Global trade observed significant shifts across multiple sectors as various countries ramped up their export activities, marking 2024 as a pivotal year for logistics and commerce. From automotive exports from Morocco to the resumption of oil exports from Iraq and the rising prices of Russian wheat, these developments are reshaping global supply chains.
Starting with the automotive sector, Renault’s production facilities located at two plants in Morocco saw substantial output increases, largely centered on exports to Europe via the Tanger Med port. Over the course of 2024, Europe became increasingly reliant on vehicles from Morocco, positioning the country as just the second largest, trailing only China, for vehicle imports to the continent. For the year, Tanger Med, one of the busiest ports, exported nearly 540,000 finished vehicles to Europe, reflecting a 4% growth compared to 2023.
When factoring in automotive parts, Morocco has officially become the largest automotive exporter to the EU by value, reaching €15.1 billion and surpassing countries like China and Japan. This marked the culmination of efforts by the Renault Group, whose factories at Mellousa and Somaca led the charge, with Stellantis contributing to the output from its Kenitra plant.
Renault’s exports alone increased by 8%, attributing 76% of its total volume from the Tanger Med port directly to European markets. The main export markets, after Europe, include Turkey and Saudi Arabia. Renault operates from its own dedicated terminal at Tanger Med, which boasts storage capacity for 6,000 vehicles, managed by the Groupe CAT subsidiary STVA. With the addition of modern facilities, the port operations have also enhanced efficiency, capable of handling up to 1 million vehicles annually.
The railroad infrastructure plays a pivotal role, with nearly all vehicles produced at the Mellousa facility transported directly to the port via rail. This digitalized control mechanism, implemented at Renault’s Moroccan plants, allows for real-time monitoring of vehicle transport flows, streamlining operations and addressing logistical challenges optimally.
Meanwhile, on the energy front, the Federal Ministry of Oil of Iraq has announced significant progress, stating all procedures are finalized to resume oil exports from the semi-autonomous Kurdistan Regional Government (KRG) through the Iraq-Türkiye pipeline. This notable development concludes two years of disputes hampering crude flow from the region, previously disrupted by political tensions over oil resources.
After parliamentary approval of budget amendments, oil exports from Kurdistan were set to resume shortly, outlined at $16 per barrel—essentially twice the prior rate. With Kurdistan’s production exceeding 450 kb/d, this revival marks a significant comeback for the area, which has attempted to export oil independently since 2013.
Historically, the region has engaged in complex negotiations with Iraq’s central government, especially after the Supreme Court ruled the KRG's oil law unconstitutional. The authorization to export puts Kurdistan back on the global oil market, allowing it to use infrastructure originally established for transport.
Finally, the agricultural sector shared its own noteworthy story, as export prices for Russian wheat have surged, reflecting changes felt worldwide. By February's end, prices for Russian wheat with protein had risen to $252 per ton, up 12.5% since the start of the year. The increase was propelled by market reactions to potential crop losses attributed to significant weather events affecting production.
Egypt emerged as the largest buyer of Russian wheat, purchasing 5.45 million tons during the last half of 2024—a staggering growth of 1.8 times year-over-year. Other notable importers included Turkey, Iran, Bangladesh, and Saudi Arabia, showcasing Russia's prominent role as a key player in the global agricultural market.
The Russian Federation altogether exported 30 million tons of wheat between July and December, demonstrating both the resilience and relevance of Russian agricultural exports even amid fluctuated market conditions and rising prices.
The overarching trend across these sectors—the surge of exports from Morocco’s automotive industry, the restart of oil flows from Iraq, and the price increases of Russian wheat—illustrates how interconnected and dynamic global trade has become. Stakeholders across the board will undoubtedly be watching these developments closely as they evolve, signaling broader economic shifts on the horizon.