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 01/2025

Developments in the Middle East and Africa

South African rand has begun the year positively, trading at 18.7625 against the U.S. dollar, marking a 0.6% appreciation from its previous close. This follows a volatile end to 2024, influenced by global economic uncertainties
Egypt plans to expedite its government IPO acceleration offerings program in 2025 to enhance the private sector's role in the economy and attract more investments
The UAE plans to expand its Comprehensive Economic Partnership Agreements (CEPA) network in 2025, aiming for a US$1 trillion target for non-oil trade by 2030
Saudi Arabia's economy is projected to grow by 3.7% in 2025, driven by robust non-oil growth, stable inflation, and strategic investments in renewable energy, smart cities, healthcare, and finance
Saudi Arabia and the UAE are set to become significant investors in Africa's mining sector in 2025, aiming to offset Chinese dominance in critical minerals and develop alternative supply sources

- The weekly Jet Fuel price average at the end of CW 01 is at $93.20 per barrel, which represents an increase of 4.2% from the prior week, an increase of 4.3% from the prior month, and a decrease of -5.9% from the prior year
- Etihad Airways plans to double its flights to Africa and has added Paris to its cargo flight network
- Qatar Airways has resumed flights to Abha International Airport, with the first flight successfully landing
- Emirates is adding more flights to and from Colombo and accelerating the use of its Airbus A350 for routes to Kuwait and Bahrain. Additionally, Emirates SkyCargo has introduced a weekly freighter to Copenhagen Airport due to rising demand, following a 20% increase in cargo volumes last year, mainly driven by pharmaceutical shipments
- In November 2024, global schedule reliability improved by 4.1 percentage points M/M to 54.8%, the highest point it has been at in 2024. That said, even with that M/M improvement, schedule reliability has largely remained within the 50%-55% range in 2024. On a Y/Y level, schedule reliability in November 2024 was –7.0 percentage points lower. The average delay for LATE vessel arrivals improved, decreasing by -0.43 days M/M to 5.41 days. Despite the improvement, this is the second-highest figure for the month, only surpassed by the pandemic high of 2021. On a Y/Y level, the November 2024 figure was 0.35 days higher
- Schedule reliability on the Middle East-Asia trade lane increased by 4.6 percentage points M/M in October/November 2024 and reached 40.5%. On a Y/Y level, October/November 2024 schedule reliability was -28.0 percentage points lower than at the same point in 2023. The average delay for LATE vessel arrivals decreased M/M by -0.53 days to 6.08 days. On a Y/Y level, the average delay was higher by 2.31 days. The average delay for ALL vessel arrivals decreased by -0.84 days to 2.53 days
- In October/November 2024, schedule reliability on the Middle East-Europe trade lane decreased by -1.1 percentage points M/M to 55.1%. This is the lowest figure recorded for this month. On a Y/Y level, schedule reliability was -17.1 percentage points lower than at the same point in 2023. The average delay for LATE vessel arrivals deteriorated M/M, increasing by 0.13 days M/M to 5.86 days. On a Y/Y level, the average delay was higher by 1.25 days compared to the same point in 2023. The average delay for ALL vessel arrivals increased by 0.22 days M/M, reaching 2.41 days
- EU ETS Expansion: Starting January 1, 2025, the EU Emissions Trading System (ETS) will expand to cover 70% of emissions, up from the current 40%. This 75% increase in scope (from 40 to 70 percent), paired with a possible reduction in available ETS allowances on the market, will result in higher ETS surcharges for 2025. EU ETS Surcharge is expected to double the 2024 ETS surcharge
- New FuelEU Maritime Regulation: A new regulation focused on the energy efficiency of fuels used by shipping lines, known as FuelEU Maritime, will also take effect on January 1, 2025. It will result in a new surcharge from shipping lines
- CHINESE NEW YEAR: The 2025 Spring Festival from January 28th (Lunar New Year’s Eve, Tuesday) to February 4th (Lunar New Year’s Day, seventh day, Tuesday), there will be a total of 8 days off. We kindly remind you to anticipate potential disruptions, including blank sailings, capacity constraints, and rate increases. We recommend planning shipments well in advance to mitigate any challenges during this period