In recent months, pirate attacks in the Red Sea and escalating geopolitical tensions are forcing a shift in the global trade route. In this challenging period, maritime traffic between Europe and Asia has come to a standstill, and ships are facing difficulties in their secure navigation. The situation of circumventing Africa as in the pre-Suez Canal era poses significant challenges both in terms of time and cost.
This global trade crisis is turning in favor of Turkey. Industries such as chemicals, automotive, healthcare equipment, home appliances, valves, are experiencing a surge in demand both in the domestic market and in exports. Germany, the largest economy in Europe, may suffer a severe blow as it contemplates downsizing in certain sectors due to these circumstances. Disruptions in production and the search for alternative supply routes are causing concerns in Germany. The Berlin-based factory of the U.S.-based Tesla has decided to halt production for two weeks due to the impact of Red Sea attacks on the supply chain. While thousands of factories in Germany face production delays, the number of factories affected across Europe is reaching tens of thousands.
The Panama Canal is also grappling with drought, raising concerns about the possibility of the world trade becoming entangled. In these challenging times, Turkey finds itself in an advantageous position with a robust logistical infrastructure and the shortest route to Europe.
Kazım Taycı, the President of the Istanbul Cereals, Pulses, Oil Seeds, and Products Exporters’ Association, emphasizes, “Turkey possesses a significant logistical infrastructure, and being the shortest route to Europe makes us more advantageous compared to rival countries.”
Yavuz Eroğlu, the President of the Turkish Plastic Industry Research, Development, and Education Foundation, notes a roughly 10% increase in orders from Europe. Ahmet Öksüz, the President of the Istanbul Textile and Raw Materials Exporters’ Association, highlights that Turkey’s geopolitical position makes it a preferred choice even in a period of increased costs and extended delivery times.
The ongoing global trade crisis is bringing Turkey’s advantages to the forefront.
Çetin Tecdelioğlu, the President of the Istanbul Ferrous and Non-Ferrous Metals Exporters’ Association, states, “Turkey has once again come to the forefront as a logistical hub due to its proximity. Turkey is emerging as Plan B for Europe and surrounding countries.”
These events demonstrate that Turkey not only has short-term advantages but also possesses a long-term logistical advantage. By turning challenges in global trade into opportunities, Turkey is strengthening its position as a significant player.”
