Mohammed Bin Salman chosen most influential Arab leader of 2022

Saudi Crown Prince and Prime Minister Mohammed Bin Salman (MBS) has been chosen the most influential Arab leader of 2022, according to an opinion poll conducted by the RT Arabic channel.

The Crown Prince has secured around 7.4 million (62.3%) votes out of the total votes of those who participated in the poll.

MBS obtained 7,399,451 votes out of the total 11,877,546 votes of those polled. The poll began on December 15, 2022 and ended on January 09, 2023.

The percentage of votes obtained by the Crown Prince broke the record in the history of opinion polls that RT Arabic conducts by the end of every year.

In the opinion poll, the second place went to the United Arab Emirates President Sheikh Mohammed Bin Zayed, securing 2,950,543 votes that represent 24.8% of the total votes.

Egyptian President Abdel Fattah El-Sisi won the third place with 1,387,497 votes; making up 11.7% of the total votes of those participated in the poll, carried out by RT Arabic, a global multilingual television news network based in Russia.

2022 a remarkable year of shipping history

According to Seatrade Maritime News, shipbroker Clarkson's ClarkSea index covering about 80% of shipping capacity soared by almost a third to record levels in 2022. Container shipping underpinned the gains but other sectors including car carriers, tankers and LNGs were also star performers.

Shipping’s stellar performance last year was the result of many factors but overall growth in energy shipping of around 4% was one of the fundamentals driving the ClarkSea index to a record US$37,253 per day for the year.

Average earnings for tankers rose by more than 470%, with VLCCs scoring a record rise of 642%YoY. Medium-range product tankers scored well too, notching up a 370% increase in rates for a typical 12 year old vessel – up from US$6,740 a day in 2021 to an average of US$31,775 in 2022.

In contrast, container rates underwent a sharp correction over the second half of 2022, down from record levels at the start. Market reports suggest that rates are likely to weaken further and Clarkson notes that this will coincide with a rise in delivery volumes.

Everything is relative, however, the box market is still firm in historic terms and the reopening of China could have a positive impact, Clarkson suggests.

The container and dry bulk sectors are the most vulnerable to risks from the world economy but uncertainties prevail in other sectors too.

The uncertainties include low orderbooks, the impact of new environmental regulations from January, as well as other ‘inefficiencies’ and geopolitical factors, according to Clarksons Research.

The cross-sector ClarkSea Index stood at US$31,539 per day in early November 2022, significantly below the last year’s average of US$37,548 per day and well down on the 18 successive weeks between March and July when it exceeded $40,000 per day, levels last seen at the height of the 2000s‘supercycle.

During the first half of the year 2022, the container market was exceptionally strong and bulker markets were generally firm, the research firm noted in its most recent market report.

Since then market fundamentals have shifted again. Container markets softened sharply during September and October 2022, partly due to faltering demand and lower port congestion. Bulk carrier earnings, meanwhile, are down by 27% over the second half of the year 2022 as compared to the first-half average.

On the other hand, energy-related shipping markets strengthened, with average tanker earning breaking through US$50,000 per day in October 2022, double the March average.

Ton-mile demand, meanwhile, continues to strengthen as a result of the Ukraine conflict. The war has also had a dramatic impact on gas carrier markets, with VLGC earnings at year-to-date highs and LNG carrier rates at record levels.

The ClarkSea Index rose 3% last week to US$32,482 per day, up 35% year-on-year, and 134% above the t-year trend. Crude tanker rates continued to strength, with average VLCC earnings reaching US$86,860 per day, Clarkson said, the highest level since April 2020. Product tanker rates eased, meanwhile, but MR earnings still remain firm at an average of US$32,047 per day.

Bulk carrier rates remain relatively soft, although the steady decline in Capesize earnings came to a halt, with spot rates rising 41% week-on-week to US$11,657 per day. Panamax and handy vessels are firmer than other bulk segments at present but are still only about half of the mid-May figure of more than US$30,000 per day.

Container rates are also continuing to ease. The Shanghai Containerized Freight Index (SCFI) slipped 9% week-on-week to 1,443 points, below end-2020 levels and only 14% above the 2020 average.

 

 

Direct shipping line launched between Iran and Cuba

Iranian Deputy Foreign Minister for Economic Diplomacy Mehdi Safari said a direct shipping line has been launched between Iran and Cuba which is expected to significantly improve the economic relations between the two countries.

