UTİKAD President Bilgehan Engin emphasized that with effective utilization of geographical advantages, the logistics sector could become a foreign currency source of comparable importance to tourism. Criticizing exporters for overly fixating on freight prices, Engin pointed out that the crisis in the Red Sea had globally escalated freight prices, deeming it a normal occurrence in the context of ongoing events. Anticipating the persistence of the crisis’s impact into the first quarter of the year, Engin expressed their expectation that security would be reinstated in the Red Sea.

The annual press conference organized by the International Transport and Logistics Service Providers Association (UTİKAD) addressed significant developments in the logistics sector in Turkey and globally. Held on January 10, the meeting drew intense interest from both the sectoral and national press. UTİKAD President Bilgehan Engin and FIATA (International Federation of Freight Forwarders Associations) President Turgut Erkeskin successively outlined the current dynamics within the industry and outlined Turkey’s pivotal role in the world of logistics.

President Bilgehan Engin, in his inaugural address, acknowledged the exporters’ sensitivity to the rise in freight prices, stating, “Disruptions in the supply chain and the escalation of freight prices are global issues. It’s entirely normal for prices to rise given the current circumstances.” Drawing parallels with export powerhouses China and Germany, Engin remarked, “Exporters’ competitiveness will grow as we export high-value-added products similar to these countries.” Providing trade statistics for 2023, he indicated that Turkey imported goods worth 361.8 billion dollars and exported goods totaling 255.8 billion dollars. Engin also highlighted that service exports reached 85.3 billion dollars in the January-October 2023 period, with freight revenues noted at 11.9 billion dollars. He concluded, “If Turkey effectively leverages its geographical advantages, the logistics sector has the potential to become a foreign currency source as significant as tourism.”

UTİKAD President Bilgehan Engin

Highlighting significant developments in the logistics sector for 2023, Engin pointed out that the importance of disaster logistics became more apparent after the earthquake disaster on February 6. Additionally, he addressed the adverse effects of the ongoing Russia-Ukraine war and the Israeli-Palestinian conflict that commenced in the last quarter of the year. Engin noted that geopolitical crises have spurred the sector to take measures aimed at enhancing its resilience.

Engin noted that the crisis stemming from security concerns in the Red Sea in 2023, leading maritime transportation companies to halt their passage through the Suez Canal and alter shipment routes, has escalated freight costs and delivery times. He mentioned their commitment to continuing information-sharing efforts to keep relevant parties informed about the matter.

FIATA President Turgut Erkeskin

Following President Engin, Turgut Erkeskin, elected as FIATA President on October 6, 2023, took the stage. Underscoring the significance of FIATA as the industry’s advocate across 150 countries, Erkeskin mentioned that since his election, they have organized two noteworthy events in Turkey. He highlighted the importance of these gatherings in showcasing the country’s value in terms of rail and road. The FIATA President remarked, “According to statements from the World Bank, the past 5 years have witnessed the slowest growth in the last 30 years. A growth rate of 2.4% is anticipated in 2024. Behind this projection lie geopolitical realities, climate considerations, and economic factors.”

FIATA PRESIDENT ERKESKİN: EMBRACE RESILIENCE AGAINST EXTERNAL SHOCKS, NOT AN ABSENCE OF CRISES

Erkeskin highlighted the impact of the 2019 coronavirus pandemic, describing it as a shock to the logistics sector. He noted that subsequent events, such as the Ukraine-Russia war, along with geopolitical tensions in Taiwan, Palestine, and Ukraine, triggered economic conflicts, posing a threat to logistics security. The FIATA President observed that the world has adopted a more protectionist and conservative stance following successive crises and wars, directly influencing the sector. He remarked on the changing norms, stating, “Our new normal is not the absence of shocks; it is resilience against external shocks.”

“NEW CORRIDORS ARE BEING DEFINED”

The FIATA President foresaw that the shocks experienced in recent years would persist in different forms in the years ahead. He mentioned that every disruption prompts the industry to seek alternative solutions, yielding occasional positive outcomes. In the context of transporting products from China, referred to as the world’s factory, to various locations, he conveyed that new routes are being established by altering logistics flows.

With ongoing conflicts like Russia-Ukraine in the north and Israel’s attacks on Gaza in the south, the “Central Corridor” emerges as a significant alternative for transporting Chinese products to the West through the Central Asia and Turkey routes. Erkeskin’s remarks underscore the importance of this corridor.

Erkeskin observed a contemporary bipolarity between China and the U.S., reminiscent of the Cold War era between the Soviets and the U.S., stating, “As bipolar and multipolar alliances take shape, it is crucial for Turkey to expand its network of allies. This is vital to ensure we do not see a decline in our share of the world economy.”