AGP Executive Report

Middle East Shipping Watch: Even with a US-Iran deal lifting hopes, insurers and shipowners say Strait of Hormuz transit could stay disrupted for weeks as minesweeping and safety checks drag on. Trade & Tariffs: Ahead of the G7, Trump is again floating tariff threats tied to France’s digital services tax, raising new uncertainty for cross-border logistics and supply chains. Port & Corridor Signals: Jordan’s Port of Aqaba is showing cargo growth tied to rising transit trade, while analysts warn the “return to normal” for Hormuz won’t be quick. Logistics Industry Moves: Rhenus appoints Scott Dudley to lead UK air and ocean, aiming to expand visibility and customer experience. Automation on the Ground: PAC Machinery will demo an AI-driven automated bagging system at Automate 2026, pushing faster, more consistent fulfillment packaging. Energy Prices in Focus: Nigeria’s Dangote Refinery cuts petrol by N75/litre, a potential lever for downstream competition and pump-price expectations. Regional Connectivity: Afghanistan hosts talks on regional security, trade, and connectivity with Central Asian states and Azerbaijan.

Strait of Hormuz Relief, With Caveats: The US and Iran say a memorandum of understanding will reopen the Strait of Hormuz, easing pressure on global shipping and oil flows, but analysts warn traffic may return slowly as Israel’s posture in Lebanon remains a major risk. US Trade & Freight Signals: S&P Global reports US-bound containerized imports rose 13.5% year-on-year in May, with importers front-loading inventory ahead of potential tariff timing. US Infrastructure Push: The House T&I Committee advanced a five-year, $580B surface transportation bill (BUILD America 250 Act), setting up the next phase of highway and rail funding. Middle East Aviation Expansion: Dubai says Al Maktoum International Airport expansion is on schedule for a 2032 start, with major construction milestones and billions in contracts planned. UK Workplace Savings for Transport Workers: A UK coalition backed by major employers (including transport operators) is promoting workplace savings schemes to help staff build “savings pots.” Logistics Real Estate: DSV broke ground on a large multi-client warehouse and office complex in Innisfil, Ontario, targeting sustainability and EV-ready operations. Rail Short Lines Back in Focus: Watco highlights renewed interest in short line rail as mills close and long-haul trucking costs rise. Maritime Labor Welfare: A peace deal is bringing relief to seafarers stranded in the Gulf after months of attacks and shortages. Amazon Last-Mile Expansion: Amazon plans a new delivery station in Chattanooga’s Lookout Valley, adding 300+ jobs and boosting regional distribution.

Strait of Hormuz Watch: Shippers say confidence in reopening will take weeks, with navigation restarting only after safety checks like mine clearance; one LNG tanker (India’s Petronet) was the only visible early transit as oil prices slid on the framework deal. Maritime Security: UKMTO reported an attempted boarding of a container vessel off Yemen, with gunfire used and authorities investigating—another reminder of risk on a key Red Sea–Gulf corridor. Gulf Logistics Outlook: A Western report expects Gulf oil-producer economies to slump in 2026 from the Iran-US conflict, with Saudi logistics rerouting via new port, rail and trucking options to the west coast. Cyber & Fraud in Freight: Trucking and logistics firms face AI-enabled fraud schemes, including falsified shipment documents and credential abuse, as attackers scale impersonation. Navy Logistics IT: Castellum’s JV won a ~$250M U.S. Navy Logistics IT modernization contract under an IDIQ MAC. Diesel Subsidy Controls (Malaysia): Sabah and Sarawak diesel subsidy spending jumped to RM1.4B in four months; goods and public transport operators are urged to register for SKDS fleet cards ahead of mandatory enforcement. Heavy-Truck Electrification (China): China targets 40% new-energy penetration in heavy-duty trucks by 2030, backed by major charging and battery-swap corridor buildout. Local Transit Expansion (India): Indore Metro’s Phase 2 extension is likely to open June 21, adding an airport and tech-zone link. AI in Logistics Events (India): MethodHub’s MFG.NXT roadshow spotlights AI use cases across manufacturing, pharma and logistics.

