Foreign firms turning to Türkiye amid Red Sea troubles

ISTANBUL

Companies in the European Union and the Balkan countries have been turning to suppliers in Türkiye over the past weeks as troubles in the Red Sea increase freight costs and disrupt deliveries, business daily Dünya has reported.

After Yemen’s rebel group Houthi started to launch attacks on ships, container vessels are opting to go around the Cape of Good Hope in Africa, a longer and more costly trip.

In the face of higher costs and longer delivery times, goods in the inventories of the companies in some EU countries have started to deplete, forcing them to turn to suppliers in Türkiye, representatives from different Turkish business associations told the daily.

Demand from the EU, the Balkan countries and the Middle Eastern nations for agricultural products, processed food, apparel and kitchenware has increased significantly over the past two to three weeks, they said.

“We had predicted that demand would shift toward Türkiye after the troubles in the Red Sea began. Now, our predictions appear to have materialized,” said Kazım Taycı, the president of the İstanbul Cereals Pulses Oil Seeds and Products Exporters’ Association (İHBİR).

Demand for agricultural and food products has been on the rise, he added.

The problems in the Red Sea do not seem to be temporary, they may last for some more time, commented Burak Önder from the Houseware and Kitchenware Industrialists and Exporters Association (EVSİD).

“A large supermarket chain from Europe contacted us, inquiring about products we have ready,” he said.

There are signs that orders may increase, but the picture will become clearer in March, according to Önder.

Companies say orders have increased nearly 50 percent for Turkish textile products and apparel, said Kudret Hazer, the general manager of K&B Property Türkiye, noting that Turkish companies can deliver orders to their clients in Europe in three days.