New Shipping Service from China to Eastern Saudi Arabia Opens

Saudi Arabia expands shipping traffic with China by opening new shipping routes. (Asharq Al-Awsat)
Saudi Arabia expands shipping traffic with China by opening new shipping routes. (Asharq Al-Awsat)
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New Shipping Service from China to Eastern Saudi Arabia Opens

Saudi Arabia expands shipping traffic with China by opening new shipping routes. (Asharq Al-Awsat)
Saudi Arabia expands shipping traffic with China by opening new shipping routes. (Asharq Al-Awsat)

The Saudi Ports Authority (MAWANI) launched on Monday, in cooperation with the Saudi Global Ports Company, a new shipping service from China to the King Abdulaziz Port in al-Dammam, in eastern Saudi Arabia, as part of the Kingdom's drive to consolidate its position as a global logistics hub,

In a statement, MAWANI said that the new service is offered by a consortium of vessels deployed by Pacific International Lines (PIL), Regional Container Lines (RCL), and CULINES (CUL).

It added that the move aims to strengthen the Authority’s efforts to develop Saudi Arabia as a global leader in logistics and transportation.

The new service, which connects the most important ports in central and southern China to the Arabian Gulf, provides weekly direct and regular shipping.

The first service arrived on Dec. 15 in Saudi Global Ports berth. It took off from the ports of China to King Abdulaziz Port in Dammam, and then will return directly to China’s Port of Ningbo-Zhoushan, as a clear indication of the importance of Saudi exports to the Far East markets and the remarkable development in the capabilities of King Abdulaziz Port.

The Authority aims to enhance connectivity and reduce the shipping time between Saudi Arabia’s ports with the main Chinese and the region’s ports, in order to support and stimulate the export of national products and the direct flow of imports and increase trade movement between the two countries.

The statement noted that the new step comes as a continuation of the strategic initiatives and partnerships launched by MAWANI with major international shipping line companies, within the objectives of the National Strategy for Transport and Logistics Services and in accordance with the Kingdom’s Vision 2030.



Dollar Hits 2-week Low as Traders Ponder Trump Tariff Plans

A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
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Dollar Hits 2-week Low as Traders Ponder Trump Tariff Plans

A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo

The dollar touched a fresh two-week low on Wednesday, as a lack of clarity on President Donald Trump's plans for tariffs kept financial markets guessing and left the greenback struggling to regain ground against major currencies. Trump said late on Tuesday that his administration was discussing imposing a 10% tariff on goods imported from China on Feb. 1, the same day that he previously said Mexico and Canada could face levies of around 25%.

He also vowed duties on European imports, without providing further details.

Despite those threats, a lack of specific plans from Trump's first day in office saw the dollar start the week with a 1.2% slide against a basket of major peers. It stabilized on Tuesday, ending flat after an attempted rebound fizzled, with US officials saying any new taxes would be imposed in a measured way. The dollar index, which tracks the currency against six top rivals, touched its lowest since Jan. 6 at 107.75 on Wednesday, paring an earlier rise in the index. It was last down 0.15% at 107.97.

"Tariffs have again grabbed the headlines overnight as Trump commented in the evening that his threat of a new 10% tariff on China was still on the table...," said Deutsche Bank's Jim Reid.

"Trump's comments leave plenty of near-term uncertainty even though the trade investigations from his day 1 executive orders will take some time to play out."

Trump on Monday signed a broad trade memorandum, ordering federal agencies to complete comprehensive reviews of a range of trade issues by April 1. The greenback rose 0.3% to 156 yen, edging up from the one-month low it touched the day before.

INFLATION RISKS The euro fell 0.3% in early trading, before it changed course and rose to $1.0457, its highest since Dec. 30. It was last up 0.07% at $1.0434. Sterling hit a two-week high against the greenback, but was last trading down at $1.2351.

Analysts have said that Trump's policies on immigration, tax and tariffs will likely boost growth but also be inflationary, but the more cautious tariff approach has fuelled some hopes that inflation risks could be more limited, Reuters reported.

Traders expect a quarter-point Fed interest rate cut by July, while another reduction by year-end is considered a coin toss. The Canadian dollar was slightly weaker at 1.4346 per US dollar, following a volatile week that saw it tumble as low as 1.4520 overnight for the first time since March 2020, feeling additional pressure from cooling inflation last month. The Mexican peso gained about 0.3% to 20.547 per dollar. China's yuan held steady at 7.272 per dollar in offshore trading, after pushing to the strongest level since Dec. 11 on Tuesday at 7.2530.

"A 10% tariff on China imports would be far below the 60% rate he mentioned in his campaign," said Alvin Tan, head of Asia FX strategy at RBC Capital Markets.

"On top of this is the general sense that Trump is not pursuing maximalist trade protectionism in his early actions, but appears to be positioning for trade negotiations," Tan said.

"Altogether these suggest that the US dollar could drop further."