Maritime Workforce: Qatar launched a joint MoEHE–MoT scholarship push to grow homegrown marine engineers and navigation specialists, using overseas and domestic tracks to reduce reliance on expatriate know-how. Middle East Energy & Shipping: The US says it has completed a deal with Iran to end the war and reopen the Strait of Hormuz toll-free, but analysts warn fuel and oil markets may take months to normalize. Rail Connectivity: Türkiye and Saudi Arabia plan a rail link via Jordan and Syria to move freight and energy toward Europe, with a feasibility study expected and a major gap still to be closed. Port & Canal Modernization: Egypt’s Suez Canal Authority says it’s pressing ahead with fleet and service upgrades despite geopolitical pressure on global trade lanes. Digital Transport Ops: Hong Kong police added new functions to its eTraffic Ticket platform for fleet operators and online disputes, while UK rail operator South Western Railway refreshed its One Scan live journey app. Shipping Decarbonization Policy: France rolled out new funding for ship retrofits, low-emission fuels, and port infrastructure, as the UK ETS expands to maritime from July 2026. Transit Labor Watch: Dallas-area DART warned riders to expect possible disruptions if contractor Transdev faces a strike.

Fuel & Policy: India cleared regulations for 100% ethanol (E100), setting up flex-fuel vehicles beyond the E20 program and aiming to cut fossil fuel dependence. Cybersecurity for Transport: A new push urges early-stage ransomware prevention for critical infrastructure, warning that recovery-first approaches leave operators exposed. Road & Transit Disruptions: Greater Manchester roadworks are triggering closures and delays across key routes, while Saskatoon is weighing stronger transit enforcement powers to curb safety issues and fare evasion. Shipping Under Pressure: The Strait of Hormuz remains a flashpoint for commercial shipping, with Iran warning vessels and industry reacting to seafarer safety concerns; meanwhile IATA forecasts slower global air travel growth in 2026 as Middle East disruptions and fuel costs bite. Logistics Tech & Platforms: AllRentalz expanded its rental management software to cover dumpster and moving container operators, and eHACCP.org launched a free corporate LMS for HACCP training and certification tracking. Trade & Corridors: Kazakhstan is working to boost non-commodity exports to Sweden by easing logistics and customs frictions, while India-Bangladesh-Nepal cooperation is framed as a connectivity and energy opportunity. EV & Mobility Markets: Türkiye’s light commercial vehicle market is turning more electric, with EV sales rising sharply even as overall volumes soften.

Maritime Security & Trade Tensions: The US told India it will not tolerate any breach of its Strait of Hormuz blockade or “illicit transport” of Iranian oil, after US attacks killed Indian seafarers and sparked a diplomatic protest. Shipping Operations: Maersk launched a new Adriatic–Eastern Mediterranean service with fixed weekly sailings, adding Egyptian ports Damietta and Port Said to improve reliability for time-sensitive cargo. Port Performance: Qatar’s Hamad Port climbed to 8th globally in the 2025 Container Port Performance Index, highlighting resilience amid shipping disruption. Logistics Policy: Pakistan abolished an 18% sales tax on the shipping industry, aiming to cut logistics costs and attract investment. Trade Facilitation & Corridors: Vietnam’s Da Nang Free Trade Zone conference pushed AI, IoT and digital customs to speed port-to-park connectivity. Owner-Operator Tech: Sovrynn launched a compliance intelligence platform giving independent truckers a real-time regulatory standing score and shareable credential. Road Freight & Safety Tech: Drone-based mail delivery in Himachal Pradesh cut transit time to about seven minutes, using tracked routes for remote areas.

