Tuesday, May 31, 2016

Shipping and Logistics Specialist Analyses Turkish Trade Prospects

Economy May Develop Despite Multiple Problems
Shipping News Feature
TURKEY – Whilst it can at times be difficult to see past the headlines of a country at the centre of a major crisis with a surge of refugees and a downturn in its tourism industry, it is often overlooked that the Turkish economy continues to move in a positive direction, having made good ground by the end of 2015. Companies worldwide continue to invest in the country, one such firm being John Good Shipping, one of the UK’s longest established freight and logistics groups, which recently analysed Turkey’s import/export market and its viability to maintain its growth.

Having established a presence in both Istanbul and Izmir, John Good found that the country’s GDP saw an increase of 5.7% annually by the end of Q4 2015 which returned the fastest single quarter growth since Q3 2011. It is doubtful if this growth will be maintained due to the uncertainty and volatility currently surrounding the global markets. Turkey has now entered a period of increased tension as the fighting in the east with Kurdish militants and efforts to prevent violence spreading across the border from Syria continue. These issues, along with the increased terrorist activities seen recently in Istanbul and Ankara, will no doubt hamper further growth.

The recent agreement reached between Turkey and the European Union, in relation to the refugee crisis, is expected to bring forward Turkey’s accession to the European Union, despite protestation to the contrary by the British Prime Minister, and thereby see an upgrade of the existing customs union. Turkey is also set to receive $6 million in financial aid with the possibility of Turkish nationals being able to freely enter the EU later this year.

In 2015, *exports from Turkey amounted to US$143.9 billion. This saw an increase of 6.7% since 2011, however, this was down -8.7% from 2014 to 2015. Turkey’s top 10 exports accounted for nearly 60% of the overall value of its global shipments which include:

  1. Vehicles: US$17.5 billion (12.1% of total exports)
  2. Machines, engines, pumps: $12.3 billion (8.6%)
  3. Gems, precious metals: $11.3 billion (7.8%)
  4. Knit or crochet clothing: $8.9 billion (6.2%)
  5. Electronic equipment: $8.3 billion (5.8%)
  6. Iron and steel: $6.6 billion (4.6%)
  7. Clothing (not knit or crochet): $5.9 billion (4.1%)
  8. Iron or steel products: $5.5 billion (3.8%)
  9. Plastics: $5.4 billion (3.7%)
  10. Oil: $4.5 billion (3.1%)

John Good has found that the Turkish trade lane plays an important part in its growth strategy, having handled in excess of 4000 TEU in 2015. In order to facilitate this growth, further investment in the Turkish operation has been made with the John Good Denizcilik Istanbul office relocating to larger premises and additional sales and operational staff being appointed. There has also been an expansion of the sales department within the Izmir office with IT systems currently being upgraded in both locations.

* Source WTEx.