Yemeni rebel attacks on Red Sea shipping create unexpected boon for Turkish manufacturers
A study by Sea Intelligence revealed that recent maritime disruptions in the Red Sea have created a more significant impact on global supply chains than the COVID-19 pandemic. Presently, the daily Red Sea cargo throughput is approximately 200,000 containers, marking a significant drop from the roughly 500,000 containers transported each day in November.
7:55 PM EST, January 24, 2024
The necessity for ships to take longer, more roundabout routes has extended transport times between Asian production hubs and European buyers by up to 20 days.
Increasing demand for products from Turkey
"Hurriyet" has cited industry sources stating that this situation has spurred a new wave of orders for Turkish exporters. Data suggests a marked increase in European customers' interest in Turkish products as Chinese goods are becoming more expensive and are facing delayed deliveries.
Mustafa Gultepe, Chairman of the Turkish Assembly of Exporters, opines that this could turn into an opportunity for Turkey.
"It's too early to mention a substantial increase in orders, but we would witness an upswing if the crisis persists; we've already started seeing the initial effects in January," he acknowledged.
Burak Onder, who chairs the Turkish Association of Household Goods and Kitchenware Producers and Exporters (EVSID), emphasizes that Turkey has road access to 58 countries' markets, a potential advantage considering the soaring transport costs from the Far East.
The Houthi rebels, backed by Iran, have been attacking merchant and warships in the Red Sea, one of the globe's busiest shipping routes. The rebels claim their intention is to support Palestinians battling Israeli forces in the Gaza Strip. In retaliation, US and British forces are running a campaign targeting Houthi locations in Yemen.