Maritime Risk & Trade Routes: Iran’s lawmakers say southern port imports are being squeezed by naval restrictions as Strait of Hormuz tensions simmer, while a separate report claims a Turkey–Saudi overland logistics corridor could route Gulf trade to Europe via Syria and Jordan, potentially bypassing Israeli infrastructure and challenging IMEC. Public Transit & Last-Mile: Mumbai’s first “Public Transport Day” in BKC drew a lukewarm response, with commuters calling out weak last-mile connectivity and asking for more reliable BEST bus service. Road & Rail Operations: Britain cancelled about 450 “dodgy” driving test bookings after DVSA rule changes aimed at stopping bot-driven resales and instructor booking abuse. Logistics Policy & Costs: Pakistan’s maritime sector gets a boost after abolishing an 18% sales tax on shipping, expected to cut costs and spur investment. E-commerce Logistics: China’s e-commerce logistics index rose in May, signaling improving activity, with rural demand rebounding. Workforce & Safety: Tanzania launched a bus-terminal film campaign warning passengers and transport workers not to carry unknown parcels tied to drug trafficking.

Maritime Risk Shock: Iran says it has shut the Strait of Hormuz to all shipping, a move that could jolt oil prices and ripple through global freight via longer routes, higher insurance, and delayed deliveries. Real Estate Cost Pressure: A UAE-focused analysis argues the Hormuz disruption can feed into construction material costs and, over time, into property pricing—just not instantly. Trade & Logistics Policy: Bangladesh floated reforms to attract foreign investment in off-dock/ICD operations and air cargo, including easing foreign ownership limits and creating a legal framework for free trade zones. Transit Tech & Access: Kansas City reinstated bus fares with contactless payment and fare capping, while Mumbai’s BKC Public Transport Day highlighted last-mile gaps that push commuters toward app-based feeders. Public Transit Changes: Tulsa approved talks to sell its downtown bus station, and OC Transpo is retiring most double-decker buses as it shifts to electric fleets. Freight Finance: S&P affirmed RXO’s debt rating but kept a negative outlook, citing uncertainty over whether trucking price gains will last. Industrial Growth: GFH Bank and OCTO plan a $300m logistics and industrial real estate platform across the UAE and Saudi Arabia.

Logistics Security: Nova Post said an enemy drone hit its Zaporizhia terminal, but it expects no logistics disruption and will contact customers about lost shipments. Urban Mobility Tech: Seoul will roll out AI safety systems using LiDAR and generative software to monitor expressways and manage crowds at major venues, aiming to cut blind spots and automate hazard alerts. Supply Chain Energy Shift: DHL plans to scale its new energy logistics business to about €3bn revenue by 2030, up from roughly €600m in 2025, as customers push for resilient clean-energy supply chains. Regional Trade Corridors: Georgia and Kyrgyzstan leaders highlighted the Middle Corridor in Bishkek talks, focusing on the China–Kyrgyzstan–Uzbekistan railway and direct air links to boost transit cargo volumes. Public Transit Connectivity: London Underground’s 4G/5G build is on track to finish by end-2026, with more tunnel sections and about 60% of underground stations now covered. Rail Capacity Investment: Croatia’s ENNA Logic ordered five Siemens Vectron locomotives for delivery in spring 2027 to expand cross-border freight capacity across 11 countries. Workforce & Costs: South Africa’s public servants union urged a hybrid-work model to ease commuting costs amid fuel-price pressure.

Maritime Risk Watch: Shipping through the Strait of Hormuz is still moving, but under tighter enforcement and higher uncertainty, with tanker and LPG flows adapting as U.S. actions expand beyond the immediate chokepoint and Iran signals possible closure. Shipping Finance & Outlook: Fitch kept the global shipping outlook at “neutral,” pointing to war-led tanker rate surges and route shifts, while warning container overcapacity could pressure profits later. Port Performance: Hamad Port in Qatar climbed to 8th globally in 2025’s Container Port Performance Index, underscoring efficiency gains amid disruption. Logistics Tech & Last-Mile: UniUni filed a preliminary prospectus toward a TSX listing after delivering 1M+ packages daily, while Descartes reported shareholder voting results. Transit & Community: Hennepin County awarded $1.7M in transit-oriented community grants to spur housing and jobs near BRT corridors. Road & Rail Capacity: South Africa’s SANRAL is pushing major N2/N3 upgrades to cut freight transit times between Durban and Gauteng. Electrification in Freight: HARIBO is moving select European routes to electric semis to cut emissions.

