Amid the upper prices and logistical delays that adversities within the Red Sea inflicted globally, the strategic place and significance that Türkiye and its ports maintain on sea commerce routes may enhance additional, in accordance with an business consultant Monday.
“It is a fact that our country holds a strategic position on the sea trade routes. The adversities in the Red Sea region could enhance the importance of our country’s ports and logistic infrastructure on the international level,” mentioned Erdem Sözvar, chief working officer at Dinçer Logistics.
Speaking to Anadolu Agency (AA), Sözvar famous that the incidents within the Red Sea have introduced new challenges to the worldwide provide chains.
Since November, Iran-backed Houthi rebels have been concentrating on cargo ships within the Red Sea, one of many world’s busiest delivery routes, in what they known as solidarity with Palestinians within the Gaza Strip, which has been beneath an Israeli onslaught since Oct. 7.
Amid the specter of assaults, main gamers within the delivery business, corresponding to Danish logistics large Maersk, had earlier quickly halted utilizing Egypt’s Suez Canal, a vital waterway connecting the Mediterranean Sea to the Red Sea and an important route for power and cargo between Asia and Europe, turning to various routes. Many opted to go across the Cape of Good Hope in Africa, leading to an extended and extra pricey journey.
Pointing out the strategic nature of the area as a transit route, Sözvar expressed that about 12% of world commerce and 30% of sea commerce between Europe and Asia go by way of the Red Sea.
He famous that because of the disturbances, anticipated disruptions in maritime transportation have change into the norm these days.
“Many service providers concerned about the safety of their personnel, vessels and cargo have announced they will continue their voyages via South Africa in response to this situation,” he mentioned.
He added that the change of route implies a minimal of one-week delay in supply instances and rising prices.
“One of the most significant impacts of the issue we are facing is the increase in overall fragility in the supply chain. There are considerable supply chains dependent on this region both as suppliers of raw materials and as customers,” he defined.
Meanwhile, he identified that offer chains, particularly within the power sector, can be affected by the scenario, which may result in a surge in all sorts of power prices sooner or later.
“From a macroeconomic perspective, if the events persist and worse, if their intensity or frequency increases, we could face serious risks such as increased inflation, economic slowdown, or increased unemployment,” mentioned Sözvar. In addition, he mentioned that throughout the time “when we were already grappling with a global recession,” these results may additional exacerbate the scenario.
Sözvar identified that the occasions within the Red Sea wouldn’t affect solely the businesses utilizing sea routes however all corporations and sectors, reiterating that on account of its strategic level of the area, which constitutes an integral a part of world maritime commerce, any negativity within the area “would directly affect these sectors.”
“In addition to the maritime sector, events affecting many sectors, including energy, insurance and retail, are expected to result in a general increase in commodity prices,” he famous, including, nonetheless, that from an optimistic perspective, “both recent political developments and intense efforts by the private sector could lead to the swift resolution of the crisis and the effects we anticipate may not be as severe as feared.”
Sözvar additionally mentioned that these occasions could lead on corporations to extend their inventory ranges or search various provide sources. At the identical time, some corporations might quickly slender the number of services to cut back strain on their provide chains, management prices, or create various provide chains to purchase time.
Disruptions spotlight Türkiye’s potential
Stating that the disaster within the Red Sea can spotlight Türkiye not solely as a route but additionally as a manufacturing heart, Sözvar evaluated Türkiye’s strategic significance.
“The negativities experienced in the Red Sea region may increase the importance of our country’s ports and logistics infrastructure on the international level. Our ports will be considered as an alternative to accelerate the flow of maritime trade and contribute to the development of alternative trade routes,” he mentioned.
“It can help increase our country’s trade volume and economic growth,” he added.
Moreover, according to Türkiye’s position as a powerful participant within the area, Sözvar famous that extra funding is required in know-how, automation and knowledge techniques – not solely in ports but additionally in the whole logistics sector.
“We continue our efforts both in the public and private sectors to close the gap with our Western competitors day by day. More investments make it possible to have a greater say in the international market. We are now attaching importance to developing the systems we previously obtained from abroad within our own structure,” he mentioned.
“I believe that starting to produce differentiating technologies in our country will not only create a cost advantage but also create a competitive advantage in finding solutions that create value for all sector stakeholders,” he concluded.
Source: www.dailysabah.com