Good morning, friends. We have a steady stream of updates to unpack this morning, with news from the UAE, KSA and beyond as our regional players continue to expand their borders. But first, are we looking at a possible Chapter 11 as the ending for the Boeing saga?

THE BIG LOGISTICS STORY- Boeing shores up finances: Boeing aims to raise USD 25 bn through stock and debt offerings and another USD 10 bn through credit from major lenders, Reuters reports. The latest move comes as the company struggles to maintain its credit rating, which is currently a notch above junk, and ahead of USD 11.5 bn of the company’s debt maturing through 1 February 2026

Hopping from crisis to crisis: The company has suffered major losses for three consecutive quarters as it battles delays in deliveries, accidents and issues in parts manufacturing, and a costly ongoing machinist strike which has cost the firm USD 5 bn so far as it enters its fifth week.

Some are not convinced: “Unless the company is able to raise funds through a rights issue, I see an imminent investment downgrade with Chapter 11 looming on the horizon,” Emirates Airlines President Tim Clark told the aviation industry publication Air Current earlier this week.

The story has grabbed a lot on ink in the int’l press: Reuters | Bloomberg | Financial Times | The New York Times | The Wall Street Journal

WATCH THIS SPACE-

#1- IFC finalizes Egypt’s airport management transfer plan: The International Finance Corporation (IFC) has submitted its technical study and proposed timeline to the Egyptian government for handing over management of airports to the private sector, unnamed sources told Al Arabiya. The plan reportedly involves offering the management and operation of 20 of the country’s airports as part of the country’s privatization push.

We’ve been on the lookout for airport privatization news since Egyptian Prime Minister Madbouly said earlier this week that some “important” privatization news regarding airports and banks would be announced soon. The Madbouly government first revealed plans in November 2023 to invite private sector players — including foreign companies — to take over the management of airports in the country.

ALSO- SCZone gets ready to launch large-scale green hydrogen projects: Five large-scale green hydrogen projects will kick off construction within a year on five plots of land currently being prepared by the Suez Canal Economic Zone, the SCZone’s executive director told Al Mal. The projects should be completed within four years, Saad added.

The zone’s first water desalination public-private partnership is also set to be launched, which will be used to help produce green hydrogen in the zone, Saad added.

#2- Iran Air canceled all Europe-bound flights hours after the EU announced new sanctions on Iran, with passengers receiving news of the cancellations via SMS, the airline’s customers told Euronews. The EU has included Iran Air, Mahan Air, and Saha Air in a list of new sanctions on Iranian entities and individuals over their alleged involvement in Iranian transfers of ballistic missiles to Russia, Reuters reported.

Background: The US has said that it has knowledge of Iran’s participation in Russian arm trades, Reuters reports. The US has since imposed sanctions on Iranian and Iranian affiliated ships and companies it has identified to be involved in the weapons transfers.

#3- The recent US sanctions on Iran are anticipated to restrict crude oil shipments to China, as well as make these barrels less competitive due to a shortage of vessels and increased shipping costs in the short term, Chinese refinery and trade sources told S&P Global. The impact of the sanctions may leave China’s independent refiners, the largest customers of Iranian crude, to consider alternative supply options. Some 30 vessels carrying Iranian crude were discharged for China’s independent refineries in September, six of which appeared on the US’ latest sanction list.

Background:The US imposed sanctions last week on any person operating in Iran’s petroleum and petrochemical sectors following Iran’s attack on Israel.

#4- TCI Sanmar Chemical eyes new investment + sea dock in Egypt: Indian industrial firm TCI Sanmar Chemical has announced plans to invest USD 300 mn to expand its production capacity in Egypt, according to a statement. The company also intends to study establishing a new pier west of Port Said.

MARKET WATCH-

#1- Oil prices rose in early morning trading as uncertainty remains over whether regional tensions will affect supply, Reuters reports. Brent crude futures slid up USD 0.14 to trade at USD 74.39 per barrel by 02.50 GMT, while US West Texas Intermediate (WTI) futures rose USD 0.19 to trade at USD 70.77 per barrel. Oil prices plummeted over 4% to a near two-week low yesterday as fears eased regarding Israeli retaliation on Iran and due to weaker demand outlook.

Opec+ trimmed its forecast for China’s crude oil demand growth forecast to 580k barrels per day (bpd) in 2024, Reuters reports. The estimate is down from the 650k bpd gain forecast in September, and is 180k bpd below the previous predicted rise of 760k bpd back in July.

The International Energy Agency (IEA) expects an expansion in global oil demand to 1 mn bpd for next year, and demand to rise this year by 860k bpd, Reuters reports. The IEA, which manages industrialized countries’ emergency oil stocks, said public stocks were over 1.2 bn bpd and spare capacity in Opec+ is at historic highs. The IEA is ready to act should any major disruptions occur, but for now the market is faced with a sizable surplus in the new year.

#2– Baltic index dips again: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — dropped 2.6% to 1,766 points on Tuesday. The capesize index shed 105 points to 2,773 points, while the panamax index dropped 45 points to 1,364 points. The smaller supramax fell two points to 1,260 points.

DATA POINT-

Suez Canal revenues down Red Sea tension continues: The Suez Canal Authority (SCA) has seen a 23.4% y-o-y drop in revenues to USD 7.2 bn during FY 2023-2024, Egypt Today reports, citing comments by SCA chairman Osama Rabie. Vessel transits also fell by 22.2% y-o-y to 20k ships passing through the canal, Rabie said at the Global Logistics Forum.

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CIRCLE YOUR CALENDAR-

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.

Saudi Arabia will host the Saudi Airport Exhibition on Monday, 11 November and Tuesday, 12 November in Riyadh. The two-day exhibition will bring together global industry leaders to discuss the latest technologies around the world in the aviation industry. It looks to encourage discussion between Saudi aviation leaders and the global supply chain industry.

The UAE will host the ADIPEC Maritime and Logistics Exhibition and Conference on Monday, 11 November and Thursday, 14 November in Abu Dhabi. The event looks to explore ways to reduce emissions through innovative solutions. It will bring together industry leaders, regulators and decision makers in the global maritime and logistics sector.

Bahrain is set to host The Bahrain International Airshow on Wednesday, 13 November and Friday, 15 November at the Sakhir Airbase. The three-day event is bringing together over 180 participating companies from over 59 represented nations globally.

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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