Transport Infrastructure: China broke ground on a Yangtze mega waterway project worth nearly $11.33B, aiming to nearly double throughput at the Three Gorges shipping hub and boost inland logistics capacity. Shipping & Trade Lanes: With US-Iran strikes escalating, Iran says it has closed the Strait of Hormuz to all vessels, while the US disputes that—raising fresh uncertainty for global shipping routes and costs. Ports & Logistics Hubs: Vietnam’s Can Tho targets becoming an international logistics hub by 2035, aiming for at least 40M tons annually and using a Singapore/Netherlands/Germany-style model to guide multimodal, digital and green upgrades. Maritime Decarbonization: Sea Cargo Charter signatories reported climate performance broadly stable in 2025, but still behind IMO decarbonisation trajectories—highlighting the pressure on carriers and charterers. EU Carbon Policy: EU negotiators agreed ETS2 market stability reserve changes to curb carbon price spikes ahead of the 2028 launch, with larger allowance releases if prices exceed €45/ton. Industry & Safety: A UPS worker died in a warehouse incident in Pennsylvania; coworkers say they were told to keep working near the emergency scene. Business Events: FTCCI will host Shipping & Logistics 2026 in Hyderabad, focusing on multimodal logistics, digital supply chains, warehousing, EV-led logistics, AI and automation.

Civil Rights & Compliance: The U.S. Transportation Department rescinded part of its civil rights rules that targeted “disparate impact,” saying it will only pursue intentional discrimination—removing a long-used enforcement tool tied to housing, lending, education and employment. Maritime Security & Energy Flows: As U.S.-Iran tensions escalate, the U.S. says it fired on a tanker in the Gulf of Oman over alleged Iranian oil transport, while Trump claims a secret U.S. mission helped move more than 100 million barrels through the Strait of Hormuz. Transit Tech & Rider Experience: Toronto’s TTC is rolling out live, camera-triggered audio announcements to address safety issues on subway platforms, and Hampton Roads Transit launched GoMobile for tap-to-pay with capped daily and monthly fares. Regional Mobility Expansion: Broome County will add a state-funded microtransit service to extend coverage beyond fixed routes. Logistics & Trade Corridors: Türkiye and Saudi Arabia signed MoUs covering logistics services and railway cooperation, reinforcing plans to build alternative connectivity routes. Port & Shipping Capacity: The Port of Mobile is widening and deepening its channel, drawing new export-focused logistics investment. Automation & Robotics: Industrial robot shipments grew in 2025 as AI-driven manufacturing demand picked up, with continued steady growth expected through 2030. Workforce & Safety: A Kansas county budget discussion highlighted funding needs for ACCESS Transportation, a disability-focused transit service.

Port & Trade Routes: Hainan’s Yangpu Port opened a new container route to India, adding a faster outbound channel for Hainan exports and strengthening the land-sea corridor. Geopolitics & Markets: Iran–U.S. escalation around the Strait of Hormuz rattled Asian equities and lifted oil prices, raising uncertainty for logistics costs and shipping planning. Maritime Infrastructure: The Suez Canal saw the first-ever transit of CMA CGM’s 24,000-TEU Vendome, underscoring the canal’s role in cutting fuel use and transit time. Multimodal Logistics: Egypt’s RSCT ran its first train operation, linking maritime and rail to improve supply-chain efficiency. Digital Trade & Borders: Türkiye is modernizing Syrian border gates with AI and digital data sharing to speed customs and reduce bottlenecks. Urban Mobility: Ahmedabad Metro Phase 2(A) got Cabinet approval, extending metro access to key corridors and the airport. Supply Chain Tech: New Orleans’ Port NOLA and rail operator unveiled AI mapping to speed routing for oversized industrial shipments. Aviation & Ground Handling: Airlines face fresh pricing pressure as fuel volatility continues, with carriers adjusting surcharge strategies.

