$10 Billion logistics deal 👀

LOGISTICS NEWS

NEOM & DSV's $10 Billion Game-Changer

Saudi Arabia's NEOM, the company behind some of the worlds most stunning futuristic constructions has collaborated with global logistics leader, DSV, on a $10 billion exclusive logistics venture. This partnership aims to offer comprehensive ground, sea, and air logistics services for NEOM's ambitious initiatives.

The joint venture will manage the entire supply chain, including investments in logistics infrastructure, transportation, and delivery within NEOM. NEOM will have a 51% stake, while DSV will own the remaining 49%.

The venture anticipates a high demand for construction logistics until December 31, 2031, followed by consistent growth in non-construction logistics. This collaboration is poised to enhance the Saudi economy by developing infrastructure and potentially offering over 20,000 jobs.

NEOM's CEO, Nadhmi Al-Nasr, emphasized the partnership's significance, stating it mirrors NEOM's vision and the private sector's confidence in its realization. He added, "Collaborating with DSV, a top logistics entity, will amplify expertise, promote innovation, and magnify the economic benefits, encapsulating the essence of Saudi Vision 2030."

DSV's Group CEO, Jens Bjørn Andersen, highlighted NEOM's uniqueness, mentioning it as a golden opportunity for DSV to bolster its presence in Saudi Arabia and support a project that's pioneering in innovation and digital transformation.

Furthermore, both NEOM and DSV are dedicated to fostering innovation. Part of their revenues will be reinvested in groundbreaking technologies, and an innovation center will be established in NEOM. This endeavor not only underscores NEOM's dedication to overhauling Saudi Arabia's logistics domain but also sets the stage for sustainable logistics solutions, aligning with Vision 2030's objectives. See full press release here 

GLOBAL TRADE SNIPPETS

Maersk signs deal with Starlink for its Ocean fleet: Starlink’s high-speed satellite internet connectivity will be deployed to Maersk’s owned fleet of 330+ container vessels. Roll-out is expected to be complete in Q1 2024.

US Truck tonnage slumped 4.1% in September compared with year-ago levels, the steepest annual drop in nearly three years and an indication that the U.S. freight market remains turbulent, American Trucking Associations said Oct. 24.

Kuehne+Nagel deploys private freighters to Taiwan for chip industry: The world’s largest third-party logistics provider and airfreight intermediary by gross revenue, announced Monday it has added two destinations to its around-the-world air charter service to support increasing demand from the semiconductor industry.

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VIDEO OF THE WEEK

Why Factories Are Coming Back To The U.S

As factories closed and more companies moved their operations offshore, employment in manufacturing has declined over the years. But now the government is spending big on industrial policies, such as the CHIPS and Science Act and the Inflation Reduction Act, to bring manufacturing, especially semiconductors and electric vehicles, back to the U.S.

But some economists warn against the dangers of government playing favorites in a free market. So how exactly is the U.S. government convincing manufacturers to return? And will its bet pay off?

TRADE NEWS

Russia-India Trade Booms

Trade between Russia and India has skyrocketed this year, with trade in the first eight months reaching a record US$43.8 billion, potentially hitting US$65.7 billion by year-end. Russian exports to India rose to US$41.2 billion, compared to US$17.1 billion the previous year. Imports from India also saw a 50% increase, standing at US$2.6 billion.

This boost in trade is partially due to the West's sanctions on Russia over the Ukraine conflict, leading Russia to pivot towards Asian markets. In September, India's Russian oil imports spiked by 80% to 1.56 million barrels per day.

Furthermore, India increased its Russian diamond purchases by 26%, buying gems valued at US$886.5 million. In contrast, the EU banned Russian diamond imports, impacting major European diamond businesses, especially in Belgium. As a result, diamond trade is shifting towards Asian markets, with India being the largest diamond importer in 2022, accounting for 22% of global imports. Other significant diamond buyers include Hong Kong, the UAE, China, and Thailand, none of which have imposed bans on Russian diamonds.

Highlighting the flourishing trade relationship, Valentina Matvienko, speaker of the Russian Parliament's Upper House, said that trade had grown five-fold from US$10 billion to nearly US$50 billion. She emphasized the potential for even greater growth and collaboration in sectors like energy, agriculture, and IT, with India eager to strengthen ties further.

SHIPWRECK OF THE WEEK ⚓️☠️ 

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