“A Direct shipping line has been established between Iran and Cuba since the last 20 days, which will increase the trade between the two countries,” Safari told IRIB on Monday.

“Based on the conducted research, our country has also the potential to cooperate with Cuba in carrying out various projects, especially in the field of energy,” the official said.

In May 2022, Iran and Cuba finalized a roadmap for barter trade between the two countries and signed a document in this regard during the 18th meeting of their joint economic committee in Tehran.

As reported, the document was signed by Iran’s Deputy Industry Minister for Commercial and Trade Affairs Mohammad-Sadegh Mofatteh and Cuba's Deputy Prime Minister Ricardo Cabrisas Ruiz.

During the meeting, the officials explored the existing capacities and market needs of the other side in various fields and good agreements were reached for long-term cooperation in order to improve the level of trade exchanges.

The two countries also stressed the need for developing industrial, mining, and trade cooperation between the two countries during the mentioned event.

Attended by senior officials and representatives of various economic sectors from both sides, the 18th meeting of the Iran-Cuba Joint Economic Committee was held in Tehran during May 15-17, 2022.

As the special envoy of the Cuban president, Cabrisas Ruiz headed a high-ranking delegation to Iran with the aim of meeting with the officials of the Islamic Republic and attending the meeting of the two countries’ joint economic committee.

During his stay in Tehran, Cabrisas Ruiz also met with Iranian Finance and Economic Affairs Minister Ehsan Khandouzi, during which he stressed the expansion of economic ties between the two countries.

Speaking in this meeting, Khandouzi stated that the Iranian government has always welcomed the establishment of long-term and stable economic relations with Latin American countries, especially Cuba.

“Given the excellent political relations between the two countries, Cuba is of particular importance to the Islamic Republic of Iran,” he added.

Referring to the history of cooperation between the two countries in the fields of health and agriculture, Khandouzi emphasized the need to improve economic relations between the two countries and said: “We are expected to take more serious steps to develop cooperation and implement agreements.”

The minister further pointed to the lack of proper knowledge regarding business and economic opportunities and advantages of trade and investment between the two countries as the most important reason for the weak trade collaborations between Iran and Cuban private sectors.

He then announced Iran’s readiness to hold online meetings with the presence of representatives of the government and private sectors of Iran and Cuba in order to exchange knowledge about the business and investment opportunities of the two countries.

 

Traffic in Suez Canal normalized

Shipping traffic in the Suez Canal was proceeding normally on Monday after tugs towed a cargo vessel that broke down during its passage through the waterway, the Suez Canal Authority said.

The breakdown caused only minor delays, with convoys of ships resuming regular transit by 09:00 GMT, shipping agent Leth said.

The MV Glory, which was sailing to China, suffered a technical fault when it was 38km into its passage southward through the canal, before being towed by four tugs to a repair area, the Suez Canal Authority (SCA) said in a statement.

The Suez Canal is one of the world's busiest waterways and the shortest shipping route between Europe and Asia.

In 2021, a huge container ship, the Ever Given was stuck in high winds across a southern section of the canal, blocking traffic for six days before it could be dislodged.

The MV Glory is a Marshall Islands-flagged bulk carrier, data from trackers VesselFinder and MarineTraffic showed.

It departed Ukraine's Chornomorsk port on December 25, 2022 bound for China with 65,970 metric tons of corn, according to the Istanbul-based Joint Coordination Centre (JCC) overseeing Ukraine grain exports.

The JCC, which includes representatives from the United Nations, Turkey, Ukraine and Russia, said the ship had been cleared to carry on its journey from Istanbul after an inspection on January 03, 2022.

 

QatarEnergy-Chevron Phillips US$6 billion deal

According to Reuters, QatarEnergy announced on Sunday the final investment decision on the US$6 billion Ras Laffan Petrochemicals Complex with partner Chevron Pillips Chemical which is expected to be the largest of its kind in the Middle East.

The complex, expected to begin production in 2026, includes an ethane cracker with a capacity of 2.1 million tons of ethylene per year.

The integrated complex will also include two high density polyethylene derivative units with a total production capacity of 1.7 million tons per year, QatarEnergy, Chief Saad al-Kaabi Kaabi said.