Logistics Tech & Visibility: Tadbik and Wiliot are expanding production of rugged IoT “Pixels” for battery-free tracking of reusable supply chain assets like roll cages, pallets, and returnable transport items. Data-Center Supply Chains: DHL Supply Chain says it’s adding 30,000 sq m of data-centre logistics capacity now, with 130,000 sq m more in Malaysia and Thailand over two years. Port Expansion in Egypt: AD Ports Group begins commercial trial operations at Noatum Ports–Safaga 2, a $200m terminal built for major container, cargo and RoRo throughput. Rail Cooperation: Saudi Arabia and Türkiye sign an MoU to boost railway standards, tech, safety, and workforce training. Energy & Trade Risk: With the Strait of Hormuz still in focus after a U.S. Apache incident, analysts warn oil and shipping costs can jump fast on disruption fears. Industrial Real Estate: Prologis buys a 1.2m sq ft Broward County industrial portfolio for $352.2m, signaling continued investor appetite for logistics space. Security & Compliance: A BJ’s employee in Florida faces charges after allegedly shipping stolen store goods across the U.S. using store UPS systems.

AI Infrastructure Push: China plans to spend about 2 trillion yuan over five years to build a nationwide network of data centers to power domestic AI. Smart Mobility in the Gulf: Bahrain is moving ahead with a digital bus station at Sitra and plans for an integrated bus-to-metro network. Industrial Logistics Investment: GFH and Octo will develop a $300m logistics and industrial real estate platform across the UAE and Saudi Arabia. Rail Freight Expansion: Saudi Arabia Railways is building a 21-km line linking Dammam Second Industrial City to the national network, targeting multimodal freight. Autonomous Trucking Debate: PepsiCo’s driverless freight rollout with Gatik expands autonomous logistics beyond pilots, reigniting job and safety concerns. Red Sea Shipping Risk: Houthis announce a total ban on Israeli shipping through the Red Sea, threatening reroutes and raising global trade and oil-route uncertainty. Data Center Supply Chain: DHL Supply Chain adds 160,000+ sqm of data-center warehousing capacity across Asia Pacific. Hydrogen Corridor Moves Forward: Daimler Truck, MB Energy and Kawasaki back a liquefied hydrogen supply chain to Europe via the Port of Hamburg. Public Transport Behavior Change: Mumbai’s BKC “Public Transport Day” is clarified as voluntary, not a car ban. Air Safety Campaign: IATA warns passengers to leave cabin bags during evacuations, with potential stricter rules if behavior doesn’t change.

Fiber & Data Centers: Amazon and Corning announced a multibillion-dollar fiber agreement that will expand U.S. data-center connectivity and create 1,000 skilled jobs in North Carolina, with added training capacity via Catawba Valley Community College. Trade Policy: The U.S. adjusted Section 232 metals tariffs, expanding temporary reduced rates and adding a new annex for mobile industrial equipment through 2027, reshaping compliance planning for importers. Maritime Security: The EU imposed sanctions tied to Strait of Hormuz disruptions, targeting Iranian IRGC-linked individuals and a navy command under its new freedom-of-navigation mechanism. Cross-Border Rail: Georgia commissioned the modernized Baku–Tbilisi–Kars railway, boosting Middle Corridor freight capacity fivefold and strengthening Eurasian connectivity. Shipping Markets: VLCC rates show cautious stabilization as Middle East tonnage remains constrained and diplomacy around Hormuz extension talks continues. Logistics Tech: Libra Software Group acquired Expedient Software, expanding customs and forwarding software capabilities across Australia and New Zealand. EV Watch: Lexus reportedly halted its pure-electric LF-ZC sedan project, while MG pushes aggressive pricing and feature-rich EV strategy in China. Urban Mobility Safety: Chicago marked the death of a CDOT cyclist with a vigil, renewing pressure for safer street design.