The Turkish economy continues to move in a positive direction and had made good ground by the the end of 2015.
<h3><strong>Why Import from Turkey? An Economic Overview</strong></h3>
The Turkish economy continues to move in a positive direction and had made good ground by the the end of 2015. This growth was greatly assisted by reduced oil prices and a weakening Lire. The GDP saw an increase of 5.7% annually by the end of Q4 which returned the fastest single quarter growth since Q3 2011.
However, 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 and see an upgrade of the existing customs union. Turkey is also set to receive USD 6 million in financial aid with the possibility of Turkish nationals being able to freely enter the EU later this year.
<h3><strong>Top 10 Turkey Exports</strong></h3>
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%)
<strong>Further investment made by John Good to meet Turkish trade growth</strong></h3>
The names of John Good Shipping along with the wholly owned offices of John Good Denizcilik, based in Istanbul and Izmir, are now synonymous with the Turkish market and the John Good Group remains fully committed to this important trade lane and core market.
Continued growth has been achieved with its direct weekly consol container services from Istanbul and Izmir to the UK, along with FCL and road trailer services. John Good Denizcilik also continues to develop its own worldwide general forwarding activities to and from Turkey. The Turkish trade lane plays an important part in John Good’s 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.
The recent move to a new Istanbul receiving depot based on Ambarli Port will now offer Turkish shippers a greater degree of flexibility along with an extended receiving period. Further investment in the UK operation has also been made with additional sales persons appointed to boost our presence in the south of England. New account managers have also been recruited and are now in position at Hull, Manchester and London Gateway.
<strong><h3>Is Turkey ready for the new SOLAS Regulations (VGM)?</h3></strong>
With effect from the 1st July 2016, any sea freight container departing from any worldwide port must be accompanied by a document confirming the verified gross mass – as recently discussed by Jane Nash of John Good on SOLAS here: <a href=”http://www.johngood.co.uk/industry-insight/our-voice-alan-platt/10-things-you-need-to-know-about-the-new-solas-regulations/”>10 things you need to know about SOLAS.</a>
Non presentation of this document will result in the container not being loaded to the intended vessel. Weighing must be done by one of two methods:
Method 1 – Following the loading and sealing of the container the shipper or a third party acting on behalf of the shipper may weigh the container.
Method 2 – Would require the shipper or a third party to weigh all the cargo items including all packing material prior to loading and then add the tare weight of the container to the total cargo weight to obtain the VGM.
All weighing must be done on calibrated scales certified to the country of loading. The Istanbul and Izmir office of John Good Denizcilik are currently offering guidance to the Turkish shippers in relation to the above, however, the shipping lines operating on this trade are still unsure as to how VGM will be handled at the Turkish ports.
The Turkish Ministry of Transport (MOT) is currently in the process of collating information following meetings with all the concerned parties (Port Authorities, Terminal Operators, Shipping Lines etc.) and upon finalisation, the MOT will issue the regulation guidelines.
A second round of meetings with all the concerned parties is due to take place in early May to finalise the regulation draft with the regulation guidelines to be in place by the end of May / early June. The feedback from Turkey is that the MOT is putting great focus on this matter and the necessary arrangements will be in place for all involved parties to meet the 1st July start date for VGM.
Alan Steadman, Turkey Trade Manager, John Good Shipping.
For more about John Good Shipping’s service to/from Turkey, visit our dedicated page.