Tuesday, March 3, 2015

John Good Shipping Sees Productive Freight Forwarding Traffic with Turkey

2014 Went Well - and 2015 Has Started the Same Way Says Hull Agency
Shipping News Feature

UK – TURKEY – Alan Steadman, Turkish Trade Manager of John Good Shipping, the ships agency, freight forwarding and corporate travel group, says the company has started 2015 as it ended 2014, with increased cargo movements and an expansion of its client base on the Turkish – UK trade route. Working in close conjunction with its own group offices based in Istanbul and Izmir, FCL and LCL CONSOL liftings continue to display good year-on-year growth after success in 2014 despite the current backdrop of economic and political uncertainty in Turkey.

2014 saw Turkey lose some of its previous economic momentum which was as a result of weakening domestic and external demands. Growth is forecast to remain subdued with GDP growth projected to be around the 3.25% mark in 2015, rising gradually to around 4% in 2016. The Turkish Lira has weakened against the USD and on the 30th January 2015 was trading at 2.45 TRY against the USD, effectively losing 7.80% of its value when calculated on an annual basis. On a more positive note, the inflation figure recently released for January 2015 recorded a fourteen month low of 7.24%, down from the 8.17% recorded the previous month.

Political uncertainty remains in Turkey with the parliamentary elections scheduled for June drawing closer. However, Turkey continues to offer John Good Shipping’s freight forwarding division many opportunities with the UK remaining a major trading partner, currently third in line behind Germany and Iraq. A vast range of products are produced with manufactured goods currently accounting for an extremely high percentage of Turkey’s total exports. Additionally, there has been a noticeable swing in manufacturing m Turkey, with UK importers reporting that they are obtaining a better quality product at a more competitive price with the added bonus of greatly reduced delivery times.

The Hull headquartered group sees the FCL import market remaining buoyant and thankfully not facing the volatile rate situation that forwarders currently experience on the Asia- Europe trade. The lines operating on the Turkey – UK trade route continue to offer a wide range of options in terms of direct services, transhipment services and ultimately transit times. With regards to UK exports to Turkey, the shipping lines are currently recording an average TEU imbalance of around 4:1.

Whilst a high percentage of Turkey’s exports were destined for Europe last year, there appears to be a continuing diversification of trading partners with a noticeable increase in trade with the Middle East and Central Asia in particular. This diversification offers the Turkish offices of John Good Denizcilik further opportunities to develop their business to and from areas other than the current core UK market.