Market Update Region MEA

Market Update

Thank you for visiting our page and showing interest in our MEA Market Reader. Below you will find brief summaries for a quick overview of the latest supply chain developments in the Middle East and Africa region. You can download the full version from the beside section for a more in-depth analysis.

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Summary of the Market Update 07/2024

Developments in the Middle East and Africa

Egypt is looking to raise the target for renewable energy to 58% by 2040
Bahrain and Iran agree to start talks on resuming political relations
Qatar's private sector exports surge 6% to $685m in Q1 2024
Kenya's economy is expected to grow 5.5% in 2024 and 2025, according to its Finance Ministry
Saudi Arabia announces discovery of seven oil and gas deposits
PIF swings to $36.8bn profit in 2023
UAE and Russia signed several agreements and preliminary pacts on industrial investments

- Weekly price average at the end of CW 27 is at $106,76/bbl – an increase of 3.04% vs the prior month and 13.18% vs. YTD
- Global cargo CTKs increase by 9% YoY still driven by e-Commerce and Middle East Crisis. The increase in global cargo CTKs is part of a longer trend, with growth being observed for five consecutive months
- Etihad Cargo offers incremental capacity to the North American market and launches a new freighter route to Madrid
- Qatar Airways secures the ‘Airline of the Year’ title from Skytrax
- Flyadeal orders 51 Airbus aircraft
- In May 2024, global schedule reliability improved by 3.8 percentage points M/M to 55.8%. This is now the highest schedule reliability figure for 2024, and 1.2 percentage points higher than the previous highest figure of 54.6%. On a Y/Y level, however, schedule reliability in May 2024 was -11.0 percentage points lower. Despite the improvement in schedule reliability, the average delay for LATE vessel arrivals deteriorated, increasing by 0.34 days M/M to 5.10 days. This figure is now inching closer to the pandemic highs than the pre-pandemic lows. On a Y/Y level, the May 2024 figure was 0.73 days higher
- Schedule reliability on the Europe-Middle East trade lane increased by 4.0 percentage points M/M in April/May 2024 to 54.9%. On a Y/Y level, April/May 2024 schedule reliability was -9.9 percentage points lower than at the same point in 2023
- Schedule reliability on the Asia-Middle East trade lane decreased by -5.8 percentage points M/M in April/May 2024 to 25.3%. This is the lowest figure recorded for the month. On a Y/Y level, schedule reliability was -25.5 percentage points lower than the 50.8% recorded in 2023
- Rates out of Asia continue to rise with South Africa facing the largest increases with the region. South Africa’s end Q2 rates are 335% higher than end Q1 rates, followed by West Africa with a 262% increase quarter on quarter, and the Persian Gulf and the Red Sea seeing a 160% increase quarter on quarter. Space continues to be an issue out of Asia, therefore advance shipment planning is strongly suggested. Transshipment port delays within the APAC region continue, with Singapore and Columbus being the main contributors
- Extended transit times are leading to capacity absorption and delays. We have also seen an increase in order pick-up due to reduced inventory/ bullwhip effects from Covid-times (replacement of electronics)/replenishment of consumer goods (due to natural disasters). Carriers have not yet been able to remove old vessels (11,6%=3,4 Mio TEU) which will have to disappear due to IMO regulations. The increased congestion and yard density are a result of the current situation