Originally announced in 2019, the project highlights how Middle East oil producers are expanding further into petrochemicals, used in the production of plastics and packaging materials, to move into new markets and find new sources of income beyond exporting crude oil and natural gas.

State-run QatarEnergy will hold a 70% stake in the venture with Chevron Phillips Chemicals holding 30% under the agreement signed on Sunday.

“This marks QatarEnergy's largest investment ever in Qatar's petrochemical sector," Kaabi said.

The complex, located in Ras Laffan industrial city, is an important milestone in Qatar's downstream expansion strategy, he said.

Qatar, one of the world's top producers of liquefied natural gas (LNG), will see its ethylene production capacity double on the back of the new complex. Local polymer production will also increase from 2.6 million to 4 million tons per annum.

The Gulf state, one of the most influential global players in the world's LNG markets, is expanding its North Field gas field that will see its liquefaction capacity increase from 77 million tons per annum to 126 million tons by 2027.

Iran export from Sistan Baluchestan up 32%

The value of non-oil export from Sistan-Baluchestan province, in the southeast of Iran, rose 32% in the first nine months of the current Iranian calendar year (March-December, 2022), as compared to the same period last year, according to a provincial official.

Mojtaba Shojaei, the Director General of the province’s governorate’s office of economic affairs coordination, said 1.165 million tons of products worth US$165 million were exported from Sistan-Baluchestan in the mentioned nine-month period, indicating also 78% growth in terms of weight YoY.

He named cement, clinker, travertine stone, coal coke, coal, dates, gas, vegetables, agricultural poison and agricultural products as the main exported items, and Pakistan, Afghanistan, India, Iraq, Kuwait, the United Arab Emirates (UAE), Turkmenistan, Uzbekistan and Indonesia as the major export destinations.

The official further announced that 1,157 tons of commodities valued at US$1.184 million were imported to the province in the first nine months of the present year, with 17% rise in value, while 26% drop in weight, year on year.

He named wheat, rice, cattle corn, cattle oats, mango, banana, sesame, potato, live livestock, fabric, tea, car spare parts, light and heavy car tires, cooling devices, spices, and fish as the main imported items, and Russia, Pakistan, France, Germany, India, Brazil, United Arab Emirates, China, Thailand and Afghanistan as the major sources of imports during the first nine months of the current year.

Based on the data released by the Islamic Republic of Iran Customs Administration (IRICA), the value of Iran’s non-oil export rose 19 percent from the beginning of the current Iranian calendar year (March 21, 2022) up to December 31, as compared to the same period of time in the past year.

According to the IRICA data, Iran exported 97.843 million tons of goods valued at US$43.088 billion in the mentioned period, also registering 2% increase in weight

Liquefied natural gas, liquefied propane, methanol, liquefied butane, and film-grade polyethylene were the main exported products in the said time span.

Major export destinations of the Iranian non-oil goods were China, Iraq, Turkey, the United Arab Emirates, and India.

The Islamic Republic has also imported 28.18 million tons of non-oil commodities worth $44.337 billion in the first 286 days of the present year, with a 14.7% growth in value and a 10% increase in weight, year on year.

The major items of goods imported into the country in the said period include corn, rice, wheat, soybeans, sunflower seed oil, and cell phones, based on the IRICA data.

The United Arab Emirates was the top exporter to Iran in the mentioned period, followed by China, Turkey, India, and Germany.

Reportedly, the value of Iran’s non-oil trade rose 17% during the mentioned period, as compared to the same time period last year.

Iran traded more than 126 million tons of non-oil products worth over US$88 billion with other countries in the mentioned period.

 

Israel has already annexed West Bank

The UN General Assembly has referred the West Bank issue to the World Court. There are again rumblings about possible annexation, especially with Benjamin Netanyahu’s far-Right government assuming power in Jerusalem.

Annexation is viewed as something terrible Israel might do to the Palestinians. However the reality is that Israel has already incorporated the West Bank long ago.

It has not formally annexed this not-very-large area in order to avoid provoking the region and the world – and mainly to avoid having to extend the right to vote for the Israeli parliament to the region’s three million Palestinians.

This is a neat little trick that has worked well; it has fooled most people most of the time, including, amusingly, a few clueless Jewish nationalists who never got the memo and are now calling for annexation.

