Sharp decline in Turkish port cargo traffic highlights maritime concerns

Cargo traffic at Turkish ports is rapidly contracting, which is concerning given that over 70% of Türkiye’s foreign trade is carried out via sea routes.

Situation at Turkish ports

Turkish ports are experiencing a significant decline in cargo traffic. In August, the cargo volume at ports decreased by 4.5% year-on-year, totaling 42.8 million tons. Foreign trade cargo underwent a more significant contraction.

Details

• Foreign trade cargo: In August, foreign trade cargo dropped by 5.7% year-on-year, totaling 36.3 million tons.
• Import cargo: The most significant decline was in import cargo, which saw an 8.4% reduction in August.
• September: Both the Turkish Shipowners Association and other industry experts have noted that cargo traffic remained low in September as well.

Container shipping

• Increase: In the first eight months of 2024, the number of containers handled at ports increased by 9.1% year over year, reaching 9.06 twenty-foot equivalent units (TEUs).
• Reason: The decrease in total cargo has led to a shift toward container shipping for smaller loads, which is more economical.

Global indices

• Drewry World Composite Container Index recently fell by 8%, reaching $4,775 per 40-foot container.
• Freight rates: Freight rates from Shanghai to Rotterdam decreased by 14% and from Shanghai to Genoa by 12%. Rates from Shanghai to Los Angeles fell by only 3%.

The sharp decline in cargo traffic at Turkish ports and the drop in global freight indices signal potential issues in maritime trade.