the Necmi Steel
Bilgehan Engin, Chairman of the Board of Directors of the International Transport and Logistics Service Providers Association (UTIKAD), stated that due to the crisis in the Red Sea, the passages through the Suez Canal have decreased and the freights that tend to move below a thousand dollars are now testing the levels of five thousand dollars.
UTIKAD President Bilgehan Engin, who evaluated the latest developments in Dünya Newspaper, stated that while following these rapid changes in the market, we think that sharp cost increases may shake the current balances in our foreign trade at many points from foreign currency input to empty equipment stock problems and within this framework, we advise all foreign trade stakeholders to be careful and cautious against the risk of encountering unexpected costs.
⁇ 8 thousand dollars are being talked about ⁇
Bilgehan Engin commented on the developments in freight prices and said the following; ⁇ Sea freight lines announced that they can receive extra freight differences as soon as the risk of war or emergency is reached, referring to the clauses in their bill of lading, and even reminded that they have such a right to apply them for cargoes that have been booked and planned to be loaded. This made the uptrend of freights even stronger, and it began to be discussed that $8,000 freights would be possible. These excessive cost increases will affect our foreign trade in the short and medium term. I would like to emphasize that we are facing a situation that needs to be prepared before both our exporter and importer. ⁇
Bilgehan Engin mentioned a recent development in his statement and gave the following information: As a recent up-to-date development, Maersk announced yesterday that multinational security company Operation Prosperity Guardian ⁇ (OPG) will intervene to secure the Suez Canal and the Red Sea and keep the trade route open, so that Maersk ⁇ can rely on this initiative to reassess the Suez Transition. This explanation can also bring the freights to a certain line, we will wait and see. However, this statement of the Maersk line has not received any statement of support from other multinational lines. The action taken by other companies in this critical process will also serve as an effective leverage in shaping the near future of the market.
⁇ If the crisis is prolonged, it will be reflected in the supply chain ⁇
Can Atalay, CEO of Arkas Line ⁇ , who has significant experience in Akdeniz ⁇ , evaluated the latest developments in Kızıldeniz and Süveyş ⁇ .
Arkas Line CEO Can Atalay stated that he believes that a solution will be found to the problem in the Red Sea and Suez Canal, which affects maritime transportation, and I think that it will not be too late to find a solution to the problem due to the strategic importance of the Red Sea and Suez Canal. The U.S. launched a task force in the region last week. If the problem prolongs, it is inevitable to experience problems similar to the pandemic period in the supply chain.
Pointing out that after the attacks on commercial ships off Yemen, some of the global container lines did not use the Suez Canal and turned to the Cape of Good Hope, the southern tip of Africa, Arkas Line CEO Atalay made the following evaluations:
The fact that the flights from the Far East to the Mediterranean and Europe travelled around the Cape of Good Hope and reached their destination ports significantly extended their cruising time compared to the Suez crossing, which was their original route. I would like to give an example of how the Turkish ports will be affected. There is a difference of 19 days between the use of the Suez canal by a ship arriving at a constant speed of 16 knots from the Far East to Mersin ⁇ and the circumnavigation of the Cape of Good Hope. More fuel will be used due to the extended voyage time, more ships will be used to continue the weekly service. This route change will also have cost-increasing effects on equipment planning. As a result, the resulting additional costs will be reflected in the freights. ⁇