To understand that the West Bank is already part of Israel, consider the following:

By law, Israelis abroad cannot vote in elections unless they are diplomats or other envoys of the state; generally only citizens present in Israeli sovereign territory on Election Day can vote. Are the half a million West Bank settlers allowed to vote? You bet they are, and in impressive numbers they do. That is in contrast to Palestinians who may be living in a village just across the road.

Countries do not generally build towns and villages on territory that does not belong to them (and democratic countries certainly do not build anything for only one ethnic group only). Is Israel building Jewish settlements in the West Bank? It certainly has, and now it will again; there’s an accredited university there as well.

Israel controls all entry and exit to and from the overall West Bank, as well as passage between the Palestinian Authority autonomy islands. Israel controls the airspace and the water, natural resources and construction rights in most of the territory, and also provides the currency. Israel has the overriding security and justice authority, and even the autonomous islands are essentially subordinate.

Is there any other country with such a level of control on territory that isn’t part of it? Certainly not democratic countries; the US territories like Puerto Rico are an interesting case – and the locals there are US citizens. The situation is analogous mainly to the colonial era, which wound down in the middle of the previous century.

Defenders of the situation will say the occupation is necessary for security reasons, because otherwise the West Bank would fall to Hamas and terrorists would fire rockets from strategic highland at Israel’s major cities. That’s a very reasonable concern, given that this precise thing happened after Israel pulled out of Gaza in 2005 – but it does not justify the settlements.

Apologists will argue that the occupation is temporary, until the Palestinians agree to Israel’s conditions for partition. But they will not agree to Israel’s terms. The excuse of temporariness is preposterous after 55 years, with no end in sight and the new government preparing to further deepen the settlement enterprise; it plans to legitimize illegal outposts deep inside the territory.

Some argue that most settlers live quite close to the old pre-1967 border, and incorporating them only, would usefully expand Israel’s narrow waist, which at its narrowest point is less than 20 kilometers (about 10 miles) wide. But this does not apply to the 100,000 settlers who live deep inside these territories – well beyond the security barrier established in the 2000s (and which eats into about 15% of the West Bank); the purpose of those settlements, and most of what the new government plans, is to make any partition impossible.

Some right-wingers now want Israel to stand supposedly strong by formally annexing so-called Area C, which is the 60% or so of the West Bank that surrounds the autonomy areas – an unwieldy map created by the 1990s Oslo Accords.

It is doubted that people know the map. Such an annexation, which would leave islands of non-annexed Palestinian areas surrounded by Israeli territory, would not produce what a reasonable person would consider a partition. If anything, it would invite comparisons to South Africa’s apartheid-era Bantustans. It is only slightly less childish than suggesting Israel annex everything except the homes of Palestinians.

If the current government actually lasts four years and deepens the settlement project, the situation will gradually escalate. The Palestinian Authority is likely to collapse – or at least move on from 87-year old leader Mahmoud Abbas. There may well be a renewed Palestinian uprising. And before long, there will be a growing Palestinian demand for Israel to really annex the West Bank – all of it, giving the Palestinians the same voting rights enjoyed by the two million Arab citizens in Israel proper.

This is the likely outcome of an occupation that includes colonization of the kind that is taking place. This is the only formal annexation scheme that will actually mean anything, and it will be backed by the entire world, probably with economic sanctions.

The result will be a country of some 13 million that is barely over half Jewish – and you can expect further conflicts, including between secular and religious Jews, that will cause mass emigration among the sector currently responsible for Israel’s economic and high-tech miracle.

The result will be a new country called Palestine, not Israel. This understanding of demographic reality (and the leverage it bestows) is why the Palestinians have not made things easy for Israel by seriously engaging with previous peace and partition offers made by more intelligent governments.

An Israel that wants to survive in the long term should freeze all settlement activity beyond the security barrier line – and project to all audiences that its strategic imperative is a secure way to separate from most of the West Bank.

In the wake of last week’s UN decision, the World Court could do peace a major service by expediting procedures and nudging Israel in this direction.

Annexation is not something Israel should threaten – but something it should strenuously seek to avoid. Instead, under the new government, it is headed off a cliff in a way that can only leave its enemies incredulous with joy. It is a genuine failure of democracy – and a very flawed one at that, because millions of Palestinians are effectively residents who cannot vote.