Damietta Alliance Container Terminal (DACT) and Modern Engineering Pioneers (MEP) inked an agreement in May to implement the superstructure of Tahya Misr 1 container terminal in Damietta. The terminal has a capacity of 3.5 mn containers and a berth that is 1.97k meters long and 18 meters deep.
IN OTHER EGYPT NEWS- Egypt has big export plans: Egyptian President Abdel Fattah El Sisi has approved the disbursal of some EGP 20 bn (c. USD 414 mn) into the export support fund in the upcoming year, according to a statement by Industry and Transport Minister Kamel El Wazir (watch, runtime 0:24).
We’ve been expecting this: The government said in September it would announce amendments to the export support fund. President El Sisi expressed his support for a proposal by Investment Minister Hassan El Khatib El Khatib to ramp up allocation to the fund, saying “I am with you” as long as the amendments boost the country’s exports.
#2- A US-sanctioned Russian-linked LNG tanker, the Pioneer, passed through the Suez Canal yesterday, Reuters reports, citing LSEG shipping data. Neither the source of the LNG aboard the tanker nor its destination are clear.
What do we know: The Palau-flagged vessel is registered to Dubai and Mumbai-based Zara Shipholding Co. Satellite images from back in August appeared to show the Pioneer transferring its Russian LNG cargo to another ship some 30 km northeast of Egypt’s Port Said. The US placed sanctions on the Pioneer, along with two firms and another vessel, which it linked to Russia’s Arctic LNG 2 project, the same month.
ON A RELATED NOTE- Disruptions to Red Sea container shipping and reroutes around the Cape of Good Hope will likely persist “well into 2025,” Platts reports, citing comments by shipping giant Ocean Network Express CEO Jeremy Nixon at Singapore’s Marine Money conference last week. “There seems to be no political breakthrough” to indicate that disruptions will be easing anytime soon, Nixon said. Instead, the supply chain has adapted, forcing a new “business as normal.” War risk premiums for cargo traveling through the Red Sea have jumped from 0.5% to 1.0% of the value of the ship’s hull and machinery.
The context: Since the end of 2023, ships have been diverting from the Suez Canal to evade Houthi attacks. This longer route around the Cape adds approximately two weeks to travel times, resulting in increased freight and insurance expenses.
MARKET WATCH-
#1- Oil prices stayed steady in early morning trading as a solid supply outlook and global demand offset fears of escalating tension in the Middle East, Reuters reports. Brent crude futures for December inched up USD 0.07 to USD 71.77 a barrel by 03.35 GMT, while US West Texas Intermediate crude futures for November gained USD 0.08 trading at USD 68.25 a barrel.
#2- Baltic breaks its streak of Ws: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — fell 1.2% to 2,084 points on Monday, breaking a seven-day streak that pushed it to a near three-month high. The capesize index dropped 40 points to 3,649 points, while the panamax index lost 32 points to 1,414 points. The smaller supramax index dropped 10 points to 1,296 points.
PSA-
UAE drivers will be paying less at the pump this month: UAE’s Fuel Price Committee reduced fuel prices for October by about 8%, following a 6% price decrease last month, according to an X post by the Emirates General Petroleum Company. The breakdown for one liter:
- Super 98: AED 2.66;
- Special 95: AED 2.54
- E-Plus 91: 2.47,
- Diesel: AED 2.60
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 and Transmar.
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-
Bahrain will host the Routes World forum from Sunday, 6 October to Tuesday, 8 October. The event will bring together VPs and network planning heads from some 250 carriers to discuss global air route networks.
Saudi Arabia will host the Global Logistics Forum from Saturday, 12 October to Monday, 14 October in Riyadh. The forum will gather key industry players, government officials, and industry experts to discuss optimizing operations and driving growth in the logistics sector. The event will take a specific look at how the sector can adapt with regards to global climate change and incorporate sustainability into their supply-chain operations.
Saudi Arabia will host the Global Airport & Aviation Forum from Wednesday, 16 October to Thursday, 17 October in Jeddah. The forum will bring together aviation leaders and experts to discuss future projects in the aviation industry, including new airport developments, capacity upgrades and expansions, new aircraft orders, and important airport services.
Saudi Arabia will host the Smart Ports & Logistics Transformation Summit on Monday, 21 October and Tuesday, 22 October in Riyadh. The two-day conference aims to discuss strategies, innovation, and technologies in line with Saudi Arabia’s Vision 2030, which aims to position KSA as a logistics hub in the MENA region.
The UAE will host the International Conference on Tourism, Transport, and Logistics on Saturday, 26 October and Sunday, 27 October in Dubai. The event will gather scientists, scholars, and engineers from around the world to discuss new ideas and research development projects in the industry.
Check out our full calendar at the bottom of this email for a comprehensive listing of upcoming news events and news triggers.